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The deduction allowed under section

complete and attach Form 8283 to their

The contribution is made not later than

249,

returns for contributions of property (other

3 years after the date the taxpayer

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Any net operating loss (NOL) carryback

than money) if the total claimed deduction

acquired or substantially completed the

to the tax year under section 172, and

for all property contributed was more than

construction of the property;

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Any capital loss carryback to the tax

$5,000.

The original use of the property is by

year under section 1212(a)(1).

the donor or the donee;

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If the REIT made a “qualified

Charitable contributions over the 10%

The property is not transferred by the

conservation contribution” under section

limitation may not be deducted for the tax

donee for money, service, or other

170(h), also include the FMV of the

year but may be carried over to the next 5

property, except for shipping, transfer,

underlying property before and after the

tax years.

and installation costs;

donation, as well as the type of legal

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The property fits productively into the

Special rules apply if the REIT has an

interest contributed, and describe the

donee’s education plan; and

NOL carryover to the tax year. In figuring

conservation purpose benefited by the

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The property meets standards, if any,

the charitable contributions deduction for

donation. If a contribution carryover is

that maybe prescribed by future

the tax year, the 10% limit is applied

included, show the amount and how it

regulations to assure it meets minimum

using the taxable income after taking into

was determined.

functionality and suitability for educational

account any deduction for the NOL.

Reduced deduction for

purposes.

To figure the amount of any remaining

contributions of certain property. For

Eligible donee. The term “eligible

NOL carryover to later years, taxable

a charitable contribution of property, the

donee” means:

income must be modified (see section

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REIT must reduce the contribution by the

An educational organization that

172(b)). To the extent that contributions

sum of:

normally maintains a regular faculty and

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are used to reduced taxable income for

The ordinary income and short-term

curriculum and has a regularly enrolled

this purpose and increase an NOL

capital gain that would have resulted if the

body of pupils in attendance at the place

carryover, a contributions carryover is not

property were sold at its FMV and

where its educational activities are

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allowed. See section 170(d)(2)(B).

For certain contributions, the long-term

regularly conducted,

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Substantiation requirements.

capital gain that would have resulted if the

A section 501(c)(3) entity organized

Generally, no deduction is allowed for any

property were sold at its FMV.

primarily for purposes of supporting

contributions of $250 or more unless the

The reduction for the long-term capital

elementary and secondary education, or

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REIT gets a written acknowledgment from

gain applies to:

A public library (as described in section

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the donee organization that shows the

Contributions of tangible personal

170(e)(6)(B)(i)(III)).

amount of cash contributed, describes

property for use by an exempt

Exceptions. The following exceptions

any property contributed, and gives a

organization for a purpose or function

apply to the above rules for computer

description and a good faith estimate of

unrelated to the basis for its exemption

technology and equipment:

the value of any goods or services

and

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Contributions to private foundations

provided in return for the contribution or

Contributions of any property to or for

may qualify if the foundation contributes

states that no goods or services were

the use of certain private foundations

the property to an eligible donee within 30

provided in return for the contribution. The

except for stock for which market

days after the contribution and notifies the

acknowledgment must be obtained by the

quotations are readily available (section

donor of the contribution. For more

due date (including extensions) of the

170(e)(5)).

details, see section 170(e)(6)(C).

REIT’s return, or if earlier, the date the

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Larger deduction. A larger deduction

For contributions of property reacquired

return is filed. Do not attach the

is allowed for certain contributions of:

by the manufacturer of the property, the 3

acknowledgment to the tax return, but

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Inventory and other property to certain

year period begins on the date that the

keep it with the REIT’s records. These

organizations for use in the care of the ill,

original construction of the property was

rules apply in addition to the filing

needy, or infants (see section 170(e)(3)

substantially completed. Also, the original

requirements for Form 8283, Noncash

and Regulations section 1.170A-4A);

use of the property may be by someone

Charitable Contributions, described

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Scientific equipment used for research

other than the donor or the donee.

below.

to institutions of higher learning or to

Pension, profit-sharing, etc., plans.

For more information on substantiation

certain scientific research organizations

Include the deduction for contributions to

and recordkeeping requirements, see the

(other than by personal holding

qualified pension, profit-sharing, or other

regulations under section 170 and Pub.

companies and service organizations)

funded deferred compensation plans.

526, Charitable Contributions.

(see section 170(e)(4)); and

Employers who maintain such a plan

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Contributions to organizations

Computer technology and equipment

generally must file one of the forms listed

conducting lobbying activities.

for educational purposes.

below, even if the plan is not a qualified

Contributions made to an organization

plan under the Internal Revenue Code.

Contributions of computer technology

that conducts lobbying activities are not

The filing requirement applies even if the

and equipment to for educational

deductible if:

REIT does not claim a deduction for the

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purposes. A REIT may take an

The lobbying activities relate to matters

current tax year. There are penalties for

increased deduction under section

of direct financial interest to the donor’s

failure to file these forms on time and for

170(e)(6) for qualified contributions of

trade or business and

overstating the pension plan deduction.

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computer technology or equipment for

The principal purpose of the

See sections 6652(e) and 6662(f).

educational purposes. Computer

contribution was to avoid Federal income

technology or equipment means

Form 5500, Annual Return/Report of

tax by obtaining a deduction for activities

computer software, computer or

Employee Benefit Plan. File this form for

that would have been nondeductible

peripheral equipment, and fiber optic

a plan that is not a one-participant plan

under the lobbying expense rules if

cable related to computer use.

(see below).

conducted directly by the donor.

Form 5500-EZ, Annual Return of

A contribution is a qualified

Contributions of property other than

One-Participant (Owners and Their

contribution if:

cash. If a REIT (other than a closely held

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Spouses) Retirement Plan. File this form

It is made to an eligible donee (see

REIT see below) contributes property

for a plan that only covers the owner (or

below);

other than cash and claims over a $500

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the owner and his or her spouse) but only

Substantially all of the donee property’s

deduction for the property, it must attach

if the owner (or the owner and his or her

use is:

a schedule to the return describing the

spouse) owns the entire business.

kind of property contributed and the

1. Related to the purpose or function

method used to determine its fair market

of the donee,

Travel, meals, and entertainment.

value (FMV). A closely held REIT must

2. For use within the United States,

Subject to limitations and restrictions

complete Form 8283 and attach it to its

and

discussed below, a REIT can deduct

return. All other REITs generally must

3. For educational purposes.

ordinary and necessary travel, meals, and

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Instructions For Form 1120-Reit - U.s. Income Tax Return For Real Estate Investment Trusts - 2002 Page 9

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