2011 Shareholder'S Instructions For Schedule K-1 (Form 1120s) (Page 8 of 14) in pdf

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Net short-term capital gain (loss)

interest in the corporation at the time

If the corporation made a property

and net long-term capital gain (loss)

the QSB stock was acquired.

contribution, it will report on an

from Schedule D (Form 1120S) that

See the Instructions for Schedule

attached statement your share of

is not portfolio income. An example is

D (Form 1040) for details on how to

both the fair market value and

gain or loss from the disposition of

report the gain and the amount of the

adjusted basis of the property. Use

nondepreciable personal property

allowable postponed gain.

these amounts to adjust your stock

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used in a trade or business activity of

Gain eligible for section 1045

basis. If the corporation made a

the corporation. Report total net

rollover (replacement stock not

qualified conservation contribution, it

short-term gain (loss) on Schedule D

purchased by the corporation). The

will report the fair market value of the

(Form 1040), line 5. Report the total

corporation should also give you (a)

underlying property before and after

net long-term gain (loss) on Schedule

the name of the corporation that

the donation, the type of legal interest

D (Form 1040), line 12.

issued the qualified small business

contributed, and a description of the

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(QSB) stock, (b) your share of the

conservation purpose furthered by

Current year section 108(i)

corporation’s adjusted basis and

the donation. If the corporation made

cancellation of debt income. The

sales price of the QSB stock, and (c)

a contribution of real property located

corporation will provide your share of

the dates the QSB stock was bought

in a registered historic district, it will

the deferred amount that you must

and sold. To qualify for the section

report any information you will need

include in income in the current tax

1045 rollover:

to take a deduction.

year under section 108(i)(1) or

section 108(i)(5)(D)(i) or (ii).

1. You must have held an interest

For more details, see Pub. 526,

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in the corporation during the entire

Gain from the sale or exchange of

Charitable Contributions, and the

period in which the corporation held

qualified small business (QSB) stock

Instructions for Schedule A (Form

the QSB stock (more than 6 months

(as defined in the Instructions for

1040). If your contributions are

prior to the sale),

Schedule D (Form 1040)) eligible for

subject to more than one of the AGI

2. Your share of the gain eligible

the section 1202 exclusion. The

limitations, see Pub. 526.

for the section 1045 rollover cannot

corporation should also give you (a)

Charitable contribution deductions

exceed the amount that would have

the name of the corporation that

are not taken into account in figuring

been allocated to you based on your

issued the QSB stock, (b) your share

your passive activity loss for the year.

interest in the corporation at the time

of the corporation’s adjusted basis

Do not enter them on Form 8582.

the QSB stock was acquired, and

and sales price of the QSB stock, and

Code A. Cash contributions (50%).

3. You must purchase other QSB

Report this amount, subject to the

stock (as defined in the Instructions

bought and sold. The following

50% AGI limitation, on line 16 of

for Schedule D (Form 1040)) during

additional limitations apply at the

Schedule A (Form 1040).

the 60-day period that began on the

shareholder level.

date the QSB stock was sold by the

Code B. Cash contributions (30%).

1. You must have held an interest

corporation.

Report this amount, subject to the

in the corporation when the

See the Instructions for Schedule

30% AGI limitation, on line 16 of

corporation acquired the QSB stock

D (Form 1040) for details on how to

Schedule A (Form 1040).

and at all times thereafter until the

report the gain and the amount of the

corporation disposed of the QSB

Code C. Noncash contributions

allowable postponed gain.

stock.

(50%). If property other than cash is

2. Your share of the eligible

contributed, and if the claimed

Deductions

section 1202 gain cannot exceed the

deduction for one item or group of

amount that would have been

2011 Shareholder'S Instructions For Schedule K-1 (Form 1120s) Page 8

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