Partner'S Instructions For Schedule K-1 (Form 1065-B) - Partner'S Share Of Income (Loss) From An Electing Large Partnership (For Partner'S Use Only) - 2004 Page 2
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10items required to be reported, and the
are made under the following code
The at-risk rules generally limit the
$100,000 maximum does not apply.
sections.
amount of loss and other deductions that
•
Section 108(b)(5) (income from the
you can claim to the amount you could
International Boycotts
discharge of indebtedness).
actually lose in the activity. However, if
•
Section 901 (foreign tax credit).
you acquired your partnership interest
Every partnership that had operations in,
before 1987, the at-risk rules do not apply
If the partnership attaches a statement
or related to, a boycotting country,
to losses from an activity of holding real
to Schedule K-1 indicating that it has
company, or a national of a country must
property placed in service before 1987 by
changed its tax year and that you can
file Form 5713, International Boycott
the partnership. The activity of holding
elect to report your distributive share of
Report.
mineral property does not qualify for this
the income attributable to that change
If the partnership cooperated with an
exception. The partnership should identify
ratably over 4 tax years, see Rev. Proc.
on an attachment to Schedule K-1 the
international boycott, it must give you a
2003-79, 2003-45 I.R.B. 1036, for details
copy of its Form 5713. You must file your
amount of any losses that are not subject
on making the election. To make the
own Form 5713 to report the partnership’s
to the at-risk limitations.
election, you must file Form 8082, Notice
activities and any other boycott
Generally, you are not at risk for
of Inconsistent Treatment or
operations that you may have. You may
amounts such as the following.
Administrative Adjustment Request, with
•
lose certain tax benefits if the partnership
Nonrecourse loans used to finance the
your income tax return for each of the 4
participated in, or cooperated with, an
activity, to acquire property used in the
tax years. File Form 8082 for this purpose
international boycott. See Form 5713 and
activity, or to acquire your interest in the
in accordance with Rev. Proc. 2003-79
its instructions for more information.
activity, that are not secured by your own
instead of the Form 8082 instructions.
property (other than the property used in
Definitions
Additional Information
the activity). See the instructions for
Partner’s Share of Liabilities on page 5 for
For more information on the treatment of
General Partner
the exception for qualified nonrecourse
partnership income, deductions, credits,
financing secured by real property.
A general partner is a partner who is
•
etc., see Pub. 541, Partnerships; Pub.
Cash, property, or borrowed amounts
personally liable for partnership debts.
535, Business Expenses; and Pub. 925,
used in the activity (or contributed to the
Passive Activity and At-Risk Rules.
Limited Partner
activity, or used to acquire your interest in
To get forms and publications, see the
the activity) that are protected against
A limited partner is a partner in a
loss by a guarantee, stop-loss agreement,
instructions for your tax return.
partnership formed under a state limited
or other similar arrangement (excluding
partnership law, whose personal liability
Limitations on Losses,
casualty insurance and insurance against
for partnership debts is limited to the
tort liability).
amount of money or other property that
Deductions, and Credits
•
Amounts borrowed for use in the
the partner contributed or is required to
There are three separate potential
activity from a person who has an interest
contribute to the partnership. Some
limitations on the amount of partnership
in the activity, other than as a creditor, or
members of other entities, such as
who is related, under section 465(b)(3), to
losses that you can deduct on your return.
domestic or foreign business trusts or
These limitations and the order in which
a person (other than you) having such an
limited liability companies that are
you must apply them are as follows: the
interest.
classified as partnerships, may be treated
basis rules, the at-risk limitations, and the
as limited partners for certain purposes.
You should get a separate statement
passive activity limitations. Each of these
For example, see Temporary Regulations
of income, expenses, etc., for each
limitations is discussed separately below.
section 1.469-5T(e)(3), which treats all
activity from the partnership.
members with limited liability as limited
Basis Rules
Passive Activity Limitations
partners for purposes of section 469(h)(2)
Generally, you cannot claim your share of
Section 469 provides rules that limit the
(concerning the passive loss limitation
a partnership loss (including a capital
deduction of certain losses and credits.
rules).
loss) to the extent that it is greater than
These rules apply to partners who:
•
Disqualified Person
the adjusted basis of your partnership
Are individuals, estates, trusts, closely
interest at the end of the partnership’s tax
held corporations, or personal service
If you are a partner in a partnership
year. Any losses and deductions not
corporations and
holding oil and gas properties, you are a
•
allowed this year because of the basis
Have a passive activity loss or credit for
disqualified person if:
•
limit can be carried forward indefinitely
the tax year.
You are an oil or natural gas retailer
and deducted in a later year subject to the
described in section 613A(d)(2) or crude
If you have a passive activity loss or
basis limit for that year.
oil refiner described in section 613A(d)(4)
credit, use Form 8582, Passive Activity
or
The partnership is not responsible for
Loss Limitations, to figure your allowable
•
Your average daily production of
passive losses and Form 8582-CR,
keeping the information needed to figure
domestic crude oil and natural gas
the basis of your partnership interest. You
Passive Activity Credit Limitations, to
exceeds 500 barrels for your tax year in
can figure the adjusted basis of your
figure your allowable passive credits. For
which the partnership’s tax year ends.
a corporation, use Form 8810, Corporate
partnership interest by adding items that
See section 776(b) for more details.
increase your basis and then subtracting
Passive Activity Loss and Credit
items that decrease your basis.
Limitations. See the instructions for these
Disqualified persons must report items
forms for more information.
of income, gain, loss, deduction, and
Use the worksheet on page 3 to figure
credit attributable to partnership oil and
the basis of your interest in the
If the publicly traded partnership
!
gas properties as if the special rules for
partnership.
box on Schedule K-1 is checked,
electing large partnerships did not apply.
do not report passive income
CAUTION
Additional basis adjustments may
(loss) from the partnership on Form 8582.
Nonrecourse Loans
apply to partners claiming deductions for
See page 5 for the special rules for
depletion. See Pub. 541 for more details.
Nonrecourse loans are those liabilities of
publicly traded partnerships.
the partnership for which no partner bears
At-Risk Limitations
For limited partners of an electing
the economic risk of loss.
Generally, if you have (a) a loss or other
large partnership, all income, loss,
deduction from any activity carried on as
deductions, and credits from trade or
Elections
a trade or business or for the production
business and rental activities generally
Generally, the partnership decides how to
of income by the partnership and (b)
are reported as being from a trade or
figure taxable income from its operations.
amounts in the activity for which you are
business that is a single passive activity.
However, two elections are made by you
not at risk, you will have to complete
However, the determination of whether an
separately on your income tax return and
Form 6198, At-Risk Limitations, to figure
activity is a passive activity must be made
not by the partnership. These elections
your allowable loss.
by any partner who is either a:
-2-
ADVERTISEMENT
0 votes
Related Articles
Related forms
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2016
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2001
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2009
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2007
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2011
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2003
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) Draft - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2011
Financial
Partner's Instructions For Schedule K-1 (form 1065-b) - Partner's Share Of Income (loss) From An Electing Large Partnership (for Partner's Use Only) - 2002
Financial
Related Categories
Parent category: Financial