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 Page 2
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10•
whom the nominee holds the partnership
Disqualified persons must report items
Money and your adjusted basis in
interest a copy of Schedule K-1 and
of income, gain, loss, deduction, and
property contributed to the partnership.
•
related information within 30 days of
credit attributable to partnership oil and
Your share of the increase in the
receiving it from the partnership.
gas properties as if the special rules for
partnership’s liabilities (or your individual
electing large partnerships did not apply.
liabilities caused by your assumption of
A nominee who fails to furnish when
partnership liabilities).
due all the information required by
Nonrecourse Loans
•
Your share of the partnership’s income
Temporary Regulations section
Nonrecourse loans are those liabilities of
(including tax-exempt income).
1.6031(c)-1T, or who furnishes incorrect
the partnership for which no partner bears
Items that decrease your basis (but
information, is subject to a $50 penalty for
the economic risk of loss.
not below zero) are:
each statement for which a failure occurs.
•
Money and the adjusted basis of
The maximum penalty is $100,000 for all
Elections
property distributed to you.
such failures during a calendar year. If the
•
Generally, the partnership decides how to
Your share of the decrease in the
nominee intentionally disregards the
figure taxable income from its operations.
partnership’s liabilities (or your individual
requirement to report correct information,
However, two elections are made by you
liabilities assumed by the partnership).
each $50 penalty increases to $100 or, if
•
separately on your income tax return and
Your share of the partnership’s losses
greater, 10% of the aggregate amount of
not by the partnership. These elections
(including capital losses).
items required to be reported, and the
•
are made under the following code
Your share of the partnership’s
$100,000 maximum does not apply.
sections:
nondeductible expenses.
•
Section 108(b)(5) (income from the
International Boycotts
Additional basis adjustments may
discharge of indebtedness).
•
apply to partners claiming deductions for
Every partnership that had operations in,
Section 901 (foreign tax credit).
depletion. See Pub. 541 for more details.
or related to, a boycotting country,
If the partnership attaches a statement
company, or a national of a country must
At-Risk Limitations
to Schedule K-1 indicating that it has
file Form 5713, International Boycott
changed its tax year and that you may
Generally, if you have (a) a loss or other
Report.
elect to report your distributive share of
deduction from any activity carried on as
If the partnership cooperated with an
the income attributable to that change
a trade or business or for the production
international boycott, it must give you a
ratably over 4 tax years, see Rev. Proc.
of income by the partnership and (b)
copy of its Form 5713. You must file your
2003-79, 2003-45 I.R.B. 1036, for details
amounts in the activity for which you are
own Form 5713 to report the partnership’s
on making the election. To make the
not at risk, you will have to complete
activities and any other boycott
election, you must file Form 8082, Notice
Form 6198, At-Risk Limitations, to figure
operations that you may have. You may
of Inconsistent Treatment or
your allowable loss.
lose certain tax benefits if the partnership
Administrative Adjustment Request, with
The at-risk rules generally limit the
participated in, or cooperated with, an
your income tax return for each of the 4
amount of loss and other deductions that
international boycott. See Form 5713 and
tax years. File Form 8082 for this purpose
you can claim to the amount you could
the instructions for more information.
in accordance with Rev. Proc. 2003-79
actually lose in the activity. However, if
instead of the Form 8082 instructions.
you acquired your partnership interest
Definitions
before 1987, the at-risk rules do not apply
Additional Information
to losses from an activity of holding real
General Partner
For more information on the treatment of
property placed in service before 1987 by
A general partner is a partner who is
partnership income, credits, deductions,
the partnership. The activity of holding
personally liable for partnership debts.
etc., see Pub. 541, Partnerships; Pub.
mineral property does not qualify for this
535, Business Expenses; and Pub. 925,
exception. The partnership should identify
Limited Partner
Passive Activity and At-Risk Rules.
on an attachment to Schedule K-1 the
A limited partner is a partner in a
amount of any losses that are not subject
To get forms and publications, see the
partnership formed under a state limited
to the at-risk limitations.
instructions for your tax return.
partnership law, whose personal liability
Generally, you are not at risk for
for partnership debts is limited to the
Limitations on Losses,
amounts such as the following:
amount of money or other property that
•
Nonrecourse loans used to finance the
Deductions, and Credits
the partner contributed or is required to
activity, to acquire property used in the
contribute to the partnership. Some
There are three separate potential
activity, or to acquire your interest in the
members of other entities, such as
limitations on the amount of partnership
activity, that are not secured by your own
domestic or foreign business trusts or
losses that you may deduct on your
property (other than the property used in
limited liability companies that are
return. These limitations and the order in
the activity). See the instructions for
classified as partnerships, may be treated
which you must apply them are as
Partner’s Share of Liabilities on page 5
as limited partners for certain purposes.
follows: the basis rules, the at-risk
for the exception for qualified
For example, see Temporary Regulations
limitations, and the passive activity
nonrecourse financing secured by real
section 1.469-5T(e)(3), which treats all
limitations. Each of these limitations is
property.
members with limited liability as limited
•
discussed separately below.
Cash, property, or borrowed amounts
partners for purposes of section 469(h)(2)
used in the activity (or contributed to the
Basis Rules
(concerning the passive loss limitation
activity, or used to acquire your interest in
rules).
Generally, you may not claim your share
the activity) that are protected against
of a partnership loss (including a capital
Disqualified Person
loss by a guarantee, stop-loss agreement,
loss) to the extent that it is greater than
or other similar arrangement (excluding
If you are a partner in a partnership
the adjusted basis of your partnership
casualty insurance and insurance against
holding oil and gas properties, you are a
interest at the end of the partnership’s tax
tort liability).
disqualified person if:
•
year.
•
Amounts borrowed for use in the
You are an oil or natural gas retailer
activity from a person who has an interest
The partnership is not responsible for
described in section 613A(d)(2) or crude
in the activity, other than as a creditor, or
keeping the information needed to figure
oil refiner described in section 613A(d)(4)
who is related, under section 465(b)(3), to
the basis of your partnership interest. You
or
•
a person (other than you) having such an
can figure the adjusted basis of your
Your average daily production of
interest.
partnership interest by adding items that
domestic crude oil and natural gas
increase your basis and then subtracting
exceeds 500 barrels for your tax year in
To help you complete Form 6198, the
items that decrease your basis.
which the partnership’s tax year ends.
partnership should specify on an
See section 776(b) for more details.
Items that increase your basis are:
attachment to Schedule K-1 your share of
-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) - 2004
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