Instructions For Form 1120-Reit - 2004 (Page 11 of 13) in pdf

•

Do not include on line 3g any interest due

Credit for Contributions to Selected

8. Multiply line 2 by 15% . . . . . . . . . . .

under section 1291(c)(3). Instead, show the

Community Development Corporations (Form

9. Multiply line 4 by 25% . . . . . . . . . . .

amount of interest owed in the bottom margin

8847).

•

of page 1, Form 1120-REIT, and enter “Section

Trans-Alaska pipeline liability fund credit

10. Multiply line 6 by 34% . . . . . . . . . . .

1291 interest.” For details, see Form 8621.

(see instructions)

•

11. Multiply line 7 by 35% . . . . . . . . . . .

General credits from an electing large

Additional tax under section 197(f). A

partnership (Schedule K-1 (Form 1065-B))

12. If the taxable income of the controlled

corporation that elects to pay tax on the gain

group exceeds $100,000, enter this

from the sale of an intangible under the related

Line 4d –Credit for Prior Year

member’s share of the smaller of: 5%

person exception to the anti-churning rules

of the taxable income in excess of

Minimum Tax

should include any additional tax due under

$100,000, or $11,750. (See the

To figure the minimum tax credit and any

section 197(f)(9)(B) in the total for line 3g. On

instructions for line 2b above.) . . . . .

carryforward of that credit, use Form 8827,

the dotted line next to line 3g, enter “Section

13. If the taxable income of the controlled

Credit for Prior Year Minimum Tax —

197” and the amount. For more information,

group exceeds $15 million, enter this

Corporations. Also see Form 8827 if any of the

see Pub. 535.

member’s share of the smaller of 3%

REIT’s 2003 nonconventional source fuel credit

of the taxable income in excess of $15

Line 4a –Foreign Tax Credit

or qualified electric vehicle credit was

million, or $100,000. (See the

disallowed solely because of the tentative

To find out when a REIT can claim the foreign

instructions for line 2b above.) . . . . .

minimum tax limitation. Also see section 53(d).

tax credit for payment of income tax to a

14. Total. Add lines 8 through 13. Enter

foreign country or U.S. possession, see Form

Line 6 –Personal Holding Company

here and on line 3a, Schedule J . . . .

1118, Foreign Tax Credit — Corporations.

Tax

Line 4b

A REIT is taxed as a personal holding

company under section 542 if:

If the REIT can claim either of the following

•

Line 3e

At least 60% of its adjusted ordinary gross

credits, check the appropriate box(es) and

income for the tax year is personal holding

Enter the amount of the 100% excise tax

include the amount of the credits in the total for

company income, and

imposed on the following:

line 4b.

•

At any time during the last half of the tax

Income of a taxable REIT subsidiary (TRS)

Nonconventional source fuel credit. A credit

year more than 50% in value of its outstanding

for services provided to the REIT’s tenants that

is allowed for the sale of qualified fuels

stock is owned, directly or indirectly, by five or

is improperly included in rents from real

produced from a nonconventional source.

fewer individuals.

property reported by the REIT instead of being

Section 29 contains a definition of qualified

reported by the TRS.

See Schedule PH (Form 1120), U.S.

•

fuels, provisions for figuring the credit, and

Deductions that are improperly allocated

Personal Holding Company (PHC) Tax, for

other special rules. Attach a separate schedule

between the REIT to its TRS.

definitions and details on how to figure the tax.

to the return showing the computation of the

•

Interest deductions of a TRS to the extent

credit.

Line 7 –Other Taxes

that interest payments to its REIT are in excess

Qualified electric vehicle (QEV) credit. Use

of a rate that is commercially reasonable.

Include any of the following taxes and interest

Form 8834, Qualified Electric Vehicle Credit, if

in the total on line 7. Check the appropriate

See section 857(b)(7) for details and

the REIT can claim a credit for the purchase of

box(es) for the form, if any, used to compute

exceptions.

a new qualified electric vehicle. Vehicles that

the total.

qualify for this credit are not eligible for the

Line 3f – Alternative Minimum Tax

Recapture of investment credit. If the REIT

deduction for clean-fuel vehicles under section

(AMT)

disposed of investment credit property or

179A.

changed its use before the end of its useful life

Unless the REIT is treated as a small

or recovery period, it may owe a tax. See Form

Line 4c –General Business Credit

corporation exempt from the AMT, it may owe

4255, Recapture of Investment Credit, for

the AMT if it has any of the adjustments and

Enter on line 4c the REIT’s total general

details.

tax preference items listed on Form 4626,

business credit.

Recapture of low-income housing credit. If

Alternative Minimum Tax — Corporations. The

If the REIT is filing Form 8844,

the REIT disposed of property (or there was a

REIT must file Form 4626 if its taxable income

Empowerment Zone and Renewal Community

reduction in the qualified basis of the property)

(loss) combined with these adjustments and

Employment Credit, or Form 8884, New York

for which it took the low-income housing credit,

tax preference items is more than the smaller

Liberty Zone Business Employee Credit, check

it may owe a tax. See Form 8611, Recapture of

of:

•

the “Form(s)” box, enter the form number in the

Low-Income Housing Credit.

$40,000 or

•

space provided, and include the allowable

The REIT’s allowable exemption amount

Other. Additional taxes and interest amounts

credit on line 4c.

(from Form 4626).

can be included in the total entered on line 7.

Check the box for “Other” if the REIT includes

If the REIT is required to file Form 3800,

For this purpose, taxable income does not

any of the taxes and interest discussed below.

General Business Credit, check the “Form

include the NOL deduction. See Form 4626 for

See How to report , below for details on

3800” box and include the allowable credit on

details.

reporting these amounts on an attached

line 4c. If the REIT is not required to file Form

Exemption for small corporations. A

schedule.

3800, check the “Form(s)” box, enter the form

REIT is treated as a small corporation exempt

number in the space provided, and include on

1. Recapture of qualified electric vehicle

from the AMT for its tax year beginning in 2004

line 4c the allowable credit from the applicable

(QEV) credit. The REIT must recapture part of

if that year is the REIT’s first tax year in

form listed below.

the QEV credit it claimed in a prior year if,

existence (regardless of its gross receipts) or:

•

Investment Credit (Form 3468).

within 3 years of the date the vehicle was

•

1. It was treated as a small corporation

Work Opportunity Credit (Form 5884).

placed in service, it ceases to qualify for the

•

exempt from the AMT for all prior tax years

Welfare-to-Work Credit (Form 8861).

credit. See Regulations section 1.30-1 for

•

beginning after 1997 and

Credit for Alcohol Used as Fuel (Form 6478).

details on how to figure the recapture.

•

2. Its average annual gross receipts for the

Credit for Increasing Research Activities

2. Recapture of Indian employment credit.

3-tax-year period (or portion thereof during

(Form 6765).

Generally, if an employer terminates the

•

which the REIT was in existence) ending

Low-Income Housing Credit (Form 8586).

employment of a qualified employee less than

•

before its tax year beginning in 2004 did not

Enhanced Oil Recovery Credit (Form 8830).

1 year after the date of initial employment, any

•

exceed $7.5 million ($5 million if the REIT had

Disabled Access Credit (Form 8826).

Indian employment credit allowed for a prior

•

only 1 prior tax year).

Renewable Electricity and Refined Coal

tax year because of wages paid or incurred to

Production Credit (Form 8835, Section A only).

that employee must be recaptured. For details,

•

For more details, see the Instructions for

Indian Employment Credit (Form 8845).

see Form 8845 and section 45A.

•

Form 4626.

Credit for Employer Social Security and

3. Recapture of new markets credit (see

Medicare Taxes Paid on Certain Employee

Form 8874).

Line 3g – Income Tax

Tips (Form 8846).

4. Recapture of employer-provided

•

Deferred tax under section 1291. If the REIT

Orphan Drug Credit (Form 8820).

childcare facilities and services credit (see

•

was a shareholder in a passive foreign

New Markets Credit (Form 8874).

Form 8882).

•

investment company (PFIC) and received an

Credit for Small Employer Pension Plan

5. Interest due on deferred tax attributable

excess distribution or disposed of its

Startup Costs (Form 8881).

to (a) installment sales of certain timeshares

•

investment in the PFIC during the year, it must

Credit for Employer-Provided Child Care

and residential lots (section 453(l)(3)) and (b)

include the increase in taxes due under section

Facilities and Services (Form 8882).

certain nondealer installment obligations

•

1291(c)(2) in the total for line 3g. On the dotted

Biodiesel Fuels Credit (Form 8864).

(section 453A(c))

•

line to the left of line 3g, enter “Section 1291”

Low Sulfur Diesel Fuel Production Credit

6. Interest due on deferred gain (section

and the amount.

(Form 8896).

1260(b)).

-11-

Instructions For Form 1120-Reit - 2004 Page 11

Related Articles

Related forms

Related Categories