Instructions For Schedule O (Form 1120) - 2008 (Page 8 of 8) in pdf

corporation’s income tax return) or

Column (f) and (g). A corporation’s

allocate the $40,000 AMT exemption

the corporation’s computed share of

share of any additional tax liability

amount unequally if they adopt an

the $50,000 bracket.

under section 11(b)(1) is determined

apportionment plan or have an

as explained in Determining the

apportionment plan in effect.

Column (d). Enter the lesser of the

amount of the section 11(b)(1)

corporation’s taxable income (as

Column (d). The component

additional tax,on page 5.

shown on Form 1120, page 1, line 30,

members of a controlled group must

or on the comparable line of the

Column (h). Enter here the total

apportion the reduction to the AMT

corporation’s income tax return)

apportioned income tax for each

exemption amount to the same

minus the amount entered for this

component member. Combine all the

corporations, and in the same

corporation in column (c), or the

amounts of apportioned tax of each

proportions, as the AMT exemption

corporation’s computed share of the

member, as shown in columns (b)

amount was apportioned in Column

$25,000 bracket.

through (g).

(c). If the combined AMTI of the

members of the group is at least

Column (e). Enter the lesser of the

Part IV. Other

$310,000, the corporation is not

corporation’s taxable income (as

required to complete columns (c) and

shown on Form 1120, page 1, line 30,

Apportionments

(d) of Part IV, since the exemption

or on the comparable line of the

amount phases out at $310,000. See

Brother-sister controlled group.

corporation’s income tax return)

Allocation of AMT Exemption Amount

For purposes of apportioning the

minus the amounts entered for this

and the Reduction of the AMT

amounts included in columns (b)

corporation in columns (c) and (d), or

Exemption Amount on page 6.

through (d), determine the members

the corporation’s computed share of

of a brother-sister controlled group,

the $9,925,000 bracket.

Column (e). For purposes of

using only the 50% test as provided

determining whether the component

Column (f). Enter taxable income

in section 1563(a)(2). For purposes of

members of a controlled group are

(Form 1120, page 1, line 30, or the

apportioning the amounts included in

subject to penalty for failure to pay

comparable line of the corporation’s

columns (e) and (f), determine the

the correct amount of estimated tax

income tax return) minus the amounts

members of a brother-sister

under section 6655(g), those

entered for this corporation in

controlled group using both the 50%

component members of a controlled

columns (c) through (e).

and 80% tests as provided in section

group must combine their taxable

Column (g). Enter the total

1563(f)(5). See Brother-sister group

incomes for their tax years that were

allocated taxable income amounts of

on page 2.

subject to the same December 31

each component member (add

testing date. If that amount is at least

Column (a). If a corporation

columns (c) through (f)). Each total in

$1 million for any tax year during the

qualifies as a member of a

Part II, column (g), for each

testing period (as defined in section

brother-sister controlled group, solely

component member must equal Form

6655(g)(2)(B)(i)), those members

because it satisfies just the 50%

1120, page 1, line 30, or the

must then divide that $1 million

ownership affiliation test, insert the

comparable line of such component

amount equally unless they have an

notation “(50)” after that corporation’s

member’s income tax return.

apportionment plan in effect.

name. If a corporation is a component

Note. If a corporation has a loss,

member of that group because it

Column (f). Enter each component

enter zero in columns (c) through (g).

satisfies both the 50% and 80%

member’s share of any other tax

ownership affiliation tests, then insert

benefit items not included in columns

Part III. Income Tax

the notation “(80)” after that

(b) through (e). Provide the applicable

Apportionment

corporation’s name.

Internal Revenue Code section

followed by the amount apportioned

Column (b). The component

Column (b). Multiply the taxable

to that member.

members of a controlled group may

income amount in Part II, column (c)

allocate the $250,000 accumulated

Note. Do not include on Schedule O

by 15% (0.15) and enter the result

earnings credit unequally if they

an apportionment among the

here.

adopt an apportionment plan or have

component members of any

Column (c). Multiply the taxable

an apportionment plan in effect.

deduction for certain depreciable

income amount in Part II, column (d)

Note. If any component member of

property for which a section 179

by 25% (0.25) and enter the result

a controlled group is the type of

expense election has been made.

here.

service corporation described in

Report this apportionment as required

Column (d). Multiply the taxable

section 535(c)(2)(B), the amount to

under section 179. See Regulations

income amount in Part II, column (e)

be apportioned among the

section 1.179-2(b)(7).

by 34% (0.34) and enter the result

component members is $150,000

here.

(rather than $250,000).

Column (e). Multiply the taxable

Column (c). The component

income amount in Part II, column (f)

members of a controlled group may

by 35% (0.35) and enter the result

here.

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Instructions For Schedule O (Form 1120) - 2008 Page 8

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