Instructions For Form 1120-Reit - 2003 (Page 12 of 12) in pdf

•

taxes or interest, and (c) enter the amount of

A foreign citizen or nonresident alien.

Meals and entertainment not deductible

•

tax or interest.

An individual who is a citizen of a U.S.

under section 274(n).

•

possession (but who is not a U.S. citizen or

Expenses for the use of an entertainment

Line 8 – Total Tax

resident).

facility.

•

Include any deferred tax on the termination of

A foreign partnership.

The part of business gifts over $25.

•

a section 1294 election applicable to

A foreign corporation.

Expenses of an individual over $2,000,

•

shareholders in a qualified electing fund in the

Any foreign estate or trust within the

which are allocable to conventions on cruise

amount entered on line 8. See Form 8621, Part

meaning of section 7701(a)(31).

ships.

•

V, and How to report, below.

A foreign government (or one of its agencies

Employee achievement awards over $400.

•

or instrumentalities) if it is engaged in the

The cost of entertainment tickets over face

Subtract. Amounts to subtract from the

conduct of a commercial activity as described

value (also subject to 50% limit under section

total for line 8 are the deferred tax on the

in section 892.

274(n)).

REIT’s share of the undistributed earnings of a

•

The cost of skyboxes over the face value of

qualified electing fund (see Form 8621, Part II).

Owner’s country. For individuals, the term

nonluxury box seat tickets.

“owner’s country” means the country of

How to report. Attach a schedule showing the

•

The part of luxury water travel not deductible

residence. For all others, it is the country

computation of each item included in, or

under section 274(m).

where incorporated, organized, created, or

subtracted from, the total for line 8. On the

•

Expenses for travel as a form of education.

administered.

dotted line next to line 8, enter the amount of

•

Other nondeductible travel and

tax or interest, identify it as tax or interest, and

Requirement to file Form 5472. If the REIT

entertainment expenses.

specify the Code section that applies.

checked “Yes” to line 5, it may have to file

For more information, see Pub. 542,

Form 5472. Generally, a 25% foreign-owned

Corporations.

corporation that had a reportable transaction

Schedule K—Other

with a foreign or domestic related party during

Line 7. Tax-exempt interest. Include as

the tax year must file Form 5472.

interest on line 7 any exempt-interest dividends

Information

received by the REIT as a shareholder in a

See Form 5472 for filing instructions and

Be sure to answer all the lines that apply to the

mutual fund or other RIC.

penalties for failure to file.

REIT.

Item 8

Paperwork Reduction Act Notice. We ask

Question 3

Tax-exempt interest. Show any tax-exempt

for the information on this form to carry out the

Check the “Yes” box for question 3 if the REIT

interest received or accrued. Include any

Internal Revenue laws of the United States.

is a subsidiary in a parent-subsidiary controlled

exempt-interest dividends received as a

You are required to give us the information. We

group (defined below), even if the REIT is a

shareholder in a mutual fund or other RIC.

need it to ensure that you are complying with

subsidiary member of one group and the

these laws and to allow us to figure and collect

Item 9

parent corporation of another.

the right amount of tax.

Note: If the REIT is an “excluded member” of

Enter the amount of the net operating loss

You are not required to provide the

a controlled group (see section 1563(b)(2)), it

(NOL) carryover to the tax year from prior

information requested on a form that is subject

is still considered a member of a controlled

years, even if some of the loss is used to offset

to the Paperwork Reduction Act unless the

group for this purpose.

income on this return. The amount to enter is

form displays a valid OMB control number.

the total of all NOLs generated in prior years

Parent-subsidiary controlled group. The

Books or records relating to a form or its

but not used to offset income in a tax year prior

term “parent-subsidiary controlled group”

instructions must be retained as long as their

to 2003. Do not reduce the amount by any

means one or more chains of corporations

contents may become material in the

NOL deduction reported on line 21a.

connected through stock ownership (section

administration of any Internal Revenue law.

1563(a)(1)). Both of the following requirements

Generally, tax returns and return information

must be met:

are confidential, as required by section 6103.

Schedule L—Balance Sheets

1. At least 80% of the total combined

The time needed to complete and file this

voting power of all classes of voting stock

per Books

form will vary depending on individual

entitled to vote or at least 80% of the total

circumstances. The estimated average time is:

The balance sheet should agree with the

value of all classes of stock of each corporation

REIT’s books and records. Include certificates

in the group (except the parent) must be

Recordkeeping . . . . . . . 58 hr., 35 min.

of deposits as cash on line 1.

owned by one or more of the other

Line 4. Tax-exempt securities. Include on

corporations in the group and

Learning about the law

this line:

2. The common parent must own at least

•

or the form . . . . . . . . . .

24 hr., 7 min.

State and local government obligations, the

80% of the total combined voting power of all

interest on which is excludable from gross

classes of stock entitled to vote or at least 80%

Preparing the form . . . . 42 hr., 51 min.

income under section 103(a) and

of the total value of all classes of stock of one

•

Stock in a mutual fund or other RIC that

Copying, assembling,

or more of the other corporations in the group.

distributed exempt-interest dividends during

Stock owned directly by other members of the

and sending the form to

the tax year of the REIT.

group is not counted when computing the

the IRS . . . . . . . . . . . . .

4 hr., 49 min.

voting power or value.

Line 24. Adjustments to shareholders’

equity. Examples of adjustments to report on

If you have comments concerning the

See section 1563(d)(1) for the definition of

this line include:

accuracy of these time estimates or

•

“stock” for purposes of determining stock

Unrealized gains and losses on securities

suggestions for making this form simpler, we

ownership above.

held “available for sale.”

would be happy to hear from you. You can

•

Foreign currency translation adjustments.

Question 5

write to the Tax Products Coordinating

•

The excess of additional pension liability

Committee, Western Area Distribution Center,

Check the “Yes” box if one foreign person

over unrecognized prior service cost.

Rancho Cordova, CA 95743-0001. Do not

owned at least 25% of (a) the total voting

•

Guarantees of employee stock (ESOP) debt.

send the tax form to this office. Instead, see

•

power of all classes of stock of the REIT

Compensation related to employee stock

the instructions for Where To File on page 3.

entitled to vote or (b) the total value of all

award plans.

classes of stock of the REIT.

If the total adjustment to be entered on line

The constructive ownership rules of section

24 is a negative number, enter the amount in

318 apply in determining if a REIT is foreign

parentheses.

owned. See section 6038A(c)(5) and the

related regulations.

Enter on line 5a the percentage owned by

Schedule M–1

the foreign person specified in line 5. On line

Reconciliation of Income

5b, write the name of the owner’s country.

Note: If there is more than one 25%-or-more

(Loss) per Books With

foreign owner, complete lines 5a and 5b for the

Income per Return

foreign person with the highest percentage of

ownership.

Line 5c. Travel and entertainment. Include

Foreign person. The term “foreign person”

on line 5c any of the following:

means:

-12-

Instructions For Form 1120-Reit - 2003 Page 12

Related Articles

Related forms

Related Categories