Instructions For The Special Partnership Informative Income Tax Return Form 480.10(E) (Page 4 of 9) in pdf

Instructions Form 480.10(E)

Otherwise, at the election of the partner, said

PART III - CREDITS

income will be included in the special partnership

income to determine its net income or loss, as

Line 1 - Credit for taxes paid to the United

provided in Section 1335(b) of the Code.

States, its possessions and foreign countries

Line 8 - Interest income from deposits in financial

Use Schedule C Corporation and Partnership to

institutions

determine the credit for allowable portion of taxes

paid to the United States, its possessions and

Enter the income earned from interest on investments

foreign countries.

or deposits in cooperatives, savings associations

authorized by the Federal Government or by the

Line 2 - Credit for investment in the Capital

Puerto Rico Government, commercial and mutual

Investment Fund, other funds or direct

banks or in banking organizations established in Puerto

investments

Rico for the partners, as well as the 10% amount

withheld, if the election was made.

To claim this credit you must complete Schedule

Q, available in the Department of the Treasury.

Line 9 - Distributable share on income, gain or

loss from a special partnership owned by the

Line 3 - Credit attributable to losses in the

special partnership

Capital Investment Fund or other funds

The special partnership can be a partner in other

See instructions of Schedule Q related with the

special partnership (inferior partnership).

allowable credit for losses in investment funds,

available in the Department of the Treasury.

Enter on this line the distributable share on income

or loss of the inferior partnership attributable to the

Line 4 - Credit for tax withheld at source from

special partnership.

Industrial Development dividends (Act No. 8 of

1987)

Line 11 – Adjustment for determination of the

share in the profit or loss from certain special

The partners of a special partnership will have the

partnerships under the percentage of

right to claim according to the percentage applicable

completion method

to the distributable share of the special partnership,

a credit as established in Section 4(a) of the

Act No. 194 of December 22, 2009 amended

Incentives Act, against the tax due for the year in

Section 1011 of the Puerto Rico Internal Revenue

which the special partnership received as an investor

Code of 1994, as amended (Code), to, among other

a development income distribution.

things, establish that every special partnership

engaged in the edification, installation and

Enter on this line the tax withheld at source to the

construction of structures that cover a period in

Special Partnership on dividends from Industrial

excess of one year, must inform the partner’s share

Development income.

in the profit or loss from the special partnership

(subject to the limitation provided by Section

Line 5 - Credit for contribution to the

1023(a)(5) of the Code), under the accounting

Educational Foundation for Free Selection of

method known as “percentage of completion

Schools

method”. Therefore, if the special partnership uses

any other accounting method, it must recalculate

Every special partnership will be allowed a credit

the partner’s share in the profit or loss from the

for the total amount of contributions made to the

partnership under such percentage of completion

Educational Foundation for Free Selection of

method and will indicate on this line the difference

Schools. This credit is limited to $500 and will be

(adjustment) between both methods. Also, the

claimed by the partners of the special partnership

partnership must prepare and submit with its return

against the income taxes paid in their individual

a schedule that includes the recalculation of the

income tax returns. The administrative partner will

profit or loss and the adjustment. Such adjustment

inform the partners the applicable deduction

must be distributed proportionally among the

according to their distributable share in the special

partners and will be informed to them on the

partnership.

Informative Return – Special Partnership (Form 480.6

SE), Part III, line 11. Do not change any of the

The contributions made in excess of the allowed

amounts already entered on this Informative Return.

credit will be granted as a deduction under charitable

contributions, up to the limitations established in

the Code.

Instructions For The Special Partnership Informative Income Tax Return Form 480.10(E) Page 4

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