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

Instructions Form 480.10(E)

INSTRUCTIONS TO COMPLETE THE SCHEDULES

The excess of losses from touristic activities from

SCHEDULE L (SP, IC, ESC) - PARTIALLY

previous years may be carried forward and claimed

EXEMPT INCOME

only as a deduction against income from touristic

activities by the partners of the special partnership.

This schedule must be used by those special

Said loss may be deductible up to an amount equal

partnerships operating under Act 52 of 1983, Act

to the percentage of income from the touristic

78 of 1993, Act 47 of 1987 and Act 225 of 1995.

activity that would have been taxable. The losses

Check the box corresponding to the act under which

will be carried forward in the same order that they

the entity operates.

are incurred.

For each applicable act, a Schedule L (SP, IC, ESC)

A net income or loss generated by a special

must be completed and included with the

partnership in a year in which an election was made

return.

for a flexible exemption under Article 3(a)(1)(D) of

Act 78 of 1993, will be considered as a net income

In the case of a corporation or partnership operating

or loss from the partnership's eligible

under Act 52 of 1983 or Act 78 of 1993, and has

activity.

made an election under Article 5(b) or 3(a)(1)(D)

respectively, must submit with the return a copy of

In case of a special partnership, that has

the notification to the Secretary of the Treasury

renegotiated its rights under Act 78 of 1993, the

exercising the election.

partners may claim as a deduction, the net losses

incurred from operations under previous decrees

Any exempt business under Act 78 of 1993, must

(Industrial or Tourism Incentives Act).

include with the return a copy of the order issued

by the Tourism Company Director indicating

Add line 3, Part I of each Schedule L (SP, IC, ESC)

the beginning date of the exemption.

used and enter the total in Part II, line 6 of the

return.

Businesses operating under Act 225 of 1995, must

include with the return a copy of the bona fide

SCHEDULE U - TAX DETERMINATION ON

farmer certificate in force.

BUILT - IN GAINS

PART I - NET INCOME (OR LOSS)

This schedule must be used when the requirements

indicated in the instructions for Part IV of the return

Line 2 - Enter in the space provided the percentage

are met.

of the exemption you are entitled to claim according

to your Resolution under the Tourism Incentives Act or

Tourism Development or Agriculture Incentives

Act.

Multiply the net operating income from the touristic

or agricultural eligible activities, whichever applies,

by the applicable exemption percentage. Enter the

amount on this line.

Line 3 - The net operating losses under the

Tourism Incentives or Tourism Development Acts

may be deductible only against income from

touristic activities. The net losses from operations

that are not covered under any of the previously

mentioned incentives acts, can be claimed only

against the totally taxable income. A schedule

must be included with the return to sustain

the deduction claimed.

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

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