Instructions For Form 480.80 - Fiduciary Income Tax Return (Estate Or Trust) (Page 2 of 4) in pdf

Instructions Form 480.80

LOSSES:

PART II - INCOME (OR LOSSES)

Losses incurred in activities that do not constitute your principal

Line 1 - Income (or losses)

business or industry, may be used as an allowable deduction

only to offset the income from the same activity that produced the

Enter on lines 1A through 1N the total of each type of income

loss.

(or deductible losses), and provide detailed information for

each one of them on the applicable Schedules.

Losses incurred in your principal industry or business, may be

used to offset the income from other sources.

Use Schedule F to inform income from interest, corporate

dividends and profit distributions from partnerships, special

For additional information on how to classify an economic activity

partnerships and Subchapter N Corporations of Individuals,

as a principal industry or business, contact our Consulting

income from prizes or contests, income from judicial or

Section at (787) 722-0216.

extrajudicial indemnification and miscellaneous income.

Transfer the amounts from Schedule F Individual to lines 1A, 1B

Line 3 - Deductions

and 1D through 1G of page 1 of your return. (Refer to the

instructions of the individual income tax return available in our

A) Amounts distributed to beneficiaries

site on the Internet for specific instructions of Schedule F

Individual).

Every estate or trust may claim as a deduction the amount to be

distributed by the fiduciary to the beneficiaries, if that amount has

If you received dividends from investment in a Capital Investment

been included in the beneficiaries income tax return, even if the

or Tourism Fund, use Schedule Q1 to determine this income.

amount has not been distributed.

This schedule with its instructions is available at the Forms and

Publications Division.

Also, a deduction shall be allowed for the amount paid or credited

to a beneficiary from the income derived from an estate, during

On the other hand, if you received income from an industry or

the period of its administration or liquidation, or from income that

business or from an activity for the production of income, use the

according to the fiduciary's discretion has been paid or

applicable schedule:

accumulated, as long as that amount has been included in the

income tax return of the beneficiary.

Schedule K Individual - to inform industry or business

income

The Puerto Rico Internal Revenue Code of 1994, as amended

(Code), establishes certain rules for the application of this

Schedule L Individual - to inform farming income

deduction. For more information, refer to the Code.

Schedule M Individual - to inform professions and

B) Contributions

commissions income

A deduction shall be allowed for any part of the gross income,

Schedule N Individual - to inform rental income

without limitation, which pursuant to the terms of the testament or

deed creating the trust, is paid or permanently set aside during

If such activity does not constitute your principal source

the taxable year for the purposes and in the manner specified

of income, transfer only the profits determined on the

in Section 1023(aa)(2)(M) of the Code, or is to be used

Schedules to Part II, lines 1I through 1L, page 1 of your return.

exclusively for religious, charitable, scientific, literary or

If you had losses, enter zero.

educational purposes, for the prevention of cruelty to children or

animals, or for the establishment, acquisition, maintenance or

If you derived income from a Film Project or Infrastructure

operation of a public cemetery not operated for profit. This

Project (Act No. 362 of December 24, 1999, Act for the Film

deduction substitutes the deduction for contributions granted by

Industry Development), you must file Schedule K Individual.

Section 1023(aa)(2)(M).

Do not enter the income determined on line 9, Part II of

Schedule K Individual on Part 2, line 2 I of the return. Make

Contributions made by a trust with funds from business income

sure to check in Part I of this schedule, Act No. 362 of 1999.

not related to the trust earned during the year, are not deductible.

If you derived income under the previously mentioned Act No.

If the trust has made a prohibited transaction by the Code, the

362 of 1999, multiply line 9, Part II of Schedule K Individual by

deduction for contributions is limited to 15% of the net income of

7% and enter the result on line 10, Part II of said schedule. This

the trust (determined without this deduction).

amount will be entered in Part III, line 6 of the return.

Line 5 - Credit

If you had a net capital gain or loss, use Schedule D Individual

and transfer to Part II, line 1M.

Enter $1,300 for an estate, or $100 for a trust.

If you had a long-term capital gain from Capital Investment

Funds, use Schedule Q1 to determine this gain and transfer to

Part II, line 1N.

Instructions For Form 480.80 - Fiduciary Income Tax Return (Estate Or Trust) Page 2

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