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special allowance for which the

the corporation will identify the activity

1. The adjusted basis of your

surviving spouse qualifies.

and all amounts relating to it on

stock and debt in the corporation,

Schedule K-1 or on an attached

If your modified adjusted gross

2. The at-risk limitations, and

statement.

income (defined below) is $100,000

3. The passive activity limitations.

or less ($50,000 or less if married

If you have net income subject to

For information on these

filing separately), your loss is

recharacterization under Temporary

provisions, see

Limitations on Losses,

deductible up to the maximum special

Regulations section 1.469-2T(f) and

Deductions, and

Credits, earlier.

allowance referred to in the preceding

Regulations section 1.469-2(f), report

paragraph. If your modified adjusted

such amounts according to the

Other limitations may apply to

gross income is more than $100,000

Instructions for Form 8582.

specific deductions (for example, the

(more than $50,000 if married filing

If you have net income (loss),

section 179 expense deduction).

separately), the special allowance is

deductions, or credits from either of

Generally, specific limitations apply

limited to 50% of the difference

the following activities, treat such

before the at-risk and passive loss

between $150,000 ($75,000 if married

amounts as nonpassive and report

limitations.

filing separately) and your modified

them as indicated in these

If you are an individual, and the

adjusted gross income. When

instructions.

above limitations don't apply to the

modified adjusted gross income is

1. The rental of a dwelling unit any

amounts shown on your

$150,000 or more ($75,000 or more if

shareholder used for personal

Schedule K-1, take the amounts

married filing separately), there is no

purposes during the year for more

shown and report them on the lines of

special allowance.

than the greater of 14 days or 10% of

your tax return as indicated in the

Modified adjusted gross income is

the number of days that the residence

summarized reporting information

your adjusted gross income figured

was rented at fair rental value.

shown on page 2 of Schedule K-1. If

without taking into account the

2. Trading personal property for

any of the above limitations apply,

following amounts, if applicable.

the account of owners of interests in

adjust the amounts on Schedule K-1

Any passive activity loss.

the activity.

before you report them on your return.

Any rental real estate loss allowed

under section 469(c)(7) to real estate

When applicable, the passive

Self-charged interest. The

professionals (defined earlier).

activity limitations on losses are

corporation will report any

Any overall loss from a publicly

applied after the limitations on losses

“self-charged” interest income or

traded partnership.

for a shareholder's basis in stock and

expense that resulted from loans

Any taxable social security or

debt and the shareholder's at-risk

between you and the corporation (or

equivalent railroad retirement

amount.

between the corporation and another

benefits.

S corporation or partnership if both

The line numbers in the

Any deductible contributions to an

entities have the same owners with

summarized reporting information on

IRA or certain other qualified

the same proportional interest in each

page 2 of Schedule K-1 are

retirement plans under section 219.

entity). If there was more than one

references to forms in use for

The domestic production activities

activity, the corporation will provide a

calendar year 2017. If you file your tax

deduction.

statement allocating the interest

return on a calendar year basis, but

The student loan interest deduction.

income or expense with respect to

the corporation files a return for a

The tuition and fees deduction.

each activity. The self-charged

fiscal year, report the amounts on your

The deductible part of

interest rules don't apply to your

tax return for the year in which the

self-employment taxes.

interest in the S corporation if the

corporation's fiscal year ends. For

The exclusion from income of

corporation made an election under

example, if the corporation's tax year

interest from Series EE or I U.S.

Regulations section 1.469-7(g) to

ends in February 2018, report the

Savings Bonds used to pay higher

avoid the application of these rules.

amounts on your 2018 tax return.

education expenses.

See the Instructions for Form 8582 for

The exclusion of amounts received

If you have losses, deductions, or

details.

under an employer's adoption

credits from a prior year that weren’t

assistance program.

Specific Instructions

deductible or usable because of

certain limitations, such as the basis

Commercial revitalization

limitations or the at-risk limitations,

deduction. The special $25,000

Part III. Shareholder's

take them into account in determining

allowance for the commercial

Share of Current Year

your income, loss, or credits for this

revitalization deduction from rental

Income, Deductions,

year. However, except for passive

real estate activities isn't subject to the

activity losses and credits, don't

Credits, and Other Items

active participation rules or modified

combine the prior year amounts with

adjusted gross income limits

The amounts shown in boxes 1

any amounts shown on this

discussed above. See the instructions

through 17 reflect your share of

Schedule K-1 to get a net figure to

for box 12, code N for more

income, loss, deductions, credits, and

report on your return. Instead, report

information.

other items, from corporate business

the amounts on your return on a

or rental activities without reference to

Special rules for certain other ac-

year-by-year basis.

limitations on losses, credits, or other

tivities. If you have net income

items that may have to be adjusted

(loss), deductions, or credits from any

because of:

activity to which special rules apply,

-10-

Instructions for Schedule K-1 (Form 1120S) (2017)

Instructions For Schedule K-1 (Form 1120s) - Shareholder'S Share Of Income, Deductions, Credits, Etc. - 2017 Page 10

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