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1040, line 62. In the space to the left

Follow the Instructions for Form

stock basis. Because this amount is

of line 62, enter the amount of tax and

8960 to figure and report your net

already included in income elsewhere

interest and “CCF.”

investment income and adjusted

on Schedule K-1, you must reduce

gross income or modified adjusted

your stock basis by this amount. See

Code R. Depletion information—Oil

gross income. See Regulations

Part I, line 13, of the Worksheet for

and gas. This is your share of gross

sections 1.1411-1 through 1.1411-10

Figuring a Shareholder's Stock and

income from the property, share of

for more details.

Debt Basis.

production for the tax year, and other

5. The amount included in gross

information needed to figure your

Code V. Other information. The

income with respect to clean

depletion deduction for oil and gas

corporation will use code V to report

renewable energy bonds. Income with

wells. The corporation should also

the following to shareholders.

respect to clean renewable energy

allocate to you a proportionate share

1. Any information you need to

bonds can't be used to increase your

of the adjusted basis of each

complete a disclosure statement for

stock basis. Because this amount is

corporate oil or gas property. See

reportable transactions in which the

already included in income elsewhere

Pub. 535 for details on how to figure

corporation participates. If the

on Schedule K-1, you must reduce

your depletion deduction.

corporation participates in a

your stock basis by this amount. See

Reduce the basis of your stock by

transaction that must be disclosed on

Part I, line 13, of the Worksheet for

the amount of this deduction up to the

Form 8886, Reportable Transaction

Figuring a Shareholder's Stock and

extent of your adjusted basis in the

Disclosure Statement, both you and

Debt Basis.

property.

the corporation may be required to file

6. Qualified investment in

Form 8886 for the transaction. The

Code S. Reserved.

qualifying advanced coal project

determination of whether you are

property. Use the amounts the

Code T. Section 108(i) information.

required to disclose a transaction of

corporation provides you to figure the

If the corporation made a section

the corporation is based on the

amounts to report on Form 3468, lines

108(i) election, it will provide all the

category(ies) under which the

5a, 5b, and 5c.

information you will need to determine

transaction qualifies for disclosure

your share of the following.

and is determined by you and the

7. Qualified investment in

Deferred cancellation of debt

corporation. You may have to pay a

qualifying gasification property. Use

income.

penalty if you are required to file Form

the amounts the corporation provides

Deferred original issue discount

8886 and don't do so. See the

you to figure the amounts to report on

deduction.

Instructions for Form 8886 for details.

Form 3468, lines 6a and 6b.

2. Gross farming and fishing

Code U. Net investment income.

8. Qualified investment in

income. If you are an individual

The corporation may use code U to

qualifying advanced energy project

shareholder, report this income, as an

report information you may need to

credit property. Use the amounts the

item of information, on Schedule E

determine your net investment income

corporation provides you to figure the

(Form 1040), Part V, line 42. Don't

tax under section 1411, including

amount to report on Form 3468, line 7.

report this income elsewhere on Form

information regarding income from

9. Inversion gain. The corporation

1040.

controlled foreign corporations

will provide a statement showing the

(CFCs) and passive foreign

For a shareholder that is an estate

amounts of each type of income or

investment companies (PFICs) the

or trust, report this income to the

gain that is included in inversion gain.

stock of which is owned by the

beneficiaries, as an item of

The corporation has included

corporation. Any information not

information, on Schedule K-1 (Form

inversion gain in income elsewhere on

provided elsewhere on Schedule K-1

1041). Don't report it elsewhere on

Schedule K-1. Inversion gain is also

(or an attachment to Schedule K-1) is

Form 1041.

reported under code V because your

provided using code U. For CFCs and

taxable income and alternative

3. Excess farm loss limitation. If

PFICs that you treat as qualified

minimum taxable income can't be less

the corporation has deductions

electing funds (QEFs), the information

than the inversion gain. Also, your

attributable to a farming activity, it will

that is relevant to you will depend on

inversion gain (a) isn't taken into

provide a statement showing the

whether you, the corporation, or a

account in figuring the net operating

aggregate gross income or gain and

subsidiary pass-through entity has

loss (NOL) for the tax year or the NOL

the aggregate deductions from the

made an election under Regulations

that can be carried over to each tax

farming activity that you need to figure

section 1.1411-10(g) with respect to

year, (b) may limit your credits, and

any excess farm loss limitation. It will

the CFC or QEF. For example, if the

also provide information on any

corporation made an election under

within the United States for the foreign

applicable subsidy it receives that

Regulations section 1.1411-10(g) for

tax credit. See section 7874 for

would trigger the excess farm loss

a CFC the stock of which is owned by

details.

limitation. See section 461(j) and Pub.

the corporation, and the relevant

225 for details.

10. Any other information you may

income and deduction items derived

need to file your return not shown

4. The amount included in gross

from that CFC are reported elsewhere

elsewhere on Schedule K-1.

income with respect to qualified zone

on Schedule K-1, you will not need

academy bonds issued before

the information provided using code U

The corporation should give you a

October 4, 2008. Income with respect

to complete your Form 8960, Net

description and the amount of your

to these qualified zone academy

Investment Income Tax—Individuals,

share for each of these items.

bonds can't be used to increase your

Estates, and Trusts.

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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 20

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