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If the partnership provides you with

on line 16 of Schedule A (Form 1040). If you

expenditures on line 28 of Schedule E (Form

information that the contribution was

do not make this election, add this amount to

1040) and figure the resulting adjustment or

property other than cash and doesn't give

the cash contributions reported in box 13

tax preference item (see Form 6251,

you a Form 8283, see the Instructions for

using code A and enter the total amount,

Alternative Minimum Tax—Individuals).

Form 8283 for filing requirements. Do not file

subject to a 50% AGI limitation, on line 16 of

Whether you deduct the expenditures or

Form 8283 unless the total claimed

Schedule A (Form 1040).

elect to amortize them, report the amount on

deduction for all contributed items of

a separate line in column (h) of line 28 if you

Code H. Investment interest expense.

property exceeds $500.

materially participated in the partnership

Include this amount on Form 4952, line 1. If

activity. If you didn't materially participate,

the partnership has investment income or

Food inventory contributions. The

follow the Instructions for Form 8582 to figure

other investment expense, it will report your

partnership will report on an attached

how much of the deduction can be reported

share of these items in box 20 using codes A

statement your share of qualified food

in column (f).

and B. Include investment income and

inventory contributions. The food inventory

expenses from other sources to figure how

Code K. Deductions—portfolio (2%

contribution isn't included in the amount

much of your total investment interest is

floor). Amounts entered with code K are

reported in box 13 using code C. The

deductible. You will also need this

deductions that are clearly and directly

partnership will also report your share of the

information to figure your investment interest

allocable to portfolio income (other than

partnership's net income from the business

expense deduction.

investment interest expense and section 212

activities that made the food inventory

expenses from a REMIC). Generally, you

contribution(s). Your deduction for food

If the partnership paid or accrued interest

should report these amounts on Schedule A

inventory contributions cannot exceed 15%

on debts properly allocable to investment

(Form 1040), line 23. See the instructions for

of your aggregate net income for the tax year

property, the amount of interest you are

Schedule A (Form 1040), lines 23 and 28, for

from the business activities from which the

allowed to deduct may be limited.

details.

food inventory contribution was made

For more information on the special

(including your share of net income from

These deductions are not taken into

provisions that apply to investment interest

partnership or S corporation businesses that

account in figuring your passive activity loss

expense, see Form 4952 and Pub. 550,

made food inventory contributions). Amounts

for the year. Do not enter them on Form

Investment Income and Expenses.

that exceed the 15% limitation may be

8582.

carried over for up to 5 years. Report the

Code I. Deductions—royalty income.

Code L. Deductions—portfolio (other).

deduction, subject to the 50% AGI limitation,

Include deductions allocable to royalties on

Generally, you should report these amounts

on line 17 of Schedule A (Form 1040).

Schedule E (Form 1040), line 19. For this

on Schedule A (Form 1040), line 28. See the

type of expense, enter “From Schedule K-1

Code D. Noncash contributions (30%).

instructions for Schedule A, lines 23 and 28,

(Form 1065).”

Report this amount, subject to the 30% AGI

for details. These deductions are not taken

These deductions are not taken into

limitation, on line 17 of Schedule A (Form

into account in figuring your passive activity

account in figuring your passive activity loss

1040).

loss for the year. Do not enter them on Form

for the year. Do not enter them on Form

8582.

Code E. Capital gain property to a 50%

8582.

organization (30%). Report this amount,

Code M. Amounts paid for medical insur-

Code J. Section 59(e)(2) expenditures.

subject to the 30% AGI limitation, on line 17

ance. Any amounts paid during the tax year

On an attached statement, the partnership

of Schedule A (Form 1040). See Special

for insurance that constitutes medical care

will show the type and the amount of

30% Limit for Capital Gain Property in Pub.

for you, your spouse, your dependents, and

qualified expenditures for which you may

526.

your children under age 27 who are not

make a section 59(e) election. The

dependents. On line 29 of Form 1040, you

Code F. Capital gain property (20%).

statement will also identify the property for

may be allowed to deduct such amounts,

Report this amount, subject to the 20% AGI

which the expenditures were paid or

even if you do not itemize deductions. If you

limitation, on line 17 of Schedule A (Form

incurred. If there is more than one type of

do itemize deductions, enter on line 1 of

1040).

expenditure, the amount of each type will

Schedule A (Form 1040) any amounts not

also be listed.

Code G. Contributions (100%). The

deducted on line 29 of Form 1040.

partnership will report your distributive share

If you deduct these expenditures in full in

Code N. Educational assistance benefits.

of the following contributions (both cash and

the current year, they are treated as

Deduct your educational assistance benefits

noncash) that may be subject to the 100%

adjustments or tax preference items for

on a separate line of Schedule E (Form

AGI limitation.

purposes of alternative minimum tax.

1040), line 28, up to the $5,250 limitation. If

However, you may elect to amortize these

Qualified conservation contributions

your benefits exceed $5,250, you may be

expenditures over the number of years in the

of property used in agriculture or

able to use the excess amount on Form 8863

applicable period rather than deduct the full

livestock production. The partnership will

to figure the education credits.

amount in the current year. If you make this

report your share of qualified conservation

election, these items are not treated as

Code O. Dependent care benefits. The

contributions of property used in agriculture

adjustments or tax preference items.

partnership will report the dependent care

or livestock production. This contribution isn't

benefits you received. You must use Form

Under the election, you can deduct

included in the amount reported in box 13

2441, Part III, to figure the amount, if any, of

circulation expenditures ratably over a 3-year

using code C. If you are a farmer or rancher,

the benefits you may exclude from your

period. Research and experimental

you qualify for a 100% AGI limitation for this

income.

expenditures and mining exploration and

contribution. Otherwise, your deduction for

development costs can be amortized over a

this contribution is subject to a 50% AGI

Code P. Preproductive period expenses.

10-year period. Intangible drilling and

limitation. Report this deduction on line 17 of

You may be able to deduct these expenses

development costs can be amortized over a

Schedule A (Form 1040). See Pub. 526 for

currently or you may need to capitalize them

60-month period. The amortization period

more information on qualified conservation

under section 263A. See Pub. 225, Farmer's

begins with the month in which such costs

contributions.

Tax Guide, and Regulations section

were paid or incurred.

1.263A-4 for details.

Cash contributions for relief efforts in

Make the election on Form 4562. If you

certain disaster areas. The partnership

Code Q. Commercial revitalization de-

make the election, report the current year

will report your share of qualified cash

duction from rental real estate activities.

amortization of section 59(e) expenditures

contributions that were donated for relief

Follow the Instructions for Form 8582 to

from Part VI of Form 4562 on line 28 of

efforts in certain disaster areas. You can

figure how much of the deduction can be

Schedule E (Form 1040). If you do not make

elect to deduct 100% of these contributions

the election, report the section 59(e)(2)

Partner's Instructions for Schedule K-1 (Form 1065)

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Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. - 2017 Page 10

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