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qualified plug-in electric drive motor vehicle

6252, Installment Sale Income. The

the interest in the space to the left of line 62.

credit (see section 30D(f)(5)).

partnership will separately report your share

See section 1260(b) for details, including

of all payments received for the property in

how to figure the interest.

Code J. Look-back interest—completed

future tax years. See the Form 6252

long-term contracts. The partnership will

Code R. Interest allocable to production

instructions for details.

report any information you need to figure the

expenditures. The partnership will report

interest due or to be refunded under the

any information you need relating to interest

Code M. Recapture of section 179 deduc-

look-back method of section 460(b)(2) on

you are required to capitalize under section

tion. The partnership will report your share

certain long-term contracts. Use Form 8697,

263A for production expenditures. See

of any recapture of section 179 expense

Interest Computation Under the Look-Back

Regulations sections 1.263A-8 through

deduction if business use of any property for

Method for Completed Long-Term

1.263A-15 for details.

which the section 179 expense deduction

Contracts, to report any such interest.

was passed through to partners dropped to

Code S. CCF nonqualified withdrawals.

50% or less. If this occurs, the partnership

Code K. Look-back interest—income

The partnership will report your share of

must provide the following information.

forecast method. The partnership will

nonqualified withdrawals from a capital

report any information you need to figure the

construction fund (CCF). These withdrawals

1. Your share of the depreciation

interest due or to be refunded under the

are taxed separately from your other gross

allowed or allowable (not including the

look-back method of section 167(g)(2) for

income at the highest marginal ordinary

section 179 expense deduction).

certain property placed in service after

income or capital gains tax rate. Attach a

2. Your share of the section 179

September 13, 1995, and depreciated under

statement to your federal income tax return

expense deduction (if any) passed through

the income forecast method. Use Form

to show your computation of both the tax and

for the property and the partnership's tax

8866, Interest Computation Under the

interest for a nonqualified withdrawal.

year(s) in which the amount was passed

Look-Back Method for Property Depreciated

Include the tax and interest on Form 1040,

through. Reduce this amount by the portion,

Under the Income Forecast Method, to

line 62. In the space to the left of line 62,

if any, of your unused (carryover) section

report any such interest.

enter the amount of tax and interest and

179 expense deduction for this property.

“CCF.”

Code L. Dispositions of property with

Code N. Interest expense for corporate

section 179 deductions. The partnership

Code T. Depletion information—oil and

partners. The partnership will report each

will report your share of gain or loss on the

gas. This is your share of gross income

corporate partner's share of the partnership's

sale, exchange, or other disposition of

from the property, share of production for the

interest expense. This amount is reported

property for which a section 179 expense

tax year, and other information needed to

elsewhere on Schedule K-1 and the total

deduction was passed through to partners

figure your depletion deduction for oil and

amount is reported here for information only.

with code L. If the partnership passed

gas wells. The partnership should also

Your share of interest income is reported in

through a section 179 expense deduction for

allocate to you a share of the adjusted basis

box 5 and your share of the partnership's

the property, you must report the gain or loss

of each partnership oil or gas property. See

liabilities is reported in Part II, item K. A

and any recapture of the section 179

Pub. 535 for details on how to figure your

corporate partner's share of interest income,

expense deduction for the property on your

depletion deduction.

interest expense, and partnership liabilities

income tax return (see the Instructions for

Code U. Reserved.

are treated as income, expense, and

Form 4797 for details). The partnership will

liabilities of the corporation for purposes of

provide all the following information.

Code V. Unrelated business taxable in-

the limitation on the deduction for interest

come. The partnership will report any

1. Description of the property.

under section 163(j).

information you need to figure unrelated

2. Date the property was acquired and

business taxable income under section

Code O. Section 453(l)(3) information.

placed in service.

512(a)(1) (but excluding any modifications

The partnership will report any information

3. Date of the sale or other disposition of

required by paragraphs (8) through (15) of

you need to figure the interest due under

the property.

section 512(b)) for a partner that is a

section 453(l)(3) with respect to the

tax-exempt organization.

4. Your share of the gross sales price or

disposition of certain timeshares and

amount realized.

residential lots on the installment method. If

A partner is required to notify the

you are an individual, report the interest on

5. Your share of the cost or other basis

partnership of its tax-exempt status.

TIP

Form 1040, line 62. Check box c and enter

plus the expense of sale.

“453(l)(3)” and the amount of the interest in

6. Your share of the depreciation

Code W. Precontribution gain (loss). If

the space to the left of line 62.

allowed or allowable.

the partnership distributed any property with

Code P. Section 453A(c) information.

precontribution gain or loss to any partner

7. Your share of the section 179

The partnership will report any information

other than the contributing partner, and the

expense deduction (if any) passed through

you need to figure the interest due under

for the property and the partnership's tax

date of the distribution was within 7 years of

section 453A(c) with respect to certain

the date the property was contributed to the

year(s) in which the amount was passed

installment sales. If you are an individual,

partnership, the contributing partner must

through. To figure the amount of depreciation

report the interest on Form 1040, line 62.

allowed or allowable for Form 4797, line 22,

recognize a gain or loss under section 704(c)

Check box c and enter “453A(c)” and the

(1)(B). If the partnership made such a

add to the amount from item 6, above, the

amount of the interest in the space to the left

amount of your share of the section 179

distribution during its tax year, it will enter

of line 62. See the Form 6252 instructions for

code W in box 20 of the contributing

expense deduction, reduced by any unused

more information. Also see section 453A(c)

partner's Schedule K-1 and attach a

carryover of the deduction for this property.

for details on how to figure the interest.

This amount may be different from the

statement providing the amount of the

partner's precontribution gain (loss) and

amount of section 179 expense you

Code Q. Section 1260(b) information.

identifying the character of the gain or loss

deducted for the property if your interest in

The partnership will report any information

the partnership has changed.

(for example, capital gain (loss) or section

you need to figure the interest due under

1231 gain (loss)). Report the precontribution

8. If the disposition is due to a casualty

section 1260(b). If the partnership had gain

gain or loss on Form 8949/Schedule D or

or theft, a statement providing the

from certain constructive ownership

Form 4797 in accordance with the

information you need to complete Form

transactions, your tax liability must be

information provided by the partnership.

4684.

increased by the interest charge on any

deferral of gain recognition under section

Code X. Section 108(i) information. If the

9. If the sale was an installment sale

1260(b). Report the interest on Form 1040,

partnership made a section 108(i) election or

made during the partnership's tax year, any

line 62. Enter “1260(b)” and the amount of

allocates any section 108(i) items to its

information you need to complete Form

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 15

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