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When this occurs, the partnership will

attributable to your share of the partnership's

original credit for other information you need

enter code B in box 19 of the contributing

unrealized receivable or inventory items

to complete Form 4255.

partner's Schedule K-1 and attach a

results in ordinary income (see Regulations

You may also need Form 4255 if you

statement that provides the information the

section 1.751-1(a) and Sale or Exchange of

disposed of more than one-third of your

partner needs to figure the recognized gain

Partnership Interest, earlier).

interest in a partnership.

under section 737. The partnership is

Code I. Recapture of other credits. On a

required to provide the following information.

Box 20. Other Information

statement attached to Schedule K-1, the

The fair market value (FMV) of the

partnership will report any information you

distributed property (other than money).

Code A. Investment income. Report this

need to figure the recapture of the new

The amount of money received in the

amount on line 4a of Form 4952.

markets credit (see Form 8874 and Form

distribution.

8874-B, Notice of Recapture Event for New

Code B. Investment expenses. Report

The net precontribution gain of the

Markets Credit); qualified plug-in electric and

partner.

this amount on line 5 of Form 4952.

electric vehicle credit (see Form 8834);

Using the information from the attached

Code C. Fuel tax credit information. The

Indian employment credit (see section

statement, complete the worksheet below to

partnership will report the number of gallons

45A(d)); any credit for employer-provided

figure your recognized gain under section

of each fuel sold or used during the tax year

childcare facilities and services (see Form

737.

for a nontaxable use qualifying for the credit

8882); alternative motor vehicle credit (see

for taxes paid on fuels, type of use, and the

section 30B(h)(8)); alternative fuel vehicle

applicable credit per gallon. Use this

refueling property credit (see section 30C(e)

Computation of Section 737 Gain

information to complete Form 4136, Credit

(5)); or the new qualified plug-in electric drive

1. Enter the FMV of the distributed

for Federal Tax Paid on Fuels.

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

property (other than

money)

Code D. Qualified rehabilitation expendi-

. . . . . . . . . . .

Code J. Look-back interest—completed

2. Enter your adjusted basis in the

tures (other than rental real estate). The

long-term contracts. The partnership will

partnership immediately before

partnership will report your share of qualified

report any information you need to figure the

the distribution. See

Basis

rehabilitation expenditures and other

interest due or to be refunded under the

Rules, earlier

. . . . . . . .

information you need to complete Form 3468

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

3. Enter the amount of money

for property not related to rental real estate

certain long-term contracts. Use Form 8697,

received in the distribution

activities in box 20 using code D. Your share

Interest Computation Under the Look-Back

4. Subtract line 3 from line 2. If zero

of qualified rehabilitation expenditures

Method for Completed Long-Term

or less, enter -0-

. . . . . . .

related to rental real estate activities is

Contracts, to report any such interest.

5. Subtract line 4 from line 1

. .

reported in box 15 using code E. See the

Code K. Look-back interest—income

Instructions for Form 3468 for details. If the

6. Enter your net precontribution

forecast method. The partnership will

partnership is reporting expenditures from

gain

. . . . . . . . . . . . .

report any information you need to figure the

more than one activity, the attached

7. Section 737 gain. Enter the

interest due or to be refunded under the

statement will separately identify the

lesser of the amount on line 5 or

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

expenditures from each activity.

line 6

. . . . . . . . . . . . .

certain property placed in service after

Combine the expenditures (for Form

September 13, 1995, and depreciated under

3468 reporting) from box 15, code E and

the income forecast method. Use Form

box 20, code D. The expenditures related to

The type of gain (section 1231 gain,

8866, Interest Computation Under the

capital gain) generated is determined by the

rental real estate activities (box 15, code E)

Look-Back Method for Property Depreciated

type of gain you would have recognized if

are reported on Schedule K-1 separately

Under the Income Forecast Method, to

from other qualified rehabilitation

you sold the property rather than contributing

report any such interest.

it to the partnership. Accordingly, report the

expenditures (box 20, code D) because they

Code L. Dispositions of property with

amount from line 7, above, on Form 4797 or

are subject to different passive activity

section 179 deductions. The partnership

limitation rules. See the Instructions for Form

Form 8949 and the Schedule D of your tax

will report your share of gain or loss on the

return.

8582-CR for details.

sale, exchange, or other disposition of

Code C. Other property. Code C shows

Code E. Basis of energy property. If the

property for which a section 179 expense

the partnership's adjusted basis of property

partnership provides an attached statement

deduction was passed through to partners

for code E, use the information on the

other than money immediately before the

with code L. If the partnership passed

property was distributed to you. In addition,

statement to complete lines 12a-d, 12f, 12g,

through a section 179 expense deduction for

the partnership should report the adjusted

12i, 12j, 12l, 12m, 12o, and 12q-s of Form

the property, you must report the gain or loss

3468.

basis and FMV of each property distributed.

and any recapture of the section 179

Decrease the adjusted basis of your interest

expense deduction for the property on your

Codes F and G. Recapture of low-income

in the partnership by the amount of your

income tax return (see the Instructions for

housing credit. A section 42(j)(5)

basis in the distributed property. Your basis

Form 4797 for details). The partnership will

partnership will report recapture of a

in the distributed property (other than in

provide all the following information.

low-income housing credit with code F. All

liquidation of your interest) is the smaller of:

other partnerships will report recapture of a

1. Description of the property.

The partnership's adjusted basis

low-income housing credit with code G.

2. Date the property was acquired and

immediately before the distribution or

Keep a separate record of recapture from

placed in service.

The adjusted basis of your partnership

each of these sources so that you will be

interest reduced by any cash distributed in

3. Date of the sale or other disposition of

able to correctly figure any recapture of

the same transaction.

the property.

low-income housing credit that may result

If you received the property in liquidation

from the disposition of all or part of your

4. Your share of the gross sales price or

of your interest, your basis in the distributed

partnership interest. For details, see Form

amount realized.

property is equal to the adjusted basis of

8611.

5. Your share of the cost or other basis

your partnership interest reduced by any

plus the expense of sale.

Code H. Recapture of investment credit.

cash distributed in the same transaction.

The partnership will provide any information

6. Your share of the depreciation

If you receive cash or property in

you need to figure your recapture tax on

allowed or allowable.

exchange for any part of a partnership

Form 4255, Recapture of Investment Credit.

7. Your share of the section 179

interest, the amount of the distribution

See the Form 3468 on which you took the

expense deduction (if any) passed through

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

-14-

Partner'S Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. (For Partner'S Use Only) - 2014 Page 14

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