Shareholder'S Instructions For Schedule K-1 (Form 1120s)

renewable energy, qualified energy

Code D. Basis of energy property.

Code J. Look-back interest—in-

conservation, qualified school

If the corporation provides an

come forecast method. The

construction, build America, or (for

attached statement for code D, use

corporation will report any information

bonds issued after October 3, 2008)

the information on the statement to

you need to figure the interest due or

qualified zone academy bonds. If

complete lines 12a–12d, 12f, 12g, 12i,

to be refunded under the look-back

these distributions exceed the basis of

12j, 12l, 12m, 12o, and 12q–12t of

method of section 167(g)(2) for

your stock, the excess is treated as

Form 3468.

certain property placed in service after

capital gain from the sale or exchange

September 13, 1995, and depreciated

Codes E and F. Recapture of

of property and is reported on Form

under the income forecast method.

low-income housing credit. The

8949 and Schedule D (Form 1040).

Use Form 8866, Interest Computation

corporation will identify by code E

Under the Look-Back Method for

Code E. Repayment of loans from

your share of any recapture of a

Property Depreciated Under the

shareholders. If these payments are

low-income housing credit from its

Income Forecast Method, to report

made on a loan with a reduced basis,

investment in partnerships to which

any such interest.

the repayments must be allocated in

the provisions of section 42(j)(5)

part to a return of your basis in the

apply. All other recapture of

Code K. Dispositions of property

loan and in part to the receipt of

low-income housing credits will be

with section 179 deductions. The

income. See Regulations section

identified by code F.

corporation will report your share of

1.1367-2 for information on reduction

gain or loss on the sale, exchange, or

Keep a separate record of each

in basis of a loan and restoration in

other disposition of property for which

type of recapture so that you will be

basis of a loan with a reduced basis.

a section 179 expense deduction was

able to correctly figure any credit

See Rev. Rul. 64-162, 1964-1 (Part 1)

passed through to shareholders with

recapture that may result from the

C.B. 304, and Rev. Rul. 68-537,

code K. If the corporation passed

disposition of all or part of your

1968-2 C.B. 372, for details.

through a section 179 expense

corporate stock. For details, see Form

deduction for the property, you must

8611.

Box 17. Other Information

report the gain or loss, if any, and any

Code G. Recapture of investment

recapture of the section 179 expense

Code A. Investment income.

credit. The corporation will provide

deduction for the property on your

Report this amount on Form 4952,

any information you need to figure

income tax return (see the Instructions

line 4a.

your recapture tax on Form 4255,

for Form 4797 for details). The

Code B. Investment expenses.

Recapture of Investment Credit. See

corporation will provide all the

Report this amount on Form 4952,

the Form 3468 on which you took the

following information.

line 5.

original credit for other information

1. Description of the property.

you need to complete Form 4255.

Code C. Qualified rehabilitation ex-

2. Date the property was acquired

You may also need Form 4255 if

penditures (other than rental real

and placed in service.

your proportionate stock interest in

estate). The corporation will report

3. Date of the sale or other

the corporation is reduced by more

your share of qualified rehabilitation

disposition of the property.

than one-third after you were

expenditures and other information

allocated part of an investment credit.

4. Your share of the gross sales

you need to complete Form 3468 for

price or amount realized.

property not related to rental real

Code H. Recapture of other cred-

estate activities in box 17 using code

5. Your share of the cost or other

its. On a statement attached to

C. Your share of qualified

basis plus the expense of sale.

Schedule K-1, the corporation will

rehabilitation expenditures related to

report any information you need to

6. Your share of the depreciation

rental real estate activities is reported

figure the recapture of other credits

allowed or allowable.

in box 13 using code E. See the

including the new markets credit,

7. Your share of the section 179

Instructions for Form 3468 for details.

Indian employment credit, credit for

expense deduction (if any) passed

If the corporation is reporting

employer-provided childcare facilities

through for the property and the

expenditures from more than one

and services, alternative motor

corporation's tax year(s) in which the

activity, the attached statement will

vehicle credit, alternative fuel vehicle

amount was passed through.

separately identify the expenditures

refueling property credit, and qualified

from each activity.

To figure the depreciation allowed

plug-in electric drive motor vehicle

or allowable for Form 4797, line 22,

Combine the expenditures (for

credit.

add to the amount from item (6) above

Form 3468 reporting) from box 13,

Code I. Look-back interest—com-

the amount of your share of the

code E and from box 17, code C. The

pleted long-term contracts. The

section 179 expense deduction,

expenditures related to rental real

corporation will report any information

reduced by any unused carryover of

estate activities (box 13, code E) are

you need to figure the interest due or

the deduction for this property. This

reported on Schedule K-1 separately

to be refunded under the look-back

amount may be different than the

from other qualified rehabilitation

method of section 460(b)(2) on certain

amount of section 179 expense you

expenditures (box 17, code C)

long-term contracts. Use Form 8697,

deducted for the property if your

because they are subject to different

Interest Computation Under the

interest in the corporation has

passive activity limitation rules. See

Look-Back Method for Completed

changed.

the Instructions for Form 8582-CR for

Long-Term Contracts, to report any

details.

such interest.

-14-

Instructions for Schedule K-1 (Form 1120S) (2016)

Shareholder'S Instructions For Schedule K-1 (Form 1120s) - 2016 Page 14

Related Articles

Related forms

Related Categories