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by the passive activity limitations. If the

You may also need Form 4255 if you

still qualify for your distributive share of this

credits are from more than one activity, the

disposed of more than one-third of your

exclusion if the partnership’s foreign trading

partnership will identify the amount of credits

interest in a partnership.

gross receipts for the tax year were $5

from each activity on an attached statement.

million or less. To qualify for this exclusion,

Code U. Other credits. On an attachment

See Passive Activity Limitations on page 3

your foreign trading gross receipts from all

to Schedule K-1, the partnership will identify

and Form 8582-CR for details.

sources for the tax year also must have

the type of credit and any other information

been $5 million or less. If you qualify for the

you need to compute credits other than

Code H. Other rental credits. The

exclusion, report the exclusion amount in

those reported with codes A through T.

partnership will identify the type of credit and

accordance with the instructions for Income

any other information you need to compute

Credits that may be reported with code U

(Loss) on page 6 for box 1, 2, or 3,

these rental credits. These credits may be

(depending on the type of activity they relate

whichever applies. See Form 8873,

limited by the passive activity limitations. If

to) include the following:

Extraterritorial Income Exclusion, for more

•

the credits are from more than one activity,

Nonconventional source fuel credit.

information.

the partnership will identify the amount of

Attach a schedule to your return showing

2. Partnership claimed the exclusion. If

credits from each activity on an attached

how you calculated the amount of credit you

the partnership reports your distributive

statement. See Passive Activity Limitations

are allowed to take on your tax return. See

share of foreign trading gross receipts but

on page 3 and Form 8582-CR for details.

section 29 for rules on how to figure the

not the amount of the extraterritorial income

credit to report on line 54, box c, of Form

Code I. Undistributed capital gains credit.

exclusion, the partnership met the foreign

Code I represents taxes paid on

1040.

economic process requirements and

•

undistributed capital gains by a regulated

Qualified electric vehicle credit (Form

claimed the exclusion when figuring your

investment company or real estate

8834).

distributive share of partnership income.

•

investment trust. Form 1040 filers enter your

Unused investment credit from

You also may need to know the amount of

cooperatives (Form 3468, line 4).

share of these taxes on line 69 of Form

your distributive share of foreign trading

•

Credit for alcohol used as fuel (Form

1040, check box “a” for Form 2439, and add

gross receipts from this partnership to

6478).

the words “Form 1065.”

determine if you met the $5 million or less

•

Credit for increasing research activities

exception discussed above for purposes of

Code J. Work opportunity credit. Report

(Form 6765).

this amount on line 3 of Form 5884, Work

qualifying for an extraterritorial income

•

Enhanced oil recovery credit (Form 8830).

exclusion from other sources.

Opportunity Credit.

•

Renewable electricity and refined coal

Code K. Welfare-to-work credit. Report

production credit. The partnership will

Note. Upon request, the partnership should

this amount on line 3 of Form 8861,

provide a statement showing separately the

furnish you a copy of the partnership’s Form

Welfare-to-Work Credit.

amount of credit from section A and section

8873 if there is a reduction for international

B of Form 8835.

Code L. Disabled access credit. Report

boycott operations, illegal bribes, kickbacks,

•

Indian employment credit (Form 8845).

this amount on line 7 of Form 8826,

etc.

•

Orphan drug credit (Form 8820).

Disabled Access Credit.

Code Q. Other foreign transactions. On

•

Credit for contributions to selected

Code M. Empowerment zone and renewal

an attachment to Schedule K-1, the

community development corporations (Form

community employment credit. Report

partnership will report any other information

8847).

this amount on line 3 of Form 8844,

on foreign transactions that you may need

•

Credit for small employer pension plan

Empowerment Zone and Renewal

using code Q.

startup costs (Form 8881).

Community Employment Credit.

•

Credit for employer-provided childcare

Code N. New York Liberty Zone business

facilities and services (Form 8882).

•

Box 17. Alternative

employee credit. Report this amount on

Biodiesel fuels credit (Form 8864).

•

line 3 of Form 8884, New York Liberty Zone

Low sulfur diesel fuel production credit

Minimum Tax (AMT) Items

Business Employee Credit.

(Form 8896).

•

Use the information reported in box 17 (as

General credits from an electing large

Code O. New markets credit. Report this

well as your adjustments and tax preference

partnership. Report these credits on Form

amount on line 2 of Form 8874, New

items from other sources) to prepare your

3800, line 1t.

Markets Credit.

Form 6251, Alternative Minimum Tax —

Code V. Recapture of other credits. On

Code P. Credit for employer social

Individuals; Form 4626, Alternative Minimum

an attachment to Schedule K-1, the

security and Medicare taxes. Report this

Tax — Corporations; or Schedule I of Form

partnership will report any information you

amount on line 5 of Form 8846, Credit for

1041, U.S. Income Tax Return for Estates

need to figure the recapture of the new

Employer Social Security and Medicare

and Trusts.

markets credit; qualified electric vehicle

Taxes Paid on Certain Employee Tips.

Note. A partner that is a corporation subject

credit (see Pub. 535); Indian employment

Code Q. Backup withholding. Credit for

to alternative minimum tax must notify the

credit (see section 45A(d)); or any credit for

backup withholding on dividends, interest

partnership of its status.

employer-provided childcare facilities and

income, and other types of income. Include

services.

Code A. This amount is your share of the

the amount the partnership reports to you in

partnership’s post-1986 depreciation

the total that you enter on Form 1040, line

adjustment. If you are an individual partner,

63.

Box 16. Foreign

report this amount on line 17 of Form 6251.

Codes R and S. Recapture of low-income

Code B. This amount is your share of the

Transactions

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

partnership’s adjusted gain or loss. If you

partnership will report recapture of a

are an individual partner, report this amount

Codes A through N. Use the information

low-income housing credit with code R. All

on line 16 of Form 6251.

reported as codes A through N and attached

other partnerships will report recapture of a

schedules to figure your foreign tax credit.

low-income housing credit with code S.

Code C. This amount is your share of the

For more information, see Form 1116,

Keep a separate record of recapture from

partnership’s depletion adjustment. If you

Foreign Tax Credit, and its instructions;

each of these sources so that you will be

are an individual partner, report this amount

Form 1118, Foreign Tax Credit —

able to correctly compute any recapture of

on line 9 of Form 6251.

Corporations, and its instructions; and Pub.

low-income housing credit that may result

Codes D and E. Oil, gas, & geothermal

514, Foreign Tax Credit for Individuals.

from the disposition of all or part of your

properties — gross income and

partnership interest. For more information,

Codes O and P. Extraterritorial income

deductions. The amounts reported on

see Form 8611, Recapture of Low-Income

exclusion.

these lines include only the gross income

Housing Credit.

1. Partnership did not claim the

(code D) from, and deductions (code E)

Code T. Recapture of investment credit.

exclusion. If the partnership reports your

allocable to, oil, gas, and geothermal

Any information you need to figure your

distributive share of foreign trading gross

properties that are included in box 1 of

recapture tax on Form 4255, Recapture of

receipts (code O) and the extraterritorial

Schedule K-1. The partnership should have

Investment Credit. See the Form 3468 on

income exclusion (code P), the partnership

attached a schedule that shows any income

which you took the original credit for other

was not entitled to claim the exclusion

from or deductions allocable to such

information you need to complete Form

because it did not meet the foreign

properties that are included in boxes 2

4255.

economic process requirements. You may

through 13 and in box 20 of Schedule K-1.

-10-

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

Partner'S Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Deductions, Credits, Etc. (For Partner'S Use Only) - 2004 Page 10

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