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Limitation on deduction. The total

$5,000. Special rules apply to the

plan is not a qualified plan under the

amount claimed cannot be more than

contribution of certain property. See the

Internal Revenue Code. The filing

10% of taxable income (line 37, Schedule

Instructions for Form 8283.

requirement applies even if the

A) computed without regard to the

corporation does not claim a deduction for

Qualified conservation contributions.

following.

the current tax year. There are penalties

Special rules apply to qualified

•

Any deduction for contributions.

for failure to file these forms on time and

conservation contributions, including

•

The deduction for dividends received.

for overstating the pension plan

contributions of certain easements on

•

The domestic production activities

deduction. See sections 6652(e) and

buildings located in a registered historic

deduction under section 199.

6662(f). Also, see the instructions for the

district. See Section 170(h) and Pub. 526,

•

Any net operating loss (NOL) carryback

applicable form.

Charitable Contributions.

to the tax year under section 172.

Form 5500, Annual Return/Report of

Other special rules. The corporation

•

Any capital loss carryback to the tax

Employee Benefit Plan.

must reduce its deduction for

year under section 1212(a)(1).

contributions of certain capital gain

Form 5500-SF, Short Form Annual

Carryover. Charitable contributions

property. See sections 170(e)(1) and

Return/Report of Small Employee Benefit

over the 10% limitation cannot be

170(e)(5).

Plan. File this form instead of Form 5500,

deducted for the tax year but may be

generally, if there are under 100

A larger deduction is allowed for

carried over to the next 5 tax years.

participants at the beginning of the plan

certain contributions of:

year.

•

Special rules apply if the corporation

Inventory and other property to certain

has an NOL carryover to the tax year. In

organizations for use in the care of the ill,

Note. Form 5500 and Form 5500-SF

figuring the charitable contributions

needy, or infants (see section 170(e)(3)),

must be filed electronically under the

deduction for the current tax year, the

including qualified contributions of

computerized ERISA Filing Acceptance

10% limit is applied using taxable income

“apparently wholesome food” (see section

System (EFAST2). For more information,

after taking into account any deduction for

170(e)(3)(C)), and contributions of

see the EFAST2 website at

the NOL.

qualified book inventory to public schools

(see section 170(e)(3)(D));

To figure the amount of any remaining

Form 5500-EZ, Annual Return of

•

Scientific equipment used for research

NOL carryover to later years, taxable

One-Participant (Owners and Their

to institutions of higher learning or to

income must be modified (see section

Spouses) Retirement Plan. File this form

certain scientific research organizations

172(b)). To the extent that contributions

for a plan that only covers the owner (or

other than by personal holding companies

are used to reduce taxable income for this

the owner and his or her spouse) but only

and service organizations (section

purpose and increase an NOL carryover,

if the owner (or the owner and his or her

170(e)(4)); and

a contributions carryover is not allowed.

spouse) owns the entire business.

•

Computer technology and equipment

See section 170(d)(2)(B).

Line 25. Employee benefit programs.

for educational purposes (section

Cash contributions. For contributions

Enter contributions to employee benefit

170(e)(6)).

of cash, check, or other monetary gifts

programs not claimed elsewhere on the

For more information on charitable

(regardless of the amount), the

return (for example, insurance, health and

contributions, including substantiation and

corporation must maintain a bank record,

welfare programs, etc.) that are not an

recordkeeping requirements, see section

or a receipt, letter, or other written

incidental part of a pension, profit-sharing,

170 and the related regulations and Pub.

communication from the donee

etc., plan included on line 24.

526. For other special rules that apply to

organization indicating the name of the

Line 27. Additional deduction. Enter

corporations, see Pub. 542.

organization, the date of the contribution,

on line 27 the total from Form 8816, Part

and the amount of the contribution.

Line 22. Depreciation. Include on line

II, line 5.

22 depreciation and the cost of certain

Contributions of $250 or more. A

Any insurance company taking the

property that the corporation elected to

corporation can deduct a gift of $250 or

additional deduction must:

expense under section 179. See Form

more only if it gets a written

•

Make special estimated tax payments

4562 and the Instructions for Form 4562.

acknowledgment from the donee

equal to the tax benefit from the

organization that shows the amount of

Line 23. Depletion. See sections 613

deduction and

cash contributed, describes any property

and 613A for percentage depletion rates

•

Establish and maintain a Special Loss

contributed (but not its value), and either

applicable to natural deposits. Also, see

Discount Account. See section 847 and

gives a description and a good faith

section 291 for the limitation on the

Form 8816 for more information.

estimate of the value of any goods or

depletion deduction for iron ore and coal

Line 29. Dividends to policyholders.

services provided in return for the

(including lignite).

Enter the total dividends and similar

contribution or states that no goods or

Attach Form T (Timber), Forest

distributions paid or declared to

services were provided in return for the

Activities Schedule, if a deduction for

policyholders, as policyholders, except in

contribution. The acknowledgment must

depletion of timber is taken.

the case of a mutual fire insurance

be obtained by the due date (including

Foreign intangible drilling costs and

company exclusively issuing perpetual

extensions) of the corporation’s return, or,

foreign exploration and development

policies. Whether dividends have been

if earlier, the date the return is filed. Do

costs must either be added to the

paid or declared should be determined

not attach the acknowledgment to the tax

corporation’s basis for cost depletion

according to the method of accounting

return, but keep it with the corporation’s

purposes or be deducted ratably over a

employed by the insurance company.

records.

10-year period. See sections 263(i), 616,

Dividends and similar distributions

Contributions of property other than

and 617.

include amounts returned or credited to

cash. If a corporation contributes

See Pub. 535 for more information on

policyholders on cancellation or expiration

property other than cash and claims over

depletion.

of policies issued by a mutual fire or flood

a $500 deduction for the property, it must,

insurance company:

generally, attach a statement to the return

Line 24. Pension, profit-sharing, etc.,

describing the kind of property contributed

plans. Enter the deduction for

1. Where the premium deposits for

and the method used to determine its fair

contributions to qualified pension,

the policy are the same (regardless of the

market value (FMV). Generally, attach

profit-sharing, or other funded deferred

length of the policy) and

Form 8283, Noncash Charitable

compensation plans. Employers who

2. The unabsorbed portion of the

Contributions, to the return for

maintain such a plan generally must file

premium deposits not required for losses,

contributions of property (other than

one of the forms listed below unless

expenses, or establishment of reserves is

money) if the total claimed deduction for

exempt from filing under regulations or

returned or credited to the policyholder on

all property contributed was more than

other applicable guidance, even if the

cancellation or expiration of the policy.

-12-

Instructions for Form 1120-PC (2011)

Instructions For Form 1120-Pc - U.s. Property And Casualty Insurance Company Income Tax Return Page 12

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