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)