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Federal income tax return to show your

share of foreign trading gross receipts but

25. Amortizable basis of reforestation

computation of both the tax and interest

not the amount of the extraterritorial

expenses and the year paid or incurred.

for a nonqualified withdrawal. Include the

income exclusion, the partnership met the

To figure your allowable amortization,

tax and interest on Form 1040, line 60. To

foreign economic process requirements

including limits that may apply, see

the left of line 60, write the amount of tax

and claimed the exclusion when figuring

section 194 and Pub. 535. Follow the

and interest and ‘‘CCF.’’

your distributive share of partnership

Instructions for Form 8582 to report

20. Unrecaptured section 1250 gain.

income. You also may need to know the

amortization allocable to a passive

Generally, report this amount on line 5 of

amount of your distributive share of

activity. However, if the box in Item H is

the Unrecaptured Section 1250 Gain

foreign trading gross receipts from this

checked, report the amortization following

Worksheet in the Schedule D (Form

partnership to determine if you met the $5

the rules for Publicly traded

1040) instructions. However, for an

million or less exception discussed above

partnerships on page 4. Report

amount passed through from an estate,

for purposes of qualifying for an

amortization from a trade or business

trust, real estate investment trust, or

extraterritorial income exclusion from

activity in which you materially

regulated investment company, report it

other sources.

participated on a separate line in Part II,

on line 11 of that worksheet. Report on

column (h), of Schedule E (Form 1040).

Note: Upon request, the partnership

line 10 of that worksheet any gain from

26. Any information you need to figure

should furnish you a copy of the

the partnership’s sale or exchange of an

the interest due under section 1260(b). If

partnership’s Form 8873 if there is a

interest in another partnership that is

the partnership had gain from certain

reduction for international boycott

attributable to unrecaptured section 1250

constructive ownership transactions, your

operations, illegal bribes, kickbacks, etc.

gain.

tax liability must be increased by the

28. Commercial revitalization deduction

21. Your share of any collectibles gain

interest charge on any deferral of gain

from rental real estate activities. Follow

or loss. Include this amount on line 4 of

recognition under section 1260(b). Report

the instructions on Form 8582 for

the worksheet for Schedule D (Form

the interest on Form 1040, line 60. Write

commercial revitalization deductions from

1040), line 20.

“1260(b)” and the amount of the interest

rental real estate activities to figure how

22. Any information you need to figure

on the dotted line to the left of line 60.

much of the deduction can be reported on

qualified 5-year gain. Include on line 5 of

See section 1260(b) for details, including

Schedule E, Part II, column (f).

the worksheet for Schedule D (Form

how to figure the interest.

29. Any information you need to

1040), line 35, qualified 5-year gain from

27. Extraterritorial income exclusion:

disclose certain reportable transactions in

portfolio income. Take into account any

which the partnership participates. If the

a. Partnership did not claim the

qualified 5-year gain from section 1231

partnership participates in a transaction

exclusion. If the partnership reports your

property when completing line 2 of that

distributive share of foreign trading gross

that must be disclosed on Form 8886,

worksheet, as if it were included in Part I

Reportable Transaction Disclosure

receipts and the extraterritorial income

of Form 4797 (but only if line 7, column

Statement, both the partnership and its

exclusion, the partnership was not entitled

(g), of your Form 4797 is greater than

to claim the exclusion because it did not

partners may be required to file Form

zero).

8886 for the transaction. The

meet the foreign economic process

23. Any information you need to figure

determination of whether you are required

requirements. You may qualify for your

the interest due or to be refunded under

distributive share of this exclusion

to disclose a partnership transaction is

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

based on the category(s) under which the

because the partnership’s foreign trading

for certain property placed in service after

transaction qualified for disclosure. See

gross receipts for the tax year were $5

September 13, 1995, and depreciated

million or less. To qualify for this

the Instructions for Form 8886 for details.

under the income forecast method. Use

30. Recapture of the credit for

exclusion, your foreign trading gross

Form 8866, Interest Computation Under

employer-provided child care facilities and

receipts from all sources for the tax year

the Look-Back Method for Property

also must have been $5 million or less.

services (Form 8882).

Depreciated Under the Income Forecast

31. Any other information you may

See Form 8873, Extraterritorial Income

Method, to report any such interest.

need to file your return not shown

Exclusion, for more information. If you

24. Any information a publicly traded

qualify for the exclusion, report the

elsewhere on Schedule K-1.

partnership needs to determine whether it

exclusion amount in accordance with the

The partnership should give you a

meets the 90% qualifying income test of

instructions for Income (Loss) on page 6

description and the amount of your share

section 7704(c)(2).

for line 1, 2, or 3, whichever applies.

for each of these items.

Reminder: A partner is required to notify

b. Partnership claimed the exclusion.

the partnership of its status as a publicly

If the partnership reports your distributive

traded partnership.

-12-

Partner’s Instructions for Schedule K-1

Printed on recycled paper

Partner'S Instructions For Schedule K-1 (Form 1065) - Partner'S Share Of Income, Credits, Deductions, Etc. (For Partner'S Use Only) - 2003 Page 12

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