Looking for a Form 8804-w Templates? Download it for free!

(and if the requirements outlined in the

and Losses in the Instructions for Forms

income and gain to determine the

Note in the line 30 instructions are met), it

8804, 8805, and 8813 for additional

amounts of income and gain to be entered

must attach a schedule which

information.

on lines 30e, 30i, and 30m, respectively.

appropriately expands lines 14 and 21

See section 1(h) and Notice 97-59,

Part III—Annualized

through 24 to show the applicable special

1997-45 I.R.B. 7, for rules for netting gains

types of income or gain and the applicable

and losses.

Income Installment

percentages (see, for example, lines 32

Line 31—Annualization

Method

and 33 of this schedule).

Amounts

DRAFT AS OF

Line 29—Annualization Periods

Complete this part only if the

Enter the annualization amounts for the

partnership's base period percentage for

Enter in the space on line 29, columns (a)

option used on line 29. For example, if the

any 6 consecutive months of the tax year

through (d), respectively, the annualization

partnership elects Option 1, enter on

equals or exceeds 70%. Figure the base

periods that the partnership is using,

line 31 the annualization amounts 6, 3,

period percentage using the 6-month

based on the options listed below. For

1.71429, and 1.2, in columns (a) through

period in which the partnership normally

example, if the partnership elects Option

(d), respectively.

September 19, 2012

receives the largest part of its ECTI. The

1, enter on line 29 the annualization

base period percentage for any period of 6

periods 2, 4, 7, and 10, in columns (a)

1st

2nd

3rd

4th

consecutive months is the average of the

through (d), respectively.

Installmen

Installme

Installmen

three percentages figured by dividing the

Use Option 1 or Option 2 only if

ECTI for the corresponding

Standard

the partnership elected to use

6-consecutive-month period in each of the

Option

1.33333

one of these options by filing

3 preceding tax years by the ECTI for

CAUTION

Form 8842, Election To Use Different

Option 1

1.71429

1.2

each of their respective tax years.

Annualization Periods for Corporate

Option 2

2.4

1.5

1.09091

Example. An amusement park with a

Estimated Tax, on or before the due date

calendar year as its tax year receives the

of the first required installment payment.

Lines 32a, 32e, 32i, and 32m

largest part of its ECTI during a 6-month

Once made, the election is irrevocable for

period, May through October. To compute

the particular tax year.

If the partnership has certain extraordinary

its base period percentage for this

items that total $1 million or more from a

6-month period, the amusement park

particular transaction, or a section 481(a)

figures its ECTI for each May–October

1st

2nd

3rd

4th

adjustment, special rules apply. Include

Installmen

Installme

Installmen

period in 2010, 2011, and 2012. It then

these amounts on line 32a, 32e, 32i, or

divides the ECTI for each May–October

32m, depending upon the type of income

Standard

period by the total ECTI for that particular

against which the item applies, for the

Option

tax year. The resulting percentages are

appropriate period. Also include on

Option 1

69% (.69) for May–October 2010, 74% (.

line 32a, 32e, 32i, or 32m the de minimis

74) for May–October 2011, and 67% (.67)

Option 2

extraordinary items that the partnership

for May–October 2012. Because the

chooses to exclude from line 30a, 30b,

average of 69%, 74%, and 67% is 70%,

30c, or 30d, respectively. See

Line 30—Foreign Partner's

the base period percentage for May

Extraordinary items, earlier.

Allocable Share of ECTI

through October 2013 is 70%. Therefore,

Lines 32b, 32f, 32j, and 32n

the amusement park qualifies for the

Enter on lines 30a through 30d the foreign

adjusted seasonal installment method.

Enter the reduction amounts for state and

partner's allocable share of ECTI for the

local taxes under Regulations section

months entered for each annualization

Line 14

1.1446-6(c)(1)(iii). See Reductions for

period in columns (a) through (d) on

If the partnership has certain extraordinary

State and Local Taxes in the Instructions

line 29. To determine the foreign partner's

items, special rules apply. Do not include

for Forms 8804, 8805, and 8813 for

allocable share of ECTI, see Effectively

on line 14 the de minimis extraordinary

additional information. The netting rules

Connected Taxable Income in the

items that the partnership chooses to

under section 1(h) and Notice 97-59 must

Instructions for Forms 8804, 8805, and

include on line 21b. See Extraordinary

be considered in determining the category

8813.

items, earlier.

of income the reduction amounts offset.

If the partnership has certain

Line 21b

Lines 32c, 32g, 32k, and 32o

extraordinary items, special rules apply.

If the partnership has certain extraordinary

Do not include on line 30a, 30b, 30c, or

Enter the reduction amounts resulting from

items of $1 million or more from a

30d the de minimis extraordinary items

certified partner-level items received from

transaction, or a section 481(a)

that the partnership chooses to include on

foreign partners using Form 8804-C. See

adjustment, special rules apply. Include

line 32a, 32e, 32i, or 32m, respectively.

Certification of Deductions and Losses in

these amounts on line 21b for the

See Extraordinary items, earlier.

the Instructions for Forms 8804, 8805, and

appropriate period. Also, include on

8813 for additional information. The

Note. With respect to lines 30b through

line 21b the de minimis extraordinary

netting rules under section 1(h) and Notice

30d, enter the specified types of ECTI if

items that the partnership chooses to

97-59 must be considered in determining

(a) such partner would be entitled to use a

exclude from line 14. See Extraordinary

the category of income the reduction

preferential rate on such income or gain

items, earlier.

amounts offset.

(see Regulations section 1.1446-3(a)(2))

Line 22

and (b) the partnership has sufficient

documentation to meet the requirements

Enter the reduction to the line 21c amount

of Regulations section 1.1446-3(a)(2)(ii).

for state and local taxes under

Regulations section 1.1446-6(c)(1)(iii) and

If the partnership has net ordinary loss,

for certified foreign partner-level items

net short-term capital loss, or net 28% rate

submitted under Regulations section

loss, each net loss should be netted

1.1446-6. See Certification of Deductions

against the appropriate categories of

Instructions for Form 8804-W (2013)

-3-

Instructions Draft For Form 8804-W - Installment Payments Of Section 1446 Tax For Partnerships - 2013 Page 4

Related Articles

Related forms

Related Categories