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Incorporate your buisness - Cooke R.A.

Cooke R.A. Incorporate your buisness - wiley publishing, 2004. - 256 p.
ISBN 0-471-66952-0
Download (direct link): incorporateyourbusiness2004.pdf
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9. Any information needed by a shareholder to compute the interest due under section 453A(c). If an obligation arising from the disposition of property to which section 453A applies is outstanding at the close of the year, each shareholder’s tax liability must be increased by the tax due under section 453A(c) on the shareholder's pro rata share of the tax deferred under the installment method.
10. Any information needed by a shareholder to properly capitalize interest as required by section 263A(f). See Section 263A uniform capitalization rules on page 13 for more information
11. If the corporation is a closely held S corporation (defined in section 460(b)) and it entered into any long-term contracts after February 28, 1986, that are accounted for under either the percentage of completion-capitalized cost method or the percentage of completion method, it must attach a schedule to Form 1120S showing the information required in items (a) and (b) of the instructions for lines 1 and 3 of Part II for Form 8697, Interest Computation Under the Look-Back Method for Completed Long-Term Contracts. It must also report the amounts for Part II. lines 1 and 3, to its shareholders. See the Instructions for Form 8697 for more information.
12. Expenditures qualifying for the (a) rehabilitation credit not related to rental real estate activities, (b) energy credit, or
(c) reforestation credit. Complete and attach Form 3468 to Form 1120S. See Form 3468 and related instructions for information on eligible property and the lines on Form 3468 to complete. Do not include that part of the cost of the property the corporation has elected to expense under section 179. Attach to each Schedule K-1 a separate schedule in a format similar to that shown on Form 3468 detailing each shareholder's pro rata share of qualified expenditures. Also indicate the lines of Form 3468 on which the shareholders should report these amounts.
13. Recapture of investment credit. Complete and attach Form 4255, Recapture of Investment Credit, when investment credit property is disposed of, or it no longer qualifies for the credit, before the end of the recapture period or the useful life applicable to the property. State the type of property at the top of Form 4255, and complete lines 2. 4. and
5, whether or not any shareholder is subject to recapture of the credit. Attach to each Schedule K-1 a separate schedule providing the information the corporation is required to show on Form 4255, but list only the shareholders pro rata share of the cost of the property subject to recapture. Also indicate the lines of Form 4255 on which the shareholders should report these amounts.
The corporation itself is liable for investment credit recapture in certain cases. See the instructions for line 22c, page 1, Form 1120S. for details.
14. Any information needed by a shareholder to compute the recapture of the qualified electric vehicle credit. See Pub. 535 for more information.
15. Recapture of new markets credit (Form 8874).
16. Any information a shareholder may need to figure recapture of the Indian employment credit. Generally, if the corporation terminates a qualified employee less than 1 year after the date of initial employment, any Indian
employment credit allowed for a prior tax year by reason of wages paid or incurred to that employee must be recaptured. For details, see section 45A(d).
17. Nonqualified withdrawals by the corporation from a capital construction fund.
18. Unrecaptured section 1250 gain. Figure this amount for each section 1250 property in Part III of Form 4797 (except property for which gain is reported using the installment method on Form 6252) for which you had an entry in Part I of Form 4797 by subtracting line 26g of Form 4797 from the smaller of line 22 or line
24 of Form 4797. Figure the total of these amounts for all section 1250 properties. Generally, the result is the corporation’s unrecaptured section 1250 gain.
However, if the corporation is reporting gain on the installment method for a section 1250 property held more than 1 year, see the next paragraph to figure the unrecaptured section 1250 gain on that property allocable to this tax year. Report each shareholder's pro rata share of the total amount as “Unrecaptured section 1250 gain."
The total unrecaptured section 1250 gain for an installment sale of section 1250 property held more than 1 year is figured in a manner similar to that used in the preceding paragraph. However, the total unrecaptured section 1250 gain must be allocated to the installment payments received from the sale. To do so, the corporation generally must treat the gain allocable to each installment payment as unrecaptured section 1250 gain until all such gain has been used in full. Figure the unrecaptured section 1250 gain for installment payments received during the tax year as the smaller of (a) the amount from line 26 or line 37 of Form 6252 (whichever applies) or (b) the total unrecaptured section 1250 gain for the sale reduced by all gain reported in prior years (excluding section 1250 ordinary income recapture). However, if the corporation chose not to treat all of the gain from payments received after May 6. 1997, and before August 24, 1999. as unrecaptured section 1250 gain, use only the amount the corporation chose to treat as unrecaptured section 1250 gain for those payments to reduce the total unrecaptured section 1250 gain remaining to be reported for the sale.
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