1040-US: Partner Basis Worksheet - charitable contributions and foreign tax treatment

Alerts and notices
Leave feedback

Internal Employees: Submit feedback

Contact information (optional):

Leave this blank:

Please tell us how we can make this information more helpful.


Characters left:

MFA required for electronic filing

Effective May 3rd, the 2017 version of UltraTax CS requires multi-factor authentication (MFA) to transmit e-files from CS Connect. Find out more.

Question

How are charitable contributions and foreign taxes treated on the Partner's Basis Worksheet?

Answer

Charitable contributions and foreign taxes are not included in the definition of partnership income and therefore are not part of the limitation of partnership losses and deductions by the partner. As such, charitable contributions and foreign taxes would be used in the determination of basis under IRC section 705(a)(2)(B) as expenditures of the partnership not deductible in calculating its taxable income and not properly chargeable to capital account. Per Revenue Ruling 96-11, 1996-1 CB 140, basis is decreased by the partner's share of the partnership's basis in the property contributed. Enter the adjusted basis on noncash contributions in the statements attached to the noncash contribution fields in Screen K1-3.

Related topic: Partner’s and Shareholder’s Basis Worksheets FAQs (1040)

Share This