Form 1099-PATR Domestic Production Activities Deduction from Cooperatives
bought for personal use or (2) capital assets or depreciable property used in your business are not taxable. However, if (2) applies, reduce the basis of the assets by this amount.
income tax return as tax withheld.
- In the Individual Module, this amount can be entered in Screen 14, Miscellaneous Income. Under the Tax Withheld section, enter the amount in Federal Income Tax Withheld.
- In the Partnership Module, this amount can be entered in Screen 22, Other Schedule K Items. Use Other Credits (Ctrl + E) in the Credits section and select Code O for Backup Withholding. This will appear on Line 15 of the Schedule K/K-1 (1065).
- In the S-Corporation Module, this amount can be entered in Screen 26, Credits (Schedule K). Select Schedule K Credits in the upper section of the left panel. Scroll to or select Other Credits - Sch K Lns 12 & 13 (bottom of the screen). In Other Credits (Ctrl+E), select Code O Backup Withholding and enter the amount. This will appear on Line 13 of the Schedule K/K-1 (1120-S).
Box 6. Shows the deduction amount you may take based on your portion of patronage dividends or per-unit retain allocations (boxes 1 and 3) attributable to qualified production activities income. To claim the deduction amount, this amount must have been designated in a written notice sent to you from the cooperative within the payment period under section 1382(d). Enter on the appropriate line of Form 8903.
Box 9. Shows the alternative minimum tax (AMT) adjustment passed through to you by the cooperative. Report this amount on Form 6251 on the appropriate line in Part I. (Use Screen 40, Alternative Minimum Tax, Patrons adjustment (from cooperative) (code 18)).
Click here for instructions on entering in the Corporate Module (Form 1120).