Form 8817 Allocation of Patronage and Nonpatronage

(Rev. January 1998) Income and Deductions OMB No. 1545-1135

Department of the Treasury

Internal Revenue Service © Attach to the cooperative’s income tax return.

Name Employer identification number

(b)

Nonpatronage

(a)

Patronage Taxable Income

1a Gross receipts or sales 1a

b Returns and allowances 1b

c Balance. Subtract line 1b from line 1a 1c

2 Cost of goods sold (attach schedule) 2

3 Gross profit. Subtract line 2 from line 1c 3

4a Patronage dividends and per-unit retain allocations 4a

b Other dividends 4b

5 Interest 5

Income

6a Gross rents 6a

b Total expenses related to gross rents 6b

7 Gross royalties 7

8 Capital gain net income 8

9 Net gain (loss) from Form 4797, line 18 9

10 Other income (attach schedule) 10

11 Total income. Combine lines 3 through 10 11

12 Compensation of officers 12

13 Salaries and wages (less employment credits) 13

14 Repairs and maintenance 14

15 Bad debts 15

16 Rents 16

17 Taxes and licenses 17

18 Interest 18

19 Charitable contributions 19

20a Depreciation 20a

b Depreciation claimed on line 2 and elsewhere on form 20b

c Subtract line 20b from line 20a 20c

21 Depletion 21

22 Advertising 22

Deductions

23 Pension, profit-sharing, etc., plans 23

24 Employee benefit programs 24

25 Other deductions (attach schedule) 25

26a Total deductions. Add lines 12 through 19, and 20c through 25 26a

b Subtract line 26a from line 11 26b

c Deductions and adjustments under section 1382 26c

27 Taxable income before net operating loss deduction and special

deductions. Subtract line 26c from line 26b 27

28a Net operating loss deduction (see instructions) 28a

b Special deductions 28b

29 Taxable income. Subtract the total of lines 28a and 28b from line 27 29

30 Combined taxable income. Add line 29, columns (a) and (b) (see instructions) 30

31 Unused patronage loss (see instructions) 31

32 Unused nonpatronage loss (see instructions) 32

For Paperwork Reduction Act Notice, see back of form. Cat. No. 41158L Form 8817 (Rev. 1-98)
Form 8817 (Rev. 1-98) Page 2

Taxable Income

Income

Section references are to the Internal Revenue Code.

Line 1a. Enter gross receipts or sales from all business

operations, except those required to be reported on

lines 4a through 10.

Paperwork Reduction Act Notice. We ask for the

information on this form to carry out the Internal

Revenue laws of the United States. You are required to

give us the information. We need it to ensure that you

are complying with these laws and to allow us to figure

and collect the right amount of tax.

Line 2. Enter in the appropriate columns the cost of

goods sold. Attach a schedule showing your

computations.

Line 6a. Enter the gross amount received for the rent

of property. Report related expenses such as repairs,

interest, taxes, and depreciation on the proper lines for

those deductions.

The time needed to complete and file this form will

vary depending on individual circumstances. The

estimated average time is:

Recordkeeping 16 hrs., 44 min.

Line 6b. Enter in the space provided, the cooperative’s

total expenses related to gross rents.

Learning about the

law or the form 30 min.

Line 10. Enter any other taxable income not listed

above, and explain its nature and source (patronage or

nonpatronage) on an attached schedule. If “other

income” consists of only one item, describe it in

parentheses on line 10 and enter the amount in the

appropriate column. Preparing, copying, assembling,

and sending the form to the IRS 47 min.

If you have comments concerning the accuracy of

these time estimates or suggestions for making this

form simpler, we would be happy to hear from you.

See the instructions for the tax return with which this

form is filed.

Deductions

If the books and records do not separately show the

patronage and nonpatronage portion of an expense,

use an approximate percentage to determine the

patronage and nonpatronage portion of the expense.

Purpose of form. Form 8817 is filed by certain

cooperatives to report their income and deductions by

patronage and nonpatronage sources. Line 25. Enter any other deductions not listed on lines

12 through 24, and explain the nature and source

(patronage and nonpatronage) on an attached

schedule. If “other deductions” consists of only one

item, describe it in parentheses on line 25 and enter

the amount in the appropriate column.

Who must file. Form 8817 MUST be filed by

cooperatives described in section 1381(a)(2) that have

both patronage and nonpatronage income and

deductions. However, exempt farmers cooperatives

(section 521) and taxable cooperatives with gross

receipts of less than $10 million, are not required to file

Form 8817. Line 28a. Attach a schedule showing the computation

of the NOL deduction. How to file. Attach Form 8817 to the cooperative’s

income tax return. Line 28b. Attach a schedule showing the computation

of the special deductions.

Line 30. Add columns (a) and (b), line 29, and enter

the total on this line. The taxable income reported on

line 30 of the cooperative’s tax return may not exceed

the taxable income shown on line 30 of this form.

Specific Instructions

Enter for each line, in the appropriate column, the

amount of income or deduction. The total of both

columns for each line must agree with the amount

reported on the corresponding line of the cooperative’s

income tax return. For more details about any line on

this form not described below, see the specific

instruction for that line in the instructions for the

cooperative’s income tax return.

Note: Any patronage source losses (line 29, column (a))

cannot be used to offset nonpatronage income (line 29,

column (b)).

Line 31. Enter any patronage loss from line 29, column

(a).

A patronage allocation schedule may be attached in

lieu of completing lines 1a through 26c. However, lines

27 through 32 MUST be completed even if a

patronage allocation schedule is attached.

Line 32. Enter any nonpatronage loss from line 29,

column (b).

General Instructions

You are not required to provide the information

requested on a form that is subject to the Paperwork

Reduction Act unless the form displays a valid OMB

control number. Books or records relating to a form or

its instructions must be retained as long as their

contents may become material in the administration of

any Internal Revenue law. Generally, tax returns and

return information are confidential, as required by

section 6103.