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8883 Form: What You Should Know

USC 1 note] The asset allocation statement (AAS) must be filed separately for each class of partnership income. Asset allocation statements report on the value of any class of partnership income that is allocated to a partnership (determined by the percentage allocated to all partners), and the ratio of the value of that class of income to that class of gross income (to the end of the taxable year) for each partnership. The valuation and allocation methodologies for the purpose of section 8283 can be found at IRS website. 2a What is considered a “class of gross income?” Section 108(b)(1)(C) of the Internal Revenue Code of 1986, as amended [26 USC 168], defines the class of gross income of a partnership for purposes of section 8829 as “all income, gain, deduction, capital loss, or deduction which is treated as if it were received by the partnership at the individual level.” [26 USA 108(b)(1)(C)2, 10 USA 108 (b)(5) (1976), 30 USA § 1015(e)(1) (1976)] 2b What is considered an asset allocation statement? Section 128(b)(2) of the Internal Revenue Code, as amended [26 USA 78(b)(2) (1986), 10 USA 408 (1988), 30 USA § 1092 (1988)], defines the term “asset allocation statement” as follows: (A) “Asset allocation statement” means any report from which the name and address of the partnership is made and which is prepared in accordance with generally accepted accounting principles or with an accounting practice which complies with the requirements of the Internal Revenue Code of 1986, as amended, in effect at the time of such submission and under which an attribution of gain or loss is made with respect to the property (excluding equity interests in a partnership trust under a trust agreement).

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Instructions and Help about Form 8883

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