Form 8817 Allocation of Patronage and Nonpatronage Income and Dedu

8817

Form

(Rev. January 1998)
Department of the Treasury
Internal Revenue Service

Allocation of Patronage and Nonpatronage
Income and Deductions
©

Attach to the cooperative’s income tax return.

Name

Employer identification number

(a)
Patronage

Income

Taxable Income

Deductions

OMB No. 1545-1135

1a
b
c
2
3
4a
b
5
6a
b
7
8
9
10

Gross receipts or sales
Returns and allowances
Balance. Subtract line 1b from line 1a
Cost of goods sold (attach schedule)
Gross profit. Subtract line 2 from line 1c
Patronage dividends and per-unit retain allocations
Other dividends
Interest
Gross rents
6b
Total expenses related to gross rents
Gross royalties
Capital gain net income
Net gain (loss) from Form 4797, line 18
Other income (attach schedule)

1a
1b
1c
2
3
4a
4b
5
6a

11

Total income. Combine lines 3 through 10

12
13
14
15
16
17
18
19
20a
b
c
21
22
23
24
25

Compensation of officers
Salaries and wages (less employment credits)
Repairs and maintenance
Bad debts
Rents
Taxes and licenses
Interest
Charitable contributions
Depreciation
Depreciation claimed on line 2 and elsewhere on form
Subtract line 20b from line 20a
Depletion
Advertising
Pension, profit-sharing, etc., plans
Employee benefit programs
Other deductions (attach schedule)

11
12
13
14
15
16
17
18
19
20a
20b
20c
21
22
23
24
25

(b)
Nonpatronage

7
8
9
10

Total deductions. Add lines 12 through 19, and 20c through 25
Subtract line 26a from line 11
Deductions and adjustments under section 1382
Taxable income before net operating loss deduction and special
deductions. Subtract line 26c from line 26b
28a Net operating loss deduction (see instructions)
b Special deductions
26a
b
c
27

26a
26b
26c
27
28a
28b

29

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

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.

29

Cat. No. 41158L

Form

8817

(Rev. 1-98)

Form 8817 (Rev. 1-98)

Page

2

General Instructions

Deductions

Section references are to the Inter nal Revenue Code.
Purpose of form. Form 8817 is filed by certain
cooperatives to report their income and deductions by
patronage and nonpatronage sources.
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.
How to file. Attach Form 8817 to the cooperative’s
income tax return.

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.
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.
Line 28a. Attach a schedule showing the computation
of the NOL deduction.
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.
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).
Line 32. Enter any nonpatronage loss from line 29,
column (b).

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.
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.

Taxable Income
Income
Line 1a. Enter gross receipts or sales from all business
operations, except those required to be reported on
lines 4a through 10.
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.
Line 6b. Enter in the space provided, the cooperative’s
total expenses related to gross rents.
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.

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.
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.
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.
Learning about the
law or the form
30 min.
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.