Instructions for IRS Form 8804-W "Installment Payments of Section 1446 Tax for Partnerships"

This document contains official instructions for IRS Form 8804-W, Installment Payments of Section 1446 Tax for Partnerships - a tax form released and collected by the Internal Revenue Service (IRS), a subdivision of the U.S. Department of the Treasury. An up-to-date fillable IRS Form 8804-W is available for download through this link.

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2021
Department of the Treasury
Internal Revenue Service
Instructions for Form 8804-W
(WORKSHEET)
Installment Payments of Section 1446 Tax for Partnerships
must file Form 8813. Furthermore, the
A partner may be entitled to use a
Section references are to the Internal Revenue
Code unless otherwise noted.
partnership is generally required to notify
preferential rate on the following types of
each foreign partner of the section 1446
income or gain.
Future Developments
tax paid on the partner's behalf within 10
1. Line 1i—See section 1(h)(4) and
days of the installment payment due date,
For the latest information about
the instructions for Schedule D (Form
or, if paid later, the date the installment
developments related to Form 8804-W
1040), line 18, for more information
and its instructions, such as legislation
payment is made. See Regulations
regarding 28% rate gain.
section 1.1446-3(d)(1)(i) for information
enacted after they were published, go to
2. Line 1m—See section 1(h)(6) and
that must be included in the notification
IRS.gov/Form8804W.
the instructions for Schedule D (Form
and for exceptions to the notification
1040), line 19, for more information
General Instructions
requirement.
regarding unrecaptured section 1250 gain.
Refiguring Estimated
3. Line 1q—Adjusted net capital gain
Purpose of Form
is net capital gain, as defined in section
Section 1446 Tax
Partnerships that have effectively
1222(11), reduced (but not below zero) by
If, after the partnership figures and makes
connected taxable income (ECTI)
the sum of (a) unrecaptured section 1250
an installment payment of estimated
allocable to foreign partners can use the
gain, and (b) 28% rate gain, plus qualified
section 1446 tax, it finds that its section
Form 8804-W (WORKSHEET) to
dividend income. See section 1(h)(3).
1446 tax liability for the year will be more
determine the proper estimated section
If the partnership has net ordinary loss,
or less than originally estimated, it may
1446 tax payments.
net short-term capital loss, or net 28% rate
have to refigure its required installments. If
loss, each net loss should be netted
Who Must Make Estimated
earlier installments were underpaid, the
against the appropriate categories of
partnership may owe a penalty for
Section 1446 Tax
income and gain to determine the
underpayment of estimated tax. An
Payments
amounts of income and gain to be entered
immediate catch-up payment should be
on lines 1a, 1e, 1i, 1m, and 1q,
made to reduce the amount of any penalty
Partnerships generally must make
respectively. Don’t enter a negative
resulting from the underpayment of any
installment payments of estimated section
number on line 1a, 1e, 1i, 1m, or 1q. See
earlier installments, whether caused by a
1446 tax if the aggregate tax on the ECTI
section 1(h) and Notice 97-59, 1997-45
change in estimate, failure to make a
that is allocable to all foreign partners will
I.R.B. 7, available at
IRS.gov/pub/irs-irbs/
payment, or a mistake.
be $500 or more.
irb97-45.pdf, for rules for netting gains and
losses.
Specific Instructions
When To Make Estimated
Lines 1b, 1f, 1j, 1n, and 1r. Enter the
Section 1446 Tax
reduction amounts for state and local
Part I—Determination of
Payments
taxes under Regulations section
Installment Payments
1.1446-6(c)(1)(iii). See Reductions for
The installments are due by the 15th day
State and Local Taxes in the Instructions
of the 4th, 6th, 9th, and 12th months of the
Complete Form 8804-W for each
for Forms 8804, 8805, and 8813 for
partnership's tax year. If any date falls on
installment payment of section 1446 tax
additional information. The netting rules
a Saturday, Sunday, or legal holiday, the
based on the information available at the
under section 1(h) and
Notice 97-59
must
installment is due on the next regular
time of the installment payment.
be considered in determining the category
business day.
Lines 1 Through 6—Current
of income the reduction amounts offset.
Underpayment of
Year Safe Harbor
Lines 1c, 1g, 1k, 1o, and 1s. Enter the
Estimated Section 1446
reduction amounts resulting from certified
Lines 1a, 1e, 1i, 1m, and 1q. To
partner-level items received from foreign
Tax
determine the allocable share of ECTI for
partners using Form 8804-C. See
all foreign partners, see Effectively
A partnership that doesn’t make estimated
Certification of Deductions and Losses in
Connected Taxable Income in the
section 1446 tax payments when due may
the Instructions for Forms 8804, 8805, and
Instructions for Forms 8804, 8805, and
be subject to an underpayment penalty for
8813 for additional information. The
8813. Enter on lines 1i, 1m, and 1q the
the period of underpayment. See
netting rules under section 1(h) and
Notice
specified types of ECTI allocable to those
Schedule A (Form 8804) for details.
97-59
must be considered in determining
partners who would be entitled to use a
the category of income the reduction
preferential rate on such income or gain
How To Make Estimated
amounts offset.
(see Regulations section 1.1446-3(a)(2)).
Section 1446 Tax
For tiered partnerships, see Regulations
Line 8—Prior Year Safe Harbor
Payments
section 1.1446-5.
Enter the total section 1446 tax that would
A partnership that is required to make an
have been due for 2020, applying the
installment payment of section 1446 tax
2020 rates (see the 2020 Form 8804-W
Sep 01, 2020
Cat. No. 51675X
2021
Department of the Treasury
Internal Revenue Service
Instructions for Form 8804-W
(WORKSHEET)
Installment Payments of Section 1446 Tax for Partnerships
must file Form 8813. Furthermore, the
A partner may be entitled to use a
Section references are to the Internal Revenue
Code unless otherwise noted.
partnership is generally required to notify
preferential rate on the following types of
each foreign partner of the section 1446
income or gain.
Future Developments
tax paid on the partner's behalf within 10
1. Line 1i—See section 1(h)(4) and
days of the installment payment due date,
For the latest information about
the instructions for Schedule D (Form
or, if paid later, the date the installment
developments related to Form 8804-W
1040), line 18, for more information
and its instructions, such as legislation
payment is made. See Regulations
regarding 28% rate gain.
section 1.1446-3(d)(1)(i) for information
enacted after they were published, go to
2. Line 1m—See section 1(h)(6) and
that must be included in the notification
IRS.gov/Form8804W.
the instructions for Schedule D (Form
and for exceptions to the notification
1040), line 19, for more information
General Instructions
requirement.
regarding unrecaptured section 1250 gain.
Refiguring Estimated
3. Line 1q—Adjusted net capital gain
Purpose of Form
is net capital gain, as defined in section
Section 1446 Tax
Partnerships that have effectively
1222(11), reduced (but not below zero) by
If, after the partnership figures and makes
connected taxable income (ECTI)
the sum of (a) unrecaptured section 1250
an installment payment of estimated
allocable to foreign partners can use the
gain, and (b) 28% rate gain, plus qualified
section 1446 tax, it finds that its section
Form 8804-W (WORKSHEET) to
dividend income. See section 1(h)(3).
1446 tax liability for the year will be more
determine the proper estimated section
If the partnership has net ordinary loss,
or less than originally estimated, it may
1446 tax payments.
net short-term capital loss, or net 28% rate
have to refigure its required installments. If
loss, each net loss should be netted
Who Must Make Estimated
earlier installments were underpaid, the
against the appropriate categories of
partnership may owe a penalty for
Section 1446 Tax
income and gain to determine the
underpayment of estimated tax. An
Payments
amounts of income and gain to be entered
immediate catch-up payment should be
on lines 1a, 1e, 1i, 1m, and 1q,
made to reduce the amount of any penalty
Partnerships generally must make
respectively. Don’t enter a negative
resulting from the underpayment of any
installment payments of estimated section
number on line 1a, 1e, 1i, 1m, or 1q. See
earlier installments, whether caused by a
1446 tax if the aggregate tax on the ECTI
section 1(h) and Notice 97-59, 1997-45
change in estimate, failure to make a
that is allocable to all foreign partners will
I.R.B. 7, available at
IRS.gov/pub/irs-irbs/
payment, or a mistake.
be $500 or more.
irb97-45.pdf, for rules for netting gains and
losses.
Specific Instructions
When To Make Estimated
Lines 1b, 1f, 1j, 1n, and 1r. Enter the
Section 1446 Tax
reduction amounts for state and local
Part I—Determination of
Payments
taxes under Regulations section
Installment Payments
1.1446-6(c)(1)(iii). See Reductions for
The installments are due by the 15th day
State and Local Taxes in the Instructions
of the 4th, 6th, 9th, and 12th months of the
Complete Form 8804-W for each
for Forms 8804, 8805, and 8813 for
partnership's tax year. If any date falls on
installment payment of section 1446 tax
additional information. The netting rules
a Saturday, Sunday, or legal holiday, the
based on the information available at the
under section 1(h) and
Notice 97-59
must
installment is due on the next regular
time of the installment payment.
be considered in determining the category
business day.
Lines 1 Through 6—Current
of income the reduction amounts offset.
Underpayment of
Year Safe Harbor
Lines 1c, 1g, 1k, 1o, and 1s. Enter the
Estimated Section 1446
reduction amounts resulting from certified
Lines 1a, 1e, 1i, 1m, and 1q. To
partner-level items received from foreign
Tax
determine the allocable share of ECTI for
partners using Form 8804-C. See
all foreign partners, see Effectively
A partnership that doesn’t make estimated
Certification of Deductions and Losses in
Connected Taxable Income in the
section 1446 tax payments when due may
the Instructions for Forms 8804, 8805, and
Instructions for Forms 8804, 8805, and
be subject to an underpayment penalty for
8813 for additional information. The
8813. Enter on lines 1i, 1m, and 1q the
the period of underpayment. See
netting rules under section 1(h) and
Notice
specified types of ECTI allocable to those
Schedule A (Form 8804) for details.
97-59
must be considered in determining
partners who would be entitled to use a
the category of income the reduction
preferential rate on such income or gain
How To Make Estimated
amounts offset.
(see Regulations section 1.1446-3(a)(2)).
Section 1446 Tax
For tiered partnerships, see Regulations
Line 8—Prior Year Safe Harbor
Payments
section 1.1446-5.
Enter the total section 1446 tax that would
A partnership that is required to make an
have been due for 2020, applying the
installment payment of section 1446 tax
2020 rates (see the 2020 Form 8804-W
Sep 01, 2020
Cat. No. 51675X
for the 2020 rates), on ECTI allocable to all
method) or the partnership chooses not to
seasonal installment (if applicable), or (c)
foreign partners for 2020, without any
continue using it), in order to avoid an
the current year safe harbor (increased by
reductions for state and local taxes under
underpayment penalty on the current
any recapture of a reduction in a required
Regulations section 1.1446-6(c)(1)(iii) or
installment payment, the partnership must
installment under section 6655(e)(1)(B)).
certified partner-level items. For the
pay the sum of (a) the current installment
Line 12
partnership's first installment payment, if
payment based on the current year safe
Include on line 12 any 2020 overpayment
the 2020 Form 8804 hasn’t yet been filed,
harbor, plus (b) the sum of the amount by
that the partnership chose to credit
an estimate is acceptable. However, if the
which the current year safe harbor
against its 2021 tax. The overpayment is
partnership later determines that this
exceeds the prior year safe harbor amount
credited against unpaid required
estimate is incorrect, see
Refiguring
paid in for each prior installment period
installments in the order in which the
Estimated Section 1446
Tax, earlier.
during which it qualified for the prior year
installments are required to be paid.
safe harbor.
Complete line 8 only if all of the
Also, include on line 12 the following.
Line 9
following apply.
Section 1446 tax withheld and paid by
You can enter the smaller of line 7 or
The prior tax year consisted of 12
another partnership because the
line 8. However, if, for any installment
months.
partnership preparing this Form 8804-W
payment, line 7 is smaller than line 8 and
The partnership timely files (including
was a partner in that partnership during
you enter that smaller line 7 amount on
extensions) a U.S. return of partnership
the tax year. See the instructions for Form
line 9, you won’t qualify for the prior year
income (for example, Form 1065) for the
8804, line 6b and line 6c, in the
safe harbor when determining any penalty
prior year.
Instructions for Forms 8804, 8805, and
due on Schedule A (Form 8804) (see the
The amount of ECTI for the prior tax
8813.
line 8
instructions, earlier). Therefore, in
year is not less than 50% of the ECTI
Section 1445(a) or 1445(e)(1) tax
that case, for any subsequent installment
expected for the current tax year.
withheld from or paid by the partnership
payment during the tax year, don’t use the
Furthermore, the Form 8804 on which the
filing this Form 8804-W during the tax year
line 8 amount.
current year ECTI will be reported must be
for a disposition of a U.S. real property
timely filed.
Line 10—Installment Due Dates
interest. See the instructions for Form
If any of the above does not apply, skip
8804, line 6d and line 6e, in the
Calendar-year taxpayers. Enter
line 8 and enter the amount from line 7 on
Instructions for Forms 8804, 8805, and
4-15-2021, 6-15-2021, 9-15-2021, and
line 9.
8813.
12-15-2021, respectively, in columns (a)
If the partnership qualifies to use the
The partnership generally enters these
through (d).
amounts in the column that corresponds
prior year safe harbor and chooses that
Fiscal-year taxpayers. Enter the 15th
to the installment period for which these
method, it must use that method to pay
day of the 4th, 6th, 9th, and 12th months
amounts were paid or withheld. However,
each of its installments during the tax year.
of the partnership's tax year in columns (a)
Furthermore, for each installment
if the partnership learns about the
through (d). If the regular due date falls on
payment, the average of that installment
payments or withholding in a subsequent
a Saturday, Sunday, or legal holiday, enter
installment period, the partnership can
and prior installments during the tax year
the next business day.
claim them in that period.
must be at least 25% of the amount that
Line 11
satisfies the partnership's section 1446 tax
Parts II Through IV
liability under the prior year safe harbor. If
Enter 25% (0.25) of line 9 in columns (a)
the partnership doesn’t satisfy both of
If only the adjusted seasonal installment
through (d). If the partnership uses the
these requirements, it won’t qualify for the
method (Part II) is used, complete Parts II
annualized income installment method or
prior year safe harbor when determining
and IV. If only the annualized income
the adjusted seasonal installment method,
any penalty due on Schedule A (Form
installment method (Part III) is used,
then enter the amount from line 43.
8804).
complete Parts III and IV. If both methods
Annualized income installment method
are used, complete all three Parts. Enter in
If the partnership begins using the prior
and/or adjusted seasonal installment
each column on line 11 the amounts from
year safe harbor method and it determines
method. If the partnership's ECTI is
the corresponding column of line 43.
later in the tax year (based upon the
expected to vary during the year because,
standard option annualization method,
Don’t figure any required
for example, it operates its business on a
described later in these instructions) that it
installment until after the end of
seasonal basis, it may be able to lower the
!
won’t meet the 50% of ECTI requirement
the month preceding the due date
amount of one or more required
CAUTION
described in the last bulleted item above,
for that installment.
installments by using the annualized
it can make all subsequent installment
income installment method and/or the
payments using the standard option
Extraordinary items. Generally, under
adjusted seasonal installment method. For
annualization method and it won’t be
the annualized income installment
example, a ski shop, which receives most
subject to the penalty determined on
method, extraordinary items must be
of its income during the winter months,
Schedule A (Form 8804). This change in
taken into account after annualizing the
may be able to benefit from using one or
method must be disclosed in a statement
ECTI for the annualization period. Similar
both of these methods in figuring one or
attached to the Form 8804 the partnership
rules apply in determining ECTI under the
more of its required installments.
files for the current tax year and the
adjusted seasonal installment method. An
To use one or both of these methods,
statement must include enough
extraordinary item includes:
complete Part II and/or Part III of the form.
information to allow the IRS to determine
Any item identified in Regulations
If those Parts are used for any payment
whether the change was appropriate.
section 1.1502-76(b)(2)(ii)(C)(1), (2), (3),
date, those Parts must be used for all
If the partnership begins using the prior
(4), (7), and (8);
subsequent payment due dates. To arrive
year safe harbor method and switches to
A section 481(a) adjustment; and
at the amount of each required
the current year safe harbor (because the
Net gain or loss from the disposition of
installment, Part IV automatically selects
partnership doesn’t qualify for the relief
25% or more of the fair market value of the
the smallest of (a) the annualized income
described in the previous paragraph (that
partnership's business assets during the
installment (if applicable), (b) the adjusted
is, using the standard option annualization
tax year.
Instructions for Form 8804-W (2021)
-2-
These extraordinary items must be
3 preceding tax years by the ECTI for
Use Option 1 or Option 2 only if
accounted for in the appropriate
each of their respective tax years.
the partnership elected to use one
!
annualization period. However, a section
of these options by filing Form
Example. An amusement park with a
CAUTION
481(a) adjustment (unless the partnership
8842, Election To Use Different
calendar year as its tax year receives the
makes the alternative choice under
Annualization Periods for Corporate
largest part of its ECTI during a 6-month
Regulations section 1.6655-2(f)(3)(ii)(C))
Estimated Tax, on or before the due date
period, May through October. To figure its
is treated as an extraordinary item
of the first required installment payment.
base period percentage for this 6-month
occurring on the first day of the tax year in
Once made, the election is irrevocable for
period, the amusement park figures its
which the item is taken into account in
the particular tax year.
ECTI for each May–October period in
determining ECTI.
2018, 2019, and 2020. It then divides the
For more information regarding
ECTI for each May–October period by the
1st
2nd
3rd
4th
extraordinary items, see Regulations
total ECTI for that particular tax year. The
Install-
Install-
Install-
Install-
section 1.6655-2(f)(3)(ii) and the
ment
ment
ment
ment
resulting percentages are 69% (0.69) for
examples in Regulations section
May–October 2018, 74% (0.74) for May–
Standard
1.6655-2(f)(3)(vii). Also, see Regulations
Option
3
3
6
9
October 2019, and 67% (0.67) for May–
section 1.6655-3(d)(3).
October 2020. Because the average of
Option 1
2
4
7
10
69% (0.69), 74% (0.74), and 67% (0.67) is
De minimis rule. Extraordinary items
Option 2
3
5
8
11
70% (0.70), the base period percentage
identified above resulting from a particular
for May–October 2021 is 70% (0.70).
transaction that total less than $1 million
Therefore, the amusement park qualifies
(other than a section 481(a) adjustment)
for the adjusted seasonal installment
Line 31—ECTI Allocable to All
can be annualized using the general rules
method.
of Regulations section 1.6655-2(f), or, if
Foreign Partners
the partnership chooses, can be taken into
Line 15
Enter on lines 31a through 31e the ECTI
account after annualizing the ECTI for the
If the partnership has certain extraordinary
allocable to all foreign partners for the
annualization period.
items, special rules apply. Don’t include
months entered for each annualization
Part II—Adjusted Seasonal
on line 15 the de minimis extraordinary
period in columns (a) through (d) on
items that the partnership chooses to
line 30. To determine the allocable share
Installment Method
include on line 22b. See
Extraordinary
of ECTI for all foreign partners, see
items, earlier.
Effectively Connected Taxable Income in
Note. Part II doesn’t reflect the lower
the Instructions for Forms 8804, 8805, and
Line 22b
preferential rates permitted under
8813.
Regulations section 1.1446-3(a)(2). These
If the partnership has certain extraordinary
If the partnership has certain
were omitted because, for most taxpayers,
items of $1 million or more from a
extraordinary items, special rules apply.
the income reported in Part II will be
transaction, or a section 481(a)
Don’t include on line 31a, 31b, 31c, 31d,
predominantly (or exclusively) ordinary
adjustment, special rules apply. Include
or 31e the de minimis extraordinary items
income. If the partnership wishes to
these amounts on line 22b for the
that the partnership chooses to include on
consider lower preferential rates for Part II
appropriate period. Also, include on
line 33a, 33e, 33i, 33m, or 33q,
(and if the requirements outlined in the
line 22b the de minimis extraordinary
respectively. See
Extraordinary
items,
Note in the line 31 instructions are met), it
items that the partnership chooses to
earlier.
should prepare a statement which
exclude from line 15. See
Extraordinary
appropriately expands lines 15 and 22
items, earlier.
Note. Enter on lines 31c through 31e the
through 25 to show the applicable special
specified types of ECTI (a) allocable to
Line 23
types of income or gain and the applicable
those partners who would be entitled to
percentages (see, for example, lines 33
Enter the reduction to the line 22c amount
use a preferential rate on such income or
and 34 of this Form 8804-W). Also, Part II,
for state and local taxes under
gain (see Regulations section 1.1446-3(a)
lines 15 and 22 through 25, don’t provide
Regulations section 1.1446-6(c)(1)(iii) and
(2)), and (b) for whom the partnership has
the separate entries for corporate and
for certified foreign partner-level items
sufficient documentation to meet the
non-corporate partners necessary to apply
submitted under Regulations section
requirements of Regulations section
the rates on lines 25a and 25b. A
1.1446-6. See Certification of Deductions
1.1446-3(a)(2)(ii).
partnership with corporate and
and Losses in the Instructions for Forms
A partner may be entitled to use a
non-corporate partners completing Part II
8804, 8805, and 8813 for additional
preferential rate on the following types of
should prepare a statement which
information.
income or gain.
appropriately expands lines 15 and 22
Part III—Annualized
1. Line 31c—See section 1(h)(4) and
through 25 to show the amounts allocable
the instructions for Schedule D (Form
to both types of partners.
Income Installment
1040), line 18, for more information
Method
Complete this part only if the
regarding 28% rate gain.
partnership's base period percentage for
2. Line 31d—See section 1(h)(6) and
Line 30—Annualization Periods
any 6 consecutive months of the tax year
the instructions for Schedule D (Form
equals or exceeds 70%. Figure the base
Enter in the space on line 30, columns (a)
1040), line 19, for more information
period percentage using the 6-month
through (d), respectively, the annualization
regarding unrecaptured section 1250 gain.
period in which the partnership normally
periods that the partnership is using,
3. Line 31e—Adjusted net capital gain
receives the largest part of its ECTI. The
based on the options listed below. For
is net capital gain, as defined in section
base period percentage for any period of 6
example, if the partnership elects Option
1222(11), reduced (but not below zero) by
consecutive months is the average of the
1, enter on line 30 the annualization
the sum of (a) unrecaptured section 1250
three percentages figured by dividing the
periods 2, 4, 7, and 10, in columns (a)
gain, and (b) 28% rate gain, plus qualified
ECTI for the corresponding
through (d), respectively.
dividend income. See section 1(h)(3).
6-consecutive-month period in each of the
Instructions for Form 8804-W (2021)
-3-
If the partnership has net ordinary loss,
adjustment, special rules apply. Include
for Forms 8804, 8805, and 8813 for
net short-term capital loss, or net 28% rate
these amounts on line 33a, 33e, 33i, 33m,
additional information. The netting rules
loss, each net loss should be netted
or 33q, depending upon the type of
under section 1(h) and
Notice 97-59
must
against the appropriate categories of
income against which the item applies, for
be considered in determining the category
income and gain to determine the
the appropriate period. Also, include on
of income the reduction amounts offset.
amounts of income and gain to be entered
line 33a, 33e, 33i, 33m, or 33q the de
Lines 33c, 33g, 33k, 33o, and
on lines 31a through 31e, respectively.
minimis extraordinary items that the
33s
Don’t enter a negative number on lines
partnership chooses to exclude from
31a through 31e. See section 1(h) and
line 31a, 31b, 31c, 31d, or 31e,
Enter the reduction amounts resulting from
Notice 97-59
for rules for netting gains and
respectively. See
Extraordinary
items,
certified partner-level items received from
losses.
earlier.
foreign partners using Form 8804-C. See
Certification of Deductions and Losses in
Line 32—Annualization
Enter on lines 33i, 33m, and 33q the
the Instructions for Forms 8804, 8805, and
specified types of ECTI if the partner
Amounts
8813 for additional information. The
would be entitled to use a preferential rate
Enter the annualization amounts for the
netting rules under section 1(h) and
Notice
on the income or gain (see Regulations
option used on line 30. For example, if the
97-59
must be considered in determining
section 1.1446-3(a)(2)).
partnership elects Option 1, enter on
the category of income the reduction
1. Line 33i—See section 1(h)(4) and
line 32 the annualization amounts 6, 3,
amounts offset.
the instructions for Schedule D (Form
1.71429, and 1.2, in columns (a) through
1040), line 18, for more information
Part IV—Required
(d), respectively.
regarding 28% rate gain.
Installments Under Part II
2. Line 33m—See section 1(h)(6) and
1st
2nd
3rd
4th
and/or Part III
the instructions for Schedule D (Form
Install-
Install-
Install-
Install-
1040), line 19, for more information
ment
ment
ment
ment
Line 38
regarding unrecaptured section 1250 gain.
Standard
Before completing line 38 in columns (b)
Option
4
4
2
1.33333
3. Line 33q—Adjusted net capital gain
through (d), complete lines 39 through 43
is net capital gain, as defined in section
Option 1
6
3
1.71429
1.2
in each of the preceding columns. For
1222(11), reduced (but not below zero) by
Option 2
4
2.4
1.5
1.09091
example, complete lines 39 through 43 in
the sum of (a) unrecaptured section 1250
column (a) before completing line 38 in
gain, and (b) 28% rate gain, plus qualified
column (b).
dividend income. See section 1(h)(3).
Lines 33a, 33e, 33i, 33m, and
Line 43—Required Installments
Lines 33b, 33f, 33j, 33n, and 33r
33q
For each installment, enter the smaller of
Enter the reduction amounts for state and
line 39 or line 42 on line 43. Also, enter the
If the partnership has certain extraordinary
local taxes under Regulations section
result on line 11.
items that total $1 million or more from a
1.1446-6(c)(1)(iii). See Reductions for
particular transaction, or a section 481(a)
State and Local Taxes in the Instructions
Paperwork Reduction Act Notice. Your use of this form is optional. It is provided to aid the partnership in determining its tax liability.
You aren’t 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 burden for business
taxpayers filing this form is approved under OMB control number 1545-0123.
If you have comments concerning the accuracy of these time estimates or suggestions for making this form simpler, we’d be happy
to hear from you. You can send us comments from IRS.gov/FormComments. Or you can write to the Internal Revenue Service, Tax
Forms and Publications Division, 1111 Constitution Ave. NW, IR-6526, Washington, DC 20224. Don’t send the tax form to this office.
Instead, keep the form for your records.
Instructions for Form 8804-W (2021)
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