| Instructions for Form 3800 |
2006 Tax Year |
This is archived information that pertains only to the 2006 Tax Year. If you
are looking for information for the current tax year, go to the Tax Prep Help Area.
Part I—Current Year Credit
Complete and attach the appropriate credit forms to figure your current year credit. Generally, if you are a taxpayer that
is not a partnership or
S corporation, and your only source for a credit listed on this form is from a partnership, S corporation, estate, trust,
or cooperative, you are not
required to complete the source credit form or attach it to Form 3800. The following exceptions apply:
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You are claiming the investment credit (Form 3468) or biodiesel and renewable diesel fuels credit (Form 8864).
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The taxpayer is an estate or trust and the source credit can be allocated to beneficiaries. For more details, see the Instructions
for Form
1041, Schedule K-1, box 13.
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The taxpayer is a cooperative and the source credit can or must be allocated to patrons. For more details, see the Instructions
for Form
1120-C, Schedule J, line 5c.
If you are a cooperative described in section 1381(a), you must allocate to your patrons the investment credit in excess of
your tax liability
limit. Allocate to your patrons the portion, if any, of the investment credit on line 8 in excess of line 18. While any excess
is allocated to
patrons, any credit recapture applies as if you as the cooperative had claimed the entire credit.
Complete this line only if you received a credit on a 2005 Schedule K-1 that you received from a partnership or S corporation
that had a fiscal
year beginning in 2005.
Enter the total of the amounts shown in box 7 of the Schedules K-1 (Form 1065-B) you received from electing large partnerships
(ELPs).
Enter the credits included on line 2 that are from passive activities. Generally, a passive activity is a trade or business
in which you did not
materially participate. Generally, rental activities are passive activities, whether or not you materially participated. See
Form 8582-CR, Passive
Activity Credit Limitations, or Form 8810, Corporate Passive Activity Loss and Credit Limitations, for details.
Enter the passive activity credit allowed from Form 8582-CR or Form 8810. See the instructions for the applicable form for
details.
Add all carryforwards to 2006 of unused credits that are reported on Form 3800. Include any carryforward to 2006 of any unused
credit from your
Form 6478, Credit for Alcohol Used as Fuel, for years prior to 2005.
For each credit, attach a detailed computation showing: (a) the tax year the credit originated, the amount of the credit, and the amount
allowed for that year; (b) for each carryback year, the year and the amount of the credit allowed after you applied the carryback; and
(c) for each carryforward year, the year and the amount of the credit allowed after you applied the carryforward.
Use line 7 only when you amend your 2006 return to carry back unused credits from 2007.
If this line is zero, skip Part II.
See section 38(c)(5) for special rules that apply to married couples filing separate returns, controlled corporate groups,
regulated investment
companies, real estate investment trusts, and estates and trusts.
Although you may not owe AMT, you generally must still compute the tentative minimum tax (TMT) to figure your credit. For
a small corporation
exempt from the AMT under section 55(e), enter zero. Otherwise, complete and attach the appropriate AMT form or schedule and
enter the TMT on line 16.
If line 19 is smaller than line 8, see Carryback and Carryforward of Unused Credit on page 1.
Research credit limitation.
If you are an individual, the amount of the research credit that may be included on line 19 is limited to the amount
of tax attributable to your
taxable income from the sole proprietorship or your interest in the partnership, S corporation, estate, or trust (pass-through
entity) generating the
credit. Figure the research credit limitation separately for each business enterprise by using the following formula:
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Taxable income attributes to the sole proprietorship or your interest in the pass-through entity
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(Line 13 - line 15)
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x
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Your taxable income for the year
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The result figured above is limited to the excess of line 13 over line 15. If in the current tax year you had no taxable
income attributable to a
particular business interest, you cannot claim any research credit this year related to that business.
If your research credit is limited by the above formula, refigure the amount to enter on line 19 using only the total
of the amount calculated
above for the research credit plus the general business credit from other sources. If necessary, follow the Credit Ordering
Rule, and take into
account any passive activity credit limitations. Write “ Sec. 41(g)” on the dotted line next to your entry on line 19.
Corporations.
If the corporation has undergone a post-1986 “ ownership change” (as defined in section 382(g)), section 383 may limit the amount of tax that
may be offset by pre-change general business credits. Also, if a corporation acquires control of another corporation (or acquires
its assets in a
reorganization), section 384 may limit the amount of tax attributable to recognized built-in gains that may be offset by pre-acquisition
general
business credits. If either of these limitations apply, attach a computation of the allowable general business credit, enter
the amount on line 19,
and write “ Sec. 383” or “ Sec. 384” in the margin next to your entry on line 19.
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