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  • What is a QIP (Qualified Investment Partnership)?
View All and Fiduciaries, Limited Liability Entities, Partnerships, Partnerships & LLEs, Partnerships & LLEs - Limited Liability Entities, Partnerships & LLEs - S Corporations, S-Corporations FAQs

What is a QIP (Qualified Investment Partnership)?

A QIP is a partnership or other entity classified as a subchapter K entity, or a business trust as defined in §40-18-1, Code of Alabama 1975, that for a tax period meets the gross income and asset requirements for a Qualified Investment Partnership as required by §40-18-24.2; and, for which an authorized officer, partner, member or manager of the entity has certified for the tax period that the entity meets the gross income and asset requirements. Proper certification of a QIP requires the completion of Alabama Schedule QIP-C, Qualified Investment Partnership Certification, which must be filed by the due date of the Alabama partnership income tax return for the entity.

A QIP is a partnership or other entity classified as a subchapter K entity, or a business trust as defined in §40-18-1, Code of Alabama 1975, that for a tax period meets the gross income and asset requirements for a Qualified Investment Partnership as required by §40-18-24.2; and, for which an authorized officer, partner, member or manager of the entity has certified for the tax period that the entity meets the gross income and asset requirements. Proper certification of a QIP requires the completion of Alabama Schedule QIP-C, Qualified Investment Partnership Certification, which must be filed by the due date of the Alabama partnership income tax return for the entity.

Related FAQs in and Fiduciaries, Limited Liability Entities, Partnerships, Partnerships & LLEs, Partnerships & LLEs - Limited Liability Entities, Partnerships & LLEs - S Corporations, S-Corporations

Yes. List the name of the entity that paid the composite payment and the FEIN. You may include a copy of the K-1 Form 41 for clarification especially if there is more than one composite payment made on behalf of the estate/trust.

Yes, federal taxes paid by the estate on federal Form 706 may be claimed by the estate in the year they are paid.

Yes, federal income tax paid by the estate or trust is allowed as a deduction on Alabama Form 41.

If an income tax return preparer prepares 25 or more acceptable, original fiduciary income tax returns using tax preparation software in a calendar year, then for that calendar year and for each subsequent calendar year thereafter, all acceptable fiduciary income tax returns prepared by that income tax preparer must be filed using electronic technology, as defined in the “Electronic Tax Return Filing Act,” as codified in Chapter 30 of Title 40, Code of Alabama 1975.

The excess loss on termination may not be passed along to the grantor or beneficiary of an estate or irrevocable trust.

Estate Tax Waivers are no longer required to be filed for estates whose owners

died after Dec. 31, 2004.