Rev. January 2013
Form 5735 (Rev. January 2013) are instructions for calculating the American Samoa economic development credit to be attached to a corporation's tax return. Eligibility requires meeting the qualified production activities income requirement. The form includes lines for entering: 60% of qualified compensation, 15% of short-life property depreciation, 40% of medium-life property depreciation, 65% of long-life property depreciation, and calculating the tentative credit. The smaller of lines 5 and 6 is entered as the American Samoa economic development credit. This credit is entered on Form 1120, Schedule J, line 5b or corresponding lines on other returns
Qualified wages are wages paid or incurred by the corporation during the tax year in connection with the active conduct of a trade or business in American Samoa to an employee for services performed in American Samoa.
Short-life qualified tangible property is 3-year or 5-year property under section 168. Medium-life qualified tangible property is 7-year or 10-year property under section 168. Long-life qualified tangible property is not short-life or medium-life qualified tangible property.
The Paperwork Reduction Act notice asks for information to ensure compliance with Internal Revenue laws and figures and collects the right amount of tax. The time needed to complete and file this form varies depending on individual circumstances, with an estimated average time of 12 hours and 35 minutes.
Allocable employee fringe benefit expenses are employer contributions to stock bonus, pensions, profit-sharing or annuity plans, employer-provided health or accident plan coverage for the employees, and the cost of life or disability insurance provided to employees.
The line 7 credit is used on the income tax return on the same line as the qualified electric vehicle (QEV) credit. It must also be included on the QEV line of certain other forms such as Form 3800, Form 6478, Form 8835, Form 8860, Form 8910, Form 8911, and Form 8912.
The Form 5735 reports American Samoa economic development credit.
Qualified tangible property means any tangible property used by the corporation in the active conduct of a trade or business within American Samoa.
Form 5735 is one of Tax forms that are documents used to report information related to taxes to the relevant tax authority. There are various types of tax forms, including federal, state, and local tax forms, which can vary depending on the taxpayer's circumstances and location.
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