Schedule QIP-C: Qualified Investment Partnership Certification (2024)
Alabama · Alabama DOR · Used for tax years 2024
Alabama Schedule QIP-C certifies that a partnership meets the criteria for a Qualified Investment Partnership for the tax period. It reports qualifying asset and gross income percentages, along with certain ownership and investment information.
Who files this form
Schedule QIP-C is used by a partnership to certify that it meets Alabama’s Qualified Investment Partnership (QIP) criteria for the tax period.
The form states that a QIP must meet both of these tests:
- Asset test: At least 90% of the cost of its total assets must be invested in qualifying investment securities, office facilities, and tangible personal property reasonably necessary to carry on its investment partnership activity in Alabama.
- Gross income test: At least 90% of its gross income must come from interest, dividends, distributions, gains or losses from the sale or exchange of qualifying investment securities, and management fees paid by its members.
What you'll need
The form asks for the following information:
- The partnership’s legal name and FEIN.
- The tax year and the beginning and ending dates of the tax period.
- The average qualifying asset percentage for the taxable year.
- The qualifying gross income percentage for the taxable year.
- Owner names and tax identification numbers for applicable disclosures in items 4 through 7.
- The signature, title, and signing date of an owner, partner, or member.
How to file
File Schedule QIP-C with the Alabama Partnership Income Tax return for the taxable year. The form states that the certification must be timely filed with that return to be valid.
An owner, partner, or member must sign and date the certification and provide their title. The signer certifies that the entity meets the QIP criteria and, under penalties of perjury, that the certification is true, correct, and complete to the best of their knowledge.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Not filing the certification on time with the partnership return. The form specifically warns that the certification must be timely filed with the Alabama Partnership Income Tax return for the taxable year to be valid.
Questions people ask
What asset percentage must a QIP meet?
At least 90% of the cost of its total assets must be invested in qualifying investment securities, office facilities, and tangible personal property reasonably necessary for its investment partnership activity in Alabama. Report the average qualifying asset percentage for the taxable year.
What income percentage must a QIP meet?
At least 90% of its gross income must come from interest, dividends, distributions, gains or losses from sales or exchanges of qualifying investment securities, and management fees paid by its members.
Which owner situations must be disclosed?
Check the applicable boxes and provide the requested owner names and tax identification numbers if:
- A nonresident owner actively participates in the QIP’s day-to-day management.
- The QIP invests in qualifying investment securities of an entity majority-owned by a nonresident member.
- A nonresident owner is also a QIP.
- At any time during the taxable year, an owner or member was not a United States person as defined in 26 U.S.C. §7701.
Who signs the certification?
An owner, partner, or member signs it, enters the date, and provides their title.