Form I 1041 - Income Tax Fiduciary Return (Page 2 of 2) in pdf

RESIDENT BENEFICIARIES

1. Name of each resident beneficiary

2. Address

3. Social Security Number

SCHEDULE B - RESIDENT BENEFICIARIES' SHARES OF EXCLUSIONS

4. Exclusion for Dividends from National

5. Exclusion for Capital Gains and losses for period prior to

6. Exclusion for Interest from Government

and State Bank Stock

January 1, 1994

obligations

Totals

CONTINUATION OF SCHEDULE B

7. Exclusion for Rentals

8. Exclusion of Business Income

9. Total Miscellaneous Estate and Trust Income

Exclusion ( Add Cols. 6, 7, and 8 )

Totals

NOTE: Fiduciary shall report amounts in Columns 4, 5, and 9 to each resident beneficiary

INSTRUCTIONS FOR FORM I-1041 - FIDUCIARY RETURN

GENERAL

INSTRUCTIONS FOR BUSINESS ALLOCATION FORMULA- SCHEDULE A

Every trust and estate, which had gross income from sources listed under

The Business Alocation Percentage Formula is to be used by estates or

"Taxable Income," must make and file a form I-1041, City of Ionia Income Tax

trusts with business activity both within and without the City of Ionia,

Fiduciary Return, whether a tax is due or not. For the purposes of this tax, an estate

who, because they do not maintain sufficient records to accurately reflect

or trust shall be treated as a non-resident individual and a tax rate of one-half of one

the net profits from operations conducted within the City of Ionia, or for

percent shall apply on the earnings listed under "Taxable Income".

other reasons, are not using the sparate accounting method.

"Income from estates" means "Income" as defined in Sec. 643 (b) of the

Line 1- Enter in column 1 the average net book value of all real and

Federal Internal Revenue Code, properly paid, credited or distributed but not in

tangible personal property owned by the business, regardless of location,

excess of the resident individual's share of the distributable net income of the

and in column II, show the net book value of the real and tangible personal

estate, decreased by the amount of depreciation or depletion allowed the resident

property located in the City of Ionia. The average net book value of real

individual as a deduction under Sec. 642 of the Federal Internal Revenue Code. The

and tangible personal property may be determined by adding the net book

exceptions hereinafter set forth with respect to trusts are also applicable to income

values at January 1, of a taxable year and the net book values at the end of

from estates. "Income from trusts" means the amount of "Income" as defined in

the year and dividing the sum thus obtained by 2. Any other method which

Sec. 643 (b) of the Federal Interal Revenue Code, distributed under Sec. 652 (a)

will accurately reflect the average net book value for taxable year will also be

or 662 (a) (1) of the Federal Internal Revenue Code, decreased by the amount of

permitted.

depreciation or depletion allowed the resident individual as a deduction by Sec 642

Line 1a - Enter in column 1 the gross rentals for taxable year multiplied by 8

of the Federal Internal Revenue Code.

for all rented property regardless of location. In column II show the gross

TAXABLE INCOME

rentals for taxable year multiplied by 8 for all rented property located in the

The only types of income taxable to an estate or trust are the following:

City of Ionia. Gross rentals refer only to real property, rented or leased and

That portion of the net profits from the operation of a business or enterprise

(1)

should include the actual sums of money or other consideration payable

operated by the estate or trust that is attributable to business activity conducted

directly or indirectly, by the taxpayer for the use of possession of such real

in Ionia whether or not such business or enterprise is located in Ionia. For

property for the year.

example, a business located out of Ionia that conducts business in Ionia

Line 2 - Enter in column I the total compensation paid to all employees during the

would be taxable on the portion of its net profits properly allocable to such Ionia

taxable year and in column II show the amount of compensation paid to

business activities.

employees for work done or for services performed within the City of

Net Profits from rentals from real and tangible personal property located in

(2)

Ionia during taxable year.

Ionia.

Line 3 - Enter in column 1 the total gross receipts from all sales or services

Net profits on the sale or exchange of real and tangible personal property

(3)

rendered during taxable year and in column II show the amount of receipts

located in Ionia.

derived from sales made or services rendered in the City of Ionia during

Income from partnerships.

(4)

taxable year.

Other income, such as dividends and interest, are not taxable to trusts and

RESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS - SCHEDULE B

estates. However, resident beneficiaries must report their distributive shares on

The information for this schedule is to be taken from the comparable columns

Form P-1040.

of Schedule C Form 1041 U.S. Fiduciary Income Tax Refund. However, only

INSTUCTIONS FOR FILING IN PAGE ONE OF FORM I-1041

that information which applies to residents of the City of Ionia is to be shown

Line 1 - The total net profit (or loss) is to be computed from page 1 of the

herin. Fiduciaries shall report amounts in columns 4, 5, and 9 to each resident

Federal Income Tax Form 1041 by using those lines applicable to any business

beneficiary who will show these amounts as exclusions on the individual

operation.

return I-1040.

Line 4 and 5 - Before completing these lines, fill out schedule A - Business

TAX DUE OR REFUND

Allocation Formula.

After computing your Ionia Income Tax, if the tax due is one dollar ($1.00)

Line 10 - Ionia resident beneficiaries will report their portion of distributable

or more it must be paid when filing this return. Make Check or money order

net income on their individual returns and should receive this information from

payable to CITY OF IONIA and mail with this return to

the Fiduciary. Therefore, this line, which is the resident's share of the Ionia

Income Tax Division, PO Box 512, Michigan, 48846. Tax due of less

income, should be subtracted from line 9 to arrive at the amount of Ionia

than a dollar ($1.00) need not to be paid.

income taxable to the trust or estate.

ASSISTANCE

If you have any questions not answered in these instructions, or

if you need assistance in preparing your return, call (616) 527-5729 or visit the

Income Tax Division City Hall.

Form I 1041 - Income Tax Fiduciary Return Page 2

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