Form L-1041 - Fiduciary Return (Page 2 of 2) in pdf

Resident Beneficiaries

I. Name of each resident beneficiary

2. Address

3. Social Security Number

Schedule B - Resident Beneficiaries' Shares of Exclusions

4. Exclusion for Capital Gains and

Losses for period prior to July I,

1968

(enter on Line 5, Form

L-1040)

5. Exclusion for Interest from

Government obligations

6. Exclusion for

Rentals

7. Exclusion of

Business Income

8. Total Miscellaneous Estate and

Trust Income

Exclusion (Add

Cols. 5, 6 and 7. Enter on

Linc3, Schd. 13, Form L-1040)

Totals $

NOTE: Fiduciary shall report amounts in Columns 4 and 8 to each resident beneficiary

Instructions for Form L-1041 - Fiduciary Return

GENERAL

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

Income", must make and file a form L-1041, City of Lansing Income Tax Fiduciary

Return, whether a tax is clue or not. For the purposes of this tax, an estate or trust shall

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

apply on the earnings listed under "Taxable Income".

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

Revenue Code, properly paid, credited or distributed but not in excess of the resident

individual's share of the distributable net income of the estate, decreased by the amount

of depreciation or depletion allowed the resident individual as a deduction under Sec.

642 of the Federal Internal Revenue Code. The exceptions hereinafter set forth with

respect to trusts are also applicable to income from estates. "Income from trust" means

the amount of "Income" as defined in Section 643(b) of the Federal Internal Revenue

Code, distributed or required to be distributed under Sec. 652(a) or 662(a) (I) of the

Federal Internal Revenue Code, decreased by the amount of depreciation or depletion

allowed the resident individual as a deduction by Sec. 642 of the Federal Internal

Revenue Code.

TAXABLE INCOME

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

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

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

Lansing whether or not such business or enterprise is located in Lansing. For example,

a business located out of Lansing that conducts business in Lansing would be taxed on

the portion of its net profits properly allocable to such Lansing business activities.

(2) Net profits from rentals from real and tangible personal property located in Lansing.

(3) Net profits on the sale or exchange of real and tangible personal property located in

Lansing.

(4) Income from partnerships.

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

However resident beneficiaries must report their distributive shares on Form L-1040.

INSTRUCTIONS FOR FILING ON PAGE 1 OF FORM L-1041

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

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

Lines 4 and 5 - Before completing these lines, fill out Schedule A - Business Allocation

Formula.

Line 10 - Lansing resident beneficiaries will report their portion of distributable net

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

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

should be subtracted from Line 9 to arrive at the amount of Lansing income taxable to

the trust or estate.

INSTRUCTIONS FOR BUSINESS ALLOCATION FORMULA - SCHEDULE A

The Business Allocation Percentage Formula is to be used by estates or trusts with business

activity both inside and outside the City of Lansing, who because they do not maintain

sufficient records to accurately reflect the net profits from operations conducted with the City

of Lansing, or for other reasons, are not using the separate accounting method.

Line I -Enter in Column I the average net book value of all real and tangible personal

property including inventories owned by the business, regardless of location; and in Column

II, show the net book value of the real and tangible personal property including inventories

located in the City of Lansing. The average net book value of real and tangible personal

property including inventories may be deternnined by adding the net book values at

January

of the current year and the net book values at the end of the year and dividing the sum thus

obtained by 2. Any other method which will accurately reflect the average net book value for

the current year will also be permitted.

Line la - Enter in column I the gross rentals for the current year multiplied by 8 for all rented

property regardless of location. In Column II show the gross rentals for the current year

multiplied by 8 for all rented property located inside the City of Lansing. Gross rentals refer

only to real property, rented or leased, and should include the actual sums of money or other

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

real property for the year.

Line 2 - Enter in Column I the total compensation paid to all employees (luring the year and

in Column II show the amount of compensation paid to employees for work clone or for

services performed inside the City of Lansing (luring the current year.

Line 3 - Enter in Column I the total gross receipts from all sales or services rendered du r ing

the current year and in Column II show the amount of receipts derived from sales made or

services rendered inside the City of Lansing during the cu rrent year.

RESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS

SCHEDULE B

The information for this schedule is to be taken from the comparable Columns ofSebedule C.

Form 1041 U.S. Fiduciary Income Tax Return. However only that information which applies

to residents of the City of Lansing is to be shown herein. Fiduciaries shall report amounts in

Columns 4 and 8 to each resident beneficiary who will show these amounts as exclusions on

the Individual Return L-1040.

TAX DUE. Or REFUND Make check or money order payable to Treasurer, City of Lansing

and mail with this return to Treasurers Office, 124 W Michigan G-29, Lansing, MI 48933.

DECLARATION OF ESTIMATED TAX

Trust and estates are not required to file a Declaration of Estimated income tax.

ASSISTANCE

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

preparing your return, call (517) 483-4115.

Form L-1041 - Fiduciary Return Page 2

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