Form D-1065 - Partnership Return - 2000 (Page 2 of 4) in pdf

CITY OF DETROIT INCOME TAX

2000 PARTNERSHIP RETURN

INSTRUCTIONS FOR FORM D-1065

WHO MUST FILE A PARTNERSHIP RETURN

partners.

Every partnership that conducted business activities in the City of

GENERAL INSTRUCTIONS FOR SCHEDULE B,

Detroit, whether or not an office or place of business was main-

PAGE 3

tained in the city is required to file an annual information return.

Schedule B is used to allocate the total non-business income of the

FILING DATE

partnership between the total amount distributable to resident part-

ners, and the total amount distributable to non-resident partners.

An information return is due on or before the last day of the fourth

Non-resident income is further allocated to compute the total

(4th) month after the end of the accounting period. Calendar year

returns are due April 30.

income of non-resident partners which is subject to the Detroit tax.

(Resident partners are taxed on their entire distributive share of

INCOME TAXABLE TO RESIDENT VS. NON-

non-business income.) After determining the total taxable income

RESIDENT PARTNERS

for each class of partners, these totals are transferred to Schedule E

The partnership Return Form D-1065 is designed to distinguish

wherein an analysis is made to show the amounts of non-business

between that income taxed to residents and that taxed to non-resi-

income applicable to the individual partners.

dents. (If residency changes during the taxable period for any part-

INTEREST AND DIVIDENDS, LINES 1-3

ner, use two lines to indicate allocation of income by status in all

In Column 1, Line 1, report the total partnership income from inter-

schedules.

est and dividends and on Line 2, deduct the total non-taxable inter-

Schedule C indicates the total income of the partnership which may

est (interest from obligations of the United States and U.S. govern-

be subject to the tax. Ordinary business income in Schedule C is

mental units). The net taxable dividends and interest, reported on

transferred to Schedule E, Column 1, showing the amount of ordi-

Line 3, Column 1 is to be apportioned between the amount applic-

nary income distributable to each partner. The non-business income

able to resident partners (Line 3, Column 2) and the amount applic-

portion of Schedule C is first transferred to Schedule B, by total

able to non-resident partners (Line 3, Column 3). Since interest and

amounts for each type of income, to determine the taxable portion

dividend income is not taxable to non-residents, the entire amount

for each class of partners. This taxable income is then transferred

shown on Line 3, Column 3 will also be inserted on Line 3, Column

to Schedule E showing the amounts applicable to the individual

4 as excludable income of non-residents.

partners. Column 1 on Page 1 is the final summary transferred from

SALES OR EXCHANGE OF PROPERTY, LINE 4

Schedule E, Column 7.

AND 5

Partners who are RESIDENTS are taxed on their entire distributive

Report on Line 4, Column 1 the total net gain or loss from all sales

share of the net profits of the partnership, including those arising

and exchange of property as shown in Schedule C, Page 2, Lines 27

from business activities outside the city.

through 30. To arrive at the amount to enter on Line 5 of Schedule

RENAISSANCE ZONE

B first exclude any gain or loss on the sale of obligations of the

Six areas in Detroit have been designated Renaissance Zones by the

United States which are included in Line 4 Schedule B. Then enter

State of Michigan. Most income of qualified residents and busi-

on Line 5 only that portion of the remainder of Line 4 which rep-

nesses in those areas is not taxable. Contact the Renaissance Zone

resents gain or loss attributable to the period after July 1, 1962. If

Manager at 313/224-3072 to determine if you are in a Renaissance

the property was acquired prior to July 1, 1962, the basis may be

Zone or if you qualify.

the adjusted fair market value of the property on July 1, 1962, (July

2nd closing price for traded securities), or the gain or loss applica-

ROUNDING DOLLAR AMOUNTS

ble to the period after June 30, 1962 may be computed by multi-

Only whole dollar amounts are shown on the return. Do not enter

plying the total gain or loss by the ratio of the months the property

cents. Round down all dollar amounts less than 50 cents. Round up

was held after June 30, 1962 to the total months the property was

all amounts of 50 through 99 cents.

held.

INTERNET

The non-resident excludable portion of the amount shown in

Additional information, return instructions and forms are available

Column 3, to be entered in Column 4, is that portion of the gain (or

at the website for the CITY OF DETROIT at

loss) which arose from the sale or exchange of intangible assets,

and of tangible property located outside of Detroit. The remaining

INSTRUCTIONS FOR SCHEDULE C, PAGE 2

portion of Line 5, Column 3, which is to be entered on Line 5,

Schedule C is used to indicate all of the income of the partnership

Column 5 will then include gain (or loss) attributable to the period

which may be subject to the Detroit tax. Line 24 of Schedule C will

after June 30, 1962 from the sale or exchange of tangible property

be the total of the partnership ordinary income from business oper-

located in Detroit.

ations, and Lines 25 through 31 of Schedule C will show the total

RENTS AND ROYALTIES, LINE 6

non-business income of the partnership.

Report on Line 6, Column 1, the total net income (or loss) from all

Ordinary income from business on Line 24 of Schedule C is to be

rents and royalties, and then fill in Columns 2, 3, and 4. Subtract

transferred to Column 1 of Schedule E. Non-business income on

Column 4 (net income or loss from royalties and rents attributable

Lines 25 through 31, Schedule C is to be transferred to Schedule B.

to property OUTSIDE Detroit) from Column 3 and enter the dif-

Instructions for Schedules B and E will indicate how amounts

ference in Column 5.

transferred from Schedule C are to be allocated to the individual

Form D-1065 - Partnership Return - 2000 Page 2

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