Instructions For Form P-1065 For Partnerships Doing Business In Pontiac (Page 3 of 3) in pdf

I. Average net book value of real and tangible personal property . . . . $

% enter here and on P. 3, Sch. I, Col. 4

LOCATED IN

LOCATED

BUSINESS ALLOCATION FORMULA - SCHEDULE D

EVERYWHERE

PONTIAC

PERCENTAGE

II / I

annual

rentals

multiplied

Gross

b .

TOTAL (Add lines 1 and la) . . . . . . . . . . . . . . . . . .

2. Total wages, salaries, commissions and other compensation of all employees (exclude partners)

3. Gross receipts from sales made or services rendered . . . . . . . . . . .

4. Total Percentages - add the three percentages computed for lines lb, 2 and 3 which you entered in the last column (you must compute a

percentage for each of lines 1 b. 2 and 3)

5 . Average percentage (one-third of line 4) - enter here

and on P. 3, Sch. I, Co14

(see note below) L

determining the average percentage (line 5). a factor shall be excluded from the computation only when such factor does not exist

NOTE:

anywhere

insofar as the taxpayer’s Gusiness

operation is concerned and, in such cases, the sum of the percentages on line 4 shall

divided by the number of factors actually used.

In the case of a taxpayer authorized by the Administrator to use one of the special formulae, use the lines provided below.

c. Percentage (a I b)

Numerator

d . Date

Administrative

approval

letter

b. Denominator

INSTRUCTIONS FPR BUSINESS ALLOCATION FORMULA - SCHEOULE D

The business allocation percentage formula is to be used by NON-RESI-

tangible personal property may be determined by adding the net book val-

ues at the beginning of the year and the net book values at the end of the

DENT owners of partnerships with business activity both inside and out-

have one or more out-of-city locations, but

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

side the City of Pontiac, and that

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

records for each location that show

do not maintain separate accounting

permitted.

with reasonable accuracy the portion of net proftis attributable to each loca-

tion.

Line 1a. Enter in column I the gross annual rentals multiplied by 8 for all

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

A partnership located in Pontiac, without a regularly maintained and es-

rentals multiplied by 8 for all rented property located in the City of Pontiac.

tablished out-of-city location SHOULD NOT use the business allocation

formula. Sales and shipments to out-of-city destinations, when no out-of-

Gross annual rentals refer to both real and fang&/e personal property, rented

or leased and should include the actual sums of money or other consider-

city location is regularly maintained and established, does not entitle appor-

ation payable, directly or indirectly, by the taxpayer for the use or posses-

tionment of a part of the net proflt as being earned as a result of work done,

services rendered, or other business activity conducted outside the city

sion of such real.and tangible

property.

personal

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

Solicitation of orders by telephone or by catalogs or other mailed matter

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

a location within the City for shipment to an out-of-city destination,

from

does not constitute out-of-city activity. Also, the solicitation of orders by an

employees for workdone or for services performed within the Cii

Of Pontiac

out-of-city independent contractor does not constitute out-of-city activity for

during the year.

a local partnership.

Line 3. Enter in column I the total gross receipts from all sales or ser-

vices rendered during the year and in column II show the amount of gross

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

gible personal property owned by the business, regardless of location; and

receipts from sales made or services rendered in the Cii of Pontiac during

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

the year.

erty located in the City of Pontiac. The average net book value of real and

INSTRUCTIONS FOR SCHEDULE C, INCOME FROM PARTNERSHIP

therefore, will show the total partnership income to account for. Schedules

The “Income Tax Ordinance of the City of Pontiac” imposes a 1% tax on

A, B, E, F and G will then be filled out to compute the taxable portion of the

income earned on and after JAN. 1,1988.

income shown on line 29 of Schedule C. These taxable amounts are then

Resident individuals are subject to thetax regardless of the location from

compiled in the Summary Schedule I on page 3.

which taxable income was derived. Non-resident individuals are subject to

income earned in the Cii of Pontiac and on the net profits from

The amounts for each partner shown in Schedule I are to be transferred

the tax on

to the income section on Page 1, Column 1. If the partnership elects to pay

businesses, professions or other activities conducted in the City of Pontiac.

the tax, deductions and exemptions are then deducted to arrive at the net

This schedule is used to indicate all of the income of the partnership

taxable amount for each partner.

which may be subject to the Pontiac income tax. Line 29 of the Schedule,

Instructions For Form P-1065 For Partnerships Doing Business In Pontiac Page 3

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