Instructions For Form Bc-1065 - City Of Battle Creek, Michigan (Page 2 of 2) in pdf

municipality for Battle Creek resident partners, or (2) 1/2% of an amount obtained

INCOME FROM OTHER PARTNERSHIPS, ETC. LINES 7

by deducting the amount for exemptions claimed for Battle Creek resident partners

THROUGH 9 Include on line 7, column 1, the net Income (or loss) from other

on page 1, column 3 of this return from the gross amount of income of Battle

partnerships, etc. On line 8, deduct any income which is specifically exempt for all

Creek resident partners subject to tax by such other city.

taxpayers (interest of U.S. and state governmental obligations, etc.) and which

was included in the amount on line 7, and enter the net amount on line 9, column

All credits in column 6 are to be distributed on lines 8a, b and c, and totalled on

1. Fill in columns 2, 3 and 4. Subtract column 4 (income not taxable to

line 9. The total of line 9 must agree with the total of column 6.

nonresidents) from column 3, and enter the difference in column 5.

GENERAL INSTRUCTIONS FOR SCHEDULE B, PAGE 3

TOTALS, LINE 10

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

Enter on line 10 the totals of lines 3, 5, 6 and 9 for each column in Schedule

between the total amount distributable to resident partners, and the total amount

B. After transferring the amounts from columns 2 and 5 of Schedule B to

distributable to nonresident partners. Nonresident income is further allocated to

Schedule E, where distribution of the total is made to the individual partners the

compute the total income of nonresident partners which is subject to the Battle

total of column 2 (taxable non business income of resident partners) must equal

Creek tax. (Resident partners are taxed on their entire distributive share of non

the total of column 6a of Schedule E. The total of column 5 must equal the total of

business income.) After determining the total taxable income for each class of

column 6b of Schedule E.

partners, these totals are transferred to Schedule E wherein an analysis is made to

INSTRUCTIONS FOR SCHEDULE C

show the amounts of non business income applicable to the individual partners.

Schedule C is used to indicate all of the income of the partnership which may be

Therefore, compute the total amounts of distributable non business income, by

subject to the Battle Creek tax. Line 24 of Schedule C will be the total of the

type of income, and enter these amounts on lines 3, 5, 6 and 9 of column 1,

partnership’s ordinary income from business operations, and lines 25 through 31

Schedule B. Columns 2 and 3, on these lines, will be used to show the total

of Schedule C will show the total non business income of the partnership.

distributable amount for each type of income allocable to resident and nonresident

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

partners The total of columns 2 and 3 must equal the total of column 1. Column 4

column 1 of Schedule E. Non business income on lines 25 through 31 of

is to be used to report that portion of column 3 (non business income applicable

Schedule C is to be transferred to Schedule B. Instructions for Schedules B and E

to nonresident partners) which is excludable as not taxable to nonresidents.

will indicate how amounts transferred from Schedule C are to be allocated to the

Subtract the amount in column 4 from the amount in column 3 and enter the

individual partners

difference in column 5 as taxable to nonresident partners. The totals of columns 4

and 5 must equal the total of column 3.

INSTRUCTIONS FOR SCHEDULE D

INTEREST AND DIVIDENDS, LINES 1 THROUGH 3

See instructions on page 4 of the partnership return.

In column 1, line 1, report the total partnership income from interest and dividends

INSTRUCTIONS FOR SCHEDULE E

and on line 2, deduct the total nontaxable interest (interest from obligations of the

United States, the states or subordinate units of government of the states). The net

The totals of columns 1, 2, 6a and 6b of Schedule E, showing the distribution to

taxable dividends and interest, reported on line 3, column 1 is to be apportioned

individual partners of ordinary and non business income, must agree with the

totals transferred from Schedules B and C. Column 1. Enter in column 1 the

between the amount applicable to resident partners (line 3, column 2) and the

amount applicable to nonresident partners (line 3, column 3). Since interest and

individual partner’s share of business income from Schedule C, line 24. If Sec.

dividend income is not taxable to nonresidents, the entire amount shown on line 3,

179 depreciation is included in Schedule C, line 17, and if the partners have

unequal credits for such additional depreciation (e.g. if one partner is single and

column 3 will also be inserted on line 3, column 4 as excludable income of

nonresidents.

one Is married filing jointly for Federal income tax purposes), the apportionment of

income to partners in this column will require special computation. Column 7.

SALE OR EXCHANGE OF PROPERTY, LINES 4 AND 5

Transfer the amount of each individual partner’s share shown in column 7.

Report on line 4, column 1 the total net gain or loss from all sales and exchanges

Schedule E to column 1, page 1 of the return.

of property as shown in Schedule C, page 2, lines 27 through 30. To arrive at the

amount to enter on line 5 of Schedule B first exclude any gain or loss on the sale

TAX DUE OR REFUND

If the partnership has elected to pay the tax for the partners and payments and

of obligations of the United States which is included in line 4 of Schedule B. Then

credits exceed the tax due, show the amount of such overpayment on page 1, line

enter on line 5 only that portion of the remainder of line 4 which represents gain or

loss attributable to the period after July 1, 1967. If the property was acquired prior

10 and check the proper box on line 12 to Indicate whether you wish the

overpayment as a refund OR as a credit on your 2002 estimated tax. Refunds will

to July 1, 1967 market values of traded securities as of June 30, 1967 may be

used as the cost basis; or the gain or loss applicable to the period after July 1,

be made as quickly as possible, but please allow 90 days before making any

1967 may be computed by multiplying the total gain or loss by the ratio of the

inquiry. Refunds of less that one dollar ($1.00) will not be made. Tax due of less

than one dollar ($1.00) need not be paid.

months the property was held after July 1, 1967 to the total months the property

was held. The nonresident excludable portion of the amount shown in column 3,

ASSISTANCE

to be entered in column 4, is that of the gain (or loss) which arose from the sale

If there are questions not answered in these instructions, or if assistance is

or exchange of intangible assets, and of tangible property located outside of Battle

needed in preparing the return, call (616) 966-3345. Questions by mail should be

Creek. The remaining portion of line 5, column 3 which is to be entered on line 5,

directed to: City Income Tax Department P.O. Box 1657, Battle Creek, Michigan

column 5 will then include gain (or loss) attributable to the period after July 1,

49016-1657.

1967 from the sate or exchange of tangible property located in Battle Creek.

WEBSITE

RENTS AND ROYALTIES, LINE 6

Income tax forms, instructions and additional information are available under the

Report on line 6, column 1, the total net income or loss from all rents and

Income Tax Department section of the City of Battle Creek website,

royalties, and then fill In columns 2, 3 and 4. Subtract column 4 (net Income or

creek.mi.us/Referencedesk/FormsandPermits.htm#IncomeTax

loss from royalties, and rents attributable to property OUTSIDE Battle Creek) from

column 3, and enter the difference in column 5.

NOTICE

These instructions are interpretations of the Battle Creek Income Tax Ordinance.

The Ordinance will prevail in any disagreement between the instructions and the

Ordinance.

Instructions For Form Bc-1065 - City Of Battle Creek, Michigan Page 2

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