Form 58 Instructions - 1998 (Page 2 of 2) in pdf

North Dakota Office of State Tax Commissioner

1998

instructions

Page 2

Specific instructions

Page 1, Form 58

allowed under the Internal Revenue

partnership's various kinds of income.

Code as amended through December 31,

Attach a schedule identifying each item

Line 4

1980. Do not include depreciation on

of allocable income or loss, the related

assets under a safe harbor lease that is

expenses, and an explanation of the basis

Enter the following on this line:

not recognized by North Dakota— see

for allocating each item.

• Interest from state and local obligations

Safe harbor leases below. (See the

Line 12

other than North Dakota and its political

instructions to line 4 for a correspond-

subdivisions.

Enter on this line nonbusiness income or

ing depreciation addback adjust-

• ACRS depreciation deducted on the

losses, net of related expenses, included on

ment.)

federal partnership return for assets

line 8 that are allocable to North Dakota

• Safe harbor leases. Section 168(f)(8)

placed in service from January 1, 1981,

under N.D.C.C. ch. 57-38.1. Attach a

of the Internal Revenue Code (covering

through the end of the 1982 taxable year.

schedule identifying each item of North

safe harbor leases) was not adopted by

Do not include ACRS depreciation on

Dakota allocable income or loss, the

North Dakota where the minimum

assets under a safe harbor lease that is

related expenses, and an explanation of

investment by the lessor is less than

not recognized by North Dakota— see

the basis for allocating each item.

100%. If the partnership is the buyer/

Safe harbor leases below. (See the

lessor under this type of safe harbor

instructions to line 6b for a corre-

Schedule A

lease, enter on this line the rental income

sponding depreciation subtract

included in the partnership's federal

(Page 2, Form 58)

adjustment.)

income or loss. If the partnership is the

All partnerships must complete Schedule A

• Safe harbor leases. Section 168(f)(8)

seller/lessee, enter on this line interest

to identify their partners and show the

of the Internal Revenue Code (covering

income included, and depreciation not

partners' distributive shares of North

safe harbor leases) was not adopted by

included, in the partnership's federal

Dakota income or loss. If additional lines

North Dakota where the minimum

income or loss. For this purpose, ACRS

are needed, attach additional schedules as

investment by the lessor is less than

recovery property placed in service from

needed.

100%. If the partnership is the buyer/

January 1, 1981, through the end of the

lessor under this type of safe harbor

1982 tax year must be depreciated using

Except for nonresident individual, estate or

lease, enter on this line interest expense,

methods allowed under the Internal

trust partners, the amount of income or loss

amortization expense, acquisition costs,

Revenue Code as amended through

required to be reported to North Dakota by

losses, and depreciation included in the

December 31, 1980.

a partner may differ from the distributive

partnership's federal income or loss. If

share of North Dakota income or loss

Income tax exemption. If the partnership

the partnership is the seller/lessee, enter

reported on Schedule A. Resident indi-

was granted an income tax exemption under

on this line sale proceeds, rent expense,

vidual, estate and trust partners are subject

N.D.C.C. ch. 40-57.1, do not enter the

amortization expense, and acquisition

to North Dakota income tax on their entire

exempt portion of the partnership's income

costs included in the partnership's

distributive share of income, gains and

on this line. In general, the partners may

federal income or loss.

losses, as determined for federal income tax

claim the exclusion on their income tax

purposes. For corporation, partnership and

Line 6a

returns.

limited liability company partners, special

Enter interest from U.S. obligations and

Lines 8 through 12

rules apply for determining the amount of

other securities exempt from state income

income or loss taxable by North Dakota.

In general, all partnerships which carry on

tax under federal law, including the portion

Contact the Office of State Tax Commis-

business both inside and outside North

of dividends received from a regulated

sioner for more information.

Dakota must complete these lines. How-

investment company (mutual fund) attribut-

ever, if a partnership has only resident

able to the mutual fund's investment in the

Schedule B

individual, estate and trust partners, or

same kinds of securities. Unless already

carries on its business entirely within North

identified on the federal partnership return,

(Page 2, Form 58)

Dakota, skip these lines and enter the

attach a schedule specifically identifying

In general, all partnerships which carry on

amount from line 7 on line 13.

the source and amount of interest and

business both inside and outside North

dividends.

Line 8

Dakota must complete Schedule B. The

rules for determining the property, payroll

Line 6b

If applicable, enter nonbusiness income or

and sales factors are contained in N.D.C.C.

losses, net of related expenses, that are

Enter the following on this line:

ch. 57-38.1 and N.D. Admin. Code

allocable under N.D.C.C. ch. 57-38.1.

• Depreciation that would have been

ch. 81-03-09. However, if a partnership has

Include all allocable items whether they are

allowed for the current year on ACRS

only resident individual, estate and trust

allocable to North Dakota or outside North

recovery property placed in service from

partners, Schedule B does not have to be

Dakota. Expenses must be attributed to

January 1, 1981, through the end of the

completed. (See instructions to lines 8

allocable income based on a method which

1982 taxable year using methods

through 12 on page 1 of Form 58.)

fairly distributes all expenses to the

Form 58 Instructions - 1998 Page 2

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