1065-CM INSTRUCTIONS
This form shall be used as attachment to Form 1065, U.S. Return of Partnership Income. The purpose
of this form is to allocate the income and expenses of the partnership income based on source of
income and related expenses.
1.
For lines 1c through 22a, make appropriate source allocation from each line item based upon income
2.
For line 22b, make the percentage allocation of the taxable income from each source in proportion to the
total taxable income on line 22a by dividing the taxable income from line 22a, columns A and B by the
total taxable income from line 22a, column C.
EXAMPLE:
Percentage allocation for line 22b, col. A
Line 22a, column A
_______________ = Percentage allocation for line 22b, column A
Line 22a, column C
Percentage allocation for line 22b, column B
Line 22a, column B
_______________= Percentage allocation for line 22b, column B
Line 22a, column C
Caution: If the percentage allocation is less than zero, enter zero. If more than 100%, enter only 100%.
3.
All other instructions are contained in the regular Form 1065 instruction booklet.
4.
Attach Schedule 1065-CM to Form 1065.
NOTE: The Partnership shall properly allocate the income (loss) to each shareholder. Also, all non-
refundable credits shall be properly allocated to each shareholder under 4 CMC §1308(b).
However, any Business Gross Revenue Tax taken as a deduction shall not be allowed as a non-
refundable credit.
1065-CM (2010)
Schedule