Business Income Tax Return Instructions - 2006 (Page 2 of 2) in pdf

Part B – DECLARATION OF ESTIMATED TAX FOR 2007

The taxpayer shall base the estimated tax on the preceding full year's tax liability, or on the preceding three-month period,

annualized for the remainder of the year, and updating this estimate by amendment as necessary each succeeding three-month

period so that at least 90 percent of the annual Loveland tax liability to be ultimately determined shall have been paid by the due

date of each installment payment.

LINE 15: Enter the amount of estimated income for 2007 using one of the two safe harbors from line 9A instruction.

LINE 16: Enter the total tax due for 2007.

LINE 17: Divide Line 16 by 4 to determine the amount of estimated tax for the first quarter.

LINE 18: Enter the amount of credits from Line 14.

LINE 19: Enter and remit the net estimated tax due if Line 17 minus Line 18 is greater than zero. This is the first of four quarterly

estimated tax payments. The second payment is due on the 15

day of the 6

month after the beginning of the year and is equal to the

total estimated tax on Line 16 divided by 4 less any overpayment still available from prior years. Third payment is due on the 9

month after the beginning of the year and the final estimated payment is due on the 12

month after the beginning of the taxable year.

LINE 20: TOTAL AMOUNT DUE WITH RETURN

Combine Line 11 and Line 19

Schedule X – Reconciliation with the Federal Return

A. Enter the amount included in Line 1 of the Business Tax Return related to the sale, exchange, or other disposition of an asset

described in section 1221 or 1231 of the Internal Revenue Code.

B. Enter any taxes on or measured by net income included as a deduction in computing Line 1.

C. Enter any guaranteed payments or similar payments made to partners, members or other owners that were deducted in arriving at

the income amount on Line 1. This includes amounts related to self-employed retirement plans and health or life insurance for an

owner or owner-employee.

Enter 5% of the intangible income included in Line 1 of the Business tax return that is not directly related to the sale, exchange or

other disposition of property described in Section 1221 or 1231 of the Internal Revenue Code.

Add Real Estate Investment Trust distribution deductions allowed as a deduction in the computation of Federal Taxable Income.

Other. Please provide a complete explanation. Examples: Losses from Flow-Thru Entities, Real Estate Rental Losses.

Add Lines A through F.

H. Enter the amount of the income that is included on Line 1of the Business Tax Return that is directly related to the sale, exchange,

or other disposition of an asset described in Section 1221 or 1231 or the Internal Revenue Code less the income and gain included

in this amount that is described in Section 1245 or 1250 of the Internal Revenue Code.

Enter the total amount of intangible income included in Line 1of the Business tax return that is not directly related to the sale,

exchange or other disposition of property described in Section 1221 or 1231 of the Internal Revenue Code.

If Line 1 of the return includes other income exempt from municipal tax, enter on this Line and explain. For example, if the

Federal Targeted Jobs Credit adjustment understates your salary and wage expense reported for Loveland purposes, an adjustment

restoring the amount of the credit adjustment must be made in order to properly reflect total salaries and wages paid. Attach a

copy of Federal Form 5884 when filing your Loveland Tax Return.

K. Add Lines H-J.

L. Deduct Line K from Line G. Insert the net amount as an addition (or deduction) on Part A, Line 2.

Schedule Y – Apportionment to Loveland

Step 1. The original average +cost of the real and tangible personal property owned or used by the taxpayer in the City of Loveland

during the taxable period to the original cost of all of the real and tangible personal property owned or used by the taxpayer during the

same period, wherever situated.

Real property shall include property rented or leased by the taxpayer and the value of such property shall be determined by

multiplying the annual rental thereon by eight.

Sum the amounts Located Everywhere and the amounts located in Loveland. Divide the Loveland total by the Everywhere total.

Step 2. Total compensation paid during the period to persons employed in the business for services performed in the City of

Loveland to total compensation paid during the same period to persons employed in the business everywhere. Do not include amounts

paid to contractors.

Step 3. Gross receipts of the business or profession from sales made and services performed during the taxable period in the City of

Loveland to gross receipts of the business or profession during the same period from sales and services, wherever made or performed.

Business Income Tax Return Instructions - 2006 Page 2

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