City Of Portland Income Tax 2006 Partnership Return Instructions For Form P-1065 (Page 2 of 2) in pdf

Schedule A - Income from Partnership

INSTRUCTIONS FOR BUSINESS

Line 1. Use the same basis and method as used for

ALLOCATIONS FORMULA - SCHEDULE E

Federal income tax reporting.

The business allocation percentage formula is to be

used by NON-RESIDENT owners of businesses with busi-

Line 6. If the Portland income tax has been included

ness activity both within and without the City of Portland

in line 1, it should be added back here.

who, because they do not maintain sufficient records to

accurately reflect the net profits from operations con-

Line 8. Interest from obligations of the United States,

ducted within the City of Portland, or for other reasons,

the states, or subordinate units of government of the

are not using the separate accounting method.

states, and dividends from national and state bank stocks

are exempted from the tax. If they have been included in

Line 21. Enter in column 1 the average net book value

the total on line 1 they should be deducted here.

of all real and tangible personal property owned by the

business, regardless of location; and in column 2 show the

Any deduction other than the dividend exclusion

net book value of the real and tangible personal property

allowed by the Federal Internal Revenue Code must be

located in the City of Portland. The average net book

explained in an attached schedule.

value of real and tangible personal property may be

determined by adding the net book values at Jan.

1, 2006

and the net book values at the end of the year and divid-

Schedule B - Exclusions for

ing the sum thus obtained by two. Any other method which

Non-Resident Partners

will accurately reflect the average net book value for the

Line 12. Use this line to exclude dividends and inter-

period will also be permitted. Explanation to be attached.

est applicable to non-resident partners since dividends

and interest are not taxable to non-residents.

Line 21a. Enter in column 1 the gross rentals for peri-

od Jan.

thru December

multiplied by

for

1, 2006

31, 2006

When the receipt of interest and other intangible

all rented property regardless of location. In column 2

income is directly related to the nature of the business,

show the gross rentals for period Jan.

thru

1, 2006

such interest, etc. shall be considered as business

December

multiplied by

for all rented property

31, 2006

income.

located in the City of Portland. Gross rentals refer to real

property, rented or leased and should include the actual

Line 13. Income or loss from rents from tangible

sums of money or other consideration payable, directly or

property located in Portland is taxable to both residents

indirectly, by the taxpayer for the use or possession of

and non-residents.

such real property.

Income or loss from royalties, and rents of or capital

Line U . Enter in column 1 the total compensation

gains or losses on sale of property located outside

2006 thru

paid to all employees during the period Jan.

Portland, is only taxable to residents of the City of

December

and in column

show the amount of

21, 2006

Portland.

compensation paid to employees for work done or for

services performed within the City of Portland during the

Schedule C - Sale or Exchange of Property

period Jan.

thru December

1, 2006

31, 2006.

Gains and losses from the sale or exchange of prop-

erty are treated in the same manner, and the amount sub-

Line 23. Enter in column 1 the total gross receipts

ject to tax determined on the same basis, as under the

from all sales or services rendered during the period Jan.

Federal Internal Revenue Code.

thru December 31,

and in column

show the

1, 2006

2006

amount of gross receipts from sales made or services ren-

Only the amount of the gain or loss occurring from

2006

dered in the City of Portland during the period Jan.

Jan.

to date of disposition shall be recognized for

1, 1984

thru December 31,

2006.

purposes of the Portland income tax. The amount of gain

or loss occurring after Jan.

is to be determined by

1, 1984

Tax Due or Refund

either (1) computing the difference between the Jan. 1,

If the partnership has elected to pay the tax for the

fair market value (June 30th closing price for traded

1984

partners and payments and credits exceed the tax due,

securities) or the cost if the date acquired was subse-

show the amount of such overpayment of page 1, line 10. If

quent to Jan.

and the proceeds from the sale or

1, 1984,

your payments and credits exceed the tax, the overpay-

exchange, or (2) by using the gain or loss for the entire

ment will be refunded by check. Refunds will be made as

holding period, as computed for Federal income tax pur-

quickly as possible, but please allow 90 days before mak-

poses, and computing the taxable portion of such gain-or

ing an inquiry. Refunds of less than one dollar ($1.00) will

loss on the ratio that the number of months held in the

not be made.

period subsequent to Jan.

is to the total time the

1, 1984

property was held. The fair market value of property shall

Assistance

be determined by an appraisal or similar reliable evi-

If there are questions not answered in these instruc-

dence.

tions, or if assistance is needed in preparing the return,

call or visit the Income Tax Division. Questions by mail

should be directed to Administrator, Income Tax Division,

Kent Street, Portland, Michigan

By Phone, the

259

48875.

number is

647-2941.

Page 4

City Of Portland Income Tax 2006 Partnership Return Instructions For Form P-1065 Page 2

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