Form S-1041 - City Of Saginaw Income Tax Fiduciary Return

Resident Beneficiaries

1. Name of each resident beneficiary

2. Address

3. Social Security Number

Schedule B - Resident Beneficiaries' Shares of Exclusions

4. Exclusion for Capital Gains and

5. Exclusion for Interest from

6. Exclusion for Rentals

7. Exclusion of Business

8. Total Miscellaneous Estate and

Losses for period prior to July 1,

Government obligations

Income

Trust Income Exclusion (Add

1965 (enter on Line 5, Form

Cols. 5, 6 and 7. Enter on

Line3, Schd. E, Form S-1040)

S-1040)

a $

Totals $

NOTE: Fiduciary shall report amounts in Columns 4 and 8 to each resident beneficiary

Instructions for Form S-1041 - Fiduciary Return

INSTRUCTIONS FOR BUSINESS ALLOCATION FORMULA - SCHEDULE A

GENERAL

The Business Allocation Percentage Formula is to be used by estates or trusts with business

Every trust and estate, which had gross income from sources listed under "Taxable

activity both inside and outside the City of Saginaw, who because they do not maintain

Income", must make and file a form S-1041, City of Saginaw Income Tax Fiduciary

sufficient records to accurately reflect the net profits from operations conducted with the City of

Return, whether a tax is due or not. For the purposes of this tax, an estate or trust

Saginaw, or for other reasons, are not using the separate accounting method.

shall be treated as a non-resident individual and a tax rate of three-fourths of one

Line 1 -Enter in Column I the average net book value of all real and tangible personal property

percent shall apply on the earnings listed under "Taxable Income".

including inventories owned by the business, regardless of location; and in Column II, show the

net book value of the real and tangible personal property including inventories located in the

"Income from estates" means "Income" as defined in Sec. 643(b) of the Federal

City of Saginaw. The average net book value of real and tangible personal property including

Internal Revenue Code, properly paid, credited or distributed but not in excess of the

inventories may be determined by adding the net book values at January 1, of the current year

resident individual's share of the distributable net income of the estate, decreased by

and the net book values at the end of the year and dividing the sum thus obtained by 2. Any

the amount of depreciation or depletion allowed the resident individual as a deduction

other method which will accurately reflect the average net book value for the current year will

under Sec. 642 of the Federal Internal Revenue Code. The exceptions hereinafter set

also be permitted.

forth with respect to trusts are also applicable to income from estates. "Income from

Line 1a - Enter in column I the gross rentals for the current year multiplied by 8 for all rented

trust" means the amount of "Income" as defined in Section 643(b) of the Federal

property regardless of location. In Column II show the gross rentals for the current year

Internal Revenue Code, distributed or required to be distributed under Sec. 652(a) or

multiplied by 8 for all rented property located inside the City of Saginaw. Gross rentals refer

662(a) (1) of the Federal Internal Revenue Code, decreased by the amount of

only to real property, rented or leased, and should include the actual sums of money or other

depreciation or depletion allowed the resident individual as a deduction by Sec. 642 of

consideration payable, directly or indirectly, by the taxpayer for the use or possession of such

the Federal Internal Revenue Code.

real property for the year.

TAXABLE INCOME

Line 2 - Enter in Column I the total compensation paid to all employees during the year and in

The only types of income taxable to an estate or trust are the following:

Column II show the amount of compensation paid to employees for work done or for services

(1) That portion of the net profits from the operation of a business or enterprise

performed inside the City of Saginaw during the current year.

operated by the estate or trust that is attributable to business activity conducted in

Line 3 - Enter in Column I the total gross receipts from all sales or services rendered during the

Saginaw whether or not such business or enterprise is located in Saginaw. For

current year and in Column II show the amount of receipts derived from sales made or services

example, a business located out of Saginaw that conducts business in Saginaw would

rendered inside the City of Saginaw during the current year.

be taxed on the portion of its net profits properly allocable to such Saginaw business

activities.

RESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS

(2) Net profits from rentals from real and tangible personal property located in

SCHEDULE B

Saginaw.

The information for this schedule is to be taken from the comparable Columns of Schedule C,

(3) Net profits on the sale or exchange of real and tangible personal property located

Form 1041 U.S. Fiduciary Income Tax Return. However only that information which applies

in Saginaw.

to residents of the City of Saginaw is to be shown herein. Fiduciaries shall report amounts in

(4) Income from partnerships.

Columns 4 and 8 to each resident beneficiary who will show these amounts as exclusions on

Other income, such as dividends and interest, are not taxable to trusts and estates.

the Individual Return S-1040.

However resident beneficiaries must report their distributive shares on Form S-1040.

TAX DUE OR REFUND

INSTRUCTIONS FOR FILING ON PAGE 1 OF FORM S-1041

After computing your Saginaw Income Tax, if the tax due is one dollar ($1.00) or more it must

Line 1- The total net profit (or loss) is to be computed from Page 1 of the Federal

be paid when filing this return. Make check or money order payable to Treasurer, City of

Income Tax Form 1041 by using those lines applicable to any business operation.

Saginaw and mail with this return to Income Tax Division, 1315 S. Washington, Saginaw,

Lines 4 and 5 - Before completing these lines, fill out Schedule A - Business

Michigan, 48601. Tax due of less than one dollar ($1.00) need not be paid.

Allocation Formula.

DECLARATION OF ESTIMATED TAX

Line 10 - Saginaw resident beneficiaries will report their portion of distributable net

Trust and estates are not required to file a Declaration of Estimated Income tax.

income on their individual returns and should receive this information from the

However, if you elected to make estimate payments, you may claim these payments on Line 13

Fiduciary. Therefore, this line, which is the resident's share of the Saginaw income,

of Page 1.

should be subtracted from Line 9 to arrive at the amount of Saginaw income taxable

ASSISTANCE

to the trust or estate.

If you have any questions not answered in these instructions, or if you need assistance in

preparing your return, call 759-1654 or visit the Income Tax Division in Fiscal Services, City

Hall, Room 105, 1315 S. Washington Avenue, Saginaw, Michigan.

Form S-1041 - City Of Saginaw Income Tax Fiduciary Return - 2000 Page 2

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