Instructions For Form 5459 Draft - City Of Detroit Partnership Renaissance Zone Schedule - 2017 Page 2
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2Line 6a: Enter the average net book value of the real and
Line 9, column 3: For each partner who was a resident
tangible personal property owned and located in a Detroit
domiciled in a Detroit Renaissance Zone, enter the partner’s
Renaissance Zone. If the business was located in the
share of income from sale or exchange of property. For all
Renaissance Zone for less than a year, a monthly average basis
other partners, enter partner’s share of income from a sale or
is to be used.
exchange of property located in a Detroit Renaissance Zone.
Line 6b: Enter the gross annual rent multiplied by 8 for rented
Line 9, column 4: For each partner who was a resident
real property located in a Detroit Renaissance Zone.
domiciled in a Detroit Renaissance Zone, enter the partner’s
share of income from rents and royalties. For other partners
Line 6d: Enter compensation paid to employees for work or
enter partner’s share of rent and royalty income from property
services performed within a Detroit Renaissance Zone.
located in Detroit Renaissance Zone.
Line 8, line 9 and line 10: The partner identified on these lines
Line 9, column 5: For each partner who was a resident
will use the same letter designations (a, b, c, d and e) as used on
domiciled in a Detroit Renaissance Zone, enter the partner’s
Form 5458.
share of income from other partnerships and other income.
More than five partners: If reporting for more than five
Line 9, column 6: For each partner who was a resident
partners, the taxpayer will complete multiple copies of Form
domiciled in a Detroit Renaissance Zone, enter the partner’s
5459, page 2, to account for all partners. The taxpayer may also
guaranteed payments to partners.
choose to attach a separate document detailing the required
information for all partners (line 8, line 9 and line 10) in lieu
Line 10, column 2: Multiply line 10, column 1, by the
of completing multiple copies of page 2. However, all other
appropriate phase out deduction percentage from the table
partnership information must be completed using the required
below:
Form 5459.
ReDUCeD DeDUCtion taBLe
Line 8, column 2: Enter the net operating loss deduction
if this tax period begins in the:
the allowable deduction % is:
claimed on each partner’s individual Detroit income tax return
Third (or greater) year before the
100 percent (1.00) of line 10,
(Form 5118, 5119 or 5120, as applicable).
final year of designation as a
column 1.
Renaissance Zone
Line 8, column 3: Enter the retirement plan deduction claimed
on each partner’s individual Detroit income tax return that was
Second year before the final
75 percent (0.75) of line 10,
year of designation as a
column 1.
based upon income from the partnership.
Renaissance Zone
Line 9, column 1: For partners that were qualified residents
Year immediately preceding the
50 percent (0.50) of line 10,
domiciled in a Detroit Renaissance Zone during the tax year,
final year of designation as a
column 1.
Renaissance Zone
enter the beginning and ending dates of qualification.
Final year of designation as a
25 percent (0.25) of line 10,
Line 9, column 2: For each partner who was a resident
Renaissance Zone
column 1.
domiciled in a Detroit Renaissance Zone, enter the partner’s
no deduction is allowed after the expiration of the Renaissance
share of the interest and dividend income. For all other
Zone designation.
partners, enter a zero.
Line 10, column 3: Carry the total of all partners to Form
5458, line 11a, column 2.
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