Instructions For Form L-1040 - 2014-2015 Page 4
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5Line 29g. Enter average percentage on line 29g and on line 28b.
L-1040 NONRESIDENT INSTRUCTIONS
Expenses for business use of home other than mortgage interest,
property taxes and casualty losses cannot be added to a Schedule C net
LINE 1-EXEMPTIONS
loss, but must be carried over.
Each individual filing a Lapeer income tax return is allowed one
A KEOGH, SEP or SIMPLE retirement plan deduction must be entered
personal exemption. On a joint return, the taxpayer and the spouse
on line 28e.
are allowed one personal exemption each.
Do not prorate
Multiply line 28a by line 28b put on line 28c. Add lines 28c and subtract
exemptions of part-year residents.
lines 28d and 28e. Enter the total on line 28f and on page 1, line 6.
An individual who is 65 years of age or older may claim one
additional personal exemption. On a joint return, the taxpayer and/or
LINE 7 – CAPITAL GAINS OR LOSSES
the spouse, if they qualify, may claim an additional exemption for
The Lapeer Income Tax Ordinance follows the Internal Revenue Code in
being 65 years of age or older.
its treatment of capital gains.
Individuals who are legally blind may claim one additional personal
A. All capital gains attributable to the time period after January 1, 1967,
exemption. On a joint return, the taxpayer and/or the spouse, if they
from the sale or exchange of real or tangible personal property located
qualify, may claim an additional exemption for being blind.
within the city are fully taxable on this return.
Individuals who are disabled (paraplegic, quadriplegic or hemiplegic,
B. Gains on sales of obligations of the United States and subordinate
or who is totally or permanently disabled person) may claim one
units of government are not taxable.
additional personal exemption. On a joint return, the taxpayer and/or
C. Capital loss carryovers that originated in a year the taxpayer was not a
the spouse, if they qualify, may claim an additional exemption for
resident of the City are not deductible.
being disabled.
Enter on line 7 net profit or loss from sale or exchange of real or tangible
personal property located in Lapeer. Attach a copy of Schedule D
LINE 2 & LINE 3- GROSS INCOME FROM EMPLOYERS
and/or Form 4797 from your federal income tax return.
Follow instruction (A) below if you performed all (100%) of your
services in Lapeer. Use instruction (B) below if you performed part
LINE 8 – RENTAL REAL ESTATE, ROYALTIES, PARTNERSHIPS,
of your services in Lapeer. Box #18 of Form W-2 is not to be used
ESTATES, TRUSTS, ETC.
for reporting or allocating income.
Report your rental real estate and royalty income (or loss) from activities
A. Nonresidents who worked 100% of their time in Lapeer: enter the
in Lapeer. Attach copies of federal Schedule E and federal Form
full amount of wages recorded in box 1 on your LW-2 or W-2
8582.
statement.
Partnerships engaged in business activity in the city are required to file
B. Nonresidents who performed only part of their services in Lapeer:
Lapeer partnership returns (L-1065).
Report only your share of the
Compute the amount to be entered in WAGES ETC. EARNED IN
partnership income (or loss) on line 8.
A partner is not allowed to
LAPEER, by filling in page 2, lines 27a-27f, WAGE ALLOCATION.
apportion income distributed by a partnership.
All apportionment of
Use a separate column for each employer. "Days or hours worked"
distributed income must be made on the Lapeer partnership return (L-
on lines 27b and 27c, refers only to the actual number of days or
1065). Your shares of qualifying dividends, gains, etc., are treated as
hours you were on the job. You are not on the job when there is a
belonging to you as an individual.
holiday, when you are sick, or on vacation.
Do not include on this return any gains, losses or other deductions from a
Subchapter S corporation. All corporations taxable under the Lapeer
LINE 4 – INTEREST
Income Tax Ordinance must file a corporate Lapeer income tax return.
Not taxable to nonresidents.
LINE 9 – OTHER INCOME
LINE 5 – DIVIDENDS
Page 2, lines 31a through 31e are used to report other income including
Not taxable to nonresidents.
alimony received, lottery winnings, premature pension plan distributions
(prior to qualifying for retirement) including distributions that are received
LINE 6 – PROFIT (OR LOSS) FROM BUSINESS, PROFESSION
from qualified trusts upon termination of employment and receive
OR FARM (Complete lines 28a – 28f, page 2)
treatment as gains under the Federal Internal Revenue Code, any other
Complete page 2, lines 28a through 28f, Business Income. Enter
income reported on federal Form 1099, and premature Individual
amount from line 28f on Page 1, line 6. Attach a complete copy of
Retirement Account (IRA) distributions (Before age 59 ½) excluding
federal Schedule C and/or federal Schedule F.
ROTH IRA conversions included in federal adjusted gross income.
The federal rules concerning passive losses are applicable to losses
Normal distributions and pensions are not taxable. Attach a separate
deducted on this return.
schedule if more than five items are reported. Attach a copy of each
Enter on line 28d the applicable portion of your net operating loss
Form 1099.
carryover. A net operating loss (NOL) carryover may be deducted.
Add the amounts reported on page 2, lines 31a through 31e. Enter the
Carryback losses are not allowed (Ord. Sec. 7(2)).
If you have
total on page 2, line 31f and on page 1, line 9.
business activity both in and outside of Lapeer compute the
Business Allocation Percentage, lines 29a through 29g, page 2.
LINE 10 – TOTAL INCOME
Line 29a. In column 1 enter the average net book value of all real
Add lines 3 through 9 and enter on line 10
and tangible personal property owned by the business regardless of
location. In column 2 enter the average net book value of the real
DEDUCTIONS:
and tangible personal property owned and located in Lapeer. The
IMPORTANT: The following deductions (Line 11 through Line 14)
average net book value of real and tangible personal property may
are limited to the amount claimed on your federal return, except
be determined by adding the net book value at the beginning of the
meals.
The deductions are limited by the extent they apply to
year to the net book value at the end of the year and dividing the
income earned in the City of Lapeer.
sum by two.
Line 29b. Enter in column 1 the gross annual rent multiplied by 8 for
The only deductions allowed by the Lapeer Income Tax Ordinance are as
all rented real property regardless of location. In column 2 show the
follows:
gross annual rent multiplied by 8 for rented real property located in
Lapeer.
Gross annual rent must include money and other
LINE 11 – INDIVIDUAL RETIREMENT ACCOUNT PLAN DEDUCTIONS
consideration given for the use or possession of real property rented
Contributions to an Individual Retirement Account Plan are deductible to
or leased.
the same extent deductible under the Internal Revenue Code. Attach
Line 29d Enter in column 1 the total compensation paid to all
page 1 of federal return. ROTH IRA contributions are not deductible.
employees during the year. In column 2 enter compensation paid to
employees for work or services performed in Lapeer.
LINE 12 – EMPLOYEE BUSINESS EXPENSES DEDUCTION
Line 29e Enter in column 1 the total gross revenue from all sales or
services rendered during the year. In column 2 enter the amount of
Employee business expenses are allowed only when incurred in the
revenue derived from sales made or services rendered in Lapeer.
performance of service for your employer and only to the extent not paid
Rental income is considered to be derived from services rendered
or reimbursed by the employer and only to the extent they apply to
and must be included in gross receipts.
income earned in Lapeer.
Meal expenses are not subject to the
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