Instructions For Form L-L 120 For Corporations Doing Business In Lapeer


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Corporationscannot elect to file and be taxed ss partnerships.
fdlowing five consecutive years. No deduction will be allowed
s schedule showing your computation for the amount
sre required to complete Schedule C and report income on line lb
“Sec. 19. The taxpayer may petition for and the ad-
s statement. explaining the manner in which the appor-
ssme extent, and under the bone limitations, ss under the Federal.
s proportionate share of dividends, interest. and other non-
City of Lapeer Income Tax
Instructions for Form L-l 120 for CORPORATIONS doing business in Lapeer
Calendar year taxpayers must file by April 30. of each year.
Line 12. Enter on this line the net capital loss carryover and
Fiscal year taxpayers must file within 4 months after the end
“et operating loss carryover applicable to Lapeer.
of their fiscal year.
Net capital losses sustained by s corporation for periods
subsequent to January 1, 1967 may be carried forward the
The tax due. if one dollar ($1.00) or more. must be paid when
for capital losses sustained prior to January 1, 1967. Capital
filing the return. Mnke remittance payable to:
losses and capital loss carryovers sre deductible only to the
extent of capital gains. Net operating losses carried forward are
to be shown on line I2 of this return. No deduction will be
for net operating losses sustained prior to January I.
576 Liberty Street
Carryover losses are to be allocated to Lspeer at the percentage
of business conducted in Lapeer in the year in which the loss was
sustained. If all business wss not conducted in Lapeer
in the
Effective Date of Tax
year in which the loss was sustained. use the business allocation
The City of Lapeer income tax became effective January, 1967.
percentage formula to arrive at the deductible portion of the
Corporations sre required to pay the tax each year on that part
loss. If you did not allocate the loss reported on prior years’
of their net income attributable to business activity conducted
returns and you did not conduct 100% of your business in Lapeer.
in Lapser. commencing with their first year. calendar or fiscal,
reported on this line.
ending after January 1. 1967.
Corporations Required to File
Schedule C - Option
Every corporation doing business in the city, whetherornot it
A Corporation has the option of either entering on line la of
has a” office or place of business in the city, and having a tax
page 1 the taxable income before net operating loss deductions
liability under the ordinance, is required to files” annual City of
and special deductions ss show” on its U.S. Corporation Income
Lapeer Corporation Income Tax Return. Form L-1120.
Tax Return. Form 1120, or of starting with line lb, and entering
there the total from line 30 of Schedule C of this return.
The ordinance specifically exempts from taxation state and
If it starts with line la of page 1 it must attach s copy of its
national banks. trust companies, insurance companies, building
Federal return.
and loan and savings and loan associations. credit unions, safety
Corporations reporting on the separate accounting method
and collateral deposit companies, and any other association,
joint stock company or corporation st least 90% of whose assets
of page 1.
consist of intangible personal property and at least 90% of whose
Schedule C Instructions
gross income consists of dividends or interest or other charges
Separate Accounting. The Income Tax Ordinance. Section 19,
resulting from the use of money or credit.
was revised during 1969. The effective date of the revision was
Filing Date
Jan. 1. 1970.
Section 19. ss revised. reads ss follows:
Taxpayers on s calendar year are’required to file by April 30..
-those on 8 fiscal year must file by the last day of the fourth
month following the end of the fiscal year. Returns shall be for
ministrator may grant approval of, or the administrator
the samecalendaryear,firaI
year. orotheraccounting period 8s
may’ require the separate accounting method. If such
the taxpayer uses for Federal income tax purposes.
method ii petitioned for the administrator may require
tionment will be made, in sufficient detail to determine
Upon filing the form “Application for Extension of Time to
whether the net profits attributable to the city will be
File Lspeer Income Tax Return” on or before the date for filings
apportioned with reasonable accuracy.”
return. the Income Tax Administrator may extend the time for
Generally. s corporation that is unitary .in’“sture. i.e. has
filing up to six months. Where en extension greater than two
central management, purchasing, warehousing. advertising. etc.
months is requested. the tentative tax estimated to be due must
cannot use separate accounting.
be paid by the last day of the second month.
Depreciation - Line 15. Use the ssme basis and method ss
When the application form is filed, it may be assumed that the
used for Federal income tax reporting.
extension is automaticallygranted unless otherwise notified. When
Contributions - Line 16. Contributions are deductible to the
the extended Lspeer Income Tax Return is filed. s copy of the
application for extension must accompany it. If the return is
Internal Revenue Code.
filed after the extended due date. penalty and interest for late
Dividends and Interest - Line 25 and 26. Taxpayers allocating
filing will apply from the original due date.
on eny basis other than sepamce accounting shell include all
interest, dividends, and other non-operating income to arrive at
Instructions for Page I
the total income subject to theallocation percentage. Taxpayers
Line 3. If you entered s” amount on line 2 of page 1, use either
using separate accounting shall include in income subject to tax
of the methods explained in the instructions for line 26 of Schedule
C to determine the taxable portion of the gains and losses on the
operating income of the total corporation.
using s direct allocation
sale or exchange of United States obligations since such gains
if the income is received by the divisions subject to the Lapeer
and losses sre excluded from taxation @der the Lspeer Ordin.
tax, or apportioning it on the same basis ss general administrative
and overhead costs sre apportioned to Lapeer activity.


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