Form 510 - Maryland Pass-Through Entity Income Tax Return - 2010 Page 7
Download a blank fillable Form 510 - Maryland Pass-Through Entity Income Tax Return - 2010 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form 510 - Maryland Pass-Through Entity Income Tax Return - 2010 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13MARYLAND
INSTRUCTIONS FOR
PASS-THROUGH ENTITY
FORM 510
2010
INCOME TAX RETURN
GENERAL
or by the 15th day of the 3rd month if an S
income tax return. Such income must be
corporation. The return must be filed with the
reported in the member’s tax year in which the
INSTRUCTIONS
C o m p t r o l l e r o f M a r y l a n d , R e v e n u e
PTE’s tax year ends. Credit for taxes paid by
Administration Division, Annapolis, Maryland
the PTE must be claimed on the same return
FILING FORM 510
21411-0001.
on which the nonresident member reports the
income subject to that tax.
Purpose of Form Form 510 is used by a
Signatures Required Form 510 must be
pass-through entity (PTE) to file an information
signed by a duly authorized official of the PTE.
The distributive share of income for partnerships
income tax return for a specific tax year or
Preparers, other than PTE employees, must
is the net amount of lines 1 through 11 of the
period and to remit PTE nonresident tax. The
also sign the return.
federal Form 1065-Schedule K. The distributive
term “pass-through entity” includes partnerships
share of income for a large partnership electing
GENERAL
as defined in IRC Section 761, S corporations
to file federal Form 1065-B is the net amount
as defined in IRC Sections 1361 and 1362,
derived from adding lines 1a, 2 through 4b, 7,
INFORMATION FOR
limited liability companies (LLC) as defined in
and 8 of the federal Form 1065-B-Schedule K.
Maryland Corporations and Associations
FORM 510
The pro rata share of income for S corporations
Article, Section 4A-101 and business trusts as
is the net amount of lines 1 through 10 of the
Accounting Periods The tax year or period
defined in Maryland Corporations and
federal Form 1120S-Schedule K.
used for the federal return must be used for the
Associations Article, Section 12-101.
The amount of tax payable by the PTE may be
Maryland return. Accordingly, calendar tax
An LLC is treated as a partnership for Maryland
limited based on the distributable cash flow.
years, fiscal tax years, and short tax periods
income tax purposes, unless it is treated as a
For additional information see the instructions
may be necessary for Maryland filing purposes.
corporation at the federal level.
for distributable cash flow limitation.
If a federal return is filed or required, a
A business trust shall be classified as a
A PTE may elect to file a composite Maryland
corresponding Maryland return must be filed.
corporation, a partnership, a trust or otherwise,
income tax return Form 505 on behalf of
The form used for filing must reflect the
as shall be determined at the federal level.
qualified nonresident individual members.
preprinted tax year in which the PTE’s tax year
Fiduciary and nonresident entity members may
begins.
Unincorporated pass-through entities should
not participate in composite returns. All
follow the rules for partnerships throughout
Use of Federal Figures In preparing Form
members who qualify and elect to be included
these instructions. Incorporated pass-through
510, all items that are reported for federal
on the composite return must agree that the
entities should follow the rules for S
purposes must be reported on the Maryland
PTE is their agent for the receipt of any refund
corporations.
return in the same manner. The character of an
or for payment of any tax due. See
item cannot be changed from that required or
Administrative Release 6.
The term member is used in these instructions
elected for federal purposes.
to include partners of partnerships,
Publicly-traded pass-through entities (PTPs)
Taxability Form 510 is generally an infor-
shareholders of S corporations, members of
as defined in IRC Section 7704 are exempt
mation return. The items of income or loss of
LLCs, and beneficiaries of business trusts.
from the requirement to pay a nonresident tax
the PTE are passed through to the members
on behalf of their nonresident members if they
Entities Required to File Every Maryland
and subject to tax on the members’ Maryland
file Maryland Form 510 annually, and report the
PTE must file Form 510, even if it has no
income tax return.
name, address, taxpayer identification number
income or the entity is inactive. Every other
If there are nonresident members, the pass-
(SSN or FEIN) and other information requested
PTE that is subject to Maryland income tax law
through entity nonresident tax applies and
for each nonresident member whose share of
must also file Form 510. This includes any PTE
must be paid by the PTE on behalf of these
the PTP’s nonresident taxable income exceeds
that has credits in Maryland and a PTE that is
members.
$500 for the tax year. PTPs supplying the
a member of a PTE that is required to file in
above information are also excluded from the
Maryland.
PTEs must pay a tax consisting of 6.25%, in
definition of nonresident entities.
addition to a special nonresident tax of 1.25%,
ENTITIES NOT REQUIRED TO FILE
of the nonresident
individual
and
These PTPs should enter “704” in one of the
A multistate PTE that operates in Maryland but
nonresident fiduciary members’ distributive
code number boxes.
is not subject to the Maryland income tax law is
or pro rata shares of income allocable to
S
corporations
subject
to
federal
not required to file, although a return reflecting
Maryland.
corporation income tax, such as for excess
no income allocable to Maryland may be filed
PTEs are also required to pay a tax at the rate of
net passive income or built-in gains, are also
for record purposes. Letters in lieu of filing will
8.25% of income allocable to Maryland on behalf
subject to Maryland corporation income tax.
not be accepted.
of all members who are nonresident entities. A
Use Form 500 – Maryland Corporation Income
Qualified Sub-S Subsidiaries are treated as
nonresident entity is an entity that is not formed
Tax Return to calculate the amount of Maryland
divisions under the Internal Revenue Code and
under the laws of Maryland; and is not qualified
corporation income tax.
are not considered as separate entities for
by, or registered with, the Department of
On the Form 500: (1) Enter the corporation
Maryland purposes. These divisions will be
Assessments and Taxation to do business in
name, federal employer identification number
Maryland. See Administrative Release 6.
included on the parent company’s annual
and tax year; (2) Enter the total taxable income
Maryland return.
The PTE nonresident tax does not apply to a
on line 1, check the applicable box labeled
member that is a Real Estate Investment
“Other” and enter “1120S”; (3) Report addition
Maryland will follow the IRS rules for certain
Trust (REIT) or to a member that is tax-exempt
and subtraction modifications to the extent
partnerships that do not actively conduct a
under IRC Sections 408(e) or 501, unless the
applicable to the income subject to federal
business that have elected not to be treated as
tax-exempt member is subject to the federal
income tax; and (4) Complete all other lines as
partnerships and for a single member LLC that
income tax on its federal return on that share
necessary to calculate the amount due
is disregarded as a separate entity and the
of PTE income. See Administrative Release 6
(including the lines for modification to income,
income (loss) will be included on the member(s)
for other members and certain PTEs that are
apportionment of income and payments and
annual Maryland returns.
considered exempt.
credits, if appli c able). Attach payment of the
When and Where to File File Form 510 by
balance due to the front of Form 500.
Nonresident members must report their
the 15th day of the 4th month following the
distributive or pro rata shares of income or loss
In addition to filing Form 500 to calculate and
close of the tax year or period if a partnership
allowable to Maryland on their Maryland
pay the corporation income tax, also file Form
3
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial