The income apportionment percentage is to be applied by
Line 2b: Enter the gross annual rent, multiplied by 8, for all
nonresident partners to their distributive share of business
rented real property regardless of location. Gross annual rent
refers to real property only, rented or leased during the taxable
income if business activity of the partnership is conducted
both within and without the City of Detroit. In order to use the
period, and should include the actual sums of money or other
separate accounting method, permission must be requested in
consideration payable, directly or indirectly, by the taxpayer for
the use or possession of such property.
writing from the administrator not more than 90 days after the
beginning of the taxpayer’s year.
Line 2d: Enter the total compensation paid to all employees
Column 4: Enter the total taxable portion of the salaries,
for work or services performed during the year, regardless of
interest or other guaranteed payments to partners receiving
location.
them.
Line 2e: Enter the total gross revenue from all sales or services
Column 5: Enter 100% of resident partners’ salaries, interest
rendered during the year, regardless of location. To allocate
net profit (or loss), a partnership must have business activity
or guaranteed payment or the portion of nonresident salaries,
interest or guaranteed payments earned in Detroit. (The
outside of Detroit.
amount is based on actual time inside Detroit for each partner
Line 3e: In determining the average, divide line 3d by 3.
as computed per the calculation at the bottom of page 5. Use a
However, if a factor does not exist, divide the sum of the all
separate page 5 calculation for each partner.)
line 3 percentages by the number of factors actually used.
Column 6A: Enter nonbusiness income taxable to resident
The income apportionment percentage is to be applied by
partners. The total will equal the amount on Schedule B, line
nonresident partners to their distributive share of business
15, column 2.
income if business activity of the partnership is conducted
Column 6B: Enter nonbusiness income taxable to nonresident
both within and without the City of Detroit. In order to use the
separate accounting method, permission must be requested in
partners. The total will equal the amount on Schedule B, line
15, column 5.
writing from the administrator not more than 90 days after the
beginning of the taxpayer’s year.
Column 7: Transfer the amount of each individual partner’s
NOTE: If there are no locations outside the city in Line 2 (all
share shown in Column 7 to page 1 of this return (line 11,
Line 2 totals will match corresponding Line 1 totals), transfer
column 1).
totals for Schedule D, line 1c to line 3a; 1d to 3b; and 1e to 3c.
Schedule D — Income Apportionment
Ignore all face-of-the-form instructions for Lines 3a, 3b, and
3c.
The business income apportionment percentage is to be applied
to the distributive share of business income of corporate and
Disclosure of Return Information
nonresident partners if business activity of the partnership is
The disclosure of Social Security account number(s) on this
conducted both within and outside the City of Detroit.
tax return is mandatory. This solicitation and use of Social
Line 1a: Enter the net book value of the real and tangible
Security account numbers is authorized by federal law (42
personal property owned and located or used in the City
USC § 405(c)(2)(C)(i)), Michigan law (MCL 141.642) and
of Detroit. The average net book value of real and tangible
City of Detroit ordinance (1984 Detroit City Code § 18-10-
personal property may be determined by adding the net book
11). Treasury uses Social Security account numbers in the
values at the beginning and end of the year and dividing the
administration of City of Detroit income tax law for the
sum by two.
purpose of establishing taxpayer identification, to automate and
Line 1b: Enter the gross annual rent, multiplied by 8, for rented
unify its tax reporting and collection, and as otherwise needed
real property located in the City of Detroit. Gross annual rent
for the administration of the City of Detroit income tax laws.
refers to real property only, rented or leased during the taxable
Under 1984 Detroit City Code § 18-10-16, any information
period, and should include the actual sums of money or other
gained by the income tax administrator, City treasurer, or
consideration payable, directly or indirectly, by the taxpayer for
other City official, agent or employee as a result of a tax return,
the use or possession of such property.
investigation, hearing or verification required or authorized
Line 1d: Enter the amount of compensation paid to employees
by the Uniform Income Tax Ordinance is confidential, except
for official purposes in connection with the administration of
for work or services performed within the City of Detroit.
the ordinance, and except in accordance with a proper judicial
Line 1e: Enter the amount of revenue derived from sales made
order.
or services rendered in the City of Detroit during the year. To
allocate net profit (or loss), a partnership must have business
activity outside of Detroit.
Line 2a: Enter in the average net book value of all real and
These instructions are interpretations of the Detroit
tangible personal property owned by the business, regardless
Income Tax Ordinance. The Ordinance will prevail in
of location. The average net book value of real and tangible
any disagreement between forms or instructions and
personal property may be determined by adding the net book
the Ordinance.
values at the beginning and end of the year and dividing the
sum by two.