Form Ct-1065 - Connecticut Partnership Income Tax Return And Instructions

The apportionment fraction calculated on Line 8 of this

by adding its book value at the beginning and end of the

schedule is not to be used by partners that are

taxable year and dividing by two.

C corporations. (Schedule B need not be completed

Determine the value of tangible personal property rented

when all the partners are C corporations.)

from others by multiplying by eight the gross rents

If the partnership does maintain books and records that

payable during the taxable year for which the return is

satisfactorily disclose the portion of income, gain, loss,

filed.

or deduction derived from or connected with Connecticut

Line 4 - Property Owned or Rented

sources, use those amounts to complete Schedule E.

Add Lines 1, 2, and 3 in Column A and Column B, and

Line 1 - Real Property Owned

enter the result on Line 4. On Line 4 divide the Column B

Enter in Column A the value of all real property owned

amount by the Column A amount. Carry the result to

by the business, wherever located. Enter in Column B

four decimal places and enter on Line 4, Column C.

the value of real property owned by the business and

Line 5 - Employee Wages and Salaries

located in Connecticut.

Enter in Column A the total compensation paid to

The value of property is determined by adding its fair

employees during the taxable year in connection with

market value at the beginning and the end of the taxable

business operations carried on everywhere. Enter in

year and dividing by two.

Column B the total compensation paid to employees

during the taxable year in connection with business

Line 2 - Real Property Rented From Others

operations carried on in Connecticut. Only enter wages,

Enter in Column A the value of all real property rented

salaries, and other personal service compensation paid

from others, wherever located. Enter in Column B the

to employees of the business. Do not include payments

value of real property rented from others and located in

to partners, independent contractors, independent sales

Connecticut.

agents, etc. The compensation paid for services is in

The value of real property rented by the business from

connection with operations carried on in Connecticut if

others and to be included on Line 2 is eight times the

the employee works in or travels out of an office or

gross rent payable during the taxable year for which the

other place of business located in Connecticut.

return is filed. Gross rent includes:

Divide the Column B amount by the Column A amount.

•

Any amount payable for the use or possession

Carry the result to four decimal places and enter on

of real property, or any part of it, whether

Line 5, Column C.

designated as a fixed sum of money or as a

Line 6 - Gross Income From Sales and Services

percentage of sales, profits, or otherwise;

Enter in Column A the total gross sales made or charges

•

Any amount payable as additional rent or in lieu

for services performed by the partnership or by

of rent, such as interest, taxes, insurance,

employees, agents, agencies, or independent contractors

repairs, or any other amount required to be paid

of the business everywhere. Enter in Column B the

by the terms of a lease or other agreement; and

portion of total gross sales or charges which represents

•

The proportion of the cost of any improvement

sales made or services performed by the partnership or

to real property made by or on behalf of the

by employees, agents, agencies, or independent

business which reverts to the owner or lessor

contractors of the business in Connecticut. This includes

upon termination of a lease or other

sales made or services performed by employees, agents,

arrangement. However, if a building is erected

agencies, or independent contractors situated at,

on leased land by or on behalf of the business,

connected with, or sent out from offices (or its agencies)

the value of the building is determined in the

located in Connecticut.

same manner as if it were owned by the

Divide the Column B amount by the Column A amount.

business.

Carry the result to four decimal places and enter on

Line 3 - Tangible Personal Property Owned or

Line 6, Column C.

Rented From Others

Example: If a salesperson working out of a

Enter in Column A the average value of all tangible

Connecticut

office

covers

Connecticut,

personal property that is owned by the business,

Massachusetts, and Rhode Island, all sales made

wherever located, and the value of all tangible personal

by the salesperson are to be allocated to Connecticut

property that is rented from others by the business,

and included in Line 6, Column B.

wherever located. Enter in Column B the average value

of tangible personal property owned by the business

Line 7 - Total

and located in Connecticut, and the value of tangible

Add Lines 4, 5, and 6 in Column C and enter the total on

personal property that is rented from others by the

Line 7, Column C.

business and located in Connecticut. Determine the

average value of tangible personal property that is owned

Page 10

Form Ct-1065 - Connecticut Partnership Income Tax Return And Instructions - 2003 Page 10

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