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

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For qualified property placed in service after

A D D I T I O N S

May 5, 2003, for which an additional 50%

special depreciation allowance applies, 60% of

Enter the amount of each partner's distributive share as

the sum of the amounts entered for that

a positive number.

property on federal Form 4562, Line 14 and

Line 1 - Interest on State and Local Government

Line 25.

Obligations Other Than Connecticut

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For qualified property placed in service after

Enter the amount of each partner's distributive share of

May 5, 2003, for which an additional 30%

interest income derived from state and municipal

special depreciation allowance applies (because

government obligations, other than obligations of the

the partnership elected to deduct the 30%

State of Connecticut or its municipalities, which is not

special depreciation allowance instead of the

taxed for federal income tax purposes. Do not enter

50% special depreciation allowance), the sum

interest income derived from government obligations of

of the amounts entered for that property on

Puerto Rico, Guam, American Samoa, or U.S. Virgin

federal Form 4562, Line 14 and Line 25.

Islands.

See Special Notice 2003(21), 2003 Legislation Affecting

Line 2 - Mutual Fund Exempt-Interest Dividends

the Connecticut Income Tax.

From State or Municipal Government Obligations

Important: A partnership whose partners include one

Other Than Connecticut

or more C corporations must provide special

Enter the amount of each partner's distributive share of

depreciation allowance information to the C corporation

exempt-interest dividends received from a mutual fund

partner(s) in accordance with Special Notice 2002(10),

that are derived from state and municipal government

Bonus Depreciation for Connecticut Corporation

obligations, other than obligations of the State of

Business Tax Purposes.

Connecticut or its municipalities. If the exempt-interest

Line 5 - Other

dividends are derived from obligations of Connecticut and

other states, enter only the percentage derived from

Use Line 5 to report the amount of each partner's

non-Connecticut obligations. Do not enter exempt-interest

distributive share of modifications to income which are

dividends derived from government obligations of Puerto

not listed on Lines 1, 2, 3, or 4. For example, include

Rico, Guam, American Samoa, or U.S. Virgin Islands.

the amount of each partner's distributive share of:

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Any loss recognized on the sale or exchange

Example: A fund invests in obligations of many states,

of bonds or other obligations of the State of

including Connecticut. Assuming that 20% of the

Connecticut or its municipalities;

distribution is from Connecticut obligations, the

remaining 80% would be added back on this line.

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The partnership's share of any positive

fiduciary adjustment received from a trust or

Line 3 - Certain Deductions Relating to Income

estate of which the partnership is a beneficiary;

Exempt From Connecticut Income Tax

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Any interest or dividend income on federal

Enter the amount of each partner's distributive share of

obligations or securities the federal government

the amount deducted for federal income tax purposes

does not prohibit the states from taxing;

for interest expense on loans used to buy bonds and

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Income taxes paid to Connecticut, to the extent

securities whose interest income is exempt from

deductible in determining federal adjusted gross

Connecticut income tax, expenses related to income

income;

exempt from Connecticut income tax, and the amortizable

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Expenses paid for the production or collection

bond premium on any bond, the interest from which is

of Connecticut tax exempt income, or paid for

exempt from Connecticut income tax.

the management, conservation, or maintenance

Line 4 - Special Depreciation Allowance for Qualified

of property held for the production of such

Property Placed in Service During This Year

income, to the extent deductible in determining

federal adjusted gross income; or

If the partnership filed federal Form 4562, Depreciation

and Amortization (including Information on Listed

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Amortizable bond premium for the taxable year

Property), enter on Line 4 each partner's distributive

on any bond, the interest on which is exempt

share of the sum of the following:

from Connecticut income tax.

•

For qualified property placed in service on or

before May 5, 2003, for which an additional

30% special depreciation allowance applies, the

sum of the amounts entered for that property

on Federal Form 4562, Line 14 and Line 25.

Page 12

Form Ct-1065 - Connecticut Partnership Income Tax Return And Instructions - 2003 Page 12

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