Form It-20s - Indiana S Corporation Income Tax Return - 2014 Page 21
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32Instructions for Schedule E,
Interest income and other receipts from loans or
installment sales contracts that are primarily secured
Apportionment of Income for Indiana
by or deal with real or tangible personal property are
Complete the apportionment of income schedule whenever the
attributed to Indiana if the security or sale property is
corporation:
located in Indiana; consumer loans not secured by real
•
Has income derived from sources both within and outside
or tangible personal property are attributed to Indiana if
Indiana; and
the loan is made to an Indiana resident; and commercial
•
Has any nonresident shareholders.
loans and installment obligations not secured by real or
tangible personal property are attributed to Indiana if the
Note: Interstate transportation corporations should consult Schedule
proceeds of the loan are applied in Indiana.
E-7 for details on apportionment of income. You can get this
schedule at
Interest income, merchant discounts, travel and
entertainment credit card receivables, and credit card
holder’s fees are attributed to the state where the card
Part I - Apportionment of Adjusted Gross
charges and fees are regularly billed.
Income
Sales/Receipts: The sales factor is a fraction. The numerator is the
Receipts from the performance of fiduciary and other
total receipts of the taxpayer in Indiana during the tax year. The
services are attributed to the state where the benefits of
denominator is the total receipts of the taxpayer everywhere during
the services are consumed. Receipts from the issuance of
the tax year.
traveler’s checks, money orders, or United States savings
bonds are attributed to the state where those items are
The numerator of the receipts factor must include the following:
purchased.
•
All sales made in Indiana;
•
All sales made from Indiana to the U.S. government; and
Receipts in the form of dividends from investments are
•
All sales made from Indiana to a state not having
at attributed to Indiana if the taxpayer’s commercial
jurisdiction to tax the activities of the seller.
domicile is in Indiana; and
Destination sales to locations outside Indiana by an Indiana
(4) Gross receipts from the performance of services are in
seller that has activities in the state of destination, other than
Indiana if the services are performed in Indiana. If such
mere solicitation, are not included in the numerator of the sales
services are performed partly within and partly outside
factor regardless of whether the destination state levies a tax.
Indiana, a portion of the gross receipts from performance
The numerator contains intangible income attributed to Indiana,
of the services shall be attributed to Indiana based on
including interest from consumer and commercial loans, installment
the ratio the direct costs incurred in Indiana bear to the
sales contracts, and credit and debit cards as prescribed under
total direct costs of the services, unless the services are
IC 6-3-2-2.2.
otherwise directly attributed to Indiana according to
IC 6-3-2-2.2.
Total receipts include gross sales of real and tangible personal
property less returns and allowances. Sales of tangible personal
Sales to the United States Government: The United States
property are in Indiana if the property is delivered or shipped to
government is the purchaser when it makes direct payment to the
a purchaser within Indiana regardless of the f.o.b. point or other
seller. A sale to the U.S. government of tangible personal property
conditions of sale or if the property is shipped from an office, a store,
is in Indiana if it is shipped from an office, a store, a warehouse, or
a warehouse, a factory, or another place of storage in Indiana, and the
another place of storage in Indiana. See the previous rules for sales
taxpayer is not subject to tax in the state of the purchaser.
other than tangible personal property if such sales are made to the
United States government.
Sales or receipts not specifically assigned above shall be assigned as
follows:
Other Gross Receipts: On line 6, report other gross business receipts
(1) Gross receipts from the sale, rental, or lease of real
not included elsewhere and pro rata gross receipts from all unitary
property are in Indiana if the real property is located in
partnerships, excluding from the factors the portion of distributive
Indiana;
share income derived from a previously apportioned partnership
[45 IAC 3.1-1-153(b)].
(2) Gross receipts from the rental, lease, or licensing of the
use of tangible personal property are in Indiana if the
Total Receipts: Complete all lines as indicated. Add all the receipts
property is in Indiana. If property was both within and
in Column A (lines 1A through 7A), and enter the total on line 8A.
outside Indiana during the tax year, the gross receipts are
Also enter the total receipts everywhere on line 8B.
considered in Indiana to the extent the property was used
in Indiana;
Apportionment of Income for Indiana
Divide line 8A by line 8B. (Multiply by 100 to arrive at a percentage
(3) Gross receipts from intangible personal property are
rounded to the nearest second decimal place.) This is your average
in Indiana if the taxpayer has economic presence in
Indiana apportionment percentage; carry it to the apportionment
Indiana and such property has not acquired business sites
entry line on the return (line 16d on IT-20, line 4 on IT-20S, line 9 on
elsewhere.
IT-20NP, and line 4 on IT-65).
15
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