Looking for a Massachusetts Tax Forms And Templates? Download it for free!

tion 453A or 453(l)(2)(B) transactions, must separately communi-

dinary income. The correct Massachusetts amount of the share-

cate information to the partner/shareholder that will enable the

holder’s share of ordinary income may differ from the comparable

shareholder to calculate the addition to tax.

U.S. total reported on the shareholder’s Form 1 or 1-NR/PY, Sched-

ule E, Part II; or Form 2. Each shareholder should make adjust-

For 453A transactions, the shareholder must inform the shareholder

ments in Form 1 or 1-NR/PY, Schedule E, Part II if applicable; or

of the shareholder’s share of the aggregate face amount of install-

Form 2, to reflect the correct Massachusetts amount. Each share-

ment sales transactions arising in and outstanding as of the close of

holder should enclose a statement with the shareholder’s Mass-

the taxable year, and any other information the shareholder may

achusetts tax return and explain the adjustments.

need to calculate the addition to tax. The $150,000/$5 million

thresholds apply at the level of the individual shareholder. The S

The S corporation should also provide each shareholder with the

corporation must therefore communicate to the shareholder all

amount of any costs of renovating a qualifying abandoned building.

453A installment sale transactions exceeding $150,000. The “ap-

Each shareholder should use this amount to complete Form 1 or 1-

plicable percentage” is the ratio of the aggregate face amount of in-

NR/PY, Schedule E, Part II; or Form 2. Enclose a statement detail-

stallment sale obligations arising in and outstanding as of the close

ing the location and cost of renovating the qualifying abandoned

of the taxable year in excess of $5 million to the aggregate face

building.

amount of such obligations arising in and outstanding at the close of

The S corporation should provide each shareholder with the amount

the taxable year. The “applicable percentage” will be determined by

of the shareholder’s share of any 5.25% interest from Massachu-

each shareholder.

setts banks and interest (other than from Massachusetts banks) and

For 453(l) (2)(B) transactions, the S corporation must inform the

dividend income included in line 3. Each shareholder should use

shareholder of the shareholder’s share of gain on installment trans-

these amounts to complete Form 1 or 1-NR/PY, Schedule E, Part II.

actions, the date of the transactions, and any other information the

Line 4

shareholder may need to calculate the addition to tax.

Enter the shareholder’s share of any tax due from the S corporation

Shareholder’s Massachusetts Information

to any other state, territory or possession of the United States, or

The shareholder’s distributive share of each item of income, loss,

Canada or any of its provinces on income taxable to the share-

deduction, or credit is determined by the shareholder’s percentage

holder in Massachusetts and otherwise allowable as a credit to indi-

of ownership of stock in the S corporation computed on a daily

viduals. This credit is available only to resident shareholders and

basis during the taxable year.

may be taken by using Form 1, Schedule Z, or Form 1NR/PY,

Schedule Z or if applicable, on Form 2.

Note: If the shareholder is a single member of a Limited Liability

Company (LLC), the taxpayer identification number is the share-

Where the credit is available, the S corporation must also provide

holder’s Social Security number, not the Federal Identification num-

each resident shareholder with separately stated totals of 5.25% in-

ber of the LLC.

terest (other than from Massachusetts banks), dividends and cer-

tain capital gains taxed at 12% income and long-term capital gain

For a nonresident shareholder eligible to apportion, enter in lines 1

taxed by other jurisdictions to enable each shareholder to calculate

through 21 the amount of the shareholder’s share of each applica-

the amount of the credit. The S corporation should provide each

ble distributive share item multiplied by the apportionment percent-

shareholder with the names of each applicable jurisdiction and the

age in Form 63FI, Schedule E, line 5.

amount taxed.

For all other shareholders, enter in lines 1 through 21 the amount of

Enter the shareholder’s proportionate share of the Lead Paint

the shareholder’s share of each applicable distributive share item.

Credit, Economic Opportunity Area Credit, Full Employment Credit,

For lines 17 through 20 the S corporation may provide each share-

Brownfields Credit, Low-Income Housing Credit, Historic Rehabilita-

holder with a written breakdown of long-term capital gains and

tion Credit, Home Energy Efficiency Credit, Solar Heat Credit, Film

losses by the applicable holding period.

Incentive Credit, Medical Device Credit or other applicable credit.

Supporting documentation must be made available upon request.

Line 1

Line 5

Enter the amount of the shareholder’s share of the S corporation’s

Massachusetts ordinary income or loss from Schedule S, line 25.

Enter the shareholder’s share of the S corporation’s net rental in-

For a nonresident eligible to apportion, enter the amount of the

come or loss from real estate activities from Schedule S, line 26.

shareholder’s share of the S corporation’s Massachusetts ordinary

The correct Massachusetts amount of the shareholder’s net income

income or loss multiplied by the apportionment percentage in

or loss from rental real estate activities may differ from the compa-

Schedule E, line 5.

rable U.S. total reported on the shareholder’s Form 1, or 1-NR/PY,

Schedule E, Part II; or Form 2, Schedule E. Each shareholder

Line 2

should make adjustments in Form 1, or 1-NR/PY, Schedule E, Part

Report and describe in line 2 any other expense that is deductible

II; or Form 2, Schedule E, to reflect the correct Massachusetts

from income taxed at 5.25% and properly reportable on Massachu-

amount. Each shareholder should enclose a statement with the

setts Form 1 or 1-NR/PY, Schedule E, Part II, or Form 2 and is not

shareholder’s Massachusetts tax return and explain.

reported elsewhere on Schedule SK-1. Examples of such deduc-

Line 6

tions include oil and gas depletion and the expense deduction for

recovery property, IRC sec. 179. An estate or trust may not elect to

Enter the shareholder’s share of the S corporation’s net rental in-

expense recovery property.

come or loss from other activities from Schedule S, line 27.

Line 3

The correct Massachusetts amount of the shareholder’s share of

net rental income or loss from other activities may differ from the

Combine the amounts in lines 1 and 2. The result in line 3 includes

comparable U.S. total reported on the shareholder’s Form 1 or 1-

each shareholder’s share of the S corporation’s Massachusetts or-

NR/PY, Schedule E, Part II; or Form 2. Each shareholder should

Instructions For Form 63 Fi - Massachusetts Financial Institution Excise Tax Return - 2012 Page 8

Related Articles

Related forms

Related Categories