Form Ct-1120 Pic - Connecticut Information Return For Passive Investment Companies (Page 3 of 3) in pdf

Line 7 - Enter the amount of expenses and employee costs to

Percentage of Time Method

Under this safe harbor method, PIC-related expenses and

be allocated to the PIC. A detailed schedule must be attached

employee costs are allocated on the basis of the ratio of the

showing all expenses and employee costs (including wages)

of the financial service company to be allocated to the PIC, the

number of PIC employees to the total number of employees in

the PIC and the related financial service company. The number

computation of the percentage used in allocating expenses

of PIC employees may be determined either from the employees’

and employee costs to the PIC, and the resulting amount of

time records used in calculating the five full-time equivalent

PIC expenses and employee costs for the taxable year. Do

not include interest expenses on borrowings, deposits, and

employees under the safe harbor test, or from actual time records

escrows. Do not include expenses related to FDIC insurance

for those taxpayers that do not rely on the safe harbor test. No

employee that expends less than 20% of his or her time on PIC

premiums and investment and banking fees relating to mergers,

acquisitions, and other extraordinary transactions.

business shall be included in the calculation of the number of

PIC employees for purposes of determining the ratio.

Line 8 - Enter the PIC’s total gross receipts. A detailed schedule

must be attached to this return.

Percentage of Loans Method

Under this method, PIC-related expenses and employee costs

Line 9 - Enter the total amount of dividends issued by the PIC.

may be allocated on the basis of the ratio of the number of PIC

A detailed schedule must be attached to this return.

loans to all loans serviced by the PIC and its related financial

service company. Such ratio shall be based upon the average

Line 10 - Enter the apportionment fraction for the PIC. Carry

number of loans held during the first month of a PIC’s taxable

to six places. Complete and attach Form CT-1120A-FS,

year or first 30 days after it begins commercial operations in

Corporation Business Tax Return Apportionment Computation

Connecticut for its first taxable year, and the average number

of Income From Financial Service Company Activities. Complete

of loans held during the last month of a PIC’s taxable year. This

the form using the PIC’s receipts and apportioning such receipts

method may be used by any entity that employs five or more

as if the PIC were a financial service company.

full-time employees on PIC business without the need to allocate

employees’ time in order to qualify for PIC status.

The method selected in a particular year must be consistently

applied to all expenses and employee costs on an all or nothing

basis.

On the basis of the method identified, detailed schedules must

be attached to this return.

Form CT-1120 PIC (Rev. 12/13)

Page 3 of 3

Form Ct-1120 Pic - Connecticut Information Return For Passive Investment Companies Page 3

Related Articles

Related forms

Related Categories