Form It-711 - Partnership Income Tax Forms And General Instructions

GENERAL INFORMATION

(continued)

been derived in Georgia if received from customers within this

state taxation of some types of retirement income including

state, or if the receipts are otherwise attributable to this State’s

pensions as well as income received from nonqualified deferred

marketplace.

compensation plans if the income is paid out over the life

For tax years beginning on or after January 1, 2008, the

expectancy of the person or at least 10 years. An employer is



required to withhold Georgia income tax on any amounts that are

Georgia apportionment ratio shall be computed by applying

required to be included in the nonresident’s income.

only the gross receipts factor. See Rules and Regulation 560-

7-7-.03(4)(d) for specific details.

INCOME APPORTIONMENT AND ALLOCATION

For tax years beginning on or after January 1, 2006, a



(Schedules 6 and 1)

company whose net income is derived from the manufacture,

If any Partnership, domestic or foreign, is doing business or

production, or sale of tangible personal property, and from

owns property both within and without Georgia, the average

business other than the manufacture, production, or sale of

ratio as computed in Schedule 6 should be used to compute

tangible personal property, must include gross receipts from

Georgia Net Income in Schedule 1. If the business income of

both activities in their receipts factor.

the partnership is derived from Georgia sources, from property

For tax years beginning on or after January 1, 2006, a company

owned or business done within this State, and in part from



whose net income is derived from business other than the

property owned or business done without this State, the tax

manufacture, production, or sale of tangible personal property,

shall be imposed only on that portion of the business income

only includes in their receipts factor gross receipts from activities

which is reasonably attributable to Georgia sources and property

which constitute the taxpayer’s regular trade or business.

owned and business done within this State, to be determined

(b) For the purpose of this section, the word “sale” shall include

as follows:

the extraction and recovery of natural resources and all

(1) Interest received on bonds held for investment and income

processes of fabricating and curing.

received from other intangible property held for investment are

not subject to apportionment. Rentals received from real estate

Business Partnerships. A corporation or partnership which is

held purely for investment purposes and not used in the operation

involved in a business joint venture, or is a partner in a business

of the business are also not subject to apportionment. All

partnership, must include its pro rata share of the joint venture

expenses connected with the interest and rentals from such

or partnership property, payroll, and gross receipts values in

investments are likewise not subject to apportionment but must

its own apportionment formula.

be applied against the investment income. The net investment

income from intangible property shall be allocated to Georgia if

the partnership’s situs is in Georgia, or the intangible property

COMPUTATION OF TOTAL INCOME FOR GEORGIA

was acquired as income from property held in Georgia, or as a

PURPOSES (Schedule 7)

Schedule 7 reflects flow-through income from the federal return

result of business done in Georgia. Net investment income

which is taxable to the individual partners. A resident partner

from tangible property in Georgia shall be allocated to Georgia.

is required to report his full share of partnership income or

(2) Gains from the sale of tangible or intangible property not held,

loss. A nonresident partner is required to report only his share

owned or used in connection with the trade or business of the

of Georgia-apportioned and Georgia-allocated income.

partnership, nor for sale in the regular course of business, shall

Payments made to a partner for services rendered or interest

be allocated to Georgia if the property sold is real or tangible

on capital contributions are not deductible when computing

personal property situated in this State, or intangible property

the partnership’s net income.

having an actual situs or a business situs within this State.

Schedule 7 is similar to the Federal Schedule K. Enter the total

Otherwise the gains shall not be allocated to this State.

amounts from each category on Schedule 7 where applicable.

(3) Net income of the above classes having been separately

allocated and deducted, the remainder of net business income

shall be apportioned as follows:

INCOME TO PARTNERS (Schedule 3)

This schedule provides space to show identifying information

and income distributable to the individual partners.

ONE FACTOR FORMULA

Enter for each partner: 1. Name; 2. Street and Number; 3.

(a) Gross Receipts Formula. The gross receipts factor is the

City, State and Zip Code; 4. Social Security or Federal

ratio of gross receipts from business done within this State to

Identification Number; 5. Profit (Loss) sharing ratio (Enter the

total gross receipts from business done everywhere.

ending percentage that is listed on the Federal K-1); 6. Georgia

Source Income. If the partnership has more than 5 partners,

Receipts derived from the sale of tangible personal property

attach a separate schedule for the additional partners in the

shall be deemed to have been derived from business done in

same format.

Georgia if they were received from products shipped to

customers in this State or products delivered within this State

Total Georgia source income may differ from total net income

to customers.

because some of the partnership income (e.g., guaranteed

payments) may not be based on the profit sharing ratio, or the

When receipts are derived from business other than the sale

partner is a Georgia resident. See example on page 8.

of tangible personal property, receipts shall be deemed to have

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Form It-711 - Partnership Income Tax Forms And General Instructions - 2013 Page 7

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