Form Tc-65 - Partnership/ Limited Liability Partnership/ Limited Liability Company - 2012 Page 11
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26Line 11 – Non-Utah Net Nonbusiness Income
Line 14 – Apportionment Fraction (Decimal)
Enter the non-Utah nonbusiness income net of ex-
Enter 1.000000, or the apportionment fraction (decimal)
penses. To calculate this amount, use form TC-20,
from Schedule J, line 9, 13 or 16, if applicable.
Schedule H, available at tax.utah.gov/forms. Enter
Line 15 – Utah Apportioned Business
the amount from line 28 of Schedule H. Attach a copy
of the Schedule H to your partnership return.
Income (Loss)
Multiply the amount on line 13 by the apportionment
Note: Do not include as nonbusiness income any in-
fraction on line 14.
come reported on line 9 as portfolio income.
Line 16 – Total Utah Income Allocated to Pass-
Line 12 – Add Lines 8 through 11
through Entity Taxpayers
Add the amounts on lines 8 through 11.
Add line 10 and line 15.
Line 13 – Apportionable Income (Loss)
Subtract line 12 from line 5.
Schedule H – Nonbusiness Income
Net of Expenses Instructions
Complete TC-20, Schedule H to determine nonbusiness
Gain or loss from the sale, exchange, or other disposi-
income allocated to Utah and outside Utah. All income
tion of real property or of tangible or intangible personal
that arises from the conduct of the trade or business
property constitutes business income if the property
operations of a taxpayer is business income.
while owned by the taxpayer was used in, or was oth-
erwise included in the property factor of the taxpayer’s
Nonbusiness income means all income other than
trade or business. See Rule R865-6F-8(2)(e)(ii).
business income and will be narrowly construed. In-
tangible income must be properly classifi ed and based
Rental income from real and tangible property is
upon factual evidence. The burden of proof is on the
business income if the property with respect to which
taxpayer to justify the manner in which the income is
the rental income was received is or was used in the
claimed on the return.
taxpayer’s trade or business and therefore is includable
in the property factor. See Rule R865-6F-8(2)(e)(i).
Interest income is business income where the intan-
gible with respect to which the interest was received
Complete Schedule H as follows:
arises out of or was created in the regular course of
• Complete lines 1a through 14 if you are claiming
the taxpayer’s trade or business operations, or where
only Utah nonbusiness income.
the purpose for acquiring and holding the intangible is
an integral, functional, or operative component of the
• Complete lines 15a through 28 if you are claiming
taxpayer’s trade or business operations, or otherwise
only non-Utah nonbusiness income.
materially contributes to the production of business
• Complete lines 1a through 28 if you are claiming
income of the trade or business operations. See Tax
both Utah and non-Utah nonbusiness income.
Commission Rule R865-6F-8(2)(e)(iii).
Use additional pages or supporting schedules in the
Dividends are business income where the stock with
same format, if necessary, to provide complete informa-
respect to which the dividends were received arose out
tion, including a description of the business purpose
of or was acquired in the regular course of the taxpayer’s
for making the investment, the transactions creating
trade or business operations or where the acquiring
the non-business income, and the use of revenues
and holding of the stock is an integral, functional, or
generated by the non-business investment.
operative component of the taxpayer’s trade or business
operations, or otherwise materially contributes to the
production of business income of the trade or business
operations. See Rule R865-6F-8(2)(e)(iv).
Page 9
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