Form Tc-65 - Partnership/ Limited Liability Partnership/ Limited Liability Company - 2012 Page 13
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26Line 25 – Non-Utah Nonbusiness Asset Ratio
Line 27 – Indirect Related Expenses for Non-
Divide line 24 column A by line 24 column B. Round the
Utah Nonbusiness Income
result to four decimal places. Do not enter a decimal
Multiply line 26 by the ratio on line 25.
greater than 1.0000 and do not enter a negative number.
Line 28 – Total Non-Utah Nonbusiness Income
Line 26 – Interest Expense
Net of Expenses
Enter the total amount of interest deducted on form
Subtract line 27 from line 20. Enter amount here and
1065, line 15 and elsewhere on the federal return.
on Schedule A, line 11.
Schedule J – Apportionment Schedule
Instructions
Use TC-20, Schedule J to calculate the portion of the
A taxpayer who is a sales factor weighted taxpayer
taxpayer’s income attributable to Utah, if the taxpayer
must calculate the apportionment fraction under Part
does business both within and outside of Utah.
3, lines 14 through 16.
Complete TC-20, Schedule J to determine the ap-
Other Multistate Taxpayers
portionment fraction (decimal). The factors express
a ratio for tangible property in Utah to total tangible
For multistate taxpayers that are not sales factor
property everywhere, for wages and salaries in Utah to
weighted taxpayers, an election may be made to double
total wages and salaries everywhere, and for sales in
weight the sales factor in the apportionment calculation.
Utah to total sales everywhere. These factors or ratios
The election is made by entering an “X” on line 10 and
are used to arrive at the Utah apportionment fraction
completing lines 11 through 13 on Schedule J.
calculated to six decimals. This fraction (decimal) is
then applied to the apportionable income (or loss) on
Income or loss from partnership or joint venture inter-
Schedule A to arrive at the amount of income (or loss)
ests must be included in income and apportioned to
apportioned to Utah. In cases where one or more of the
Utah through application of the three-factor formula
factors is omitted due to peculiar aspects of the busi-
consisting of property, payroll and sales.
ness operations, use the number of factors present to
For apportionment purposes, the portion of partner-
determine the Utah apportionment fraction.
ship or joint venture property, payroll and sales to be
included in this taxpayer’s property, payroll and sales
Sales Factor Weighted
factors must be computed on the basis of the taxpayer’s
ownership interest in the partnership or joint venture.
Taxpayers
For tax years beginning after 2010, every multistate
Business Activity
taxpayer must determine if they are a Sales Factor
Weighted Taxpayer. A sales factor weighted taxpayer
Briefl y describe the nature and location(s) of your Utah
is a taxpayer having greater than 50 percent of total
business activities in the space provided at the top of
sales everywhere generated by economic activities
this schedule.
performed by the taxpayer, and classifi ed in a NAICS
code of the 2002 or 2007 North American Industry
Lines 1a - 1f –
Property Factor
Classifi cation System, except for a NAICS code within:
Show the average cost value during the taxable year
of real and tangible personal property used in the busi-
• Section 21, Mining;
ness within Utah (including leased property) in column
• Section 31-33, Manufacturing;
A and overall (including Utah) in column B.
• Section 48-49, Transportation and Warehousing;
Property owned by the taxpayer is valued at its original
cost. Property rented by the taxpayer is valued at eight
• Section 51, Information (except for Subsector 519,
times the net annual rental rate. Net annual rental rate
Other Information Services); or
is the annual rental rate paid by the taxpayer less the
• Section 52, Finance and Insurance.
annual rate received by the taxpayer from sub-rentals.
A taxpayer who is a partner in a partnership must in-
The average value of property must be determined by
clude their pro rata share of the partnership’s sales in
averaging the cost values at the beginning and end of
determining whether it meets the “50 percent of total
the tax period. However, monthly values may be used
sales everywhere” requirement above.
or required if monthly averaging more clearly refl ects
the average value of the taxpayer’s property.
Page 11
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