Form It-20np - Consumer'S Use Tax Worksheet For Line 19 (Page 4 of 7) in pdf

Line 37. Enter total amount of gross receipts from the rental

and supplemental net income taxes on their unrelated business

income.

of real or personal property regardless of where the property

I.C. 6-3-2-3.1 provides that only the unrelated business

may be located or used. The total proceeds from real estate

sales before making any deductions must be entered on line

income (as defined in I.R.C. 513) of an organization otherwise

exempt from adjusted gross income tax under I.C. 6-3-2-

37. Deductions such as outstanding mortgages are to be

2.8(1) is subject to adjusted gross income tax and supplemen-

itemized and explained on Schedule F.

Line 38. Enter the gross receipts from the sale of securities

tal net income tax. (This section will not apply to the United

States, its agencies or instrumentalities, or to the State of

and other miscellaneous personal property. Indicate deduc-

Indiana, its agencies or political subdivisions.)

tions for nontaxable receipts and the nature of such deduc-

I.C. 6-2.1-3-23 requires all not-for-profit organizations

tions on Schedule F.

Line 39. For certain security dealers, grain dealers and

partially exempt and those wholly exempt from tax under I.C.

6-2.1-3-19, 20, 21, or 22 to calculate gross income tax on their

grocers reporting on the gross earnings basis, follow instruc-

unrelated business income as defined in I.R.C. 513.

tions found in Form IT-20 Booklet.

Line 40. Enter all receipts derived from the performance of

Unrelated business income, as determined at the federal

level, is income from a trade or business activity regularly

contracts, excluding income specifically identified as materi-

carried on and not substantially related to the accomplishment

als becoming an integral part of the project(s) to be reported

of the purpose for which the organization was granted tax

on line 42. For lump-sum and fixed price contracts refer to 45

exempt status. A trade or business activity is regularly carried

I.A.C. 1-1-101.

Line 41. Enter all receipts derived from miscellaneous sources

on when it manifests a frequency and continuity and is pursued

in a manner generally similar to comparable commercial

including receipts derived from the operation of coin-oper-

activities of non-exempt organizations. Unrelated business

ated laundries and dry cleaning equipment. Enter total re-

income is not substantially related to an organization’s exempt

ceipts from illegal gaming activities.

purpose when it does not contribute significantly to the

Column B: Lines 42 through 47

achievement of that purpose other than by mere production of

Line 42. Enter all receipts derived from the material used as

income.

An exempt organization receiving unrelated business

an integral part in the completion of project(s) under contract.

income will compute its taxable income in the same manner as

The contractor must be regularly and occupationally engaged

any other taxpayer receiving business income, except busi-

in purchasing and providing the tangible personal property

ness deductions may be taken only insofar as they are directly

under contract to a final user from an established place of

related to the production of taxable unrelated adjusted gross

business. The sales value of the material used as an integral

income.

part of the project(s) in said contract(s) must be segregated

from the other charges and substantiated by receipts on a per

Schedule B

contract basis. The segregation must be maintained in a

Unrelated Gross Income Tax

manner acceptable to this Department. Any portion of the

receipts claimed as sales of materials provided under

Schedule B is used to report gross unrelated business

contract(s), which is not supported by proper segregation is

income only. A partially exempt organization will report its

subject to tax at the higher rate and reported on line 40. The

gross receipts from unrelated business on Schedule B of Form

right to segregate and compute tax at the lower rate does not

IT-20NP. A wholly exempt organization subject to gross

apply to income from a transaction in which title to real estate

income tax on unrelated business income reported on Sched-

is transferred.

ule B will never complete Schedule A. A copy of federal

Line 43. Enter all receipts derived from the sale of merchan-

Form 990T must be attached to the IT-20NP return

dise by a taxpayer regularly engaged in purchasing tangible

whenever Schedules B, C, and D are completed. If Form

personal property and selling the same to customers at a fixed

990T is not being filed, attach a statement to that effect.

and established place of business except those sales by

Report the total gross receipts on Schedule B without

contractors reported on line 42. If such sale is made for the

regard to cost of goods sold, expenses or any other deductions.

purpose of resale, it is properly reportable as a wholesale sale

If electing to claim any of the receipts reported as nontaxable

and should be entered on line 46.

Line 44. Enter the receipts derived from laundering, dry

under Indiana law, enter the amount claimed to be nontaxable

on Line 49 and explain on Schedule F.

cleaning, industrial processing, and commercial printing

Caution: Do not report negative figures on Schedule B.

(excluding photocopying). The receipts from the operation of

coin-operated equipment should be entered on line 41.

Column A: Lines 35 through 41

Line 45. Enter the receipts derived from the sale of farm

Line 35. Enter total amount of commissions and fees actually

products by organizations in the business of agriculture.

Line 46. Enter the receipts derived from sales made by

or constructively received for services performed.

Line 36. Enter amount of interest and dividends actually or

manufacturers to others for resale.

Line 47. Enter wholesale sales other than those reported on

constructively received.

line 46.

Form It-20np - Consumer'S Use Tax Worksheet For Line 19 Page 4

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