Form Fae 170 - Franchise, Excise Tax Return (Page 4 of 8) in pdf

page 4

TAXABLE YEAR

TAXPAYER NAME

ACCOUNT NO./FEIN/SSN

Schedule J - COMPUTATION OF NET EARNINGS SUBJECT TO EXCISE TAX

1. Federal income or loss (Enter amount from Schedule J-1, J-2, J-3, or J-4) .......................................................................... (1) _______________________

ADDITIONS:

Intangible Expenses paid, accrued, or incurred to an affiliated business entity or entities deducted for

federal income tax purposes ............................................................................................................................... (2) _____________________

3. Any depreciation under the provisions of IRC Section 168 not permitted for excise tax purposes due to Tennessee

permanently decoupling from federal bonus depreciation and any expense/depreciation deducted as a result

of "safe harbor" lease elections. (attach schedule) ................................................................................................................ (3) _______________________

4. Any deduction for domestic production activities under the provisions of IRC Section 199 ............................................. (4) _______________________

5. Any gain on the sale of an asset sold within twelve months after the date of distribution to a nontaxable entity .............. (5) _______________________

6. Tennessee excise tax expense (to the extent reported for federal purposes) ........................................................................ (6) _______________________

7. Gross premiums tax deducted in determining federal income and used as an excise tax credit ............................................. (7) _______________________

8. Interest income on obligations of states and their political subdivisions, less allowable amortization ................................ (8) _______________________

9. Depletion not based on actual recovery of cost ................................................................................................................... (9) _______________________

10. Contribution carryover from prior period(s) ...................................................................................................................... (10) _______________________

11. Capital gains offset by capital loss carryover or carryback ............................................................................................... (11) _______________________

12. Excess fair market value over book value of property donated .......................................................................................... (12) _______________________

Excess rent to/from an affiliate. A taxpayer paying excess rent enters a positive amount on this line. A

13.

taxpayer receiving excess rent, to the extent added back to net earnings by its affiliate, enters a negative

amount on this line. ..........................................................................................................................................

(13) _______________________

14. Total additions - Add lines 2 through 13 ............................................................................................................................ (14) _______________________

DEDUCTIONS:

15. Any depreciation under the provisions of IRC Section 168 permitted for excise tax purposes due to Tennessee

permanently decoupling from federal bonus depreciation .................................................................................................. (15) _______________________

16. Any excess gain (or loss) from the basis adjustment resulting from Tennessee permanently decoupling from federal

bonus depreciation .............................................................................................................................................................. (16) _______________________

17. Any loss on the sale of an asset sold within twelve months after the date of distribution to a nontaxable entity ............ (17) _______________________

18. Dividends received from corporations, at least 80% owned (attach schedule) .................................................................. (18) _______________________

19. Contributions in excess of amount allowed by federal government ................................................................................... (19) _______________________

20. Donations to Qualified Public School Support Groups and nonprofit organizations ........................................................ (20) _______________________

21. Portion of current year’s capital loss not included in federal taxable income ..................................................................... (21) _______________________

22. Any expense other than income taxes, not deducted in determining federal taxable income for which a credit against the

federal income tax is allowable ............................................................................................................................................ (22) _______________________

23. Any income included for federal tax purposes and any depreciation or other expense that could have been deducted for

“safe harbor” lease elections. (attach schedule) .................................................................................................................. (23) _______________________

24. Nonbusiness earnings - Schedule M, Line 8 ....................................................................................................................... (24) _______________________

25. Intangible Expenses paid, accrued, or incurred to an affiliated entity or entities. The applicable box must be checked

in order to take this deduction (check all that apply):

A) Form IE-N; Attached

B) Form IE-A; Previously Submitted, Approval/Denial Pending

C) Form IE-A; Previously Submitted and Approved ............................................................................. (25) _______________________

26. Intangible income from an affiliated business entity or entities if the corresponding intangible expenses have not been

Tenn. Code Ann. Section

deducted by the affiliate(s) under

67-4-2006(b)(2)(N) ........................................................ (26) _______________________

27. TOTAL deductions - Add lines 15 through 26 .................................................................................................................. (27) _______________________

COMPUTATION OF TAXABLE INCOME

28. Total Business Income (Loss) - Add lines 1 and 14, less Line 27 (If loss, complete Schedule K) .................................... (28) _______________________

29. Apportionment Ratio (Schedules N, O, P, or R if applicable or 100%) ............................................................................ (29) _______________________

30. Apportioned business income (Loss) (Line 28 multiplied by Line 29) ............................................................................. (30) _______________________

31. Add: Nonbusiness earnings directly allocated to Tennessee (From Schedule M, Line 9) .................................................. (31) _______________________

32. Deduct: Loss carryover from prior years (From Schedule U) ............................................................................................ (32) _______________________

33. Subject to excise tax (6.5%) (Line 30 plus Line 31, less Line 32) (enter here and on Schedule B, Line 4) ......................... (33) _______________________

Schedule K - DETERMINATION OF LOSS CARRYOVER AVAILABLE -See Rule 1320-6-1-.21 of Departmental Rules and Regulations

1. Net loss from Schedule J, Line 28 ........................................................................................................................................ (1) _______________________

ADD:

2. Amounts reported on Schedule J, lines 18 and 24 ................................................................................................................ (2) _______________________

3. Amounts reported on Schedule J-1, lines 6 and 7, and Schedule J-2, Line 9 ........................................................................ (3) _______________________

4. Reduced loss - Add lines 1 through 3 (if net amount is positive, enter "0") ........................................................................ (4) _______________________

5. Excise Tax ratio (Schedules N, O, P, or R if applicable or 100%) ........................................................................................ (5) _______________________

6. Current year loss carryover available (Line 4 multiplied by Line 5) .................................................................................... (6) _______________________

INTERNET (12-12)

Form Fae 170 - Franchise, Excise Tax Return Page 4

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