Schedule Ct-1040ba - Nonresident Business Apportionment

Schedule B Instructions

Divide Column B by Column A. Carry the result to four decimal

places and enter it as a percentage in Column C. For example,

Complete this schedule if business is carried on both in and

.6667 is entered as 66.67%.

outside of Connecticut and you do not maintain books and

records that satisfactorily disclose the portion of business income

Line 5 - Payroll Percentage

derived from or connected with sources within Connecticut.

Enter wages, salaries, and other personal service compensation

paid only to employees of the business. Do not include payments

Line 1 - Real Property Owned

to independent contractors, independent sales agents, etc. Enter

Enter in Column A the average value of all real property owned,

in Column A the total compensation paid to employees during

wherever located, by the business. Do not include in Column A

the taxable year in connection with business operations carried

the average value of real property rented to others or sold,

on both in and outside of Connecticut. Enter in Column B the

exchanged, or otherwise disposed of during the taxable year.

amount paid in connection with business operations carried on in

Enter in Column B the average value of real property owned

Connecticut. The compensation paid for services is in connection

by the business and located in Connecticut. Do not include in

with operations carried on in Connecticut if the employee works

Column B the average value of Connecticut real property rented

in or travels out of an ofﬁ ce or other place of business located

to others or sold, exchanged, or otherwise disposed of during

in Connecticut.

the taxable year. Real property includes assets of a ﬁ xed nature,

such as buildings and land.

Divide Column B by Column A. Carry the result to four decimal

places and enter it as a percentage in Column C. For example,

The average value of property is determined by adding its fair

.6667 is entered as 66.67%.

market value at the beginning and at the end of the taxable year

and dividing the result by two.

Line 6 - Gross Income Percentage

Enter in Column A total gross sales made or charges for services

Line 2 - Real Property Rented From Others

performed by the proprietor or by employees, agents, agencies,

Enter the value of all real property rented from others in

or independent contractors of the business in and outside

Column A and the value of Connecticut real property rented from

of Connecticut. Enter in Column B the portion of total gross

others in Column B.

sales or charges which represents sales made, or charges for

services performed, by the proprietor or by employees, agents,

The value of real property rented by the business and included in

agencies, or independent contractors situated at, connected

Line 2 generally is eight times the gross rent payable during the

with, or sent out from ofﬁ ces of the business or its agencies

taxable year for which the return is ﬁ led. Gross rent includes:

located in Connecticut.

1. Any amount payable for the use or possession of real

property, or any part of it, whether designated as a ﬁ xed sum

Example: If a salesperson working out of the Connecticut

of money or as a percentage of sales, proﬁ ts, or otherwise;

ofﬁ ce of the business covers Connecticut, Massachusetts,

2. Any amount payable as additional rent or in lieu of rent,

and Rhode Island, all sales made by him are to be allocated

to Connecticut and included on Line 6, Column B.

such as interest, taxes, insurance, repairs, or any other

amount required to be paid by the terms of a lease or other

Divide Column B by Column A. Carry the result to four decimal

agreement; and

places and enter it as a percentage in Column C. For example,

3. A proportion of the cost of any improvement to real property

.6667 is entered as 66.67%.

made by or on behalf of the business which reverts to

Line 7 - Total of Percentages

the owner or lessor upon termination of a lease or other

Add Lines 4, 5, and 6 in Column C and enter the total.

arrangement. However, if a building is erected on leased land

by or on behalf of the business, the value of the building is

Line 8 - Business Apportionment Percentage

determined in the same manner as if it were owned by the

Divide Line 7 by three or by the actual number of percentages if

business.

less than three. Do not divide by three if you have entered zero

Line 3 - Tangible Personal Property Owned or Rented

in Column A for Lines 4, 5, or 6. Divide by the actual number

From Others

of lines where you have entered an amount other than zero in

Enter in Column A the average value of all tangible personal

Column A. Carry the result to four decimal places and enter the

property owned by the business and the value of all tangible

result as a percentage.

personal property rented from others by the business. Enter

Each item of business income (loss) reported on federal

in Column B the average value of tangible personal property

Form 1040, which is required by these instructions to be apportioned,

located in Connecticut that is owned by the business and the

is multiplied by the percentage on Line 8. Nonresidents enter

value of tangible personal property located in Connecticut that is

the apportioned amounts on the proper lines of Schedule CT-SI.

rented from others by the business. If tangible personal property

Part-year residents enter the apportioned amounts on the proper

is rented from others by the business, its value is determined by

lines of Schedule CT-1040AW, Column D.

multiplying the gross rents payable during the taxable year by

eight. If tangible personal property is owned by the business,

Do not apply the business apportionment percentage to income

its average value is determined by adding its book value at the

from the rental of real property or gains or losses from the sale

beginning and at the end of the taxable year and dividing the

of real property. The entire rental income from Connecticut real

result by two.

property or gain from the sale of the property is allocated to

Connecticut and the entire amount of any loss from the sale

Line 4 - Property Percentage

is allocated to Connecticut. Rental income from real property

Add Lines 1, 2, and 3 in Column A and Column B and enter the

located outside Connecticut or any gain or loss from the sale

result.

of this property is allocated out of state.

CT-1040BA (Rev. 01/13)

Page 3 of 3

Schedule Ct-1040ba - Nonresident Business Apportionment - 2012 Page 3

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