Instructions For Form Ct-1120cr - Combined Corporation Business Tax Return

9. Average Monthly Net Employment Gain - Check this box

Apportionment calculation adjustments:

if the combined group has an average monthly net employment

• Do not include intercompany rents in the computation of the

gain of greater than zero as calculated on Form CT-1120 TCE,

property factor of the apportionment fraction if the lessor and

Tax Credit Cap Expansion. See Part IV – Computation of

lessee are included in the combined return. See Conn. Gen.

Amount Payable, Line 8.

Stat. §12-223b(a).

• Do not include receipts from any other company included

Rounding Off to Whole Dollars

You must round off cents to the nearest whole dollar on your

in the combined return in the computation of the receipts

return and schedules. If you do not round, DRS will disregard

factor of the apportionment fraction. See Conn. Gen. Stat.

§12-223b(b).

the cents. Round down to the next lowest dollar all amounts that

include 1 through 49 cents. Round up to the next highest dollar

These adjustments should not be made when calculating the

all amounts that include 50 through 99 cents.

separate tax of each included corporation for preference tax

purposes in Part I.

Part I - Separate Taxes of Corporations Included in

the Combined Return

Calculate each included corporation’s apportioned net income

on the consolidating schedules. Enter the sum of Lines 1 through

Each corporation included in Form CT-1120CR is required to

calculate its tax as if it were not included in a combined return.

26 of each included corporation in the Combined Total Column.

Complete Part I and attach a separate Form CT-1120, including

Line 1 - Enter the corporation’s federal taxable income (loss)

all appropriate schedules such as Form CT-1120 ATT,

before net operating loss and special deductions as filed on the

Corporation Business Tax Return Attachment Schedules H,

corporation’s federal return.

I, and J; Form CT-1120A, Corporation Business Tax Return

Line 2 - Enter all interest income exempt from federal taxation.

Apportionment Computation; Form CT-1120K, Business Tax

Credit Summary.

Line 4 - Enter the amount of interest expenses paid to a related

member as reported on Form CT-1120AB, Part I A, Line 1.

Attach a schedule showing the name, Connecticut Tax

Registration Number, and FEIN of each affiliate added to

Line 5 - Enter the amount of intangible expenses paid to a related

or deleted from the group since the filing of the prior year

member as reported on Form CT-1120AB, Part I B, Line 3.

Form CT-1120CR. Also attach Form CT-1120CC or Form

Line 6 - Enter the amount of the federal bonus depreciation

CT-1120CC-R, as required.

allowed under IRC §168(k) and claimed on federal Form 4562,

Depreciation and Amortization.

Part II - Computation of Combined Net Income

Line 8 - Enter the Domestic Production Activities deduction

The combined net income is the sum of the apportioned separate

permitted under IRC §199 and reported on federal Form 1120,

net income or loss, as calculated for combined return purposes,

Line 25.

of each corporation included in the return. Each corporation

separately apportions its net income to Connecticut in accordance

Line 9 - Enter any other income amount. Attach

with the provisions of Conn. Gen. Stat. §§12-218, 12-218a,

an explanation. Include the amount of intercompany

12-218b, or 12-244, whichever is applicable.

intangible expenses and costs that are eliminated pursuant to

Conn. Gen. Stat. §12-223a(c)(1)(B). Also include the applicable

The calculation of apportioned net income for combined return

purposes differs slightly from such calculation for separate

amount of distributions from a manufacturing reinvestment

return purposes. In this regard, for purposes of determining

account (MRA). Enter: a) 50% of distributions from an MRA to

combined net income in Part II, the following adjustments

the extent they are used for qualifying purchases; b) 100% of a

must be made to each included corporation’s calculation of

distributions from an MRA to the extent they are used for non-

qualifying purchases; and c) 100% of the money remaining in an

apportioned separate net income:

MRA account that is returned to you after the five year period.

Net income adjustments:

• Any intercompany intangible expenses and costs required

Line 11a - Enter the sum of the amounts entered on Form

CT-1120 ATT, Corporation Business Tax Return Attachment

to be added back pursuant to Conn. Gen. Stat. §12-218c

Schedules H, I, and J; Schedule I, Line 2.

and the corresponding income attributable to such expenses

are eliminated provided that both the payor and payee are

Line 11b - Enter the sum of the amounts entered on Form

CT-1120 ATT, Schedule I, Line 3.

included in the combined return. See Conn. Gen. Stat. §12-

223a(c)(1)(B). Enter the amount of expenses or income to be

Line 11c - Enter the sum of the amounts entered on Form

eliminated on Line 9 and Line 20, respectively.

CT-1120 ATT, Schedule I, Line 4.

• Intercorporate dividends from corporations included in the

Line 11d - Enter the amounts of intercorporate dividends from

combined return are deducted. See Conn. Gen. Stat. §12-

corporations included in this combined return not otherwise

223a(c)(1)(A).

deducted.

Form CT-1120CR Instructions (Rev. 01/13)

Page 4 of 7

Instructions For Form Ct-1120cr - Combined Corporation Business Tax Return - 2012 Page 4

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