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

Gen. Stat. §§12-217j or 12-217n, for a credit refund equal to 65%

Part II - Computation of Combined Net Income

of the value of the credit, subject to certain limitations. Attach

The combined net income is the sum of the apportioned separate

Form CT-1120RC, Research and Experimental Expenditures

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

Credit, or Form CT-1120 RDC, Research and Development

of each corporation included in the return. Each corporation

Credit, and Form CT-1120 XCH, Application for Exchange

separately apportions its net income to Connecticut in accordance

of Research and Development or Research and Experimental

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

Expenditures Tax Credits by a Qualiﬁ ed Small Business.

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

6. Annualization - Check the corresponding box if the

The calculation of apportioned net income for combined return

combined group is using the annualized installment method

purposes differs slightly from such calculation for separate

to calculate its estimated tax payments. Complete Form

return purposes. In this regard, for purposes of determining

CT-1120I, Computation of Interest Due on Underpayment of

combined net income in Part II, the following adjustments

Estimated Tax, and attach it to Form CT-1120CR.

must be made to each included corporation’s calculation of

apportioned separate net income:

See Informational Publication 2011(21), Q & A on Estimated

Corporation Business Tax and Worksheet CT-1120AE.

-Net income adjustments:

7. Interest or Intangible Expense Add Back - Check the Yes

- Any intercompany intangible expenses and costs required

box if any corporation pays, accrues, or incurs interest expenses

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

or intangible expenses, costs, and related interest expenses to a

and the corresponding income attributable to such expenses

related member. Attach Form CT-1120AB, Summary of Add

are eliminated provided that both the payor and payee are

Back and Exceptions to Add Back of Interest and Intangible

included in the combined return. See Conn. Gen. Stat.

Expenses.

§12-223a(c)(1)(B). Enter the amount of expenses or income

to be eliminated on Line 9 and Line 20, respectively.

8. Passive Investment Companies - Check the corresponding

- Intercorporate dividends from corporations included in

box if any included corporation is ﬁ ling Form CT-1120 PIC,

the combined return are deducted. See Conn. Gen. Stat.

Information Return for Passive Investment Companies. If the

§12-223a(c)(1)(A).

Yes box is checked, Form CT-1120 PIC must be attached. A

passive investment company must be related to a ﬁ nancial

-Apportionment calculation adjustments:

services company or to an insurance company. Passive

- Do not include intercompany rents in the computation

investment companies are exempt from the corporation business

of the property factor of the apportionment fraction if the

tax, but must ﬁ le Form CT-1120 PIC.

lessor and lessee are included in the combined return. See

9. Average Monthly Net Employment Gain - Check this box

Conn. Gen. Stat. §12-223b(a).

if the combined group has an average monthly net employment

- Do not include receipts from any other company included

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

in the combined return in the computation of the receipts

Tax Credit Cap Expansion. See Part IV – Computation of

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

Amount Payable, Line 8.

§12-223b(b).

Rounding Off to Whole Dollars

Note: These adjustments should not be made when calculating

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

the separate tax of each included corporation for preference tax

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

purposes in Part I.

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

Calculate each included corporation’s apportioned net income

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

on the consolidating schedules. Enter the sum of Lines 1-26

all amounts that include 50 through 99 cents.

of each included corporation in the Combined Total Column.

Part I - Separate Taxes of Corporations Included in

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

the Combined Return

before net operating loss and special deductions as ﬁ led on the

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

corporation’s federal return.

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

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

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

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

all appropriate schedules such as Form CT-1120 ATT,

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

Corporation Business Tax Return Attachment Schedules H,

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

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

Apportionment Computation; Form CT-1120K, Business Tax

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

Credit Summary.

Line 6 - Enter the amount of the federal bonus depreciation

Attach a schedule showing the name, Connecticut Tax

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

Registration Number, and FEIN of each afﬁ liate added to

Depreciation and Amortization.

or deleted from the group since the ﬁ ling of the prior year

Line 8 - Enter the Domestic Production Activities deduction

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

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

CT-1120CC-R, as required.

Line 25.

Form CT-1120CR Instructions (Rev. 12/11)

Page 3 of 6

Instructions For Form Ct-1120cr - Combined Corporation Business Tax Return - 2011 Page 3

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