Form 105 - Colorado Fiduciary Income Tax Return - 2011 Page 12
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12colorado deParTmenT oF reVenue
DENVER Co 80261-0006
Example of the computation of Fiduciary Colorado tax, resident beneficiary’s Colorado
Fiduciary adjustment, and nonresident beneficiary’s Colorado source income.
The federal Form 1041 for the John smith estate showed the
3. modifications decreasing federal income:
following items of income and deduction:
Federal bond interest........................................... $8,700
4. Net modifications ................................................$(6,224)
1. Interest income ................................................... $32,614
6. Allocated to the estate @ 26.86% ...................... $(1,672)
2. Dividends................................................................ 4,800
7. Taxable income .................................................. $10,285
5. Net rent income (Colo.) ........................................ 16,832
8. Tax ........................................................................... $476
9. Total income ....................................................... $54,246
12. Fiduciary Fees .................................................... $6,000
Alice smith’s share of the Colorado fiduciary adjustment is
14. Accountant’s Fee .................................................. 1,500
computed as follows:
16. Total .................................................................... $7,500
Share of local bond interest @ 48.76% ....................$1,207
17. Adjusted total income ....................................... $46,746
share of u. s. interest @ 48.76% ..............................4,242
18. Income distribution deduction........................... $34,189
Net modification.......................................................$(3,035)
20. Exemption ............................................................... 600
John Smith, Jr’s income reportable to Colorado is determined
21. Total .................................................................. $34,789
as follows:
22. Taxable income .................................................$11,957
Share of distributable net income ........................... $12,000
The estate also had $2,476 in non-Colorado municipal bond interest
From Colorado sources at 29.67%........................... $3,561
income during the tax year. $24,000 was distributed to Alice Smith,
Colorado source income is computed as follows:
a Colorado resident and $12,000 to John Smith, Jr., a nonresident
of Colorado. The estate had $8,700 in u. s. Government interest.
Rental income (Colorado) $16,832
Total income $56,722
= 29.67%
The shares of the federal distributable net income are as follows:
This can be verified as follows:
Alice Smith
$24,000
48.76%
John Smith, Jr
12,000
24.38%
John, Jr’s. share of income $12,000
John Smith Estate
13,222
26.86%
Distributable net income $49,222
= 24.38%
Totals
$49,222
100.00%
share of rental income $16,832 x 24.38%
= $4,104
The Colorado tax of the estate is determined as follows:
share of fees $7,500 x 24.38% x 29.67%*
= 543
Net Colorado income
$3,561
1. Federal taxable income .......................................$11,957
2. modifications increasing federal income:
* Share of fees allocated to rental income
local bond interest .............................................. $2,476
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