Form 105 - Colorado Fiduciary Income Tax Return

If the “yes” box is checked, the fiduciary is authorizing the Colorado

estate or trust.

Department of Revenue to call the paid preparer to answer any

Enter in column 3 for each resident beneficiary, his/her percentage

questions that may arise during the processing of the estate’s or

of the federal distributable net income as determined in Schedule B.

trust’s return. The fiduciary is also authorizing the paid preparer to:

The Colorado fiduciary adjustment is divided among the

• Give the Colorado Department of Revenue any information that is

beneficiaries and the fiduciary in proportion to their share of the

missing from the estate’s or trust’s return; and/or

federal distributable net income. Enter in column 4 each resident

• Call the Colorado Department of Revenue for information about

beneficiary’s share of the Colorado fiduciary adjustment computed

the processing of the estate’s or trust’s return or the status of its

by applying the percentage in column 3 to the net adjustment as

refund or payment(s); and/or

shown on line 4, page 1 of the return. If there is no federal distributable

net income, each beneficiary’s share of the Colorado fiduciary

• Respond to Colorado Department of Revenue notices that the

adjustment shall be in proportion to his share of the estate or trust

fiduciary has shared with the preparer about math errors, offsets,

income distributed or required to be distributed. Any balance of

and return preparation. The notices will not be sent to the preparer.

the Colorado fiduciary adjustment will be allocated to the fiduciary.

The fiduciary is not authorizing the paid preparer to receive any refund

Advise each beneficiary of his/her share of the Colorado fiduciary

check, bind the estate or trust to anything (including any additional tax

adjustment.

liability), or otherwise represent the estate or trust before the Colorado

Enter in column 5 the Social Security number of each nonresident

Department of Revenue. If the fiduciary wants to expand the paid

beneficiary.

preparer authorization, complete form DR 0145 Power of Attorney

for Department Administered Tax matters.

Enter in column 6 for each nonresident beneficiary his/her share of

the federal distributable net income of the estate or trust.

The authorization will automatically end no later than the due date

(without regard to extensions) for filing the estate’s or trust’s 2012 tax

Enter in column 7 for each nonresident beneficiary, the percentage of

return. If the fiduciary wants to revoke the authorization before it ends,

federal distributable net income of the estate or trust determined to be

send a written statement of revocation to the Colorado Department

from Colorado sources. This determination is made in schedule C.

of Revenue Denver, Co 80261-0006. The statement of revocation

Enter in column 8 for each nonresident beneficiary, that part of his/

must indicate that the authorization is revoked, list the tax return,

her federal distributable net income from this estate or trust that is

and must be signed and dated by the fiduciary or the paid preparer.

from Colorado sources determined by applying the percentage in

column 7 to the income in column 6. If any other method is used to

Schedule A. Enter the names and addresses of the beneficiaries.

determine the beneficiary’s income from Colorado sources, attach

use lines (a) through (f) for resident beneficiaries and lines (g)

a comprehensive explanation.

through (l) for nonresident beneficiaries.

Schedule B. schedule B is used to compute the fiduciary’s

Enter in column 9 for each nonresident beneficiary, 4.63% of his/her

Colorado source income as listed in column 8. This is the amount

percentage share and each beneficiary’s percentage share of the

to be withheld from the distribution to the beneficiary and paid to the

federal distributable net income. These percentages are to be used

state of Colorado as estimated tax in the name of the beneficiary on

in the division of the Colorado fiduciary adjustment in schedule D.

Form 104BEP. Round all amounts to the nearest dollar.

Schedule C. Schedule C is used to determine what part of the

Schedule E. Schedule E is used to compute the tax of a part-year

nonresident beneficiaries’ federal distributable net income is from

Colorado sources. This percentage is to be used in allocating the

or nonresident estate or trust. Fiduciaries of part-year or nonresident

estates or trusts shall compute a tentative tax as though the estate

net estate or trust income reportable to Colorado by nonresident

or trust were a resident estate or trust. The actual tax shall be the

beneficiaries in schedule D.

tentative tax apportioned in the ratio of the Colorado taxable income

Enter in column 1 the component parts of the federal distributable

to the modified federal taxable income.

net income. Enter in column 2 that part of each item from column 1

First complete lines 1 through 7 of Form 105 in accordance with the

that is from Colorado sources. Interest and dividend income will not

be considered to be from Colorado sources except where they arise

instructions given for full-year resident estates and trusts.

from assets that have acquired a business situs in Colorado. Pension

Then complete lines 1 through 3 of the federal column of Schedule

and annuity income is not considered to be Colorado source income.

E using the information from the federal Form 1041. Complete the

federal column using the modifications from line 6 of Form 105.

Expenses claimed on lines 10 through 15 of federal Form 1041 will

be Colorado or non-Colorado expenses depending on the source

on line 1 of schedule E, Colorado column, enter the Colorado source

of the income to which they are assigned by the fiduciary for federal

income of the estate or trust. Interest, dividends, gains or losses

income tax purposes.

from the sale of stocks and bonds, and pension and annuity income

shall not be considered Colorado source income for a nonresident

Schedule D. Schedule D on page 2 is for the determination of the

resident beneficiaries’ share of the Colorado fiduciary adjustment,

estate or trust.

and the determination of the net estate or trust income reportable

Expenses shall follow the income to which they were assigned for

to Colorado by nonresident beneficiaries.

federal income tax purposes by the fiduciary.

Enter in column 1 the social security number of each resident

The distribution deduction and the exemption deduction shall be

beneficiary.

allowed on line 2 of the Colorado column in the ratio of the federal

distributable net income from Colorado sources over the total federal

Enter in column 2 for each resident beneficiary, the income reported

Page 5

on his/her federal individual income tax return as being from this

Form 105 - Colorado Fiduciary Income Tax Return - 2011 Page 5

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