Instructions For Schedule U-Msi - Member'S Apportioned Share Of Group Income - 2012
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10Combined Reporting Instructions
2012 Schedule U-MSI Instructions
Member’s Apportioned Share of Group Income
Each taxable member of the group must file Schedule U-MSI to determine its
Massachusetts apportioned share of the combined group’s taxable income. The
members of a combined group jointly determine the combined group’s taxable
income but the individual taxable members separately determine their
Massachusetts apportioned share of that income. Each taxable member is to use
the apportionment provisions that apply to that member pursuant to M.G.L. Ch.
63 with any further modifications as required under 830 CMR 63.32B.2(7).
Each taxable member calculates the numerator of its property, payroll and sales
factors based on its own activities but calculate the denominators of these factors
on a group basis considering the activities of all members of the combined group.
The group denominators are determined on Schedule U-E. The factors are then
combined as appropriate for an individual taxable member using the formula that
applies to that member under Ch. 63 (e.g., a 3-factor formula consisting of
property, payroll and sales, a single weighted 100% sales factor, or a 3-factor
formula but with double weighted sales) to determine the member’s
apportionment percentage and that percentage is multiplied by the combined
group’s taxable income to determine the member’s Massachusetts apportioned
share of group income. This income is then combined, on Schedule U-ST, with
any other taxable Massachusetts income that the member may have (e.g.,
allocable income from non-business activities) to determine the member’s total
Massachusetts taxable income and its income measure excise.
If the combined group is not subject to an affiliated group election, only property,
payroll and sales/receipts of each member that relate to the unitary business of
the combined group are used to apportion the combined group’s taxable income.
A mutual fund service corporation is to determine its share of a combined group’s
taxable income as if it was two separate members of such group. For
apportionment purposes, a mutual fund service corporation is to divide its
Massachusetts property, payroll and sales between its mutual fund sales
business and its other business, and file two Schedules U-MSI, one for each of
the two businesses. The first Schedule U-MSI reports the property, payroll and
sales of the corporation’s mutual fund sales business and applies a 100% sales
factor to the combined group’s taxable income to determine the apportioned
Massachusetts income that derives from the corporation’s mutual fund sales
business. The second Schedule U-MSI reports the remainder of the corporation’s
property, payroll and sales and applies the traditional 3-factor formula but with
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