Instructions For Schedule U-Msi - Member'S Apportioned Share Of Group Income - 2012 Page 4
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10other activities, on the other, and must file 2 Schedules U-MSI to determine its
share of the combined group’s taxable income.
Question 3. Is the corporation his requesting alternative apportionment?
Check no more than one box. A member requesting alternative apportionment
must submit Form AA-1 under separate cover (currently Form AA-1 cannot be
filed electronically).
Despite this request, such member must nonetheless complete Schedule U-
MSI by applying the statutory rules that apply to such taxpayer pursuant to
M.G.L. Ch. 63, making any adjustments as required by 830 CMR 63.32B.2(7). If
the member’s proposed alternate method is later accepted, a refund of any
overpayment will be made.
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U-MSI
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NSTRUCTIONS FOR
CHEDULE
Member’s Property Factor:
Each member separately determines its property factor numerator. In making this
determination, intercompany transactions that relate to the combined group’s
unitary business (or business activities in general in the case where the group is
subject to an affiliated group election) are generally disregarded, except as
provided in 830 CMR 63.32B.2 (7) (g) (4), and also property leased from non-
group members is attributed to the group member that makes actual use of the
leased property. If the group includes at least 1 financial institution, taxable
members that are financial institutions (but not other members of the group) must
determine and include their financial institution intangible property (loans, etc.)
that are sourced to Massachusetts in determining their property factor.
Line 4. Massachusetts financial institution intangible property owned.
Financial institutions, as defined in M.G.L. Ch. 63, sec.1, must determine the
average value of any loans or other financial institution property that are sourced
to Massachusetts under the provisions of M.G.L. Ch. 63, sec. 2A. Loans that are
excluded from the combined group’s denominator (e.g., in any case where the
group is not subject to an affiliated group election, loans between group
members that relate to the group’s unitary business) are similarly excluded from
the numerator of the member(s) that made the loans. If the member is not a
financial institution, enter “0.”
Line 5. Massachusetts financial institution intangible property for apportionment.
If the combined group whose income is being apportioned includes at least 1
member that is not a financial institution, enter 20% of the amount reported on
line 4. If the group does not include at least 1 member that is not a financial
institution enter 100% of line 4.
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