Form 355s - Massachusetts S Corporation Excise Return

Line by Line Instructions

apportionment. This income is taxable by the U.S.

shareholder eligible to apportion, enter the share-

short-term capital gain or loss multiplied by the

government, but tax-exempt in Massachusetts.

holder’s distributive share of the S corporation’s

apportionment percentage in Schedule F, line 5.

non-Massachusetts and municipal bond interest

Each shareholder should include the line 7 total

The correct Massachusetts amount of the share-

multiplied by the apportionment percentage in

in Form 1 or 1-NR/PY, Schedule B; or Form 2,

holder’s share of short-term capital gain may differ

Schedule F, line 5. This income is not taxed by the

Schedule B.

from the comparable U.S. total reported on the

U.S. government, but is taxable in Massachusetts.

shareholder’s Form 1, or 1-NR/PY, Schedule B, line

Line 8

Each shareholder should include the line 9 total in

8; or Form 2, Schedule B. Each shareholder should

Enter the shareholder’s share of the S corporation’s

Form 1, 1-NR/PY, or 2, Schedule B, line 3.

make adjustments in Form 1, 1-NR/PY, Schedule B,

5.25% interest from Massachusetts banks from

line 8 or Form 2, Schedule B, to reflect the correct

Line 11

Schedule S, line 30. For a nonresident eligible to

Massachusetts amount. Each shareholder should

apportion, enter the shareholder’s share of the S

Enter the shareholder’s share of the S corpora-

enclose a statement with the shareholder’s Mass-

corporation’s 5.25% interest from Massachusetts

tion’s royalty income from Schedule S, line 33. For

achusetts tax return and explain any adjustments.

banks multiplied by the apportionment percentage

a nonresident shareholder eligible to apportion,

Line 14

in Schedule F, line 5.

enter the shareholder’s distributive share of the S

corporation royalty income from Schedule S, line

Enter the shareholder’s share of the S corporation’s

Each shareholder should include the line 8 total in

33, multiplied by the apportionment percentage

short-term capital losses from Schedule S, line 36.

Form 1, line 5, or 1-NR/PY, line 7; or Form 2.

in Schedule F, line 5.

For a nonresident shareholder eligible to appor-

Each nonresident shareholder whose income is

tion, enter the shareholder’s share of the S corpo-

The correct Massachusetts amount of the share-

apportioned should receive from the S corpora-

ration’s short-term capital losses multiplied by the

holder’s share of royalty income may differ from

tion the amount of the shareholder’s pre-appor-

apportionment percentage in Schedule F, line 5.

the comparable U.S. total reported on the share-

tionment share of 5.25% interest from Massachu-

holder’s Form 1, or 1-NR/PY, Schedule E, Part I,

The correct Massachusetts amount of the share-

setts banks. Each nonresident individual whose

line 1; or Form 2, Schedule E, line 1. Each share-

holder’s share of short-term capital losses may dif-

income is apportioned should include this amount

holder should make adjustments to reflect the cor-

fer from the comparable U.S. total reported on the

in Form 1-NR/PY, Schedule B. This amount

rect Massachusetts amount in Form 1, or 1-NR/PY,

shareholder’s Form 1, 1-NR/PY or 2, Schedule B.

should be used instead of any amount from Form

Schedule E, Part I, line 2; or Form 2, Schedule E.

Each shareholder should make adjustments in

1-NR/PY, line 7 because the shareholder’s full dis-

Each shareholder should enclose a statement to

Form 1 or 1-NR/PY, Schedule B, line 14; or Form

tributive share of such income is included in the

the shareholder’s Massachusetts tax return and ex-

2, Schedule B. Each shareholder should enclose a

U.S. amount reported in Form 1-NR/PY, Schedule

plain any adjustments.

statement with the shareholder’s Massachusetts

B, line 1. Each nonresident trust or estate whose

tax return and explain any adjustments.

income is apportioned should include its pre-ap-

Line 12

portionment share of 5.25% interest from Mass-

Line 15

Enter the shareholder’s share of the S corpora-

achusetts banks in Form 2, Schedule B, instead

tion’s income from Schedule S, line 34. For a non-

Enter the shareholder’s share of the S corporation’s

of any amount from Form 2.

resident shareholder eligible to apportion, enter

gain on the sale exchange or involuntary conver-

the shareholder’s distributive share of the S cor-

sion of property used in trade or business and held

Line 9

poration’s other income from Schedule S, line 29

for one year or less from Schedule S, line 37. For a

Enter the shareholder’s share of the S corpora-

multiplied by the apportionment percentage in

nonresident shareholder eligible to apportion, enter

tion’s interest (other than from Massachusetts

Schedule F, line 5.

the shareholder’s share of the S corporation’s gain

banks) and dividend income from Schedule S, line

on the sale exchange or involuntary conversion of

31. For a nonresident shareholder eligible to ap-

The correct Massachusetts amount of the share-

property used in trade or business and held for one

portion, enter the shareholder’s distributive share

holder’s share of other income may differ from

year or less multiplied by the apportionment per-

of the (other than from Massachusetts banks) in-

the comparable U.S. total reported on the share-

centage in Schedule F, line 5.

terest and dividend income from Schedule S, line

holder’s Form 1, 1-NR/PY; or 2. Each partner

26, multiplied by the apportionment percentage in

should make adjustments on the applicable lines

The correct Massachusetts amount of the share-

Schedule F, line 5.

of Form 1, 1-NR/PY, or 2 to reflect the correct

holder’s share of gain on the sale, exchange or in-

Massachusetts amount. If any income reported to

voluntary conversion of property used in trade or

The correct Massachusetts amount of the share-

the S corporation from a Real Estate Mortgage In-

business and held for one year or less may differ

holder’s share of (other than from Massachusetts

vestment Conduit (REMIC) in which the S corpora-

from the comparable U.S. total reported on the

banks) interest and dividend income may differ

tion is a residual interest holder is reported in line

shareholder’s Form 1, 1-NR/PY; or 2, Schedule B.

from the comparable U.S. total reported on the

12, then any such adjustment should be made on

Each shareholder should make adjustments in

shareholder’s Form 1, 1-NR/PY, or 2, Schedule B,

Form 1, or 1-NR/PY, Schedule E, Part I, line 2 or

Form 1 or 1-NR/PY, Schedule B, line 10; or Form

lines 1 and 2. Each shareholder should make ad-

Form 2, Schedule E. Each shareholder should at-

2, Schedule B. Each shareholder should enclose a

justments to reflect the correct Massachusetts

tach a statement to the shareholder’s Massachu-

statement with the shareholder’s Massachusetts

amount in Form 1 and 1-NR/PY, Schedule B, line 6;

setts tax return and explain any adjustments.

tax return and explain any adjustments.

or Form 2, Schedule B. Each shareholder should

enclose a statement to the shareholder’s Mass-

Line 13

Line 16

achusetts tax return and explain any adjustments.

Enter the shareholder’s share of the S corporation’s

short-term capital gain from Schedule S, line 35.

loss on the sale, exchange or involuntary conver-

Line 10

For a nonresident shareholder eligible to apportion,

sion of property used in trade or business and held

Enter the shareholder’s share of the S corporation’s

enter the shareholder’s share of the S corporation’s

for one year or less from Schedule S, line 38. For a

non-Massachusetts state and municipal bond in-

nonresident shareholder eligible to apportion, enter

terest from Schedule S, line 32. For a nonresident

Form 355s - Massachusetts S Corporation Excise Return - 2012 Page 18

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