Form 355s - Massachusetts S Corporation Excise Return

Line by Line Instructions

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

and losses multiplied by the apportionment per-

Line 25

on the sale exchange or involuntary conversion of

centage in Schedule F, line 5.

Enter the net amount of the adjustments made

property used in trade or business and held for one

to the shareholder’s Massachusetts basis for

The correct Massachusetts amount of the share-

year or less multiplied by the apportionment per-

the taxable year. The shareholder’s basis should

holder’s share of other long-term capital gains or

centage in Schedule F, line 5.

be increased by the shareholder’s distributive

losses may differ from the comparable U.S. total

share of S corporation income, decreased by dis-

The correct Massachusetts amount of the share-

reported on the shareholder’s Form 1, 1-NR/PY,

tributions to the shareholder, and otherwise ad-

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

or 2, Schedule D. Each shareholder should make

justed to reflect changes that affect the basis of

voluntary conversion of property used in trade or

adjustments in Form 1 or 1-NR/PY, Schedule D,

the stock. Make comparable entries for adjust-

business and held for one year or less may differ

lines 6 and/or 9, or Form 2, Schedule D, lines 6

ments to the shareholder’s Massachusetts indebt-

from the comparable U.S. total reported on the

and/or 11.

edness. More detailed information on Massachu-

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

Line 20

setts basis adjustment is provided in Regulation

Each shareholder should make adjustments in

830 CMR 62.17A.1.

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

Form 1 or 1-NR/PY, Schedule B, line 15, or Form

long-term gains on collectibles from Schedule S,

2, Schedule B. Each shareholder should enclose a

Line 26

line 42. For a nonresident shareholder eligible to

statement with the shareholder’s Massachusetts

Enter the net amount of the adjustments made to

apportion, enter the shareholder’s share of the S

tax return and explain any adjustments.

the shareholder’s federal basis for the taxable year.

corporation’s long-term gains on collectibles mul-

Line 17

Make comparable entries for adjustments to the

tiplied by the apportionment percentage in Sched-

shareholder’s federal indebtedness.

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

ule F, line 5.

long-term capital gain or loss from Schedule S,

The correct Massachusetts amount of the share-

Declaration Election Code

line 39. For a nonresident shareholder eligible to

holder’s share of long-term gains on collectibles

Under declaration election code, the S corporation

apportion, enter the shareholder’s share of the

may differ from the comparable U.S. total reported

should indicate how the shareholder will be meet-

long-term capital gain or loss multiplied by the ap-

on the shareholder’s Form 1, 1-NR/PY or 2, Sched-

ing its Massachusetts tax obligation. The S cor-

portionment percentage in Schedule F, line 5.

ule D, line 1. Each shareholder should make ad-

poration should select the “Composite” oval if it is

The correct Massachusetts amount of the share-

justments in Form 1 or 1-NR/PY, Schedule D, line

filing a composite return on behalf of the share-

holder’s share of long-term capital gain or loss

9 or Form 2, Schedule D. Each shareholder should

holder, or if a lower-tier pass-through entity has

may differ from the comparable U.S. total reported

enter the correct Massachusetts amount in Form 1

filed a composite return on behalf of the share-

on Form 1, 1-NR/PY, or 2, Schedule D, line 1. Each

or 1-NR/PY, Schedule D, line 11 or Form 2, Sched-

holder. The S corporation should select the “Mem-

shareholder should make adjustments in Form 1,

ule D, line 13. Each shareholder should enclose a

ber self-file” oval if the shareholder has indicated

1-NR/PY, Schedule D, line 9; or Form 2, Schedule

statement with the shareholder’s Massachusetts

to the S corporation on the Form PTE-EX that the

D, to reflect the correct Massachusetts amount.

tax return and explain any adjustments.

shareholder is a resident or will be filing its own

Each shareholder should enclose a statement with

return (i.e., has checked boxes 1 or 3 under Indi-

Shareholder’s Basis Information

the shareholder’s Massachusetts tax return and ex-

vidual Certification, or boxes 2 or 3 under Organi-

The information in lines 22 through 26 may be

plain any adjustments.

zation Certification).

needed by the shareholder to determine the limita-

Line 18

For more information about the Form PTE-EX,

tion of losses passed through to the shareholder,

see the Guide for Pass-Through Entities, at www.

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

or the gain or loss from sale or other disposition

mass.gov/dor. The S corporation should select

section 1231 gain or loss from Schedule S, line 40.

of the shareholder’s stock and indebtedness.

“Exempt PTE” if the shareholder has indicated to

For a nonresident shareholder eligible to apportion,

Line 23

the S corporation, by checking box 4 under Orga-

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

nization Certification on the Form PTE-EX, that

For a calendar year S corporation, enter in line 23

section 1231 gain or loss multiplied by the ap-

the shareholder is a pass-through entity all of

the number of the shareholder’s shares and the

portionment percentage in Schedule F, line 5.

whose members are exempt from withholding.

amount of the shareholder’s federal basis as of De-

The correct Massachusetts amount of the share-

The S corporation should select “Non-profit” if

cember 31, 1985. If the S corporation was a fiscal

holder’s share of section 1231 gain or loss may

the shareholder has checked box 1 under Organi-

year entity, enter the number of the shareholder’s

differ from the comparable U.S. total reported on

zation Certification on the form PTE-EX. If the

shares and the amount of the shareholder’s federal

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

shareholder has not made a declaration to the S

basis as of the last day of the taxable year prior to

D. Each shareholder should make adjustments in

corporation that the shareholder is exempt from

becoming a Massachusetts S corporation.

Form 1 or 1-NR/PY, Schedule D, line 9; or Form

withholding, the S corporation should select the

If the S corporation became a Massachusetts S

2, Schedule D. Each shareholder should enclose a

“Withholding” oval.

corporation after December 31, 1985, enter in line

statement with the shareholder’s Massachusetts

If the S corporation has selected the “Composite”

23 the number of the shareholder’s shares and the

tax return and explain any adjustments.

oval under the Declaration election code and the

amount of the shareholder’s federal basis as of

Line 19

S corporation itself made estimated payments on

the last day of the taxable year prior to becoming

behalf of the shareholder, the S corporation should

Enter the shareholder’s share of the S corpora-

a Massachusetts S corporation. If reporting a fed-

indicate on line 34 the estimated payments that the

tion’s other long-term capital gains or losses from

eral basis other than December 31, 1985, specify

S corporation made on behalf of the shareholder.

Schedule S, line 41. For a nonresident shareholder

the year.

This number should be the shareholder’s share of

eligible to apportion, enter the shareholder’s share

the amount entered on line 13 of the Form MA

of the S corporation’s other long-term capital gains

NRCR, the composite return. This number is infor-

Form 355s - Massachusetts S Corporation Excise Return - 2012 Page 19

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