Instructions For Form F1065 - Partnership Return - City Of Flint, Michigan

City of Flint, Michigan

2003

Form F1065

Partnership Return

Partnership

Return

Instructions for Form F1065 for Partnerships

doing business in Flint

FILING DATE: Calendar year taxpayers must file by April 30,

of the residency of the Partners. The Partnership may pay the tax

for Partners only if it pays for all Partners subject to the tax.

2004. Fiscal year taxpayers must file within four (4)

If the Partnership elects to pay the tax on behalf of the Partners

months after the end of their fiscal year.

thereof, then such election and payment shall be deemed to meet

REMITTANCE: Partnerships electing to pay tax for Partners

the requirements for the filing of a return, as provided by the

must remit for all Partners when filing return. Tax due of

Ordinance, for each Partner who has no other income subject to

one dollar or more ($1.00), must be paid when filing the

the tax. However, a return shall be required from any Partner

having taxable income other than his distributive share of the net

return. Make remittance payable to:

profits of the Partnership. In such instances, the Partner should

TREASURER - CITY OF FLINT.

enter as “Income from Partnerships” on his individual return, the

amount shown on the Partnership Return on Page 1, Column 1.

MAILING ADDRESS:

The deductions shown in Columns 2 and 3 and the credit in

REMITTANCE:

REFUND OR CREDIT:

Column 7 paid on his behalf by the Partnership should also be

listed on his individual return.

TREASURER, CITY OF FLINT

INCOME TAX OFFICE

Partnership as Taxpayer

1101 S. SAGINAW ST

P.O. BOX 1800

If a Partnership elects to pay the tax on behalf of the Partners

FLINT, MICHIGAN 48502

FLINT, MICHIGAN 48501

then it assumes the status of a taxpayer to the following extent:

1. Timely payment. Payment must be made within four (4)

months from the end of the fiscal year or period, otherwise

Who Must File a partnership Return (Form F1065)

it will be subject to interest and penalties the same as

The City of Flint income tax became effective January 1, 1965.

a delinquent payment from any other taxpayer.

Every Partnership that conducts business activities in the City of

2. Payment of estimated tax. The election of the

Flint, whether or not an office or place of business is maintained in

Partnership to pay the tax on behalf of the individual

the city, is required to file a return within four (4) months following

Partners also carries with it the requirements to file a

Declaration of Estimated Income Tax, Form 1040-ES, if

the end of the taxable year. If on a calendar year basis, the return

the total estimated tax for the Partnership is expected

must be filed by April 30. Syndicates, joint ventures, pools and like

to exceed $100, and to pay such tax. If the Partnership

organizations will also use Form F1065. So called “tax option”

so files and makes payments, the Partners will not be

corporations (under Secs. 1371 - 1377, Internal Revenue Code)

required to file a Declaration as individuals, unless

must file as corporations on Form F1120.

they have additional income (from which Flint income

tax was not withheld) on which the Flint tax is expected to

Resident vs. Non-Resident Partners

exceed $100. The fiscal year of the Partnership will

Partners who are residents of Flint are taxed on their entire dis-

govern in establishing the dates for filing the Declaration

tributive shares of the net profits of the Partnership, including that

and paying the estimated tax.

arising from business activity outside the city, and including inter-

est, dividends, and royalties and gains from the sale or

Income: Instructions for Page 1

exchange of property, either tangible or intangible.

Column 2:

Dividend Exclusion, Renaissance Zone Deduction and items of

Partners who are non-residents of Flint are taxed on their

income which are non-taxable and which are included in Column 1

distributive shares of the portion of the net profit which is attribut-

of this section may be deducted in Column 2. Partnerships qualified

able to business activity in the City, plus net rentals of property in

to claim the Renaissance Zone deduction must attach a copy of

the city and gains from the sale or exchange of real or tangible

approval letter.

personal property in the City. They are not taxed on their share of

If the analysis of Column 7, Schedule 1 on Page 3 indicates that

net rentals on property outside the City, gains from the sale or ex-

a net capital loss has been realized by any of the Partners, the

change of real or tangible property outside the City, gains from the

amount of the excess of the net capital loss included in Column 7,

sale or exchange of securities or other intangible property, or inter-

Schedule 1, Page 3 over the Partners allowable capital loss deduc-

est or dividends.

tion must be added back in Column 2, Page 1. The allowable capi-

The Partnership Return, Form F1065, is designed to distinguish

tal loss deduction for each Partner is lower of (1) the net loss, (2)

between that income taxed to residents and that taxed to non-

the amount in Column 1, Page 1, computed without regard to capi-

residents.

tal gains and losses, or (3) $3,000.00

The return shall set forth the entire net profit for the period

If the Partnership is filing an information return only, the individual

partners will report their distributed shares of the Partnership’s sales

covered and show the distributive share of each Partner,

and exchanges of property on their individual F1040 returns in the

indicating those who are residents of Flint and those who are non-

same manner as provided by the Federal Internal Revenue Code.

residents. If residency changes during the taxable period for any

Any deduction other than the dividend exclusion allowed by the

Partner, use two lines to indicate allocation of income by status in

Federal Internal Revenue Code must be explained in an attached

all schedules where applicable.

schedule.

Exemptions - Column 3.

Option to Pay Tax

Exemptions are allowed for each Partner and his/her dependents.

At its election, the Partnership may file either an information

An exemption of $600 is allowed for the Partner, the Partner’s spouse,

return or it may compute and pay the tax which is due with respect

and each dependent. In general, the same rules apply in determining

to each Partner’s share of the net profit of the business, after

dependents as under the Internal Revenue Code. A spouse may

giving effect to exemptions and other items to which each Partner

be taken as an exemption on the Partnership return only if such

is entitled. Such election is available to all Partnerships regardless

spouse has no income subject to the Flint income tax and taxpayer

Instructions For Form F1065 - Partnership Return - City Of Flint, Michigan - 2003

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