Form It-20np - Nonprofit Organization Unrelated Business Income Tax Booklet - 2012 Page 16
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22Instructions for Indiana
(1) Gross receipts from the sale, rental, or lease of real
property are in Indiana if the real property is located in
Apportionment of Adjusted Gross Income
Indiana;
Use of Apportionment Schedule E
(2) Gross receipts from the rental, lease, or licensing of the
If an organization has unrelated business (adjusted gross) income
use of tangible personal property are in Indiana if the
from both within and outside Indiana, the organization must
property is in Indiana. If property was both within and
apportion its income by means of the formula under IC 6-3-2-2.
outside Indiana during the tax year, the gross receipts
are considered in Indiana to the extent the property was
The Department will not accept returns filed for adjusted gross
used in Indiana;
income tax purposes using the separate accounting method.
IT-20 Schedule E (or Schedule E-7 for interstate transportation
(3) Gross receipts from intangible personal property are in
companies) must be used unless written permission is granted
Indiana if the taxpayer has economic presence in Indiana
from the Department. The term “everywhere” does not include
and such property has not acquired business sites
sales of a foreign corporation in a place outside the United States.
elsewhere.
Note: Domestic insurance companies must use a single factor for
Interest income and other receipts from loans or
adjusted gross income and should consult the IT-20 instruction
installment sales contracts that are primarily secured
booklet for details concerning apportionment of income.
by or deal with real or tangible personal property are
attributed to Indiana if the security or sale property is
Part I - Indiana Apportionment of Adjusted
located in Indiana; consumer loans not secured by real
Gross Income
or tangible personal property are attributed to Indiana if
the loan is made to an Indiana resident; and commercial
Sales/Receipts
loans and installment obligations not secured by real or
The sales factor is a fraction. The numerator is the total receipts
tangible personal property are attributed to Indiana if the
of the taxpayer in Indiana during the tax year. The denominator
proceeds of the loan are applied in Indiana.
is the total receipts of the taxpayer everywhere during the tax year.
Interest income, merchant discounts, travel and
The numerator of the receipts factor must include the following:
entertainment credit card receivables, and credit card
•
All sales made in Indiana;
holder’s fees are attributed to the state where the card
•
All sales made from Indiana to the U.S. government; and
charges and fees are regularly billed.
•
All sales made from Indiana to a state not having
jurisdiction to tax the activities of the seller.
Receipts from the performance of fiduciary and other
services are attributed to the state where the benefits of
Destination sales to locations outside Indiana by an Indiana
the services are consumed. Receipts from the issuance of
seller that has activities in the state of destination, other than
traveler’s checks, money orders, or United States savings
mere solicitation, are not included in the numerator of the
bonds are attributed to the state where those items are
sales factor regardless of whether the destination state levies a
purchased.
tax. The numerator contains intangible income attributed to
Indiana, including interest from consumer and commercial
Receipts in the form of dividends from investments are
loans, installment sales contracts, and credit and debit cards as
at attributed to Indiana if the taxpayer’s commercial
prescribed under IC 6-3-2-2.2.
domicile is in Indiana; and
Total receipts include gross sales of real and tangible personal
(4) Gross receipts from the performance of services are
property less returns and allowances. Sales of tangible personal
in Indiana if the services are performed in Indiana. If
property are in Indiana if the property is delivered or shipped to
such services are performed partly within and partly
a purchaser within Indiana regardless of the f.o.b. point or other
outside Indiana, a portion of the gross receipts from
conditions of sale or if the property is shipped from an office,
performance of the services shall be attributed to Indiana
a store, a warehouse, a factory, or another place of storage in
based on the ratio the direct costs incurred in Indiana
Indiana, and the taxpayer is not subject to tax in the state of the
bear to the total direct costs of the services, unless the
purchaser.
services are otherwise directly attributed to Indiana
according to IC 6-3-2-2.2.
Sales or receipts not specifically assigned above shall be assigned
as follows:
*24100000000*
24100000000
16
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