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RESIDENT BENEFICIARIES
1. Name of each resident beneficiary 2. Address 3. Social Security Number
a.
b.
c.
d.
SCHEDULE B - RESIDENT BENEFICIARIES' SHARES OF EXCLUSIONS
4. Exclusion for Dividends from National 5. Exclusion for Capital Gains and losses for 6. Exclusion for Interest from Government obligations
and State Bank Stock period prior to January 1, 1984
a.
b.
c.
d.
Totals
CONTINUATION OF SCHEDULE B
7. Exclusion for Rentals 8. Exclusion of Business Income 9. Total Miscellaneous Estate and Trust Income Exclusion (
Add Cols. 6, 7, and 8 )
a.
b.
c.
d.
Totals
NOTE: Fiduciary shall report amounts in Columns 4, 5, and 9 to each resident beneficiary
INSTRUCTIONS FOR FORM P-1041 - FIDUCIARY RETURN
GENERAL INSTRUCTIONS FOR BUSINESS ALLOCATION FORMULA- SCHEDULE A
Every trust and estate, which had gross income from sources listed under The Business Alocation Percentage Formula is to be used by estates or
"Taxable Income," must make and file a form P-1041, City of Portland Income Tax trusts with business activity both within and without the City of Portland,
Fiduciary Return, whether a tax is due or not. For the purposes of this tax, an estate who, because they do not maintain sufficient records to accurately reflect
or trust shall be treated as a non-resident individual and a tax rate of one-half of one the net profits from operations conducted within the City of Portland, or for
percent shall apply on the earnings listed under "Taxable Income". other reasons, are not using the sparate accounting method.
"Income from estates" means "Income" as defined in Sec. 643 (b) of the Line 1- Enter in column 1 the average net book value of all real and
Federal Internal Revenue Code, properly paid, credited or distributed but not in tangible personal property owned by the business, regardless of location,
excess of the resident individual's share of the distributable net income of the and in column II, show the net book value of the real and tangible personal
estate, decreased by the amount of depreciation or depletion allowed the resident property located in the City of Portland. The average net book value of real
individual as a deduction under Sec. 642 of the Federal Internal Revenue Code. The and tangible personal property may be determined by adding the net book
exceptions hereinafter set forth with respect to trusts are also applicable to income values at January 1, of a taxable year and the net book values at the end of
from estates. "Income from trusts" means the amount of "Income" as defined in the year and dividing the sum thus obtained by 2. Any other method which
Sec. 643 (b) of the Federal Interal Revenue Code, distributed under Sec. 652 (a) will accurately reflect the average net book value for taxable year will also be
or 662 (a) (1) of the Federal Internal Revenue Code, decreased by the amount of permitted.
depreciation or depletion allowed the resident individual as a deduction by Sec 642 Line 1a - Enter in column 1 the gross rentals for taxable year multiplied by 8
of the Federal Internal Revenue Code. for all rented property regardless of location. In column II show the gross
TAXABLE INCOME rentals for taxable year multiplied by 8 for all rented property located in the
The only types of income taxable to an estate or trust are the following: City of Portland. Gross rentals refer only to real property, rented or leased and
(1) That portion of the net profits from the operation of a business or enterprise should include the actual sums of money or other consideration payable
operated by the estate or trust that is attributable to business activity conducted directly or indirectly, by the taxpayer for the use of possession of such real
Portland whether or not such business or enterprise is located in Portland. For property for the year.
example, a business located out of Portland that conducts business in Portland Line 2 - Enter in column I the total compensation paid to all employees during the
would be taxable on the portion of its net profits properly allocable to such Portland taxable year and in column II show the amount of compensation paid to
business activities. employees for work done or for services performed within the City of
(2) Net Profits from rentals from real and tangible personal property located in Portland during taxable year.
Portland. Line 3 - Enter in column 1 the total gross receipts from all sales or services
(3) Net profits on the sale or exchange of real and tangible personal property rendered during taxable year and in column II show the amount of receipts
located in Portland. derived from sales made or services rendered in the City of Portland during
(4) Income from partnerships. taxable year.
Other income, such as dividends and interest, are not taxable to trusts and RESIDENT BENEFICIARIES' SHARES OF INCOME AND CREDITS - SCHEDULE B
estates. However, resident beneficiaries must report their distributive shares on The information for this schedule is to be taken from the comparable columns
Form P-1040. of Schedule C Form 1041 U.S. Fiduciary Income Tax Refund. However, only
INSTUCTIONS FOR FILING IN PAGE ONE OF FORM P-1041 that information which applies to residents of the City of Portland is to be shown
Line 1 - The total net profit (or loss) is to be computed from page 1 of the herin. Fiduciaries shall report amounts in columns 4, 5, and 9 to each resident
Federal Income Tax Form 1041 by using those lines applicable to any business beneficiary who will show these amounts as exclusions on the individual
operation. return P-1040.
Line 4 and 5 - Before completing these lines, fill out schedule A - Business TAX DUE OR REFUND
Allocation Formula. After computing your Portland Income Tax, if the tax due is one dollar ($1.00)
Line 10 - Portland resident beneficiaries will report their portion of distributable or more it must be paid when filing this return. Make Check or money order
net income on their individual returns and should receive this information from payable to TREASURER - CITY OF PORTLAND and mail with this return to
the Fiduciary. Therefore, this line, which is the resident's share of the Portland Income Tax Division, City Hall, Portland, Michigan, 48875. Tax due of less
income, should be subtracted from line 9 to arrive at the amount of Portland than a dollar ($1.00) need not to be paid.
income taxable to the trust or estate. ASSISTANCE
If you have any questions not answered in these instructions, or
if you need assistance in preparing your return, call (517) 647-2941 or visit the
Income Tax Division City Hall.
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