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2020 INSTRUCTIONS FOR FILING PARTNERSHIP INCOME TAX RETURN, FORM S-1065
PARTNERSHIPS REQUIRED TO FILE A RETURN Column 1, on page 1, is the final summary transferred from Schedule C,
Every partnership that conducted business activity in the City of Saginaw, column 7.
are taxed on their entire distributive share of the
whether or not an office or place of business was maintained in the city, is RESIDENT PARTNERS
required to file willan alsoannualusereturn.Form Syndicates,S-1065. Tojointobtainventures,a Saginawpools -1065and likeform net profits of the partnership, including that arising from business activities
organizations Forms. outside of Saginaw, interest, dividends, rents, royalties, other income, and
go to WWW.Saginaw-MI.Com, then quick links Income Tax gains from the sale or exchange of property, either tangible or intangible,
regardless of where such property was located.
RENAISSANCE ZONE DEDUCTION
A partnership located and doing business in a Saginaw Renaissance Zone NONRESIDENT PARTNERS are taxed on their distributive share of the
may be eligible to claim the Renaissance Zone deduction. This deduction partnership’s ordinary business income, which is attributable to business
allows the partnership or the partners, if qualified, to deduct the portion of activity in Saginaw, plus net rentals of tangible property in the City and
the partnership income earned in a Renaissance Zone from income subject gains from the sale or exchange of tangible property in the City.
to tax. A taxpayer is not qualified to claim the deduction if the taxpayer is Nonresidents are not taxed on their share of net rentals on property located
delinquent for any Michigan or local taxes. outside the City, gains from the sale or exchange of tangible property
located outside the City, gains from the sale or exchange of securities or
If the partnership elects to pay the tax for the partners, the deduction is other intangible property, or on interest and dividends.
claimed on the partnership return. The Renaissance Zone Certificate is
required to be attached to the partnership return when claiming a When the receipt of interest and other intangible income is directly related
Renaissance Zone deduction. to the nature of the business, such interest, etc., shall be considered
business income taxable to nonresidents, and is to be included in the
FILING DATE ordinary business income reported in Schedule A, line 1.
Calendar year taxpayers must file by April 30, 2021. Fiscal year taxpayers
must file within four CORPORATION PARTNERS are taxed on their distributive share of the
(4) months after the end of their fiscal year. partnership’s ordinary business income attributable to business activity in
OPTION TO PAY TAX AND APPLICABLE TAX RATES Saginaw, plus net rentals of tangible property in the City and gains from the
The partnership may elect to file an information return or to compute and sale or exchange of tangible property in the City. Corporations are not
pay the tax due with respect to each partner's share of the net profits of the taxed on: their share of net rentals of property located outside the City; or
business. The partnership may pay the tax for partners only if it pays for gains from the sale or exchange of tangible property located outside the
ALL partners subject to tax. Effective 7/1/89, the income tax rate is 1.50% City.
for corporations, 1.50% for residents and 0.75% for nonresidents.
PAGE 1 INSTRUCTION
REMITTANCE Column 1. The amounts to be inserted in column 1, page 1, are
Partnerships electing to pay the tax for all partners must remit the tax when transferred from Schedule C on page 2 of the return. If this return is an
filing the return. Make check or money order payable to: information return, the remaining columns, 2 through 6, on page 1 need not
SAGINAW CITY TREASURER . be completed. However, if the partnership elects to pay the tax, columns 2
MAILING ADDRESS through 6 must be completed.
SAGINAW INCOME TAX DEPARTMENT Column 2. Allowable individual
1315 S Washington Ave partner deductions, which relate to the
partnership are deducted in column 2. These deductions include net
SAGINAW, MICHIGAN 48601 operating loss carryover and the Renaissance Zone deduction. This
column is also used to adjust for a net capital loss realized by any theof
PARTNERSHIP AS TAXPAYER partners, in excess of the partner's maximum allowable ($3,000) capital
If the partnership elects to pay the tax for the partners, the individual loss deduction. Therefore, a net capital loss realized by any of the partners,
partners are not required to file a return if such partners have no other in excess of the partner's allowable capital loss deduction must be added
income subject to tax. However, an individual return is required from any back in column 2, page 1. The allowable capital loss deduction for each
partner having taxable income other than his distributive share of the net partner isthe lesser of (1) the net capital loss, (2) the amount in column 1,
profits of the partnership. (In such instances, a partner who is required to page 1, computed without regard to capital gains and losses, or (3) $3,000.
file an individual return should refer to the instructions for such return.) Capital gains and losses, and net operating loss carryovers are to be
handled in the same manner as provided in the federal Internal Revenue
Partnerships electing to pay the tax on behalf of the partners assume the Code. Nonresident partners must allocate net operating losses to Saginaw
status of a taxpayer to the Declaration following extent:of Estimated (1) timelyIncome paymentTax, must Form be S- at the percentage of business conducted in Saginaw in the year in which
made; and is(2)requireda 2020if the total 2020 estimated tax for the partnership is the loss was sustained. ATTACH A SCHEDULE DETAILING
1040ES, The calendar or fiscal year of the partnership will COMPUTATION OF AMOUNTS REPORTED IN COLUMN 2.
expected to exceed $100.
govern in establishing the dates for filing the declaration and paying the Column 3. A $750 exemption is allowed for each partner who is an
estimated tax. individual, the partner’s spouse and dependents. Additional exemptions
Partnerships are allowed if the taxpayer or spouse is 65 years of age or older, or is blind.
the return on pageelecting 2 withto Schedulesbecome theA andtaxpayerB. If should start preparation of In general, the same rules apply in determining dependents as under the
the partnership is subject federal Internal Revenue Code. A spouse may be taken as an exemption
to allocation of business income, Schedule D should be completed next. on the partnership return only if such spouse has no income subject to
Schedule C is then completed to determine each partner’s share of Saginaw Income Tax. Exemptions for a partner whose residence status
business and non-business income. Partnerships with rental real estate has changed from a resident to a nonresident or from a nonresident to a
must complete Schedule E. Page 1 are to be totally completed. resident ofSaginaw during the taxable year are first applied against income
PARTNERSHIP FILING AN INFORMATION RETURN while a resident, with the balance, if any, applied to Saginaw income while
a nonresident. A partner’s personal and dependency exemptions may not
Partnerships filing information returns are required to complete: Page 2: be claimed on more than one partnership return. Exemptions are not
Schedules A, B, C and if appropriate Schedules D and E; and page 1: allowed to other persons who are partners (i.e., corporations who are
Identification and Information section and column 1. partners, partnerships who are partners, etc.).
The Partnership Return, Form S-1065, is designed to distinguish between Column 6. In column 6 enter payments made by the partnership: tax paid
that income taxed to residents, nonresidents and corporations. The with a tentative return; payments on a 2020
Declaration of Estimated
purpose of the return is to set forth the entire net profit for the period Income Tax; or any credits for income taxes paid to any other municipality
covered and to show the distributive share of each partner, indicating those by the partnership on behalf of Saginaw resident partners, if the income on
who are residents of Saginaw, nonresidents or corporations. (If residency which such tax was levied is included in this return. DO NOT take credit for
changes during the taxable period for any partner, use two lines to indicate income taxes paid to any other municipality on behalf of nonresident
allocation of income by residency status in all schedules where applicable.) partners. The credit for tax paid to another city shall be the lesser of: (1)
Ordinary business income of the partnership is reported in Schedule A. The income tax paid the other municipality for Saginaw resident partners,
This ordinary business income is transferred to Schedule C, column 1, by or (2) 0.75% of an amount obtained by deducting the amount for
showing the amount of ordinary income distributable to each partner. exemptions claimed for Saginaw resident partners on page 1, column 3, of
this return from the gross amount of income of Saginaw resident partners
Non-business income that may be taxable is reported in Schedule B, by subject to tax by such other city.
type of income. The taxable portion for resident, nonresident and corporate All credits in column 6 are to be distributed on lines 8a and b, and totaled
partners is determined in this schedule in columns 2 through 5. The taxable on line 9. The total on line 9 must agree with the total of column 6.
non-business income is then transferred to Schedule C by showing the
amounts applicable to the individual partners.
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