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INSTRUCTIONS FOR OTHER SCHEDULES The total adjusted ordinary business income reported on Schedule A, line
SCHEDULE 1 – PARTNER INFORMATION SCHEDULE 6, is allocated to the partners in Schedule C. The total reported on
Schedule C, column 1, must equal the amount listed on Schedule A, line 6.
All partnerships must complete the Partner Information Schedule. See Income not included in Schedule A is reported in Schedule B, Partnership
Appendix P, Partner Classification Table, for information to complete Income not reported in Schedule A. Instructions for the Schedules indicate
columns 3, 4 and 5. Column 3 data entry is based upon federal Schedule how amounts are allocated or apportioned to the partners.
K-1 (Form 1065) instructions for Item I.
If column 3 for the partner equals individual, nominee for an individual or a
disregarded entity owned by an individual, enter the residency SCHEDULE B – PARTNERSHIP INCOME NOT INCLUDED IN
classification in column 4 (R, N, PR or PN). If column 4 for the partner SCHEDULE A
equals part-year resident (PR or PN), report the resident portion (PR) and Schedule B is used to report income not included in Schedule A (Adjusted
nonresident portion (PN) on separate partner lines and in column 5 enter Ordinary Business Income) and allocate or apportion this income between
the residency start date (mm/dd/yyyy) for the tax year on the resident (PR) partners taxed at the individual resident, corporation or individual
line and the residency end date for the year on the nonresident (PN) line. nonresident tax rates. Enter the income by category as reported on the
SCHEDULE 2 – TAX CALCULATION SCHEDULE (Disregard if federal Form 1065, Schedule K or page 1, on Schedule B, column 1.
information return) The various types in partnership income are taxed differently based upon
Partnerships electing to pay tax for partners must complete Schedule 2, the partner entity classification. Refer to Appendix Bfor information on the
Tax Calculation Schedule. Partnerships filing an information return tax-ability of the various types of partnership income for the various types
disregard this schedule. of partner entities. Also refer to the instructions below for
Columns 1, 2 and 3. Enter partner’s name, entity type and tax additional information on exclusion or tax-ability of the various types of
identification number as listed on Partner Information Schedule. partnership income.
Column 4. Enter partner’s total city income as reported on Schedule C, Interest Income and Dividend Income. All partners may exclude interest
column 7. and dividend income from obligations of the United States, the states or
subordinate units of government. Interest and dividend income is totally
Column 5. Allowable partner deductions which relate to the partnership excluded for nonresident individuals, estate and trust partners.
are deducted in column 5. These deductions include the self-employed
pension plan deduction and any other deduction allowed the partner Sale or Exchange of Property. This category includes sales and
under the city’s income tax ordinance. This column is also used to adjust exchanges of short-term, long-term and Section 1231 property. The portion
(add back) for a net capital loss realized by any of the partners, in excess of the gain or loss attributable to the period prior to the applicable effective
of the partner's maximum allowable ($3,000) capital loss deduction. date of the ordinance is exclud blei for all partner entity types.
Therefore, a net capital loss realized by any of the partners, in excess of Rent and Royalty Income. Enter the excludible and taxable portions
the partner's allowable capital loss deduction must be added back in of rental income from rental real estate activities, rental income from
column 5. The allowable capital loss deduction for each partner is the other rental activities or royalty income.
lesser of (1) the net capital loss, (2) the amount in column 4, computed Other Income. Enter the excludible and taxable portions of other income.
without regard to capital gains and losses, or (3) $3,000. Capital loss
Ordinary Income from Other Partnerships. Enter each partner’s
carryovers may be carried forward to the same extent allowed in the excludible and taxable portions of ordinary income (or loss) from other
Internal Revenue Code, but may not be carried back to prior years. Attach partnerships. Attach a worksheet for each partnership, estate or trust that
a schedule detailing computation of amounts reported in column 5. details the name, address, FEIN and the apportionment of this income.
Column 6. Personal and dependency exemptions are allowed to be The ordinary business income of another partnership is allocated based
claimed for each partner who is an individual resident or nonresident, upon the other partnership’s business allocation percentage for the city
to the same extent allowed on the partner’s federal income tax return. and/or the entity type of partner.
Total Apportioned Income. Summarize the taxable portion of income
Additional exemptions are allowed if the taxpayer or spouse is 65 years of from the categories reported on Schedule B. The totals from Schedule C,
age or older, or is blind. In general, the same rules apply in determining columns 6 and 7 must equal the totals reported on Schedule B, columns 6
dependents as under the federal Internal Revenue Code. A spouse may and 7 respectively.
be taken as an exemption on the partnership return only if such spouse
has no income subject to the city’s income tax. Exemptions for a partner SCHEDULE C – DISTRIBUTION TO PARTNERS
whose residence status has changed from a resident to a nonresident or Column 1. Enter in column 1 each individual partner's share of ordinary
from a nonresident to a resident of the city during the taxable year are first adjusted business income from Schedule A, line 6. If Sec. 179 depreciation
applied against income while a resident, with the balance, if any, applied to is included in Schedule A and the partners have unequal credits for such
the city’s income while a nonresident. A partner’s personal and additional depreciation (e.g., if one partner is single and one is married
dependency exemptions may not be claimed on more than one filing jointly for federal income tax purposes), the apportionment of income
partnership return. Partners who are estates or trusts to partners may require a special computation.
are allowed one exemption. Exemptions are not allowed to any other Column 2. Enter the amount of guaranteed payments to partners receiving
partners (i.e., corporations, partnerships, etc.) them. Guaranteed payments are taxable in the same manner as a
distributive share of the partnership’s profits.
Column 7. Enter the taxable income, column 4 less columns 5 and 6. Column 4. Enter the appropriate business allocation percentage based
Column 8. Enter tax due at the resident or corporation tax rate applicable upon partner entity type. Individual resident and partnership partners use a
for all taxpayers except nonresident individuals, estates or trusts. 100% allocation. Individual nonresident, estate, trust, corporation, exempt
Column 9. Enter tax due at the nonresident tax rate applicable from entity and foreign government partners enter the business allocation
Appendix A for nonresident individuals, estates or trusts only. percentage from Schedule D, line 5, or the special allocation percentage
Column 10. The tax paid for each partner is equal to the tax due (column authorized. Disregarded entity and nominee partners enter the appropriate
8 or 9) less, for resident individual partners only, any credit for tax paid to allocation percentage based upon the entity type of the actual owner of the
another city (Schedule G, column 6, for the partner). The total of column partnership interest.
10 should equal the actual amount of tax paid by the partnership; the sum Column 6. Enter taxable portion of the individual resident, corporation or
of the amounts reported on page 1 lines 2a, 2b, 2c, 2d and 3 less line 4, other partners Schedule B income.
the tax overpayment. Column 7. Enter the taxable portion of the individual nonresident, Estate
or trust partners Schedule B income.
SCHEDULE A - ALLOCABLE ORDINARY BUSINESS INCOME (LOSS) Column 8. Add the amounts reported for each partner in columns 5, 6 and
8 and enter the total for the column. Also enter the amount for each partner
Schedule A is used to report and adjust the ordinary business income of and the column total in column 1, page 1 of the return.
the partnership. The ordinary business income as reported on federal
Form 1065, page 1, line 22, must be adjusted for the following; city income
tax deducted on the federal return must be added back; interest and any SCHEDULE D – BUSINESS ALLOCATION PERCENTAGE
other costs incurred with the production of tax exempt income must be The business allocation percentage is to be applied to the distributive
added back; the federal Section 179 deduction and other deductions share of business income of CORPORATE AND NONRESIDENT partners
allowed must be deducted; and ordinary income (loss) from another if business activity of the partnership is conducted both within and outside
partnership must be removed (as it is reported in Schedule B). the city.
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