City of Springfield
Income Tax Department
601 Avenue A
Springfield, MI 49037-7774
SPRINGFIELD INCOME TAX
PARTNERSHIP RETURN
FORM SF-1065
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City of Springfield
Income Tax Department
601 Avenue A
Springfield, MI 49037-7774
SPRINGFIELD INCOME TAX
PARTNERSHIP RETURN
FORM SF-1065
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ELECTRONIC FILING PARTNERSHIP FILING AN INFORMATION RETURN
While Springfield only accepts paper filed returns, taxpayers may Partnerships filing information returns are required to complete:
elect to receive their refund via direct deposit or pay tax due via page 2: Schedules A, B, C and if appropriate Schedules D and E;
direct withdrawal. and page 1: Identification and Information section and column 1.
PARTNERSHIPS REQUIRED TO FILE A RETURN The Partnership Return, Form SF-1065, is designed to distinguish
Every partnership that conducted business activity in the City of between that income taxed to residents, nonresidents and
Springfield whether or not an office or place of business was corporations. The purpose of the return is to set forth the entire
maintained in the city is required to file an annual return. net profit for the period covered and to show the distributive
Syndicates, joint ventures, pools and like organizations will also share of each partner, indicating those who are residents of
use Form SF-1065. Springfield, nonresidents or corporations. (If residency changes
during the taxable period for any partner, use two lines to indicate
MAILING OF RETURN FORMS allocation of income by residency status in all schedules where
Partnership return forms are normally mailed to every partnership applicable.)
that filed a return for the previous year. If you do not need printed
return forms because you use software-generated forms, please Ordinary business income of the partnership is reported in
indicate by placing a mark in the box on page 1 of the Partnership Schedule A. This ordinary business income is transferred to
Return Form. Schedule C, column 1, by showing the amount of ordinary
income distributable to each partner.
FILING DATE
Calendar year taxpayers must file by April 30 . Fiscal th year Non-business income that may be taxable is reported in Schedule
taxpayers must file within four (4) months after the end of their B, by type of income. The taxable portion for resident,
fiscal year. nonresident and corporate partners is determined in this schedule
in columns 2 through 5. The taxable non-business income is then
OPTION TO PAY TAX AND APPLICABLE TAX RATES transferred to Schedule C by showing the amounts applicable to
The partnership may elect to file an information return or to the individual partners.
compute and pay the tax due with respect to each partner's share
of the net profits of the business. The partnership may pay the tax Column 1, on page 1, is the final summary transferred from
for partners only if it pays for ALL partners subject to tax. Schedule C, column 7.
Effective 1/1/89, the income tax rate is 1.0% for corporations,
1.0% for residents and 0.50% for nonresidents. RESIDENT PARTNERS are taxed on their entire distributive
share of the net profits of the partnership, including that arising
REMITTANCE from business activities outside of Springfield, interest,
Partnerships electing to pay the tax for all partners must remit the dividends, rents, royalties, other income, and gains from the sale
tax when filing the return. Make check or money order payable or exchange of property, either tangible or intangible, regardless
to: City of Springfield of where such property was located.
MAILING ADDRESS
City of Springfield NONRESIDENT PARTNERS are taxed on their distributive
601 Avenue A share of the partnership’s ordinary business income which is
Springfield, MI 49037-7774 attributable to business activity in Springfield, plus net rentals of
tangible property in the City and gains from the sale or exchange
PARTNERSHIP AS TAXPAYER of tangible property in the City.
If the partnership elects to pay the tax for the partners, the
individual partners are not required to file a return if such Nonresidents are not taxed on their share of net rentals on
partners have no other income subject to tax. However, an property located outside the City, gains from the sale or exchange
individual return is required from any partner having taxable of tangible property located outside the City, gains from the sale
income other than his distributive share of the net profits of the or exchange of securities or other intangible property, or on
partnership. (In such instances, a partner who is required to file interest and dividends.
an individual return should refer to the instructions for such
return.) When the receipt of interest and other intangible income is
directly related to the nature of the business, such interest, etc.,
Partnerships electing to pay the tax on behalf of the partners shall be considered business income taxable to nonresidents, and
assume the status of a taxpayer to the following extent: (1) timely is to be included in the ordinary business income reported in
payment must be made; and (2) a Declaration of Estimated Schedule A, line 1.
Income Tax, Form SP-1040ES, is required if the total estimated
tax for the partnership is expected to exceed $100. The calendar CORPORATION PARTNERS are taxed on their distributive
or fiscal year of the partnership will govern in establishing the share of the partnership’s ordinary business income attributable to
dates for filing the declaration and paying the estimated tax. business activity in Springfield, plus net rentals of tangible
property in the City and gains from the sale or exchange of
Partnerships electing to become the taxpayer should start tangible property in the City. Corporations are not taxed on: their
preparation of the return on page 2 with Schedules A and B. If the share of net rentals of property located outside the City; or gains
partnership is subject to allocation of business income, Schedule from the sale or exchange of tangible property located outside the
D should be completed next. Schedule C is then completed to City.
determine each partner’s share of business and non-business
income. Partnerships with rental real estate must Complete
Schedule E. Page 1 is to be totally completed.
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PAGE 1 INSTRUCTIONS
Column 1. The amounts to be inserted in column 1, page 1, are COMPUTATION AND PAYMENT OF TAX
transferred from Schedule C on page 2 of the return. If this return Line 10. If tax due (line 7) is greater than the total tax payments
is an information return, the remaining columns, 2 through 6, on (line 9) subtract line 9 from line 7 and enter tax due. Tax due
page 1 need not be completed. However, if the partnership elects must be paid when filing the return. To pay with a check or
to pay the tax, columns 2 through 6 must be completed. money order make the check or money order payable to the City
of Springfield and mail the payment with the return to: City of
Column 2. Allowable individual partner deductions which relate Springfield Income Tax Department, 601 Avenue A, Springfield,
to the partnership are deducted in column 2. These deductions Michigan 49037-7774.
include net operating loss carryover. This column is also used to
adjust for a net capital loss realized by any of the partners, in To make payment via direct withdrawal from your bank account
excess of the partner's maximum allowable ($3,000) capital loss fill in information on page 3. Enter and complete the electronic
deduction. Therefore, a net capital loss realized by any of the funds withdrawal effective date, bank routing number, bank
partners, in excess of the partner's allowable capital loss account number and account type. Mail your return to the address
deduction must be added back in column 2, page 1. The listed in the preceding paragraph.
allowable capital loss deduction for each partner is the lesser of
(1) the net capital loss, (2) the amount in column 1, page 1, OVERPAYMENT OF TAX
computed without regard to capital gains and losses, or (3) Line 11. If the total tax payments (line 9) is greater than tax due
$3,000. Capital gains and losses, and net operating loss (line 7) subtract line 7 from line 9 and enter the amount of your
carryovers are to be handled in the same manner as provided in overpayment to be refunded. A refund will be issued via a paper
the federal Internal Revenue Code. Nonresident partners must refund check unless you choose to get the refund via direct
allocate net operating losses to Springfield at the percentage of deposit by filing in page 3. Enter and complete the electronic
business conducted in Springfield in the year in which the loss refund information, bank routing number, bank account number
was sustained. ATTACH A SCHEDULE DETAILING and account type.
COMPUTATION OF AMOUNTS REPORTED IN COLUMN 2.
Line 12. Enter all or the portion of the overpayment to be
Column 3. Exemption for 1989 thru 1998 is $600.00, 1999 thru credited forward.
2008 is $1500. For years 2009 and after $750.00 exemption is
allowed for each partner who is an individual, the partner’s PAGE 2 INSTRUCTIONS
spouse and dependents. Additional exemptions are allowed if the SCHEDULE A - ALLOCABLE BUSINESS INCOME
taxpayer or spouse is 65 years of age or older by December 31 st Schedule A is used to report ordinary business income of the
of the filing or disabled. If you claim this exemption, you may not partnership. Ordinary business income of Schedule A is
claim an additional exemption for totally and permanently transferred to Schedule C, column 1. Schedule C is used to
disabled. However if you are blind, deaf, hemiplegic, or determine the amount of ordinary business income subject to the
quadriplegic you may claim and additional exemption. In general, Springfield tax. Non-business income is reported in Schedule B.
the same rules apply in determining dependents as under the The taxable portion of non-business income is transferred to
federal Internal Revenue Code. A spouse may be taken as an Schedule C. Instructions for Schedules B and C indicate how
exemption on the partnership return only if such spouse has no amounts transferred from Schedules A and B are allocated to the
income subject to Springfield Income Tax. Exemptions for a individual partners.
partner whose residence status has changed from a resident to a
nonresident or from a nonresident to a resident of Springfield SCHEDULE B - NON-BUSINESS INCOME AND
during the taxable year are first applied against income while a EXCLUSIONS
resident, with the balance, if any, applied to Springfield income Schedule B is used to allocate the total non-business income of
while a nonresident. A partner’s personal and dependency the partnership between resident partners and nonresident
exemptions may not be claimed on more than one partnership partners. After determining the total taxable income for resident
return. Exemptions are not allowed to other persons who are and nonresident partners, the totals are transferred to Schedule C,
partners (i.e., corporations who are partners, partnerships who are wherein an analysis is made to determine the amount of non-
partners, etc.). business income distributable to each individual partner.
Therefore, compute the total amount of distributable non-business
Column 6. In column 6 enter payments made by the partnership: income, by type of income, and enter these amounts on the proper
tax paid with a tentative return; payments on Declaration of lines of Schedule B, column 1. For each category of non-business
Estimated Income Tax; or any credits for income taxes paid to income, use columns 2 and 3 to show the resident partners’
any other municipality by the partnership on behalf of Springfield excludable and taxable portion, and use columns 4 and 5 to show
resident partners, if the income on which such tax was levied is the nonresident partners’ excludable and taxable portion. The
included in this return. DO NOT take credit for income taxes paid total of columns 2 through 5 must equal the total of column 1.
to any other municipality on behalf of nonresident partners. The
credit for tax paid to another city shall be the lesser of: (1) The INTEREST AND DIVIDENDS - In column 1, line 1, report
income tax paid the other municipality for Springfield resident total partnership non-business interest income. In column 1, line
partners, or (2) 0.005% of an amount obtained by deducting the 2, report total partnership income from dividends. The interest
amount for exemptions claimed for Springfield resident partners and dividends reported on lines 1 and 2, column 1, are to be
on page 1, column 3, of this return from the gross amount of apportioned between resident partners (columns 2 and 3) and
income of Springfield resident partners subject to tax by such nonresident partners (columns 4 and 5). Resident partners
other city. All credits in column 6 are to be distributed on lines exclude in column 2 the total nontaxable interest from obligations
8a, b and c, and totaled on line 9. The total on line 9 must agree of the United States, the States or subordinate units of
with the total of column 6. government of the States. Interest and dividend income is not
taxable to nonresidents.
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SALE OR EXCHANGE OF PROPERTY - Report in column show the gross annual rent multiplied by 8 for rented real
1, lines 3, 4 and 5, the total taxable net gain or loss from sales and property located in the City of Springfield. Gross annual rent
exchanges of property, short-term, long-term and Section 1231, refers to real property only, rented or leased during the taxable
respectively. Gains or losses on the sale of obligations of the period, and should include the actual sums of money or other
United States or attributable to the period prior to January 1, 1989 consideration payable, directly or indirectly, by the taxpayer for
are excluded. The nonresident excludable portion also includes the use or possession of such property.
that portion of the gain (or loss) which arose from the sale or
exchange of intangible assets, and of tangible property located Line 2. Enter in column 1 the total compensation paid to all
outside Springfield. The taxable nonresident partners’ portion in employees during the year and in column 2 show the amount of
column 5 will be the gain (or loss) attributable to the period after compensation paid to employees for work or services performed
January 1, 1989 from the sale or exchange of tangible real and within the City of Springfield.
personal property located in Springfield.
Line 3. Enter in column 1 the total gross revenue from all sales or
RENTS AND ROYALTIES - Report in column 1, lines 6, 7 and services rendered during the year, and in column 2 show the
8, the total net income or loss from all rents and royalties. The amount of revenue derived from sales made or services rendered
resident partners; portion of rents and royalties is taxable. Non- in the City of Springfield during the year. If there is no regularly
resident and corporate partners exclude net income or loss from maintained sales force outside the City, this allocation factor must
rents, and royalties attributable to property located OUTSIDE be 100% for businesses with no other business activity outside
Springfield. the City.
OTHER INCOME - Report in column 1, line 9, all other PAGE 3 INSTRUCTIONS
partnership income. THIRD PARTY DESIGNEE
If the “Yes” box is marked, the partnership is authorizing the
TOTAL NON-BUSINESS INCOME - Enter on line 10 the Springfield Income Tax Department to call the preparer to answer
totals for each column in Schedule B. After transferring the any questions that may arise during the processing of its return.
amounts from columns 3 and 5 of Schedule B to Schedule C, the The partnership is also authorizing the preparer: to give the
total of Schedule C, column 6a, (taxable resident partners’ non- Department any information that is missing from the return; to
business income) must equal the total of Schedule B, column 3, call the Department for information about the processing of the
and the total of Schedule C, column 6b, (taxable nonresident return or the status of any related refund or payments; and to
partners’ non-business income) must equal the total of Schedule respond to certain notices that the partnership has shared with the
B, column 5. preparer about math errors, offsets and return preparation.
SCHEDULE C - DISTRIBUTION TO PARTNERS ASSISTANCE AND WEBSITE
The totals of columns 1, 6a and 6b of Schedule C, showing the If you have questions or need assistance, call 269-965-8324.
distribution to individual partners of ordinary and non-business Questions by mail should be directed to: Springfield Income Tax
income, must agree with the totals transferred from Schedules A Department, 601 Avenue A, Springfield, Michigan 49037-7774.
and B. Income tax forms, instructions and additional information are
available on the City’s website, www.springfieldmich.com.
Column 1. Enter in column 1 the individual partner's share of
business income from Schedule A, line 5. If Sec. 179 NOTICE
depreciation is included in Schedule A and the partners have These instructions are interpretations of the City of Springfield
unequal credits for such additional depreciation (e.g., if one Income Tax Ordinance. The Ordinance will prevail in any
partner is single and one is married filing jointly for federal disagreement between the instructions and the ordinance.
income tax purposes), the apportionment of income to partners in
this column will require a special computation.
Column 7. Transfer the amount of each individual partner's share
shown in column 7, Schedule C to column 1, page 1 of the return.
SCHEDULE D - BUSINESS ALLOCATION PERCENTAGE
The business allocation percentage is to be applied to the
distributive share of business income of CORPORATE AND
NON-RESIDENT partners if business activity of the partnership
is conducted both within and outside the City of Springfield.
Line 1a. Enter in column 1 the average net book value of all real
and tangible personal property owned by the business, regardless
of location; and in column 2 shows the net book value of the real
and tangible personal property owned and located or used in the
City of Springfield. The average net book value of real and
tangible personal property may be determined by adding the net
book values at the beginning and end of the year and dividing the
sum thus obtained by two.
Line 1b. Enter in column 1 the gross annual rent multiplied by 8
for all rented real property regardless of location. In column 2
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SPRINGFIELD INCOME TAX SF-1065
PARTNERSHIP RETURN
If not a calendar year then RETURN PERIOD FROM: TO: YEAR
MO / DAY / YEAR MO / DAY / YEAR
Identification and Information
Name of Partnership Federal I.D. number
Type of return - mark one
PLEASE
Number and Street Information only Payment on behalf of ptnrs
TYPE OR
Date business started
PRINT
City or Town State Zip Code Number of employees on Dec 31,
Number of partners
Initial Springfield return Final Springfield return Do not send form for next year using computer software
ATTACH A COPY OF PG 1 FEDERAL 1065 AND SCH K
Col. A Col. B Col. C Col. D
NAME AND HOME ADDRESS OF EACH PARTNER SOCIAL SECURITY Resident Full Non-Resident Part-Year Resident C = Corp
NUMBER or FEIN Year Full Year O = Other
P = Ptnrs
From:
(a)
To:
From:
(b)
To:
From:
(c)
To:
From:
(d)
To:
Note 1. The partnership may pay tax for partners only if it pays for ALL partners subject to the tax. If the partnership elects to use this return as an informa-
tion return, complete pg 2 and fill in col. 1 below; it will not be necessary to fill in col. 2 thru 6 since a computation of tax need not be made.
Note 2. A partner who has other income in addition to the partnership income must file an individual return and show on such return the amounts entered
belbelow in col 1ow in col. 1 22 and 6, and 6 AA partner who is claiming an exemption as a member of another partnership is NOT to claim the exemption in this partnership. partner who is claiming an exemption as a member of another partnership is NOT to claim the exemption in this partnership
return in col. 3. This is not available to Corporations or Partnerships.
ALL PARTNERSHIPS TAX PAYMENT BY PARTNERSHIP (If information return only, disregard this section)
Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 (a) Col. 5 (b) Col. 6
TOTAL INCOME ALLOWABLE EXEMPTIONS TAXABLE INCOME RESIDENT NONRESIDENT CREDITS
(From page 2, INDIVIDUAL (See note 2, above, (Col. 1 less TOTAL TAX TOTAL TAX (See
Sch C col. 7) DEDUCTIONS and instructions) col. 2 and 3) (Multiply col. 4 (Multiply col. 4 instructions)
(See note 1 above) (See instructions) by .01) by .005)
1. (a) $$$$$$$
2. (b)
3. (c)
4. (d)
5. (e)
6. TOTALS $$$$$$$
7. Total tax (Add line 6 of col. 5a and col. 5b) $
PAYMENTS AND CREDITS
8 a. Tax paid with extension $
b. Payments and credits on Declaration of Estimated Springfield Income tax for the filing year
c. Other credits - explain in attached statement
9 . Total - add lines 8a, b, and c. This total must agree with the total of Col. 6 above $
TAX DUE OR REFUND Direct Deposit and Electronic funds withdrawal information on pg 4
BALANCE DUE 10. If the tax due (line 7) is larger than the payments (line 9), enter balance due. $
Enclose check or money order payable to the City of Springfield or pay with
an electronic funds withdrawal. (see pg 4)
REFUND 11. If payments (line 9) are larger than tax (line 7), enter overpayment for refund. $
CREDIT FORWARD 12. Overpayment to be credited forward and applied to___________estimated tax. $
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Name as shown on SF-1065 Federal Employer Identification Number
SCHEDULE A - ALLOCABLE PARTNERSHIP ORDINARY BUSINESS INCOME
1 . Ordinary income (or loss) from pg. 1, line 22, U.S. Partnership Return of Income, Form 1065 (ATTACH COPY OF PG. 1 FED 1065 & SCH K) $
2 . Add City of Springfield income tax, if deducted in determining income on federal Form 1065
3 . Add interest and other costs incurred in connection with the production of income exempt from Springfield income tax
4 . Deduct Sec. 179 depreciation (fed Sch. K, line 12) and other deductions allowed (attach explanation)
5 . Total adjusted ordinary business income (add lines 1, 2, and 3 and subtract line 4) $
SCHEDULE B - NON-BUSINESS INCOME AND EXCLUSIONS
Federal Col. 1 Col. 2 Col. 3 Col. 4 Col. 5
Form 1065 Non-Business Excludable Taxable Excludable Taxable
ATTACH COPY OF FEDERAL SCHEDULE K (1065) Reference Income Resident Resident Nonresident Nonresident
ATTACH SCHEDULES TO EXPLAIN ALL EXCLUSIONS Partners Partners Partners Partners
Portion of Portion of Portion of Portion of
Col. 1 Col. 1 Col. 1 Col. 1
INTEREST AND DIVIDENDS
1 . Interest income Sch. K, line 5
2 . Dividend income Sch. K, line 6a
SALE OR EXCHANGE OF PROPERTY (SEE INSTRUCTIONS)
3 . Net short-term capital gain (loss) Sch. K, line 8
4 . Net long-term capital gain (loss) Sch. K, line 9a
5 . Net Section 1231 gain (loss) Sch. K, line 10
RENTS AND ROYALTIES (IF NON-BUSINESS INCOME INCLUDES
RENTAL REAL ESTATE, ATTACH COPY OF FEDERAL FORM 8825)
6 . Net income (loss) from rental real estate activities Sch. K, line 2
7 . Net income (loss) from other rental activities Sch. K, line 3c
8 . Royalty income Sch. K, line 7
OTHER INCOME
9 . Other Income Sch. K, line 11
10 . Totals (add lines 1 thru 9)
SCHEDULE C - DISTRIBUTION TO PARTNERS
Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6a Col. 6b Col. 7
Adjusted Guaranteed Income subject Allocation Allocated Resident Nonresident Total income
Business Payments to to allocation Percentage Business income Partner's non- Partner's Non- (Add col. 5,
Income Partners (Add col. 1 and Per Sch. D (Col. 3 times Business income Business income 6a and 6b)
(Sch. A, line 5) (Fed. 1065, line 10) col. 2) (Resident partners % in col. 4) (Total equals Sch. B (Total equals Sch. B (Enter here and
enter 100%) col. 3, line 10) col. 5, line 10) on pg. 1, col. 1)
a. %
b. %
c. %
d. %
e. %
Totals
SCHEDULE D - BUSINESS ALLOCATION PERCENTAGE
Col. 1 Col. 2 Col. 3
Located everywhere Located in Springfield Percentage
1 a. Average net book value of real and tangible personal property (Col. 2 divided
b. Gross annual rent paid for real property only, multiplied by 8 by col. 1)
c. TOTALS (Add lines 1a and 1b) %
2 . Total wages, salaries, commissions and other compensation of all employees %
3 . Gross receipts r f om sales made or services rendered %
4 . Total percentages (Add the percentages computed in col. 3, lines 1c, 2 and 3) %
5 . Business allocation percentage (Divide line 4 by the number of factors) Enter here and on Sch. C, col. 4 (See note below) %
Note 3. In determining the business allocation percentage (line 5), a factor shall be excluded from the computation only when such factor
does not exist anywhere insofar as the taxpayer's business operation is concerned. In such cases, the sum of the remaining
percentages shall be divided by the number of factors actually used.
In the case of a taxpayer authorized by the Finance Director to use one of the special formulas, attach an explanation and use the lines provided below:
a. Numerator c. Percentage (a divided by b) Enter here and on Sch. C, col. 4
b. Denominator d. Date of Finance Director's approval letter
SCHEDULE E - RENTAL REAL ESTATE
If the business activity of the partnership includes rental of real estate, indicate below the complete address and the gain or loss of each property.
PROPERTY STREET ADDRESS GAIN OR LOSS PROPERTY STREET ADDRESS GAIN OR LOSS
A D
B E
C TOTALS (ATTACH COPY OF FEDERAL FORM 8825)
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TO PAY BY CREDIT CARD FILL IN BELOW
Total $ Card Number:
Exp. Date: Signature:
Month Year
ELECTRONIC REFUND OR PAYMENT INFORMATION
Mark one: Refund-direct deposit Pay tax due-electronic funds withdrawal
Effective date:
(if blank default is date return processed)
Routing number:__________________________
Account number:_________________________ Type of Account: Checking Savings
THIRD PARTY DESIGNEE
Do you want to allow another person to discuss this return with the Income Tax Department? Yes* No
*If yes complete the following:
Designee's Name Phone No. Personal Identification Number (PIN)
PLEASE SIGN YOUR RETURN BELOW AND ATTACH COMPLETE COPY OF FEDERAL FORM 1065
I declare that I have examined this return (including accompanying schedules and statements) and to the best of my
knowledge and belief it is true, correct and complete. If prepared by a person other than taxpayer, his/her declaration is
based on all information of which he/she has any knowledge.
SIGN HERE
(g(Signature of partner or member)p) Phone number Date
SIGN HERE
(Signature of preparer other than partner or member) Address Date
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