- 2 -
|
(1) computing the difference between the total gain or loss for the method is petitioned, the Finance Director may require a detailed
property as reported for federal income tax purposes and the statement to determine whether the net profits attributable to the city
Springfield taxable portion of the loss computed by substituting the will be apportioned with reasonable accuracy (Ordinance Section 19).
fair market value of the property on January 1, 1989, (the December Generally, a corporation that is unitary in nature (i.e., has central
31, 1988, closing price for traded securities) for the basis in management, purchasing, warehousing, advertising, etc.) cannot use
determining loss; or separate accounting. Taxpayers allocating on any basis other than
separate accounting shall include all interest, dividends and other
(2) by multiplying the loss for the entire holding period, as computed non-operating income to arrive at the total income subject to the
the number of months the property was held prior to January 1, 1989
for federal income tax purposes, by a fraction, the numerator being allocation percentage.
and the denominator being the total number of months the property Taxpayers using separate accounting shall include in income subject
was held. See line 10 for instructions relative to gains from sales or to tax a proportionate share of dividends, interest and other non-
exchanges of property acquired prior to January 1, 1989. operating income of the total corporation. This type of income is
apportioned to Springfield activity on the same basis as general
Capital losses from US Government obligations included in income administrative and overhead costs are apportioned.
reported on page 1, line 1, are not deductible. Remove these losses
SCHEDULE G
by including them in the amount reported on line 1.
LINE 4. Enter the losses from entities filing as partnerships that are LINE 1. Net operating losses carried forward are to be reported on
included in taxable income reported on page 1, line 1. this line. There is no provision for carrying back losses to prior tax
years. Carryover losses are to be allocated to Springfield at the
LINE 5. Enter Domestic Productions Activities Deduction. percentage of business conducted in Springfield in the year in which
LINE 6. Enter the amount of interest income from obligations of the the loss was sustained. If all business was not conducted in
United States, the states or subordinate units of government of the Springfield in the year in which the loss was sustained, use the
business allocation percentage formula to arrive at the deductible
state that is included in taxable income reported on page 1, line 1. portion of the loss. Attach a schedule showing your computation for
LINE 7. If you reported dividend income, enter on this line the the amount reported on this line.
amount of the dividend-received deduction allowed by the Federal
LINE 2. Enter on this line the net capital loss carryover applicable to
Internal Revenue Code for dividends received. Springfield. Net capital losses sustained by a corporation for periods
LINE 8 AND LINE 9. Taxpayers may deduct income, war profits and subsequent to January 1, 1989, may be carried forward in the same
excess profits taxes imposed by foreign countries or possessions of manner as under the Federal Internal Revenue Code. No deduction
the United States, allocable to income included in taxable net income, will be allowed for capital losses sustained prior to January 1, 1989. If
any part of which would be allowable as a deduction in determining all business was not conducted in Springfield in the year in which the
federal taxable income under the applicable provisions of the Federal loss was sustained, use the business allocation percentage formula to
Internal Revenue Code. arrive at the deductible portion of the loss. Attach a schedule showing
If a foreign tax credit, rather than a foreign tax deduction, was claimed your computation for the amount reported on this line.
on your federal return, enter on line 8 the portion of the foreign tax LINE 3. Corporations who are partners in a business activity taxed as
credit which was grossed up and included in your Springfield return a partnership that has business activity in Springfield must enter on
as dividends received. this line their portion of the Springfield taxable income or loss from the
Enter on line 9 the "foreign taxes paid or accrued" portion of the partnership(s). Attach a schedule showing your computation for the
foreign tax credit claimed on your federal return, not in excess of the amount reported on this line including the name and taxpayer
federal limitations thereon. The balance of your foreign tax credit is identification number of the partnership(s).
not deductible. DECLARATION AND PAYMENT OF ESTIMATED TAX
LINE 10. Enter on line 10 the nontaxable portion of a gain from the
sale or exchange of property acquired prior to January 1, 1989. The 1. WHO MUST FILE: Every corporation subject to the tax on all or
portion of the gain occurring prior to the inception of the Ordinance, part of its net profits must file a Declaration of Estimated Income
January 1, 1989, is not recognized. Refer to the instructions for Tax (Form SF-1040ES). A Declaration is not required from
Schedule C, line 1 for computation instructions. corporations if the estimated tax is two hundred fifty dollars
Capital gains from US Government obligations included in income ($250.00) or less.
reported on page 1, line 1, are not taxable. Remove these gains by
including them in the amount reported on line 10. 2. WHEN AND WHERE TO FILE AND PAY:
A. Declaration for Calendar Year. The Declaration for a calendar
LINE 11. Enter income from entities filing as partnerships that are year must be filed on or before April 30th of that year. The
included in taxable income reported on page 1, line 1. estimated tax is payable in equal installments on or before April
30th, June 30th, September 30th and January 31st.
SCHEDULE D B. Declaration for Fiscal Year: The Declaration for a year or period
The business allocation percentage formula must be used by differing from the calendar year must be filed within four (4)
corporations with business activity both within and outside the City of months after the beginning of each fiscal year or period. For
Springfield who have not been approved to use the separate example, if a fiscal year begins on April 1st, the Declaration will
be due on July 31st. Remaining installments will then be due on
accounting method. the last day of the 6th, 9th and 13th months after the beginning
LINE 1a. Enter in column 1 the average net book value of all real and of the fiscal year.
tangible personal property owned by the business, regardless of
location, and in column 2 show the net book value of the real and C. Filing and Payment: The Declaration should be filed with the
tangible personal property owned and located or used in the City of City of Springfield Income Tax Department, 601 Avenue A,
Springfield. The average net book value of real and tangible personal Springfield MI 49037-7774. The first installment payment must
property may be determined by adding the net book values at the accompany the Declaration. The estimated tax may be paid in
beginning of the year and the net book values at the end of the year full with the Declaration.
and dividing the sum thus obtained by two. ASSISTANCE
LINE 1b. Enter in column 1 the gross annual rent multiplied by 8 for
all rented real property regardless of location. In column 2 show the If you have questions, would like to request forms, or need assistance
gross annual rent multiplied by 8 for rented real property located in in preparing your return call (269) 965-8324. Questions by mail
the City of Springfield. Gross annual rent refers to real property only,
rented or leased during the taxable period, and should include the should be directed to: Springfield Income Tax Department, 601
actual sums of money or other consideration paid, directly or Avenue A, Springfield MI 49037-7774.
indirectly, by the taxpayer for the use or possession of such property. WEBSITE
LINE 2. Enter in column 1 the total compensation paid to all
employees during the year, and in column 2 show the amount of Income tax forms, instructions and additional information are available
compensation paid to employees for work or services performed at the City of Springfield’s web site, www.springfieldmich.com.
within the City of Springfield during the year.
LINE 3. Enter in column 1 the total gross revenue from all sales or NOTICE
services rendered during the year, and in column 2 show the amount
of revenue derived from sales made or services rendered in the City These instructions are interpretations of the Springfield Income Tax
of Springfield during the year. If there is no regularly maintained sales Ordinance. The Ordinance will prevail in any disagreement between
force outside of the city, this allocation factor must be 100% for the instructions and the Ordinance.
businesses with no other business activity outside the city.
Separate Accounting - The taxpayer may petition for, or the Finance
Director may require, use of the separate accounting method. If such
Page 2
|