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CITY OF WALKER INCOME TAX
2022 PARTNERSHIP RETURN
Instructions for Form W-1065 for PARTNERSHIPS with business activity in Walker.

WHO MUST FILE A PARTNERSHIP RETURN Non-business income that may be taxable is reported in Schedule B, by type
Every partnership that conducted business activity in the City of Walker, of income. The taxable portion for resident and nonresident partners is
whether or not an office or place of business was maintained in the city, is determined in this schedule in columns 2 through 5. The taxable non-
required to file an annual return. Syndicates, joint ventures, pools and like business income is then transferred to Schedule C by showing the amounts
organizations will also use Form W-1065. applicable to the individual partners.

ROUNDING TO NEAREST DOLLAR Column 1 on page 1 is the final summary transferred from Schedule C,
Rounding tax amounts to the nearest dollar is allowed under a 1996 Income column 7.
Tax Ordinance amendment. ROUND ALL AMOUNTS TO THE NEAREST RESIDENT INDIVIDUAL PARTNERS are taxed on their entire distributive
DOLLAR. (i.e. $.00 to $.49 = $.00, $.50 to $.99 = next dollar.) share of the net profits of the partnership, including that arising from business
activities outside of Walker, interest, dividends, rents, royalties, other income,
FILING DATE: and gains from the sale or exchange of property, either tangible or intangible,
Calendar year taxpayers must file by May 1, 2023. Fiscal year taxpayers regardless of where such property was located.
must file within four (4) months after the end of their fiscal year.
NONRESIDENT INDIVIDUAL PARTNERS are taxed on their distributive
OPTION TO PAY TAX AND TAX RATE share of the partnership’s ordinary business income which is attributable to
At its election, the partnership may file either an information return or it may business activity in Walker, plus net rentals of tangible property in the City
compute and pay the tax which is due with respect to each partner's share of and gains from the sale or exchange of tangible property in the City.
the net profits of the business. The partnership may pay the tax for partners Nonresidents are not taxed on their share of net rentals on property located
only if it pays for ALL partners subject to the tax. Effective 1/1/88, the income outside the City, gains from the sale or exchange of tangible property located
tax rate is 1.0% for resident individual partners and all incorporated partners outside the City, gains from the sale or exchange of securities or other
and .5% for nonresident individual partners. intangible property, or on interest and dividends.
When the receipt of interest and other intangible income is directly related to

PARTNERSHIP AS TAXPAYER the nature of the business, such interest, etc. shall be considered business
If the partnership elects to pay the tax for the partners, the individual partners income taxable to nonresidents, and is to be included in the ordinary business
are not required to file a return if such partners have no other income subject income reported in Schedule A, line 1.
to the tax. However, an individual return is required from any partner having CORPORATE PARTNERS are taxed on their distributive share of the
taxable income other than his distributive share of the net profits of the partnership’s ordinary business income attributable to business activity in
partnership. (In such instances, a partner who is required to file an individual Walker, plus net rentals of tangible property in the City and gains from the
return should refer to the instructions for such return.) sale or exchange of tangible property in the City. Corporations are not taxed
Partnerships electing to pay the tax on behalf of the partners, assume the on: their share of net rentals of property located outside the City; or gains
status of a taxpayer to the extent that: (1) Timely payment must be made; from the sale or exchange of tangible property located outside the City.
(2) A 2023 Declaration of Estimated Income Tax, Form W-1120-ES, will be
required if the total 2023 estimated tax for the partnership is expected to PAGE 1 INSTRUCTIONS
exceed $100. The calendar or fiscal year of the partnership will govern in
COLUMN 1. The amounts to be inserted in column 1, page 1 are transferred
establishing the dates for filing the declaration and paying the estimated tax. from Schedule C on page 2 of the return. If this return is an information
Partnerships electing to become the taxpayer should start preparation of the return, the remaining columns, 2 through 6, on page 1 need not be
return on page 2 with Schedules A and B. If the partnership is subject to completed. However, if the partnership elects to pay the tax, columns 2
allocation of business income, Schedule D should be completed next. through 6 must be completed.
Schedule C is then completed to determine each partner’s share of business
and non-business income. Partnerships with rental real estate must complete COLUMN 2. Allowable individual partner deductions which relate to the
partnership are deducted in column 2. These deductions include net
Schedule E. Page 1 is to be totally completed. operating loss carryovers. This column is also used to adjust for a net capital
REMITTANCE: Partnerships electing to pay the tax for all partners must loss realized by any of the partners, in excess of the partner's maximum
remit the tax when filing the return. allowable ($3,000) capital loss deduction. Therefore, a net capital loss
realized by any of the partners, in excess of the partner's allowable capital
MAKE REMITTANCE PAYABLE TO: WALKER CITY TREASURER. loss deduction must be added back in column 2, page 1. The allowable
capital loss deduction for each partner is the lesser of (1) the net capital loss,
MAILING ADDRESS: (2) the amount in column 1, page 1, computed without regard to capital gains
WALKER INCOME TAX DEPARTMENT and losses, or (3) $3,000. Capital gains and losses, and net operating loss
P.O. BOX 153 carryovers are to be handled in the same manner as provided in the Federal
GRAND RAPIDS, MICHIGAN 49501-0153 Internal Revenue Code. Nonresident partners must allocate net operating
losses to Walker at the percentage of business conducted in Walker in the
year in which the loss was sustained. ATTACH A SCHEDULE DETAILING
COMPUTATION OF AMOUNTS REPORTED IN COLUMN 2.
PARTNERSHIP FILING AN INFORMATION RETURN
Partnerships filing information returns are required to complete: Page 2: COLUMN 3. A $600 exemption is allowed for each partner, the partner’s
spouse and dependents. Additional exemptions are allowed if the taxpayer or
Schedules A, B, C and if appropriate Schedules D and E; and Page 1: spouse is 65 or over or is blind. In general, the same rules apply in
Identification and Information Section and Column 1. determining dependents as under the Federal Internal Revenue Code. A
INCOME TAXABLE TO RESIDENT vs spouse may be taken as an exemption on the partnership return only if such
NONRESIDENT PARTNERS spouse has no income subject to Walker Income Tax. Exemptions for a
The Partnership Return, Form W-1065, is designed to distinguish between partner whose residence status has changed from a resident to a nonresident
that income taxed to residents and nonresidents. The purpose of the return is or from a nonresident to a resident of Walker during the taxable year are first
to set forth the entire net profit for the period covered and to show the applied against income while a resident with the balance, if any, applied to
distributive share of each partner, indicating those who are residents of Walker income while a nonresident. A partner’s personal and dependency
Walker and those who are nonresidents. (If residency changes during the exemptions may not be claimed on more than one partnership return.
taxable period for any partner, use two lines to indicate allocation of income Exemptions are not allowed to other persons who are partners (i.e.
by status in all schedules where applicable.) corporations who are partners, partnerships who are partners, etc.)
Ordinary business income of the partnership is reported in Schedule A. This Column 6. In column 6 enter payments made by the partnership: Tax paid
ordinary business income is transferred to Schedule C, column 1, by showing with a tentative return; Payments on a 2022 Declaration of Estimated Income
the amount of ordinary income distributable to each partner. Tax; or any credits for income taxes paid to any other municipality by the
partnership on behalf of Walker resident partners, if the income on which

INSTRUCTIONS PAGE 1

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such tax was levied is included in this return. DO NOT take credit for income months the property was held after January 1, 1988, to the total months the
taxes paid to any other municipality on behalf of nonresident partners. The property was held.
credit for tax paid to another city shall be the lesser of: (1) The income tax The nonresident excludable portion also includes that portion of the gain (or
paid the other municipality for Walker resident partners, or (2) .5% of an loss) which arose from the sale or exchange of intangible assets, and of
amount obtained by deducting the amount for exemptions claimed for Walker tangible property located outside of Walker. The taxable nonresident
resident partners on page 1, column 3 of this return from the gross amount of partners portion in column 5 will be the gain (or loss) attributable to the period
income of Walker resident partners subject to tax by such other city. after January 1, 1988, from the sale or exchange of tangible real and
All credits in column 6 are to be distributed on lines 8a, b and c, and totaled personal property located in Walker.
on line 9. The total on line 9 must agree with the total of column 6. RENTS AND ROYALTIES. Report in column 1, lines 6, 7 and 8, the total net
income or loss from all rents and royalties. The resident partners portion of
COMPUTATION AND PAYMENT OF TAX rents and royalties is taxable. The nonresident partners exclude net income
Line 10. If tax due (line 7) is greater than the total tax payments (line 9) or loss from rents, and royalties attributable to property located OUTSIDE of
subtract line 9 from line 7 and enter the tax due. Tax due must be paid when Walker.
filing the return.

OVERPAYMENT OF TAX OTHER INCOME. Report in column 1, line 9, all other partnership income.

Line 11. If the total tax payments (line 9) is greater than tax due (line 7) TOTAL NON-BUSINESS INCOME. Enter on line 10 the totals for each
subtract line 7 from line 9 and enter the tax overpayment. column in Schedule B. After transferring the amounts from columns 3 and 5
of Schedule B to Schedule C, the total of Schedule C, column 6a, (taxable
Lines 12 – 14. On lines 12 through 14 enter all or the portion of the resident partners non-business income) must equal the total of Schedule B,
overpayment to be credited forward (line 12), refunded via a paper check (line column 3, and the total of Schedule C, column 6b, (taxable nonresident
13) or refunded via a direct deposit (line 14). partners non-business income) must equal the total of Schedule B, column 5.

PREPARER AUTHORIZATION
Line 15. If the “Yes” box is marked, the partnership is authorizing the Walker SCHEDULE C - DISTRIBUTION TO PARTNERS
Income Tax Department to call the preparer to answer any questions that The totals of columns 1, 6a and 6b of Schedule C, showing the distribution to
may arise during the processing of the return. The partnership is also individual partners of ordinary and non-business income, must agree with the
authorizing the preparer to give the Department any information that is totals transferred from Schedules A and B.
missing from the return, to call the Department for information about the Column 1. Enter in column 1 the individual partner's share of business
processing of the return, and to respond to any notices related to the return. income from Schedule A, line 5. If Sec. 179 depreciation is included in
Schedule A and the partners have unequal credits for such additional
PAGE 2 INSTRUCTIONS depreciation (e.g. if one partner is single and one is married filing jointly for
Federal income tax purposes), the apportionment of income to partners in this
SCHEDULE A - ALLOCABLE BUSINESS INCOME column will require a special computation.
Schedule A is used to report ordinary business income of the partnership. Column 7. Transfer the amount of each individual partner's share shown in
Ordinary business income of Schedule A is transferred to Schedule C, column 7, Schedule C to column 1, page 1 of the return.
column 1. Schedule C is used to determine the amount of ordinary business
income subject to the Walker tax. If ordinary business income includes
income from other partnerships, you must attach a supplementary schedule SCHEDULE D - BUSINESS ALLOCATION PERCENTAGE
to calculate allocable business income excluding partnership income. The business allocation percentage is to be applied to the distributive share
Partnership income cannot be reallocated and must be included in Schedule of business income of NONRESIDENT partners if business activity of the
partnership is conducted both within and outside the City of Walker.
B, line 9.
Non-business income is reported in Schedule B. The taxable portion of non- 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
business income is transferred to Schedule C. in column 2 show the net book value of the real and tangible personal
Instructions for Schedules B and C indicate how amounts transferred from property owned and located or used in the City of Walker. The average net
Schedules A and B are allocated to the individual partners. book value of real and tangible personal property may be determined by
adding the net book values at the beginning of the year and the net book
SCHEDULE B - NON-BUSINESS INCOME & EXCLUSIONS values at the end of the year and dividing the sum thus obtained by two.
Schedule B is used to allocate the total non-business income of the
partnership between resident partners and nonresident partners. After LINE 1b. Enter in column 1 the gross annual rent multiplied by 8 for all
determining the total taxable income for resident and nonresident partners, rented real property regardless of location. In column 2 show the gross
the totals are transferred to Schedule C wherein an analysis is made to annual rent multiplied by 8 for rented real property located in the City of
determine the amount of non-business income distributable to each individual Walker. Gross annual rent refers to real property only, rented or leased
partner. Therefore, compute the total amount of distributable non-business during the taxable period, and should include the actual sums of money or
income, by type of income, and enter these amounts on the proper lines of other consideration payable, directly or indirectly, by the taxpayer for the use
Schedule B, column 1. For each category of non-business income use or possession of such property.
columns 2 and 3 to show the resident partners excludable and taxable portion LINE 2. Enter in column 1 the total compensation paid to all employees
and use columns 4 and 5 to show the nonresident partners excludable and during the year and in column 2 show the amount of compensation paid to
taxable portion. The total of columns 2 through 5 must equal the total of employees for work or services performed within the City of Walker.
column 1. LINE 3. Enter in column 1 the total gross revenue from all sales or services
INTEREST AND DIVIDENDS. In column 1, line 1, report total partnership rendered during the year and in column 2 show the amount of revenue
non-business interest income. In column 1, line 2, report total partnership derived from sales made or services rendered in the City of Walker during the
income from dividends. The interest and dividends reported on lines 1 and 2, year. If there is no regularly maintained sales force outside of the city, this
column 1, are to be apportioned between resident partners (columns 2 and 3) allocation factor must be 100% for businesses with no other business activity
the total nontaxable interest from obligations of the United States, the states
and nonresident partners (column 4). Resident partners exclude in column 2 outside the city.
or subordinate units of government of the states. Interest and dividend ASSISTANCE
income is not taxable to nonresidents. If you have questions not answered in these instructions, or if you need
SALE OR EXCHANGE OF PROPERTY. Report in column 1, lines 3, 4 and assistance in preparing your return call (616) 791-6880. Questions by mail
5, the total taxable net gain or loss from sales and exchanges of property, should be directed to: Walker Income Tax Department, P.O. Box 153, Grand
short term, long term and Section 1231, respectively. Resident and Rapids, Michigan 49501-0153.
nonresident partners may exclude any gain or loss on the sale of obligations
of the United States and the gain or loss attributable to the period prior to NOTICE
January 1, 1988. If the property was acquired prior to January 1, 1988, These instructions are interpretations of the Walker Income Tax Ordinance.
market values of traded securities as of December 31, 1987, may be used as The Ordinance will prevail in any disagreement between the instructions and
the cost basis; or the gain or loss applicable to the period after January 1, the Ordinance.
1988, may be computed by multiplying the total gain or loss by the ratio of the

INSTRUCTIONS PAGE 2

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