PDF document
- 1 -

Enlarge image
                                                 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 



- 2 -

Enlarge image
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 






PDF file checksum: 2989980876

(Plugin #1/9.12/13.0)