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from the sale or exchange of securities or other intangible dependents as under the Federal Internal Revenue Code. A
INSTRUCTIONS FOR FORM BC-1065
property, or on interest and dividends. spouse may be taken as an exemption on the partnership
return only if such spouse has no income subject to Battle
When the receipt of interest and other intangible income is Creek income tax. Exemptions for a partner whose residence
directly related to the nature of the business, such interest, ect, status has changed from a resident to a nonresident or form a
shall be considered business income taxable to nonresidents, nonresident to a resident of Battle Creek during the taxable
and is to be included in the ordinary business income reported year are first applied against income while a resident, with the
in Schedule A, line 1. balance, if any, applied to Battle Creek income while a
nonresident. A partner’s personal and dependency exemptions
CORPORATION PARTNERS are taxes on their distributive may not be claimed on more than one partnership return.
share of the partnership’s ordinary business income Exemptions are not allowed to other persons who are partners
attributable to business activity in Battle Creek, plus net rentals (e.i., corporations who are partners, partnerships who are
of tangible property in the City and gains from the sale or partners, ect.).
exchange of tangible property in the City. Corporations are not
taxed on: their share of net rentals of property located outside Column 6. In column 6 enter payments made by the
the City; or gains from the sale or exchange of tangible partnership: tax paid with a tentative return: payments on
property located outside the City. Declaration of Estimated Income Tax; or any credits for income
taxes paid to any other municipality by the partnership on
PAGE 1 INSTRUCTION behalf of Battle Creek resident partners, if the income on which
such tax was levied is included in this return. DO NOT take a
Column 1. The amounts to be inserted in column 1, pg 1, are
credit for income taxes paid to any other municipality on behalf
transferred from Schedule C on pg 2 of the return. If this return
of nonresident’s partners. The credit for tax paid to any other
is an information return, the remaining columns, 2 through 6,
city shall be the lesser of: (1) the income tax paid the other
on pg 1 need not be completed. However, if the partnership
municipality for Battle Creek resident partner, or (2) 0.005% of
elects to pay the tax, columns 2 through 6 must be completed.
an amount obtained by deducting the amount for exemptions
Column 2. Allowable individual partner deductions which claimed for Battle Creek resident partners, on pg 1, column 3,
relate to the partnership are deducted in column 2. Theses of this return from the gross amount of income of Battle Creek
deductions include net operating loss carryover. This column is resident partners subject to tax by such other city. All credits in
also used to adjust for a net capital loss realized by any of the column 6 are to be distributed on lines 8a, b and c, and totaled
partners, in excess of the partner’s maximum allowable on line 9. The total on line 9 must agree with the total of
$3,000.00 capital loss deduction. Therefore, a net capital loss column 6.
realized by any of the partners, in excess of the partner’s
COMPUTATION AND PAYMENT OF TAX line 10. If tax due
allowable capital loss deduction must be added back in column
(line 7) is greater than the total tax payments (line 9) subtract
2, pg 1. The allowable capital loss deduction of each partner is
line 9 from line 7 and enter tax due. Tax due must be paid
the less of (1) the net capital loss, (2) the amount in column 1,
when filing the return. To pay with a check or money order
pg 1, computed without regard to capital gains and losses, or
make payable to Battle Creek City Treasure and mail with
(3) $3,000.00. Capital gains and losses, and net operating loss
return.
carryovers are to be handled in the same manner as provided
in the Federal Internal Revenue Code. Nonresident’s partners To make a payment via direct withdrawal from your bank
must allocate net operating losses to Battle Creek at the account, fill in the information on pg 4. Enter and complete the
percentage of business conducted in Battle Creek in the year electronic funds withdrawal effective date, bank routing
in which the loss was sustained. ATTACH A SCHEDULE number, bank account number and account type. Mail your
DETAILING COMPUTATION OF AMOUNTS REPORTED IN complete return to the address provided under remittance and
COLUMN 2. forms.
Column 3. Exemption for 2004 forward is $750.00. An OVERPAYEMT OF TAX
exemption is allowed for each partner who is an individual, the
partner’s spouse and dependents. Additional exemptions are Line 11. If the total tax payments (line 9) is greater than tax
allowed if the taxpayer or spouse is 65 years of age or older by due (line 7) subtract line 7 from line 9 and enter the amount of
st
December 31 of the filing or disabled. If you claim this your overpayment to be refunded. A refund will be issued via
exemption, you may not claim an additional exemption for paper check unless you choose to get the refund via direct
totally and permanently disabled. However if you are, blind, deposit by filing in pg 4. Enter and complete the electronic
deaf, hemiplegic, or quadriplegic you may claim and additional refund information, bank routing number, bank account number
exemption. In general, the same rules apply in determining and account type.
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