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INSTRUCTIONS FOR SCHEDULE RZ (CF-1065)
PARTNERSHIP RENAISSANCE ZONE DEDUCTION
beginning and ending dates of qualification. For other Line 14. Compute and enter the Renaissance Zone phase out
partners leave this column blank. percentage by adding the amounts on line 13 of columns 1 and
2.
Column 2. For each partner who was a resident domiciled in a
Renaissance Zone, enter the partner’s taxable share of the RENAISSANCE ZONE DEDUCTION
interest and dividend income included in the amount Line 15.
reported on Form CF-1065, Schedule B, column 3, lines 1
and 2. For each partner who is another partnership or a Partner Number Enter the partner number for each partner.
corporation enter the partner’s share of the interest and
dividend income included in the amount reported on Form Partner Number Column. Enter each partner’s partner number in the
CF-1065, Schedule B, column 3, lines 1 and 2. For Partner Number column.
individual nonresident partners enter zero.
Column 3. For each partner who was a resident domiciled in a Column 1. Add the amounts for each partner and the total as reported
Renaissance Zone, enter the partner’s share of income on line 9, column 5 and line 10, column 7.
from the sale and exchange of property included in the
amount reported on Form CF-1065,Schedule B, column 3, Column 2. Calculate and enter the deduction phase-out for each
lines 3, 4 and 5. For all other partners enter their share of partner and the total by multiplying the amount reported in
income from the sale and exchange of property located in a column 1 by the percentage on line 14, column 1.
Renaissance Zone included in the amount reported on
Form CF-1065,Schedule B, columns 3 or column 5, lines 3,
4 and 5. Column 3. Calculate and enter the Renaissance Zone deduction for
each partner and the total by subtracting the amount in
Column 4. For each partner who was a resident domiciled in a column 2 from the amount in column 1.
Renaissance Zone, enter the partner’s share of income
from rents and royalties included in the amounts reported Total each column of line 15. Enter Renaissance Zone deduction for
on Form CF-1065, Schedule B, column 3, lines 6, 7 and 8. each partner and the total Renaissance Zone deduction form column 3
For other partners enter partner’s share of rent and royalty on Schedule 2, column 5.
income from property located in a Renaissance Zone
included in the amounts reported on Form CF-1065,
Schedule B, column 3 or column 5, lines 6, 7 and 8. WEBSITE
Income tax forms, instructions and additional information are available on
Column 5. For each partner who was a resident domiciled in a the website of the city. The website address for a city is found in
Renaissance Zone, enter the partner’s share of other Appendix I.
income included in the amounts reported on Form CF-
1065, column 3, lines 9 and 10. For all other partners enter NOTICE
their share of the other income reported on Form CF-1065, These instructions are interpretations of the Michigan Uniform City
Schedule B, column 3 or column 5, lines 9 and 10. Income Tax Ordinance. The Ordinance will prevail in any disagreement
Column 6. For each partner receiving guaranteed payments, enter the between the instructions and the Ordinance.
amounts reported on Form CF-1065, Schedule C, column
4.
Column 7. For each partner, add the amounts reported on line 10,
columns 2 through 6, and enter the total in column 7.
Total each column of line 10.
RENAISSANCE ZONE DEDUCTION PHASE OUT
PERCENTAGE
The Renaissance Zone designation starts on January 1 of the first year of
designation and ends on December 31 of the final year of designation.
The deduction is reduced during the last 3 calendar years of a zone's
designation. The reduction phase out is: 0% for all but the last three
years of a zone's designation; 25% for the tax year that is two years
before the final year of designation; 50% for the tax year immediately
preceding the final year of designation; and 75% for the final year of
designation. For example, properties in Renaissance within Zones 1
through 6, designated beginning January 1, 1997, entered the phase out
period in 2009 (unless the specific property was granted an extension).
If the partnership files their city income tax return on a fiscal year basis,
the deduction phase out will be made up of two different phase out
percentages, one for the number of months of the fiscal year in the year
in the first phase out calendar year, and one for the number of months in
the fiscal year in the following phase out year. A short tax year may or
may not be in two different phase out years.
Line 11. In column 1 enter the number of months in the tax year or short
period prior to January 1, 2017. In column 2 enter the number
of months in the tax year or short period after December 31,
2016.
Line 12. In column 1 enter the Renaissance Zone deduction phase out
percentage for calendar year 2016. In Column 1 enter the
Renaissance Zone deduction phase out percentage for
calendar year 2016.
Line 13. Calculate and enter the Renaissance Zone phase out
percentage for each column by multiplying line 11 by line 12
and dividing the result by the number of months in the tax year
or short period (usually 12).
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