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Capital loss carryovers may be carried forward to the same extent taxable portion for partners taxable at the individual nonresident tax rate.
allowed in the Internal Revenue Code, but may not be carried back to The total of columns 3 through 8 must equal the total of column 2.
prior years. Attach a schedule detailing computation of amounts The various types in partnership income are taxed differently based upon
reported in column 5. the partner entity type. Refer to the chart page 8 of these instructions for
Column 6. Personal and dependency exemptions are allowed to be information on the taxability of the various types of partnership income for
claimed for each partner who is an individual resident or nonresident, the various types of partner entities. Also refer to the instructions below for
the partner’s spouse and dependents as allowed on the partner’s additional information on exclusion or taxability of the various types of
federal return. Additional exemptions are allowed if the taxpayer or partnership income.
spouse is 65 years of age or older, or is blind. In general, the same rules Interest and Dividend Income. All partners may exclude interest and
apply in determining dependents as under the federal Internal Revenue dividend income from obligations of the United States, the states or
Code. A spouse may be taken as an exemption on the partnership return subordinate units of government. Interest and dividend income is totally
only if such spouse has no income subject to the Lansing income tax. excluded for individual nonresident, estate and trust partners. Complete
Exemptions for a partner whose residence status has changed from a Schedules B1 and/or B2 to compute the excludible and taxable portions of
resident to a nonresident or from a nonresident to a resident of Lansing interest or dividend income.
during the taxable year are first applied against income while a resident,
with the balance, if any, applied to Lansing income while a nonresident. A Sales or Exchange of Property. This category included sales and
partner’s personal and dependency exemptions may not be claimed on exchanges of short-term, long-term and Section 1231 property. The portion
more than one partnership return. Partners who are estates or trusts are of the gain or loss attributable to the period prior to July 1, 1967 is
allowed one exemption. Exemptions are not allowed to any other partners excludible for all partner entity types. Complete Schedules B3, B4 and/or
(i.e., corporations, partnerships, etc.). The value of each Lansing B5 to compute the excludible and taxable portions of short-term, long-term
exemption is $600. and Section 1231 gains or losses.
Column 7. Enter the taxable income, column 4 less columns 5 and 6. Rent and Royalty Income. Complete Schedules B6, B7 or B8 to compute
Column 8. Enter tax due at the resident or corporation tax rate of 1.0% the excludible and taxable portions of rental income from rental real estate
(0.01) all taxpayers except nonresident individuals, estates or trusts. activities, rental income from other rental activities or royalty income.
Column 9. Enter tax due at the nonresident tax rate of 0.05% (0.0005), Other Income. Complete Schedule B9 to determine the excludible and
nonresident individuals, estates or trusts only. taxable portions of other income
Column 10. The tax paid for each partner is equal to the tax due (column 8 Ordinary Income from Other Partnerships. Complete Schedule B10 to
or 9) less, for resident individual partners only, any credit for tax paid to determine the excludible and taxable portions of ordinary income (loss)
another city (Schedule G, column 6, for the partner). from other partnerships. Attach a worksheet for each partnership, estate or
The total of column 10 should equal the actual amount tax paid by the trust that details the name, address, FEIN and the apportionment of this
partnership; the sum of the amounts reported on page 1 lines 2a, 2b, 2c, income. The ordinary business income of another partnership is allocated
2d and 3 less line 4, the tax overpayment. based upon the other partnership’s Lansing business allocation percentage
SCHEDULE 2A – TAX CALCULATION SCHEDULE FOR and/or the entity type of partner.
DOWNSTREAM PARTNERSHIP Total Apportioned income. Complete Schedule B11 to summarize the
When partnership is a partner (downstream partnership) Schedule 2A, Tax taxable portion the income from the categories of income reported on
Calculation Schedule for Downstream Partnership, must be completed in Schedule B. Also enter on Schedule B, line 11, the totals for each column
the same manner as Schedule 2. On the Schedule 2 line for the in Schedule B. The totals reported on Schedule C, columns 6a and 6b
downstream partnership, enter the downstream partnership name, must equal the total reported on Schedule B, columns 3 and 5,
employer identification number and the totals from Schedule 2A, columns respectively.
4 through 10. Schedule 2A is to be placed directly behind Schedule 2 when SCHEDULE C – DISTRIBUTION TO PARTNERS
filed. A separate Schedule 2A is required for each downstream The totals reported in Schedule C, columns 1, 4, 5 and 6, the income
partnership. distribution to partners of adjusted ordinary business income, apportioned
SCHEDULE A – ALLOCABLE ORDINARY BUSINESS INCOME income, and guaranteed payments to partners, must agree with the totals
(LOSS) transferred from Schedule A, line 6, Schedule F, column 4 and Schedule
Schedule A is used to report and adjust the ordinary business income of B, line 11 of columns 6 an 7, respectively.
the partnership. The ordinary business income as reported on federal Form Column 1. Enter in column 1 each individual partner's share of ordinary
1065, page 1, line 22, must be adjusted for the following; Lansing income adjusted business income from Schedule A, line 6. If Sec. 179
tax deducted on the federal return must be added back; interest and any depreciation is included in Schedule A and the partners have unequal
other costs incurred with the production of tax exempt income must be credits for such additional depreciation (e.g., if one partner is single and
added back; the federal Section 179 deduction and other deductions one is married filing jointly for federal income tax purposes), the
allowed must be deducted; and ordinary income (loss) from another apportionment of income to partners may require a special computation.
partnership must be removed (as it is reported in Schedule B).
Column 2. Enter the appropriate business allocation percentage based
The total adjusted ordinary business income reported on Schedule A, line upon partner entity type. Individual resident and partnership partners use a
6, is allocated to the partners in Schedule C. The total reported on 100% allocation. Individual nonresident, estate, trust, corporation, exempt
Schedule C, column 1, must equal the amount listed Schedule A, line 6. entity and foreign government partners enter the business allocation
Income not included in Schedule A is reported in Schedule B, Apportioned percentage from Schedule D, line 5, or the special allocation percentage
Income, or Schedule F, Allocated or Apportioned Guaranteed Payments to authorized. Disregarded entity and nominee partners enter the appropriate
Partners. Instructions for the Schedules indicate how amounts are allocation percentage based upon the entity type of the actual owner of the
allocated to the individual partners. partnership interest.
SCHEDULE B – APPORTIONED INCOME (INCOME NOT Column 4. Enter the taxable portion of the guaranteed payments to
INCLUDED IN SCHEDULE A OR SCHEDULE F) partners receiving them. If any portion of any guaranteed payment is
Schedule B is used to report income not included in Schedule A (Adjusted nontaxable Schedule F must be completed. The total of Column 4 must
Ordinary Business Income) or Schedule F, (Allocated or Apportioned equal the total of Schedule F, column 4.
Guaranteed Payments to Partners) and apportion this income between Column 5. Enter taxable portion of the individual resident, corporation or
partners taxed at the individual resident, corporation or individual other partners Schedule B income from Schedule B11, column 11.
nonresident tax rates. After determining the total taxable apportioned Column 6. Enter the taxable portion of the individual nonresident, Estate
income for the various partners, the totals are transferred to Schedule C, or trust partners Schedule B income from Schedule B11, column 11.
columns 5 or 6 to report the amount of this income apportioned to each Column 7. Add the amounts reported for each partner in columns 3, 4, 5,
partner. Enter the income by category as reported on the federal Form and 6 and enter the total for the column. Also enter the amount for each
1065, Schedule K or page 1, on Schedule B, column 1. partner and the column total in column 1, page 1 of the return.
Separate supporting schedules for each line of Schedule B (Schedules B1 SCHEDULE D – BUSINESS ALLOCATION PERCENTAGE
through B11) are used to calculate the partners excluded and taxable
portions of the 10 types of income reported in Schedule B. For each type The business allocation percentage is to be applied to the distributive
of income: use: column 2 to report partner’s federal share of the income. share of business income of CORPORATE AND NONRESIDENT partners
Use column 3 to report the individual resident partner’s’ Lansing excludible if business activity of the partnership is conducted both within and outside
portion; column 4 to report the nonresident, estate or trust partner’s the City of Lansing.
excludible portion; column 5 to report the corporation partner’s excludible Line 1a. Enter in column 1 the average net book value of all real and
portion and column 6 to report all other partner’s excludable portion. tangible personal property owned by the business, regardless of location;
Column 7 is used to report the taxable portion for partners taxable at the and in column 2 report the net book value of the real and tangible personal
individual resident or corporation tax rate, and column 8 is used to report property owned and located or used in the City of Lansing. The average
net book value of real and tangible personal property may be determined
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