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2019 LANSING
PARTNERSHIP INCOME TAX
FORMS AND INSTRUCTIONS

Form L-1065

Andy Schor, Mayor For partnerships with business activity
Judy Kehler, City in the City of Lansing
Treasurer & Income Tax
Administrator

TAX RATES AND 1.% tax rate. The tax rate for a partner who is a resident individual, a corporation or a partnership.
EXEMPTION 0.5% tax rate. The tax rate for a partner who is nonresident individual, estate or trust.
VALUE Exemption value for 2019 is $600.
RATE See Options to Pay Tax and Applicable Tax Rates.

All Lansing income tax forms are available on the City’s website, www.lansingmi.gov. Partnership Tax Forms. Tax forms will
TAX FORMS be mailed upon request.

RENAISSANCE Schedule RZ of Form L-1065 is available on the Lansing website at: www.lansingmi.gov.
ZONES

FILING DATE The due date is April 30, 2020. Penalty and interest ($2.00 minimum) will be assessed on all late payments.

Tax due (line 3) of one dollar ($1.00) or more, must be paid with your return. NOTE: If 2019 tax on line 1 is $100.00or
PAYMENT OF more, estimated income tax payments may need to be made for 2020 See page 2 under Partnership as Taxpayer.
TAX DUE Make check or money order payable to: CITY OF LANSING
Mail tax due return and payment to: Lansing Income Tax Department, PO Box 40752, Lansing, MI 48901.

DISCLAIMER These instructions are interpretations of the Lansing Income Tax Ordinance. The Ordinance will prevail in any disagreement
NOTICE between the instructions and the Ordinance.

For assistance: find us online at www.lansingmi.gov; call (517) 483-4114 or visit the Lansing Income Tax Department
CONTACT located inCity Hall at 124 W Michigan Ave, Lansing, Michigan 48933.

Failure to attach documentation or attaching incorrect or incomplete documentation
will delay processing of the return or result in corrections being made to the return.

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        INSTRUCTIONS FOR FILING FORM L-1065, PARTNERSHIP INCOME TAX RETURN 
GENERAL INFORMATION                                                              Schedule G – Credit for Tax Paid to Another City in behalf of Resident 
                                                                                         Partners 
PARTNERSHIPS REQUIRED TO FILE A RETURN                                           Schedule K-1 (Form L-1065) – Partner’s Share of Income, Exclusions, 
Every partnership with business activity in the City of Lansing, whether or                                        Deductions, Credits and Tax Paid 
not an office or place of business was maintained in the city, is required to    Schedule RZ (Form L-1065) – Partnership Renaissance Zone Deduction 
file  an  annual return.  Syndicates,  joint  ventures,  pools  and  like        Schedule S – Supplemental Notes and Schedules 
organizations and Limited Liability Companies (LLCs) electing to be taxed 
as partnerships at the federal level will also use Form L-1065.                  OBTAINING PARTNERSHIP RETURN FORMS 
TAXABILITY  OF PARTNERSHIP INCOME UNDER  THE                                     Partnership return forms are not mailed. The forms are available on the 
                                                                                 Lansing website, www.lansingmi.gov,  
LANSING INCOME TAX ORDINANCE 
Partners  who are  individual  RESIDENTs are  taxed  on  their entire            Allocate and Apportion - Defined 
distributive share of the net profits of the partnership, including that arising The  word  allocate  in  these  instructions  means  to  determine  partner’s 
from  business  activities  outside  of  Lansing,  interest,  dividends,  rents, taxable portion of the type of partnership income using: the partner’s the 
royalties, other income, and gains from the sale or exchange of property,        classification;  the  partner’s  classification  and  the  Business  Allocation 
either tangible or intangible, regardless of where the property is located.      Percentage calculated on Schedule D, Business Allocation Percentage, 
Partners who are individual NONRESIDENTS including estates and                   line  5;  or  in  the  case  of  a  taxpayer  authorized  by  the  Income  Tax 
trusts are taxed on their distributive share of the partnership’s ordinary       Administrator  of  the  city,  the  special  allocation  formula  percentage 
business income which is attributable to business activity in Lansing, plus      calculated on Schedule D, line c. 
net rentals of tangible property located in Lansing and gains from the sale      The meaning of the word apportion as used in these instructions means to: 
or exchange of tangible property in the City. Nonresidents are not taxed on      directly determine the partner’s taxable income based upon the partner’s 
their share of net rentals of property located outside Lansing, gains from       classification; or the partner’s classification and the location of the source 
the sale or exchange of tangible property located outside Lansing, gains         of the income. 
from the sale or exchange of securities or other intangible property, or on      RENAISSANCE ZONE DEDUCTION 
non-business interest and dividend income.                                       A partnership located and doing business in a Lansing Renaissance Zone 
When the receipt of interest and other intangible income is directly related     may be eligible to claim the Renaissance Zone deduction. This deduction 
to the nature of the business, such interest, etc., is business income           allows the partnership or the partners, if qualified, to deduct the portion of 
taxable to a nonresident, and is to be included in ordinary business income      the  partnership  income  earned  in  a  Renaissance  Zone  from  income 
in Schedule A.                                                                   subject to tax. A taxpayer is not qualified to claim the deduction if the 
Partners who are CORPORATIONS are taxed at the corporate tax rate on             taxpayer is delinquent for any Michigan or local taxes.  
their  distributive  share  of  the  partnership’s:  ordinary  business  income  If the partnership elects to pay the tax on behalf of the partners, the 
attributable to business activity in Lansing; net rentals of tangible property;  deduction is claimed on the partnership return. Otherwise, the deduction is 
and gains from the sale or exchange of tangible property attributable to         passed through to the partners who claim the deduction by filing Schedule 
business activity in  Lansing. Thus, all taxable income of a corporate           RZ with their return. A Lansing income tax return must be filed to claim this 
partner (net profits of a corporation) are determined by the business            deduction.  Schedule  RZ  of  L-1065  is  required  to  be  attached  to  the 
allocation percentage of the partnership.                                        partnership return when claiming the deduction. 
Partners who are PARTNERSHIPS, LLC’s electing to be taxed as a                   DUE DATE OF PARTNERSHIP RETURN 
partnership, JOINT VENTURES, ETC. are taxed at the resident individual           Calendar year taxpayers must file by April 30, 2015. Fiscal year taxpayers 
or corporation tax rate unless documentation is provided to determine the        must file within four (4) months after the end of their fiscal year. 
correct taxable income    tax       rate  for each partner      of         the 
downstream partnership. Contact the Lansing Income Tax Department to             EXTENSION OF TIME TO FILE A PARTNERSHIP RETURN 
see how to report these items.                                                   For partnerships electing to pay tax, Form L-7004, Automatic Extension of 
                                                                                 Time to File Certain Business Income Tax, Information and Other Returns, 
Refer to the chart on page 6 of these instructions for information on the        must be filed on or before the due date for filing the partnership return. An 
taxability of the various types of partnership income based upon the             extension is automatically granted upon filing of Form L-7004 and payment 
partner’s entity classification. Also refer to the instructions under Schedule   of the tentative tax balance due (Form L-7004, line 3). Failure to pay the 
B for additional information on taxability of the various types of income.       balance due invalidates the extension request. Interest and penalty will be 
LISTING OF FORMS AND SCHEDULES (Form L-1065)                                     assessed on taxes paid late even if an extension of time to file is granted. 
Form L-1065, page 1                                                              For partnerships filing an information return, a six month extension of time 
Schedule 1 – Partner Information Schedule                                        to file is automatically granted. Do not file Form L-7004, Application for 
Schedule 1A – Partner Information Schedule for Downstream                        Automatic  Extension  of  Time  to  File  Certain  Business  Income  Tax, 
                Partnership                                                      information and Other Returns. 
Schedule 2 – Tax Calculation Schedule for Partnerships Electing to Pay           of time to file is granted. 
        Tax (If information return, disregard this schedule)                     REQUIRED RETURN ATTACHMENTS 
Schedule 2A – Tax Calculation Schedule for Downstream Partnership                When filing a Lansing partnership return, Form L-1065, certain schedules 
Schedule A – Allocable Partnership Ordinary Business Income                      and copies of federal forms are required to be attached. See Page 8 of 
Schedule B – Apportioned Income (income not included in Schedule A or            these  instructions  for  a  listing  of  required  return  attachments  and 
              Schedule F)                                                        attachment order. 
Schedule B1 – Interest Income (Schedule B, line 1, by partner)                   MAILING ADDRESSES FOR FILING PARTNERSHIP RETURNS 
Schedule B2 – Dividend Income (Schedule B, line 2, by partner)                   Mail tax due returns to:           Mail refund and other returns to: 
Schedule B3 – Net Short-term Capital Gain (Loss) (Schedule B, line                LansingIncome Tax Department   Lansing Income Tax D     epartment
                3,by partner)                                                     PO Box 40752                      124 W Michigan Ave, 1st Floor   
Schedule B4 – Net Long-Term Capital Gain (Loss) (Schedule B, line                 Lansing, MI 48901                 Lansing, MI 48933 
                4, by partner)                                                   PARTNERSHIPS FILING AN INFORMATION RETURN 
Schedule B5 – Net Section 1231 Gain (Loss) (Schedule B, line 5, by 
                partner)                                                         A partnership is required to file an information return unless the partnership 
                                                                                 elects to compute and pay the tax due on behalf of all partners. 
Schedule B6 – Net Income or Loss from Rental Real Estate  Activities 
                (Schedule B, by partner)                                         Partnerships filing information returns are required to complete: Page 1: 
Schedule B7 – Net Income or Loss from Other Rental Activities                    the Partner Information Schedule, Schedules A, B, C and if appropriate 
                (Schedule B, line 7)                                             Schedules D, E and F. 
Schedule B8 – Royalty Income (Schedule B, line 8, by partner)                    The Partnership Return, Form L-1065, is designed to distinguish between 
Schedule B9 – Other Income (Schedule B, line 9, by partner)                      income taxed at the resident, nonresident or corporation tax rates. The 
Schedule B10 – Ordinary income from Other Partnerships (Schedule                 purpose of the return is to set forth the entire net profit for the tax period 
                                                                                 and to show the distributive share of each partner and indicate the entity 
                B, line 10, by partner)                                          type of the partner and, if an individual, the residency states of the partner. 
Schedule B11 – Schedule B summary by Partner by Schedule B Line                  If residency changes during the year for any individual partner, use two 
                Number (Schedule B, line 11, by partner)                         lines to indicate allocation of income by residency status. On Schedule 1, 
Schedule C – Distribution to Partners                                            Partner Information Schedule, enter the start date of residency on the 
Schedule D – Business Allocation Percentage                                      resident line and the end date of residency on the nonresident line. 
Schedule E – Rental Real Estate 
Schedule F – Allocated or Apportioned Guaranteed Payments to Partners 

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Ordinary business income of the partnership is reported in Schedule A.         OVERPAYMENT 
Each  partner’s  distributable  share  of  the  ordinary  business  income  is Line 4. If the total payments and credits (line 2) is greater than the tax due 
reported on Schedule C, column 1.                                              (line 1) subtract line 1 from line 2 and enter the overpayment amount. 
Apportioned income is reported in Schedule B, by type of income and the        CREDIT FORWARD 
taxable  and  nontaxable  portions  for  partners  taxed  at  the  resident,   Line 5. Enter all or the portion of the overpayment to be credited forward. 
nonresident or corporation tax rate. Schedules B1 through B11 are used to 
report the partner’s share for each line of Schedule B. The taxable income     DONATIONS 
from Schedule B, columns 6 and 7 is reported by partner in Schedule C,         Line 6. Donate all or any portion of overpayment to Lansing to: purchase 
columns 5 or 6.                                                                American flags to be placed on veterans’ graves in Lansing (line 6a): or the 
                                                                               Lansing Children’s Fund (line 6b). Enter the amount of the donation in the 
Schedule  K-1  (Form  L-1065),  Partners  Share  of  Income,  Exclusions,      appropriate box and enter the total of the donations on line 6d, otherwise 
Deductions, Credits and Tax Paid, is to be provided to each partner to         leave blank. 
assist them in filing their Lansing income tax return. 
                                                                               REFUND 
PARTNERSHIPS ELECTING TO PAY TAX                                               Line 7. Enter the amount overpayment to be refunded. A refund will be 
If the partnership elects to pay tax for the partners, the individual partners issued via a paper refund check unless you choose to receive the refund 
are not required to file a return if such partners have no other income        via direct deposit. To receive the refund by direct deposit, mark (X) the box 
subject to Lansing income tax. However, an individual return is required       on line 8 for Refund – Direct deposit and enter (line 8a) the bank routing 
from any partner having taxable income other than the distributive share of    number, (line 8b) the bank account number and (line 8c) the account type, 
the net profits of the partnership. In such instances, a partner required to   checking or savings. For additional information on completing line 8, go to 
file an individual return should refer to the instructions for the individual  the Income Tax web page: www.lansingmi.gov. 
return, Form L-1040 or L-1040, for instructions on reporting partnership       DISCLOSURE OF RETURN INFORMATION 
income and claiming credit for tax paid by the partnership.                    By  marking  (X)  the  “Yes”  box  in  the  Disclosure  of  Return 
Partnerships electing to pay the tax on behalf of the partners assume the      Information section  the  partnership  is  authorizing  the Lansing  Income 
status of taxpayer to the following extent: (1) timely payment must be         Tax Department to contact the preparer for answers to any questions that 
made;  and  (2)  estimated  income  tax payments,  Form  L-1065ES,  are        may arise relating to its return and to answer any questions from the 
required if the total 2019  estimated tax for the partnership is expected      preparer about the return. Also,  by  marking  (X)  the  “Yes”  box,  the 
to  exceed  $100.  The  calendar  or  fiscal  year  of  the  partnership  will partnership  is  authorizing  the preparer to: provide the Lansing Income 
govern in establishing the due dates for making estimated tax payments.        Tax Department with any information about  or  missing  from  the  return; 
                                                                               respond  to  notices  about  math  errors, offsets  and  return  preparation; 
Partnerships electing to pay tax must prepare and file all the forms and       and contact  the  Income  Tax Department for information  about  the 
schedules required for an information return and complete Schedule 2, Tax      return  or  the  status  of  any  related  refund  or payments. 
Calculation Schedule, and Form L-1065, lines 1 through 8. Schedule 2 
details each partner’s share of their Lansing taxable income, deductions,      SIGNATURE 
exemptions, tax at the resident, nonresident or corporation tax rate and any   In the Signature section the partner or member representing the entity 
credit for tax paid to another city. Form L-1065, lines 1 through 8, reports:  must sign the return and the following information must be provided: the 
the tax; all payment and credits; any balance due or overpayment; and          date the return was signed; the printed name of the partner or member 
how any overpayment is to be credited, donated or refunded.                    signing the return; and a day time phone number of the partner or member. 
Payment of tax for partnership partners (downstream partnership) requires      Also preparer must sign the return and enter the date prepared, the name 
additional schedules, Schedule 1A, Partnership Information Schedule for        and address of the preparer’s firm, the preparer’s PTIN, EIN or SSN, the 
Downstream Partnership, and Schedule 2A, Tax Calculation Schedule for          preparer’s telephone number and the NACTP number of the software used 
Downstream Partnership. An alternative to adding the additional schedules      to prepare the return. 
is calculation of taxable income for the downstream partnership as a 
resident partner and calculation of the tax at the Lansing resident tax rate.  INSTRUCTIONS FOR OTHER SCHEDULES 
PAGE 1 INSTRUCTIONS                                                            SCHEDULE 1 – PARTNER INFORMATION SCHEDULE 
                                                                               All partnerships must complete the Partner Information Schedule. See 
A partnership filing an information return is required to complete the         Partner Classification Table on page 4 for information to complete columns 
Identification and Information section and the Signature section of page 1.    3,  4  and  5.  Column  3  data  entry  is  based  upon  federal  Form  1065 
Also in the Disclosure of Return Information section, the partnership may      instructions for Schedule K-1, Item I. 
elect  to allow  disclosure      of  return  information    between     a      If column 3 for the partner equals individual, nominee for an individual or a 
designated individual or firm and the Lansing Income Tax Department.           disregarded  entity  owned  by  an  individual,  enter  the  residency 
A partnership electing to pay tax is required to complete the Identification   classification in column 4 (R, N, PR or PN). If column 4 for the partner 
and Information section, lines 1 through 7 and the Signature section of        equals part-year resident (PR or PN), report the resident portion (PR) and 
page 1. The partnership may elect on line 8: to make payment of any tax        nonresident portion (PN) on separate partner lines and in column 5 enter 
due by a direct debit withdrawal from its bank account; or to receive any      the residency start date (mm/dd/yyyy) for the tax year on the resident (PR) 
overpayment refund via a direct deposit to its bank account. Also in the       line and the residency end date for the year on the nonresident (PN) line. 
Disclosure of Return Information section, the partnership may elect to         SCHEDULE 1A – PARTNER INFORMATION SCHEDULE FOR 
allow  disclosure  of  return  information  between  a  designated  individual 
or firm and the Lansing Income Tax Department.                                 DOWNSTREAM PARTNERSHIP 
                                                                               When  partnership  is  a  partner  (downstream  partnership)  subsidiary 
IDENTIFICATION AND INFORMATION                                                 Schedule 1A, Partner Information for Downstream Partnership, must be 
All partnerships are to provide the information requested and answer all       completed in the same manner as Schedule 1 and placed directly behind 
questions in this section.                                                     Schedule 1 when filed. 
TAX                                                                            SCHEDULE 2 – TAX CALCULATION SCHEDULE (Disregard if 
Line 1. Add the totals from the Tax Due Schedule, columns 8 and 9, and         information return) 
enter on line 1.                                                               Partnerships electing to pay tax for partners must complete the Schedule 
PAYMENTS AND CREDITS                                                           2,  Tax  Calculation  Schedule.  Partnerships  filing  an  information  return 
Line 2. Enter the total payments and credits for each type of tax payment      disregard this schedule. 
listed on lines 2a through 2d and, for resident individual partners, the total Columns  1,  2  and  3.  Enter  partner’s  name,  entity  type  and  tax 
of any credits for tax paid to another city on line 2e. Enter the total of the identification number as listed on Partner Information Schedule. 
payments and credits on line 2f.                                               Column 4. Enter partner’s total Lansing income as reported on Schedule 
BALANCE DUE                                                                    C, column 6 or column 7.  
Line 3. If total tax (line 1) is greater than the total tax payments (line 2)  Column 5. Allowable partner deductions which relate to the partnership 
subtract line 2 from line 1 and enter balance of tax due. The balance due      are deducted in column 5. These deductions include the self-employed 
must be paid when filing the return.                                           pension plan deduction, the Renaissance Zone deduction and any other 
To pay with a check or money order make the check or money order               deduction allowed the partner under the Lansing Income Tax Ordinance. 
payable to the CITY OF LANSING, place the payment in front of the return       This column is also used to adjust (add back) for a net capital loss realized 
and mail the payment and return to: Lansing Income Tax Department, 124         by any of the partners, in excess of the partner's maximum allowable 
W Michigan Ave., Lansing, Michigan 48933.                                      ($3,000) capital loss deduction. Therefore, a net capital loss realized by 
                                                                               any  of  the  partners,  in  excess  of  the  partner's  allowable  capital  loss 
                                                                               deduction must be added back in column 5. The allowable capital loss 
                                                                               deduction for each partner is the lesser of (1) the net capital loss, (2) the 
                                                                               amount        in              column        4,                   computed
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taxable portion for partners taxable at the individual nonresident tax rate.
without regard to capital gains and losses, or (3) $3,000. Capital loss The total of columns 3 through 8 must equal the total of column 2.
carryovers may be carried forward to the same extent allowed in the The various types in partnership income are taxed differently based upon
Internal Revenue Code, but may not be carried back to prior years. Attach the partner entity type. Refer to the chart page 8 of these instructions for
a schedule detailing computation of amounts reported in column 5. information on the taxability of the various types of partnership income for
Column 6. Personal and dependency exemptions are allowed to be the various types of partner entities. Also refer to the instructions below for
claimed for each partner who is an individual resident or nonresident, additional information on exclusion or taxability of the various types of
the partner’s spouse and dependents as allowed on the partner’s partnership income.
federal return. Additional exemptions are allowed if the taxpayer or Interest and Dividend Income. All partners may exclude interest and
spouse is 65 years of age or older, or is blind. In general, the same rules dividend income from obligations of the United States, the states or
apply in determining dependents as under the federal Internal Revenue subordinate units of government. Interest and dividend income is totally
Code. A spouse may be taken as an exemption on the partnership return excluded for individual nonresident, estate and trust partners. Complete
only if such spouse has no income subject to the Lansing income tax. Schedules B1 and/or B2 to compute the excludible and taxable portions of
Exemptions for a partner whose residence status has changed from a interest or dividend income.
resident to a nonresident or from a nonresident to a resident of Lansing
during the taxable year are first applied against income while a resident, Sales or Exchange of Property. This category included sales and
with the balance, if any, applied to Lansing income while a nonresident. A exchanges of short-term, long-term and Section 1231 property. The portion
partner’s personal and dependency exemptions may not be claimed on of the gain or loss attributable to the period prior to July 1, 1967 is
more than one partnership return. Partners who are estates or trusts are excludible for all partner entity types. Complete Schedules B3, B4 and/or
allowed one exemption. Exemptions are not allowed to any other partners B5 to compute the excludible and taxable portions of short-term, long-term
(i.e., corporations, partnerships, etc.). The value of each Lansing and Section 1231 gains or losses.
exemption is $600. Rent and Royalty Income. Complete Schedules B6, B7 or B8 to compute
Column 7. Enter the taxable income, column 4 less columns 5 and 6. the excludible and taxable portions of rental income from rental real estate
Column 8. Enter tax due at the resident or corporation tax rate of 1.0% activities, rental income from other rental activities or royalty income.
(0.01) all taxpayers except nonresident individuals, estates or trusts. Other Income. Complete Schedule B9 to determine the excludible and
Column 9. Enter tax due at the nonresident tax rate of 0.05% (0.0005), taxable portions of other income
nonresident individuals, estates or trusts only. Ordinary Income from Other Partnerships. Complete Schedule B10 to
Column 10. The tax paid for each partner is equal to the tax due (column 8 determine the excludible and taxable portions of ordinary income (loss)
or 9) less, for resident individual partners only, any credit for tax paid to from other partnerships. Attach a worksheet for each partnership, estate or
another city (Schedule G, column 6, for the partner). trust that details the name, address, FEIN and the apportionment of this
The total of column 10 should equal the actual amount tax paid by the income. The ordinary business income of another partnership is allocated
partnership; the sum of the amounts reported on page 1 lines 2a, 2b, 2c, based upon the other partnership’s Lansing business allocation percentage
2d and 3 less line 4, the tax overpayment. and/or the entity type of partner.
SCHEDULE 2A – TAX CALCULATION SCHEDULE FOR Total Apportioned income. Complete Schedule B11 to summarize the
DOWNSTREAM PARTNERSHIP taxable portion the income from the categories of income reported on
When partnership is a partner (downstream partnership) Schedule 2A, Tax Schedule B. Also enter on Schedule B, line 11, the totals for each column
Calculation Schedule for Downstream Partnership, must be completed in in Schedule B. The totals reported on Schedule C, columns 6a and 6b
the same manner as Schedule 2. On the Schedule 2 line for the must equal the total reported on Schedule B, columns 3 and 5,
downstream partnership, enter the downstream partnership name, respectively.
employer identification number and the totals from Schedule 2A, columns SCHEDULE C – DISTRIBUTION TO PARTNERS
4 through 10. Schedule 2A is to be placed directly behind Schedule 2 when The totals reported in Schedule C, columns 1, 4, 5 and 6, the income
filed. A separate Schedule 2A is required for each downstream distribution to partners of adjusted ordinary business income, apportioned
partnership. income, and guaranteed payments to partners, must agree with the totals
SCHEDULE A – ALLOCABLE ORDINARY BUSINESS INCOME transferred from Schedule A, line 6, Schedule F, column 4 and Schedule
(LOSS) B, line 11 of columns 6 an 7, respectively.
Schedule A is used to report and adjust the ordinary business income of Column 1. Enter in column 1 each individual partner's share of ordinary
the partnership. The ordinary business income as reported on federal Form adjusted business income from Schedule A, line 6. If Sec. 179
1065, page 1, line 22, must be adjusted for the following; Lansing income depreciation is included in Schedule A and the partners have unequal
tax deducted on the federal return must be added back; interest and any credits for such additional depreciation (e.g., if one partner is single and
other costs incurred with the production of tax exempt income must be one is married filing jointly for federal income tax purposes), the
added back; the federal Section 179 deduction and other deductions apportionment of income to partners may require a special computation.
allowed must be deducted; and ordinary income (loss) from another Column 2. Enter the appropriate business allocation percentage based
partnership must be removed (as it is reported in Schedule B). upon partner entity type. Individual resident and partnership partners use a
The total adjusted ordinary business income reported on Schedule A, line 100% allocation. Individual nonresident, estate, trust, corporation, exempt
6, is allocated to the partners in Schedule C. The total reported on entity and foreign government partners enter the business allocation
Schedule C, column 1, must equal the amount listed Schedule A, line 6. percentage from Schedule D, line 5, or the special allocation percentage
Income not included in Schedule A is reported in Schedule B, Apportioned authorized. Disregarded entity and nominee partners enter the appropriate
Income, or Schedule F, Allocated or Apportioned Guaranteed Payments to allocation percentage based upon the entity type of the actual owner of the
Partners. Instructions for the Schedules indicate how amounts are partnership interest.
allocated to the individual partners. Column 4. Enter the taxable portion of the guaranteed payments to
SCHEDULE B – APPORTIONED INCOME (INCOME NOT partners receiving them. If any portion of any guaranteed payment is
INCLUDED IN SCHEDULE A OR SCHEDULE F) nontaxable Schedule F must be completed. The total of Column 4 must
Schedule B is used to report income not included in Schedule A (Adjusted equal the total of Schedule F, column 4.
Ordinary Business Income) or Schedule F, (Allocated or Apportioned Column 5. Enter taxable portion of the individual resident, corporation or
Guaranteed Payments to Partners) and apportion this income between other partners Schedule B income from Schedule B11, column 11.
partners taxed at the individual resident, corporation or individual Column 6. Enter the taxable portion of the individual nonresident, Estate
nonresident tax rates. After determining the total taxable apportioned or trust partners Schedule B income from Schedule B11, column 11.
income for the various partners, the totals are transferred to Schedule C, Column 7. Add the amounts reported for each partner in columns 3, 4, 5,
columns 5 or 6 to report the amount of this income apportioned to each and 6 and enter the total for the column. Also enter the amount for each
partner. Enter the income by category as reported on the federal Form partner and the column total in column 1, page 1 of the return.
1065, Schedule K or page 1, on Schedule B, column 1.
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 The business allocation percentage is to be applied to the distributive
portions of the 10 types of income reported in Schedule B. For each type share of business income of CORPORATE AND NONRESIDENT partners
of income: use: column 2 to report partner’s federal share of the income. if business activity of the partnership is conducted both within and outside
Use column 3 to report the individual resident partner’s’ Lansing excludible the City of Lansing.
portion; column 4 to report the nonresident, estate or trust partner’s Line 1a. Enter in column 1 the average net book value of all real and
excludible portion; column 5 to report the corporation partner’s excludible tangible personal property owned by the business, regardless of location;
portion and column 6 to report all other partner’s excludable portion. and in column 2 report the net book value of the real and tangible personal
Column 7 is used to report the taxable portion for partners taxable at the property owned and located or used in the City of Lansing. The average
individual resident or corporation tax rate, and column 8 is used to report net book value of real and tangible personal property may be determined
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by adding the net book values at the beginning and end of the year and allocation percentage (Form L-1065, Schedule D, line 5 or special formula
dividing the sum thus obtained by two. line d).
Line 1b. Enter in column 1 the gross annual rent multiplied by 8 for all Part II. Information About the Partner
rented real property regardless of location. In column 2 show the gross On each Schedule K-1 complete the information for the partner for items E
annual rent multiplied by 8 for rented real property located in the City of through I1 and J through M as it was completed on the partner’s federal
Lansing. Gross annual rent refers to real property only, rented or leased Schedule K-1 (Form 1065). For item I2, if the partner code for item I1 is a
during the taxable period, and should include the actual sums of money or code that represents an individual, estate or trust, enter in item I2 the
other consideration payable, directly or indirectly, by the taxpayer for the following code for the partner: R for resident partner, N for a nonresident
use or possession of such property. partner, PR for the resident portion and PN for the nonresident portion of
Line 2. Enter in column 1 the total compensation paid to all employees the year for a part-year resident partner. See Appendix J, Partner
during the year and in column 2 show the amount of compensation paid to Classification Table, for additional information. For Item I3, mark (X) the
employees for work or services performed within the City of Lansing. box if the partner is a retirement plan. For item N enter the partner’s
partner number as reported on Form L-1065, Schedule 1. When a partner
Line 3. Enter in column 1 the total gross revenue from all sales or services is a part-year resident, two Schedule K1’s (Form L-1065) are to be issued,
rendered during the year, and in column 2 show the amount of revenue one for the resident portion of the year and one for the nonresident portion
derived from sales made or services rendered in the City of Lansing during of the year as two lines are required for reporting the partner’s income.
the year. To allocate net profit (or loss), a partnership must have business If the partnership elects to pay tax and the partner is a partnership, mark
activity outside of Lansing. (X) the item D box and enter the partnership partner’s identification
SCHEDULE E – RENTAL REAL ESTATE number. Complete the other items for this partnership partner. Parts III and
If the business activity of the partnership includes rental of real estate, list Part IV for this downstream partnership is a compilation of their partner’s
the complete address and the gain or loss from each separate piece of Schedules K-1. Also, complete a Schedule K-1 (Form L-1065) for each
rental real estate in Schedule E. partner of the downstream partnership completing item D for the
SCHEDULE F – GUARANTEED PAYMENTS downstream partnership and completing Part II, Part III and Part IV for
A guaranteed payment, defined under the Internal Revenue Code of 1986, each downstream partnership partner.
Section 707(c), is compensation for services rendered, compensation for Part III. Partner’s share of Current Year income,
the use of capital, or a retirement benefit paid to a retired partner. It is not Exclusions/Adjustments and City Income.
a distributive share of the partnership's profits. The payment, to the extent This part of the Schedule K-1 (Form L-1065) is divided into three columns:
included in federal adjusted gross income, is characterized as Column A, Federal Partnership Return Data; column B, Exclusions and
compensation, interest or a retirement benefit on the individual partner’s Adjustments; and column C, City Taxable Income.
income tax return.
Column A, Federal Partnership Return Data.
To the extent a "guaranteed payment" is includable in a resident partner's Column A, line 1, lines 2 through 13 and line 20 are used for reporting
gross income, the amount is fully taxable under the Lansing Income Tax income, deductions and other information as reported on the federal
Ordinance except for the amount paid as a retirement benefit to a retired Schedule K-1 (Form 1065) for the partner. In each line of column A enter
partner that qualifies as a retirement benefit and is not self-employment the data as reported in the federal Schedule K-1 except for lines 1a, 11, 13
earnings under the Internal Revenue Code. and 20 follow the instructions below.
A nonresident partner is taxed on a guaranteed payment to the extent the Line 1a. Ordinary income from other partnerships. This line on the
payment is includable in federal gross income and is for compensation city Schedule K-1 (L-1065) is used to properly report ordinary business
received for personal services performed in the City of Lansing. A incomefrom other partnerships, estates and trusts. Column A of this line is
guaranteed payment for the use of capital is allocated to the nonresident blank or zero (0) as this line is not on the federal Schedule K-1.
partner's residence (domicile) and is not taxable under the Lansing Income
Tax Ordinance. The amount paid as a retirement benefit to a retired Codes for lines 11, 13 and 20. In boxes 11, 13 and 20, identify each item
partner that qualifies as excludible from Lansing income under 4 USC Sec. by entering the federal code in the column to the left of Column A.
114(b)(I) is not taxable under the Ordinance. Line 13. Other deductions. In box 13 report only the federal coded items
SCHEDULE G – CREDIT FOR TAX PAID TO ANOTHER CITY IN that affect city income of the partner. There are only a few (line 13) other
BEHALF OF RESIDENT PARTNERS deductions that affect a partner’s city income. Deductions that are claimed
If the partnership incurs an income tax liability to any other city in addition on the partner’s federal return Form 1040 as adjustments to income or
to Lansing, a credit is allowed for tax paid to the other city on income of a itemized deductions are not reported on line 13. If you have a question
Lansing resident individual that is taxable by both cities. The credit is about reporting a line 13 item, please contact the city for an answer. An
limited to the smaller of: (1) the income tax paid to the other municipality example of a line 13 is item I, deductions – royalty income.
on behalf of the resident partner; or (2) 0.75% of the amount obtained by Line 20. Other information. In box 20 report only the federal coded items
deducting the value of the exemptions claimed by the partner (Form L- that affect city income. There are few items of (line 20) other information
1065, page 1, column 3) from the amount of Lansing income subject to tax that affect the partner’s city income. If you have a question about reporting
by the other city. DO NOT take credit for income taxes paid to any other a line 20 item, please contact the city for an answer. An example of a line
municipality on behalf of nonresident, corporate or partnership partners. 20 item is M, recapture of section 179 deduction.
SCHEDULE K-1 (Form L-1065) – PARTNER’S SHARE OF Column B, Exclusions and Adjustments
INCOME, EXCLUSIONS, DEDUCTIONS, CREDITS AND TAX Complete column C, City Taxable Income, lines 1 through 13, before
PAID completing column B. Once the column C amount for a line is determined
A partnership is required to prepare and give Schedule K-1 (Form L-1065) and entered, the column B amount for the line is calculated by subtracting
to each person who was a partner in the partnership at any time during the the amount in column C from the amount in column A. Enter in the
year. Schedule K-1 (Form L-1065) must be provided to each partner on or calculated amount in Column B for the line. If a line in any column is blank,
before the day on which the partnership return is required to be filed. it is to be read as a zero (0).
Partnerships electing to pay tax that have a partnership partner Column C, City Taxable Income
(downstream partnership) are also required to provide Schedule K-1 (Form The amount of city taxable income for each line for each partner is
L-1065) to each partner of the downstream partnership (or chain of calculated in schedules attached to the partnership return enter the data
downstream partnerships) if the tax for the downstream partnership is for each line of Column C as determined in the schedule noted for the line.
calculated based upon the downstream partnership’s partner’s Line 1. Ordinary business income. Enter the amount of the partner’s
classification. ordinary business income as reported on Form L-1065, Sch. C, col. 3.
If the return is for a fiscal year or a short tax year fill in the fiscal tax year Line 1a. Ordinary income from other partnerships. Enter the amount of
spaces at the top of each Schedule K-1. If this is a final or an amended K- the partner’s taxable share of ordinary income from other partnerships as
1, mark (X) the appropriate box at the top of each Schedule K-1. reported on Form L-1065, Schedule B11, column 10.
On each Schedule K-1, enter the information about the partnership and the Line 2. Net rental real estate income (loss). Enter the amount of the
partner in Parts I and II (items A through M). In Part III, enter: in column A partner’s share of net rental real estate income (loss) as reported on Form
the amounts from the partners federal Schedule K-1 (Form 1065); in L-1065, Schedule B11, column 6.
column B the amounts of exclusions or adjustments to the amounts in
column A; and in Column C the partner’s city taxable share of each item of Line 3. Other rental income (loss). Enter the amount of the partner’s
income, deduction or information. taxable share of other rental income (loss) as reported on Form L-1065,
Schedule B11, column 7.
Part I. Information About the Partnership Line 4. Guaranteed payments to partners. Enter the amount of the
On each Schedule K-1, enter (A) the identifying number of the partnership,
and its (B) name and address. Also enter the (C) partnership’s business partner’s taxable guaranteed payments as reported on Form L-1065,
Schedule C, column 4.

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DISCLAIMER NOTICE
Line 5. Interest income. Enter the amount of the partner’s taxable share These instructions are interpretations of the Lansing Income Tax
of interest income as reported on Form L-1065, Schedule B11, col. 1. Ordinance. The Ordinance will prevail in any disagreement between forms
or instructions and the Ordinance.
Line 6. Dividend income. Enter the amount of the partner’s taxable share
of dividend income as reported on Form L-1065, Sch. B11, column 2. PARTNER CLASSIFICATION TABLE
Line 7. Royalties. Enter the amount of the partner’s taxable share of Information for completing Partner Information section on Form L-1065, page 1
royalties as reported on Form L-1065, Schedule B11, column 8. Enter federal classification in column 3; if column 3 equals individual owner, enter
residency classification in column 4; and if column 4 equals part-year resident, enter
Line 8. Net short term capital gain (loss). Enter the amount of the residency start and end dates in column 5
partner’s taxable share of net short term capital gain (loss) as reported on Column 4 Column 5
Form L-1065, Schedule B11, column 3. Column 3 Individual Partner Residency
Line 9. Net long term capital gain (loss). Enter the amount of the Federal Classification Residency Status Dates
partner’s taxable share of net long term capital gain (loss) as reported on Description Entry Description Entry Description
Form L-1065, Schedule B11, column 4.
Line 10. Net section 1231 gain (loss). Enter the amount of the partner’s Individual I Resident R
taxable share of net section 1231 gain (loss) as reported on Form L-1065, Nonresident N
Schedule B11, column 5. Part-year resident, PR Residency
Line 11. Other income. Enter the amount of the partner’s taxable share of resident portion start date
other income as reported on Form L-1065, Schedule B11, column 9. Part-year resident, PN Residency
nonresident portion end date
Line 12. Section 179 deduction. Enter a zero (0) or leave blank as this Corporation C
deduction is already included in the amount reported in column C, line 1. Estate F Nonresident N
Line 13. Other deductions. The amount to enter on this line must be Trust F Nonresident N
calculated based upon the type of other deduction and the taxability of the Partnership P
city income related to the deduction. Example: Item I, deductions – royalty Disregarded Entity DE If DE owner is an individual
income, would be deductible at the same percentage the related royalty
income is taxable by the city. There are very few other deduction items that Resident R
relate to city income. Nonresident N
Line 20. Other Information. The amount to enter on this line must be Part-year resident, PR Residency
calculated based upon whether the other information is city income or a resident portion start date
deduction allowed to determine city income. Example: Item M, recapture of Part-year resident, PN Residency
section 179 deduction, would be taxable at the same percentage the nonresident portion end date
related property was taxable by the city. There are very few other Exempt Organization E
information items that relate to city income. Foreign Government FG0V
Nominee Type
Part IV. Partner’s City Deductions, Credits and Tax Paid If actual owner is an
Part IV is divided into three sections. Refer to the following instructions to Nominee Individual NI individual:
complete this section. Resident R
D – Partner’s deductions for items paid by the partnership. Report the Nonresident N
partner’s share of deductions allowed under the city’s income tax Part-year resident, PR Residency
ordinance that were paid by the partnership. These deductions are the resident portion start date
partner’s: IRA deduction; Self-employed, SEP, SIMPLE and qualified plans Part-year resident, PN Residency
deduction; Renaissance Zone deduction; etc. nonresident portion end date
C – Credit for tax paid by partnership to another city. Report the tax Nominee Corporation NC
paid to other cities by partnership on behalf of partner who is a resident of Nominee Estate or Trust NF Nonresident N
the city named at the top of the Schedule K-1. Nominee Partnership NP
T – Income tax paid by the partnership. Report the actual tax paid by Entity NDE If actual owner of the DE is
Nominee Disregarded
an individual:
partnership on behalf of partner to the city named at the top of the Resident R
Schedule K-1. This is the amount reported on Form L-1065, Schedule 2, Nonresident N
column 10, for the partner. Part-year resident, PR Residency
Partner Instructions for Schedule K-1 (Form L-1065) resident portion start date
Instructions for partner’s reporting their partnership income on their Part-year resident, PN Residency
individual return (Form L-1040), corporate return (Form L-1120) or nonresident portion end date
partnership return (L-1065) are part of Schedule K-1 (Form L-1040). Nominee Exempt NE
SCHEDULE S – SUPPLEMENTAL NOTES AND SCHEDULES Organization
This schedule is used to explain items reported in other forms or Nominee Individual NIRA
schedules. Retirement Arrangement
Nominee Foreign
ASSISTANCE AND WEBSITE Government NFGOV
If you have questions or need assistance, call (517) 483-4114 for
partnership questions. Questions by mail should be directed to: Lansing Revised 01/17/2020
Income Tax Department, 124 W Michigan Ave., Lansing, Michigan
48933. Income tax forms, instructions and additional information are
available on City’s website, www.lansingmi.gov.

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