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in a state to the extent that it is employed in production, Method Seven Instructions
fabrication, manufacturing, or other processing in the state
or to the extent that a patented product is produced in the This method can only be used with prior approval from the Missouri
state. Director of Revenue or pursuant to a Missouri regulation creating an
A copyright is utilized in a state to the extent that printing or alternative industry-specific method under Section 143.455.13(1),
other publication originates in the state. If the basis of RSMo. At latest sixty days before the close of the tax year to which
receipts from patent royalties or copyright royalties does not alternative apportionment is sought to apply, a taxpayer may file a
permit allocation to states or if the accounting procedures petition for alternative apportionment, following all requirements of
do not reflect states of utilization, the patent or copyright 12 CSR 10-2.076 and section 143.455.13(2), RSMo, by emailing the
petition to
is utilized in the state in which the taxpayer’s commercial corporate@dor.mo.gov. Attach a detailed explanation
of how any allocation and apportionment was performed. Either
domicile is located. a letter of approval must be attached to the return or the detailed
Note: For allocation purposes, “commercial domicile” means the explanation must identify the Missouri regulation that authorizes
principal place from which the trade or business of the taxpayer is the industry-specific method used and explain why the taxpayer
directed or managed. qualifies for the industry-specific method. The only industry-
specific method currently allowed by Missouri regulation applies
LINE 10 - APPORTIONED NET OPERATING LOSS to broadcasters under 12 CSR 10-2.260. Corporations defined as a
Apportion the net operating loss by multiplying it by a ratio. The broadcaster under 12 CSR 10-2.260 must choose Method Seven.
numerator and the denominator of the ratio are both determined Complete Form MO-MS, Part 1, Lines 4 through 12 and enter the
without including the net operating loss deduction. The numerator of resulting percentage from Form MO-MS, Part 1, Line 12 onto Form
the ratio is the Missouri Taxable Income calculated on Form MO-1120, MO-1120, Line 9 Percent. When completing Form MO-MS, Part
Line 13, with the amount of the net operating loss added back. The 1, Line 3, substitute the appropriate apportionment percentage
denominator of the ratio is the Missouri Taxable Income calculated (without taking into account allocation or NOL apportionment)
as though all income, including all corporate dividends and all for the Receipts Factor. When completing Form MO-MS, Part 1,
nonapportionable income, was derived from Missouri sources, with Lines 7 and 9, enter income allocated (as opposed to apportioned)
the amount of the net operating loss added back. Attach a detailed everywhere and income allocated to Missouri, respectively, to the
schedule showing how you calculated this ratio. Multiply the ratio by extent that item is included in Taxable Income – All Sources (Form
the net operating loss from MO-MS, Part 1, Line 5, and enter the result MO-1120, Line 8). Include on the detailed explanation attachment
on Form MO-MS, Part 1, Line 10. The ratio must not exceed 100%. support for any allocation (as opposed to apportionment) of
income. Unless the approved method or Missouri regulation directs
Method Three, Four, Five, or Six Instructions otherwise, the Apportioned NOL entered on Form MO-MS, Part 1,
Line 11 must be determined in a manner consistent with Section
Enter Missouri miles, total miles, and percentage in the Apportionment 143.455.19, RSMo.
Election section on Form MO-MS, Page 1, if applicable. Enter the
resulting mileage percentage on Form MO-MS, Part 1, Line 3 and
Form MO-1120, Line 9, unless required to complete Form MO-MS,
Part 1, Lines 4 through 12 as discussed below. If the mileage
percentage on Form MO-MS, Page 1, is inapplicable, attach a
detailed explanation of how apportionment and allocation was
performed.
If the mileage percentage on Form MO-MS, Page 1, is inapplicable,
or if the taxpayer utilizes any net operating loss for this tax year, or
if the taxpayer has included in Taxable Income - All Sources (Form
MO-1120, Line 8) any item of income to be allocated (as opposed
to apportioned), the taxpayer must complete Form MO-MS, Part 1,
Lines 4 through 12 and enter the resulting percentage from Form
MO-MS, Part 1, Line 12 onto Form MO-1120, Line 9 Percent. When
completing Form MO-MS, Part 1, Lines 7 and 9, enter income
allocated (as opposed to apportioned) everywhere and income
allocated to Missouri, respectively, to the extent they are items
included in Taxable Income – All Sources (Form MO-1120, Line
8). Attach a detailed explanation supporting any allocation (as
opposed to apportionment) of income.
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