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2023
Form
MO-PTE
Pass-Through Entity Income Tax Return
Tax Deadline is April 15. See page 2 for extensions.
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2023
Form
MO-PTE
Pass-Through Entity Income Tax Return
Tax Deadline is April 15. See page 2 for extensions.
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ROUNDING ON MISSOURI RETURN
FORM MO-PTE EXTENSION OF TIME TO FILE AND PAY
GENERAL INFORMATION
This information is for guidance only and does not state the complete law. If a partnership or S corporation has been granted an extension
of time to file its federal income tax return, the time for filing
FILING REQUIREMENTS FOR FORM MO-PTE the Missouri pass-through entity income tax return is hereby
automatically extended. The length of this extension, from
For tax years ending on or after December 31, 2022, a partnership the original Form MO-PTE deadline, is equal to the number of
or S corporation may elect to become an affected business entity months by which the federal income tax return filing deadline was
for a tax year. The entity will make such election on its affected extended, but not to exceed six months. Example: A partnership’s
business entity tax return Form MO-PTE. A separate election must federal Form 1065 filing deadline was extended from March 15,
be made for each tax year. For more information concerning the 2024 (original due date), to September 15, 2024. That partnership’s
Missouri pass-through entity tax, see Section 143.436, RSMo. Form MO-PTE deadline is extended to October 15, 2024. Select the
box at the top of the form indicating you have an approved federal
extension and attach a copy of the Federal Extension, Form 7004,
AFFECTED BUSINESS ENTITY ELECTION to the MO-PTE. (Failure to check this box and provide a copy of the
extension may result in disallowing the extension.)
If you are electing to become an affected business entity and
consent to become subject to the tax imposed by Section 143.436, An extension of time to file will extend the time for payment of the
RSMo, for the tax period for which this return is filed, select the box tax. The pass-through entity must pay the tax on or before the
on Form MO-PTE. extended due date to avoid a 5 percent addition to tax. However,
simple interest will be calculated from the original return due date
If an election to become an affected business entity has been made until the tax is paid.
for a tax year, the election cannot be revoked for that tax year.
ROUNDING ON MISSOURI RETURN
MEMBERS OPT-OUT ELECTION
Rounding is required on your tax return. Zeros have been placed
The opt-out option is only allowed for members of an affected in the cents columns on your return. For 1 cent through 49 cents,
business entity if the affected business entity’s original round down to the previous whole dollar amount. For 50 cents
(un-extended) MO-PTE filing deadline is on or after August 28, through 99 cents, round up to the next whole dollar amount.
2024, and the affected business entity has not filed its original Example: Round $32.49 down to $32.00
return by that date. A member’s opt-out election for a tax year
must be filed with the Department on or before the earlier of the Round $32.50 up to $33.00
following dates: the original (un-extended) due date of the MO-PTE FILING AMENDED RETURNS
for the tax year, or the actual filing date of the MO-PTE for the tax
year. Once an opt-out election is filed, it applies for all subsequent To file an amended pass-through entity income tax return, useForm
tax years. MO-PTE. Select the box at the top of Form MO-PTE. The pass-
through entity must complete the entire return using the corrected
Any member of an affected business entity may elect not to figures. Complete each line using the corrected amounts. Failure to
have tax imposed with respect to the affected business entity’s fill out the entire return will delay the processing of the return.
separately and nonseparately computed items, to the extent such
items are allocable to that member. You must attach any required schedules or forms to support any
claim of refund on the amended return. Note: An amended return
If one or more members of the affected business entity make reducing pass-through entity income tax liability may result in a
an opt-out election, the affected business entity shall, when reduction or elimination of PTE Tax Credits for all members. If the
computing the tax, subtract the opt-out member(s) allocable items amended return is submitted without the proper attachments it
such as any income, additions, subtractions, deductions, credits, or may be partially or totally denied.
any relevant items. For example, line 1 must not include any items
of deduction allocable to any opt-out member. Attach copies of A pass-through entity must file an amended return within 90 days of
the form K-1(s) that were issued to the opt-out members. filing an amended federal partnership or S corporation income tax
return or within 90 days after the final determination date of federal
The opt-out election made by a nonresident member shall only be adjustments (12 CSR 10-2.105 and Section 143.601, RSMo). Attach
affective if that member has agree to: a copy of the amended federal return with applicable schedules.
(a) File a return and make timely payment of all taxes imposed on If the federal return was not amended, explain why the pass-
the member with respect to income of the affected business entity; through entity is amending the Missouri return and accompany the
explanation with applicable schedules. For Missouri forms, access
and the Department of Revenue’s website at dor.mo.gov/forms/.
(b) Be subject to personal jurisdiction in this state for purposes
of the collection of income taxes including interest and penalty, CONTACT INFORMATON
imposed on the member with respect to the income of the affected
business entity. If you have any questions, you may contact Corporate Tax at (573)
751-4541 or by email at corporate@dor.mo.gov
The nonresident member who elects to opt-out should submit a
signed statement agreeing to the above conditions.
FORM MO-PTE LINE-BY-LINE
TIME AND PLACE OF FILING AND PAYMENT
INSTRUCTIONS
Pass-through entity income tax returns are due on or before the At the top of the return, fill in the blanks indicating the beginning
15th day of the fourth month following the end of the tax year. and ending dates of the tax period. The pass-through entity’s tax year
Example: Taxable period of January 1, 2023, to December 31, 2023; and method of accounting for Missouri pass-through entity income
due April 15, 2024. tax purposes must be the same as for federal income tax purposes
Note: When the due date falls on a Saturday, Sunday, or a legal (12 CSR 10-2.035, Sections 143.271 and143.281, RSMo).
holiday, the return and payment will be considered timely if made on
the next business day.
Mail your return and payment to: Missouri Department of
Revenue, P.O. Box 3080, Jefferson City, MO 65105-3080. 2
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entities that engage in or are treated as engaging in a qualified trades
NAME AND ADDRESS SECTION or businesses, as specified by the IRS, are eligible for this deduction.
The Pass-through entity’s Missouri Tax I.D. Number must be entered in Attach a pro forma federal Form 8995 or Form 8995-A showing the
the spaces provided. Failure to include the Missouri Tax I.D. Number will computation of the federal qualified business income deduction as if
delay the processing of the return. Please contact Business Tax the affected business entity was allowed to take such a deduction for
Registration at (573) 751-5860 or businesstaxregister@dor.mo.gov if you federal tax purposes.
cannot locate or do not have a Missouri Tax I.D. Number.
Generally, the same limitations found in 26 U.S.C. Section 199A that apply
RETURN TYPE when computing the qualified business income deduction for individuals
will also apply directly to the affected business entity. When determining
• Amended Return — Check the box if the pass-through entity is threshold amount(s) based on filing status, the single threshold is used,
filing an amended return. not the joint threshold. The filing status of the shareholders, partners, or
members is not used or referenced for this purpose.
• Name Change — Check this box if the pass-through entity’s
name has changed since filing the previous Form MO-PTE. LINE 5 - BALANCE
• Address Change — Check this box if the pass-through entity’s Enter the total of Line 1 and Line 2 minus Lines 3 and 4.
address has changed since filing the previous Form MO-PTE.
• Final Return and Close Pass-Through Entity Income Tax Account — LINE 6 - PRELIMINARY MISSOURI NET INCOME (LOSS)
Check this box if the pass-through entity ceased doing business
during the tax period for which this return is being filed. If the amount on Line 5 is 100 percent from Missouri sources, enter the
• Bankruptcy — Check this box if the pass-through entity has amount from Line 5. If the amount on Line 5 is not 100 percent from
filed for bankruptcy since filing the previous Form MO- PTE or Missouri sources, complete Form MO-MS PTE. Enter the apportionment
if the pass-through entity is still in bankruptcy. method number used (apportionment election 2a, 3, 4, 5, 6, or 7) and
the appropriate percentage (rounded to three digits to the right of the
• Public Law 86-272 — Check this box if Missouri cannot impose decimal point, such as 12.345 percent) from Form MO-MS PTE in the boxes
income tax on this pass-through entity because the pass-through provided. Multiply Line 5 by the percentage and enter the result on Line 6.
entity meets the requirement(s) of P.L. 86-272.
LINE 1 - SUM OF SEPARATELY AND NONSEPARATELY LINE 7 - AGGREGATE DISTRIBUTIVE SHARE OF
COMPUTED ITEMS MISSOURI NET INCOME (LOSS)
If the affected business entity completing this Form MO-PTE is a direct or
Enter the sum of separately and nonseparately computed income indirect member of another affected business entity, such other affected
and deduction items under Internal Revenue Code Sections 702(a) business entity is referred to as a lower-tier affected business entity.
(for partnerships) or 1366 (for S corporations).
The affected business entity completing this Form MO-PTE must add
For S corporations, enter the amount from Federal Form 1120S, together its share(s) of Missouri net income or Missouri net loss from
Schedule K Line 18. all lower-tier affected business entities.
For partnerships, enter the amount from federal Form 1065, Page If this sum is negative, enter a negative figure on Line 7. Attach a
6, Analysis of Net Income (Loss), Line 1, less federal Form 1065, copy of the Missouri pass-through entity tax reports sent to the
Schedule K, Line 4 (but only to the extent the amount on Schedule K, affected business entity completing this Form MO-PTE from all
Line 4 is not already deducted on Schedule K, Lines 13a-e). lower-tier affected business entities pertaining to this tax year.
If the sum of separately and nonseparately computed income
and deduction items differs from the amount calculated using the LINE 8 - MISSOURI NET LOSS AND MISSOURI
instructions above, enter on Line 1 the sum of separately and BUSINESS INCOME TAX DEDUCTION
nonseparately computed income and deduction items as described
in Internal Revenue Code Sections 702(a) (for partnerships) or MISSOURI NET LOSS
1366 (for S corporations), and attach a detailed explanation, with This is not applicable for the affected business entity’s first year filing
calculations, clearly showing how the figure reported constitutes the Form MO-PTE. If it is the first year filing Form MO-PTE, enter $0.
partnership or S corporation’s sum of separately and nonseparately
computed income and deduction items. Enter the total amount of Missouri net loss reported on Form
MO-PTE and carried forward from one or more prior tax years to be
LINE 2 - TOTAL ADDITIONS used for this tax year. Do not include any amount of Missouri net loss
from a prior tax year that has already been carried forward and used
Enter the total additions from Page 3, Part A, Line 5. in calculating Missouri Net Income for a different tax year. Do not use
an amount of Missouri net loss from a prior tax year to reduce the
Missouri net income below $0 for this tax year.
LINE 3 - TOTAL SUBTRACTIONS
*MISSOURI BUSINESS INCOME DEDUCTION
Enter the total subtractions from Page 3, Part A, Line 12. The Missouri Business Income Deduction is applicable for tax year 2023
only if the affected business entity is filing or has filed its original Form
LINE 4 - FEDERAL QUALIFIED BUSINESS INCOME MO-PTE timely (including any valid extensions) on or after August 28,
DEDUCTION 2024. The Missouri Business Income Deduction cannot be claimed on an
amended Form MO-PTE, unless the original Form MO-PTE was timely
filed on or after August 28, 2024.
An affected business entity may only claim this deduction for this tax
year if it is filing an amended Form MO-PTE and has filed its original If the affected business entity meets the criteria, the affected business
Form MO-PTE before August 28, 2024. Otherwise, enter $0. entity should calculate the Missouri Business Income Deduction using
Schedule PTE-BD Missouri Business Income Deduction.
Compute the affected business entity’s federal qualified business
income deduction as if it was allowed to take such a deduction for If the original 2023 return was filed on or after August 28, 2024, and the
federal tax purposes under 26 U.S.C. Section 199A. For example, the Federal Qualified Business Income Deduction was used, the affected
income figures (e.g. the net capital gain, the taxable income as that business entity should amend the return to calculate the Missouri
term is used in IRC § 199A) of the partnership or S corporation itself Business Income Deduction.
are used in preparing the pro forma federal Form 8995 or 8995-A to
be attached to the Form MO-PTE. Generally, only affected business
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 Enlarge image | If you amend your 2023 MO-PTE return to claim the Missouri Business Income Deduction and previously claimed a Federal Qualified Business LINE 17 - AMENDED RETURN ONLY: OVERPAYMENT, IF Income Deduction on Line 4 of your 2023 original return, you will enter ANY, AS SHOWN ON ORIGINAL RETURN OR AS LATER zero on Line 4 of the amended return. Enter the amount calculated on ADJUSTED the Schedule PTE-BD Business Income Deduction on Line 8. Enter the amount of overpayment received (or expected to be If you previously reported a Missouri Net Loss on your 2023 original received) or the amount to be credited to anticipated tax for a later return, add the amount calculated for the Missouri Business Income filing period, as shown or adjusted on the original return. Any refund Deduction and the amount previously reported for the Missouri Net Loss due on the original return will be refunded separately from any together and enter the amount on Line 8 of the 2023 amended return. additional refund claimed on the amended return. Note: If the affected business entity files an amended pass-through entity income tax return to recalculate the Missouri Business Income LINE 18 - TOTAL Deduction, this may increase or decrease the income tax liability. If an increase or decrease in the tax paid occurs, the affected business Enter Line 16 minus Line 17. entity is required to report changes in the pro rata share of tax paid to the affected members. The affected member may be required to file an LINE 19 - OVERPAYMENT amended return based on the adjusted credit allocation. If the amount to be reported on Line 9 would be $0 or below zero Enter the overpayment if Line 18 is greater than Line 12. without utilizing any Missouri net loss carry forward from a prior tax year, do not enter any net loss carry forward on Line 8. LINE 20 - OVERPAYMENT TO BE APPLIED TO NEXT FILING PERIOD If the affected business entity has any available loss balances from prior tax year(s), attach a schedule showing the remaining loss Enter the amount of overpayment to be applied to the next filing balances from each tax year for which the affected business entity had period. If filing an amended return do not include the original a net loss. amount requested to be applied to the next filing period. LINE 9 - MISSOURI NET INCOME (LOSS) LINE 21 - FUND CONTRIBUTIONS Enter any portion of your pass-through entity income tax overpayment Enter the total of Line 6 minus Lines 7 and 8. you wish to contribute to the following funds. If you file a balance due return and wish to contribute to the funds, enter the amount in the LINE 10 - PASS-THROUGH ENTITY INCOME TAX appropriate box and attach a separate check for this amount. Enter the amount of Line 9 multiplied by 4.95 percent. Missouri Medal of Honor Trust Fund - Supports the cost If the result is less than zero, enter zero. of maintenance and repair and to help pay renewal fees for memorial bridges or memorial signs provided by the Department LINE 11 - TAX CREDITS of Transportation. Donations can be made directly to Medal of Honor Fund at 105 West Capitol Avenue, Jefferson City, MO 65102 Enter the total from Form MO-TC, Line 13. Access the Department of (Minimum contribution: $1.) Revenue’s website at dor.mo.gov to download Form MO-TC. Children’s Trust Fund — Children’s Trust Fund, Missouri’s Foundation In general, miscellaneous tax credits reduce tax liability under the SALT for Child Abuse Prevention, is a non-profit organization Parity Act, rather than constituting tax paid, and therefore do not qualify dedicated to the vision of children free to grow and reach their as payments for purposes of calculating the PTE credit for a member. full potential in a nurturing and healthy environment free from child abuse and neglect. For more information, please contact: LINE 12 - PASS-THROUGH ENTITY INCOME TAX LIABILITY Children’s Trust Fund, ctf4kids.org or call (888) 826-5437. (Minimum contribution: $2) Subtract Line 11 from Line 10. Result may only be less than zero if refundable tax credits were applied. Veterans Trust Fund — The Missouri Veterans Commission’s Veterans Trust Fund is a means by which individuals and corporations LINE 13 - ANTICIPATED TAX PAYMENT(S) may donate money to expand and improve services to veterans in Missouri. Con tri bu tions may be made at any time directly to: Enter the total 2023 anticipated payment(s) made with form MO-PTEAP. Veterans Trust Fund, c/o The Missouri Veterans Commission, P.O. Include any approved payment(s) credited from MO-1120ES. Include Drawer 147, Jefferson City, MO 65102-0147 or call (573) 751-3779. any approved overpayment(s) credited from 2022. If the requested (Minimum contribution: $2) overpayment(s) credited from 2022 has been adjusted, you must use Elderly Home Delivered Meals Trust Fund - The Elderly Home the adjusted amount. Delivered Meals Trust Fund supports the home delivered meals program for Missouri’s home-bound senior citizens, helping LINE 14 - PAYMENTS WITH FORM MO-7004 them to continue to live independently in their homes. The need for home delivered meals increases yearly as persons are living longer Enter the total payment(s) made with form MO-7004. and may need assistance. For more information, please contact: health. mo.gov/seniors/aaa/index.php. (Minimum contribution: $2) LINE 15 - AMENDED RETURN ONLY: TAX PAID WITH Missouri National Guard Trust Fund - The Missouri National Guard (OR AFTER) THE FILING OF THE ORIGINAL RETURN Trust Fund expands the capability to provide or coordinate Military Funeral Honors Ceremonies for veterans of Missouri Enter the amount of tax previously paid on the original return and and veterans buried in Missouri who have served their country any previously filed amended return. in an honorable manner. Contributions may be made at any time directly to Missouri National Guard Trust Fund, ATTN: JFMO-J1/SSH, LINE 16 - SUBTOTAL 2302 Militia Drive, Jefferson City, MO 65101-1203 or call (573) 638-9663. (Minimum contribution: $2) Enter the total of Lines 13 through 15. 4 |
 Enlarge image | Workers’ Memorial Fund - This fund has been established to create American Diabetes Asso ci a tion Gateway Area Fund (02) — Request for a permanent memorial for all workers who suffered a job information may be made by calling (314) 822-5490 or related death or injuries that resulted in a permanent disability contacting Gateway Area Diabetes Association Fund, while on the job in Missouri. Requests for information and 15455 Conway Road, Suite 360, Chesterfield, MO 63017. contributions may be made at any time to: Workers’ Memorial (Minimum irrevocable contribution: $1, not to exceed $200) Fund, ATTN: Director’s Office, 412 E. Dunklin St., Jefferson City, American Heart Association Fund (03) - For more information, MO 65101. (Mini mum contribution: $1) please contact: American Heart Association, 460 N. Lindbergh Childhood Lead Testing Fund - Activities supported by this fund ensure Blvd., St. Louis, MO 63141-7808, or call (314) 692-5600. (Minimum that Missouri children at risk for lead poisoning are tested and irrevocable contribution: $1, not to exceed $200) receive appropriate follow-up activities to protect their health ALS Lou Gehrig’s Disease Fund (05) - Call (888) 873-8539 and well being from the harmful effects of lead. For more for patient services in Eastern Missouri and (800) 878-2062 information please contact the Missouri State Public Health for patient services in Western Missouri. (Minimum irrevocable Laboratory at (573) 751-3334, or e-mail health.mo.gov/lab/ contribution: $1, not to exceed $200) (Minimum contribution: $1) Arthritis Foundation Fund (09) - Call (314) 991-9333 or Missouri Military Family Relief Fund - For more information, visit arthritis.org. Contributions can be made at any time please contact: Missouri Military Family Relief Fund, 2302 directly to the Arthritis Foundation, 9433 Olive Blvd. Suite 100, St. Louis, Militia Drive, ATTN: JFMO-J1/SS, Jefferson City, MO 65201- MO 63132. (Minimum irrevocable contribution: $1, not to exceed $200) 1203. (Minimum contribution: $1) Foster Care and Adoptive Parents Recruitment and Retention Fund (14) General Revenue Fund - Requests for information and - For more information please contact: Missouri Children’s Division, P.O. contributions may be made at any time directly to General Box 88, Jefferson City, MO 65103-0088 or call (573) 522-8024. (Minimum Revenue Fund, ATTN: Department of Revenue, P.O. Box 3022, contribution: $1) Jefferson City, MO 65105-3022. (Minimum contribution: $1) March of Dimes Fund (08) - Send requests for information and Organ Donor Program Fund - Contributions support organ and contributions directly to the March of Dimes Fund, 11829 tissue donation education and registry operation. For more Dorsett Road, Maryland Heights, MO 63043. (Minimum information, please contact Missouri Department of Health and irrevocable contribution: $1, not to exceed $200) Senior Services, Organ and Tissue Donor Program, P.O. Box 570, Jefferson City, MO 65102-0570, or call (888) 497-4564. Muscular Dystrophy Asso ci a tion Fund (07) - Requests for information (Minimum contribution: $2) and contributions may be made at any time directly to: Muscular Dystrophy Association, 222 South Riverside Kansas City Regional Law Enforcement Memorial Foundation Fund Plaza, Suite 1500, Chicago, IL 60606; (312) 260-5900. (Minimum The Regional Law Enforcement Memorial Garden honors and irrevocable contribution: $1, not to exceed $200) celebrates the men and women who have laid down their lives in the line of duty. Donations can be made directly to Kansas City National Multiple Sclero sis Society Fund (10) - Visit Regional Law Enforcement Memorial Foundation Fund at 527 W nationalmssociety.org, call (800)FIGHTMS, or contact National Multiple Sclerosis Society Fund, 12125 39th Street (132.24 mi) Kansas City, MO 64111. (Minimum contribution: $1) Woodcrest Executive Drive, Suite 320, St. Louis, MO 63141. (Minimum Soldiers Memorial Military Museum in St. Louis Fund - Supports irrevocable contribution: $1, not to exceed $200) Soldiers Memorial Military Museum in honoring military service Pediatric Cancer Research Trust Fund (18) - CureSearch for Children’s members, veterans, and their families, and sharing St. Louis’s Cancer raises funds to support children’s cancer involvement in the nation’s military history from the American research. For more information, visit curesearch.org or Revolution through today. Donations can be made directly call (800) 458-6223. (Minimum contribution: $1) to Soldiers Memorial Military Museum Fund at P.O. Box 775460 1315 Chestnut St., St. Louis, MO, 63103. (Minimum contribution: $1) LINE 22 - REFUND Additional Funds Enter the total of Line 19 minus Lines 20 and 21. This is the amount to If you choose to give to additional funds, enter the two-digit fund code be refunded. No refund of less than $1.00 will be made. (see below) in the spaces provided on Line 21. If you want to give to more than two additional funds, please submit a contribution directly to the The Department requires approved refunds of $100,000 or more fund. See dor.mo.gov/taxation/individual/trust-funds.html for additional to be issued electronically. If claiming a refund of $100,000 or information. more, complete Form 5378 and submit with your return. The form is available at dor.mo.gov/forms. Failure to include the form and all Donations received from the following funds are designate required documentation will delay the processing of your return. specifically for Missouri residents. LINE 23 - AMOUNT DUE Funds Codes American Cancer Society Heartland Division, Inc., Fund . ......... 01 Enter the underpayment amount if Line 12 is larger than Line 18. Refer to American Diabetes Association Gateway Area Fund ..............02 Page 1, “Time and Place of Filing and Payment” for payment information. American Heart Association Fund ..............................03 Amyotrophic Lateral Sclerosis (ALS—Lou Gehrig’s Disease) Fund .....05 AUTHORIZATION Muscular Dystrophy Association Fund ..........................07 March of Dimes Fund ........................................ 08 Check the “yes” box for authorization of release of confidential Arthritis Foundation Fund .................................... 09 information for the Director Revenue or delegate to discuss this return and attachments with the preparer whose signature appears on the National Multiple Sclerosis Society Fund ........................ 10 form. If the authorization box is marked “no,” or if it is left blank, the Foster Care and Adoptive Parents Recruitment and Retention Fund 14 Department can only discuss this return with the Affected Business Pediatric Cancer Research Fund ............................... 18 Entity Representative designated on Form 2827 or an authorized — representative. American Cancer Society Heartland Division, Inc., Fund (01) For more information anytime, call toll free (800) ACS-2345 or visit cancer.org. Donations can be sent directly to the American SIGNATURE Cancer Society at 1100 Pen nsylvania Avenue, Kansas City, MO 64105. (Minimum irrevocable contribution: $1, not to exceed $200) For an election to be effective, the affected business entity tax return (Form MO-PTE) on which the election is made must include the signatures of either: 5 |
 Enlarge image | Each member of the electing entity who is a member at the time the affected business entity tax return is filed; LINE 2 - STATE AND LOCAL BOND INTEREST or (EXCEPT MISSOURI) An officer, manager, or member of the electing entity who is authorized to make the election and who attests to having such Enter on Line 2a all interest from state and local bonds, excluding authorization under penalty of perjury. Missouri (Section 143.121.2(2), RSMo). or Enter on Line 2b the amount of expenses associated with the state For an original Form MO-PTE timely filed on or after August 28, and local bond interest. The expenses must equal or exceed $500. 2024, the designated affected business entity representative of the If less than $500, enter $0. Refer to Section 143.121.2(2), RSMo, for electing entity. Failure to sign the return will cause a delay in the further explanation. processing of the return. Failure to sign the return will cause a delay in the processing of the return. LINE 3 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT Include the signature, name, and telephone number of the (FROM FORM MO-1041 AND FORM MO-1065) partnership or S corporation’s Affected Business Entity Representative for the tax year. If a Form 2827 has not previously Enter the share of fiduciary and partnership adjustment as shown been properly filed with the Department designating an Affected on Form MO-1041, Page 2, Part 1, Line 19, and Form MO-1065, Line Business Entity Representative for the tax year, attach to your 11 (Section 143.121.4 and 5, RSMo). Copies of any Forms MO-1041 or Form MO-PTE filing a Form 2827 designating the partnership’s MO-1065 must be attached. or S corporation’s Affected Business Entity Representative. If a partnership or S corporation does not designate a person as an LINE 4 - BUSINESS INTEREST EXPENSE CARRYFORWARD Affected Business Entity Representative for the tax year for which this return is filed, the election to become an Affected Business Enter any interest expense paid or accrued in a previous taxable Entity will be ineffective. year, but allowed as a deduction under 26 U.S.C. Section 163, as To designate a person as an Affected Business Entity Representative, amended, in the current taxable year by reason of the carry forward complete Form 2827 and follow the relevant instructions on that of disallowed business interest provisions of 26 U.S.C. Section 163(j), form. The Affected Business Entity Representative has the sole as amended. (Section 143.121.2(6), RSMo). authority to act on behalf of the affected business entity for the tax year, with respect to any action required or permitted under LINE 5 -TOTAL ADDITIONS Missouri’s SALT Parity Act, a protest proceeding, or appeal. Only one natural person (i.e. not a business entity) may serve as the Enter total of Line 1 through Line 4. Affected Business Entity Representative for a particular tax year. That person must have a working e-mail address, telephone number, and physical address at which to receive mail. An Affected Business Part A - Subtractions Entity Representative may be removed only if the partnership or S corporation designates a new Affected Business Entity LINE 6 - INTEREST AND DIVIDENDS FROM EXEMPT Representative for that tax year on a subsequently filed Form 2827. FEDERAL OBLIGATIONS Note: If the entity will have each of its members sign in lieu of having an authorized officer, manager, or member sign, please attach a Enter on Line 6a the amount of interest and dividends from federal separate schedule to the Form MO-PTE containing the signature, obligations to the extent they are exempt from Missouri income tax, printed name, phone number, ownership percentage, and signature but subject to federal tax (12 CSR 10-2.150 and Section 143.121.3(1), date for each and every partner, shareholder, and member of the RSMo). A detailed list showing the amount of monies received or electing entity as of the filing date. the percentage of funds received from direct U.S. Government obligations must be attached to Form MO-PTE. Enter on Line 6b the amount of interest on indebtedness and FORM MO-PTE, PAGE 3 AND 4 LINE-BY-LINE expenses associated with the production of interest and dividend INSTRUCTIONS income on federal obligations shown on Line 6a. The expenses must Part A - Additions be at least $500. Refer to Section 143.121.3(1), RSMo, for further explanation. Enter on Line 1a the amount of Missouri income tax deducted on In arriving at the amount of related expenses, the taxpayer may use Federal Form 1120S or 1065 (Section 143.141(1),RSMo), and the actual expenses or a reasonable estimate. In general, the taxpayer amount of income taxes from other states, their subdivisions and the should use the same or similar method used to compute related District of Columbia deducted on Federal Form 1120S or 1065 expenses for federal income tax purposes, provided that the method (12 CSR 10-2.160 and Section 143.141(2), RSMo). reasonably reflects related expenses for Missouri exempt income. If a taxpayer fails to compute reasonable related expenses, the Income tax of the following states taken as a deduction on the Department of Revenue will make adjustments based on the federal return must be included on Line 1a: information made available. If sufficient information is not made Alabama Idaho Mississippi Rhode Island available or if the taxpayer’s records do not provide sufficient Alaska Illinois Missouri South Carolina information, the Department of Revenue will use the following Arizona (includes re- Montana (excludes Corporate formula to compute related expenses: placement tax) License Fee) Arkansas Indiana Nebraska South Dakota California Iowa New Hampshire Tennessee Exempt Income Expense Reduction to (income and (Business Profits Tax) (excise tax) Total Income X Items = Exempt Income franchise tax) Kansas New Mexico Texas Colorado Kentucky North Carolina Utah The principal expense item in this formula is interest expense; however, Delaware Louisiana North Dakota Vermont the Department of Revenue may include other expense items because Florida Maine Oklahoma Virginia of their direct relationship to the production of exempt income. The Georgia (excludes Maryland Oregon West Virginia taxpayer may propose an alternative method provided that it properly net worth tax) Michigan Pennsylvania Hawaii Minnesota Wisconsin reflects the amount of related expenses. Enter on Line 1b the amount of Kansas City and St. Louis earnings tax. 6 |
 Enlarge image | LINE 7 - AMOUNT OF ANY STATE INCOME TAX LINE 12 - TOTAL REFUND(S) INCLUDED IN THE SUM OF SEPARATELY AND NONSEPARATELY COMPUTED ITEMS Enter the total of Line 6 through Line 11. Part B - Member’s Share Percent Enter the amount of any Missouri income tax refund for a prior year that was included on the federal return in the sum of separately and This section indicates the member’s share percent and the amount of nonseparately computed items in the current year. the tax credit that will be claimed on the member’s income tax return Column 1 - Enter the name of each member. Attach additional sheets if LINE 8 - FEDERALLY TAXABLE MISSOURI EXEMPT needed. OBLIGATION Column 2 - Indicate if the member is a nonresident to the state of Enter the amount of any proceeds resulting from redemption, Missouri by marking the box. maturity, or sale of a bond issued by the Missouri Higher Education Column 3 - Enter the member’s social security number. If the member Loan Authority (MOHELA), as well as any interest on such bond, but only to the extent such amount was included in the sum of separately is another company enter the federal employer identification number. and nonseparately computed items on Form MO-PTE, Line 1. In the Column 4 - Enter the percentage from Federal Form 1120S or 1065, event that proceeds were received from the sale of such a bond, the Schedule K-1. Round the percentage to the nearest two decimal places. tax-exempt proceeds are limited to the extent of the holder’s cost of acquisition. For further information, see Section 173.440, RSMo. Column 5 - Enter the member’s tax credit to be claimed on the member’s income tax return. This is the member’s pro rata share of the LINE 9 - FIDUCIARY AND PARTNERSHIP ADJUSTMENT (FROM Form MO-PTE, Line 12 Pass-Through Entity Income Tax Liability, to the FORM MO-1041 AND FORM MO-1065), BUILD AMERICA extent paid. If the member is a S corporation or partnership, leave this AND RECOVERY ZONE BOND INTEREST, MISSOURI column blank for that entity. PUBLIC-PRIVATE TRANSPORTATION ACT, OTHER FORM MO-MS PTE Instructions Enter the share of fiduciary and partnership adjustment as shown on Form MO-1041, Page 2, Part 1, Line 20 and Form MO-1065, Line This information is for guidance only and does not state the complete law. 12 (Section 143.121.4 and 5, RSMo). Copies of any Forms MO-1041 or MO-1065 must be attached. GENERAL INSTRUCTION • Build America and Recovery Zone Bond Interest - Enter the Complete the Form MO-MS PTE if the balance (Form MO-PTE, Line 5) share of Build America and Recovery Zone Bond interest is not 100 percent from Missouri sources. Form MO-MS PTE must be (Section 108.1020,RSMo). completed even if this balance is zero or negative. If the pass-through • Missouri Public-Private Partnerships Transportation Act - Enter entity owns a percentage of a partnership(s), the partnership factors the share of income received under the Missouri Public-Private must be multiplied by the pass-through entity’s percentage of ownership, Transportation Act (Section 227.646, RSMo). and then added into the pass-through entity’s apportionment factors. • Marijuana Business Deduction – Enter the amount that is eligible APPORTIONMENT ELELCTION to be claimed as a federal income tax deduction but is disallowed by section 280E of the Internal Revenue Code. This deduction is Missouri statutes provide a number of methods for determining income exclusively limited to taxpayers authorized to do business under from Missouri sources. Choose only the appropriate one of the listed Article XIV of Missouri’s Constitution. methods and enter the method number on Form MO-PTE, Line 6 Method. You must submit the financial statement, schedule(s), your Once an election has been made, it cannot be changed with respect to medical license number (MED), if any, and all federal schedule(s) the same taxable period. with your Missouri Form MO-PTE to claim the deduction. Method Two A Receipts Factor Apportionment — Section 143.455.2, • Federal Broadband Grant Income Tax Subtraction - If you received RSMo. See instructions for completing Method Two A. grant money disbursed from a federal, state, or local Missouri program, for the express purpose of providing or expanding Method Three Transportation — Section 143.455.14, RSMo. broadband internet to areas of Missouri that are deemed to be Method Four Railroad — Section 143.455.15, RSMo. lacking such access, you may qualify to subtract 100 percent of the Method Five Interstate Bridge — Section 143.455.16, RSMo. grant money received. The grant money must have been included in Method Six Telephone and Telegraph — Section 143.455.17, RSMo. your federal taxable income. Attach the Form 1099-G issued to you Method Seven Other Approved Method — This method can only be validating the grant money received, grant documents that indicate used with prior approval from the Missouri Director of Revenue or the area of Missouri was deemed to be lacking broadband internet pursuant to a Missouri regulation creating an alternative industry-specific access, a copy of federal Form 1120S or 1065, and applicable method under Section 143.455.13(1), RSMo. schedule(s). The amount reported cannot exceed your federal adjusted gross income. Receipts Factor Apportionment Instructions - Step 1 A taxpayer must have income from business activity taxable by LINE 10 - AGRICULTURE DISASTER RELIEF this state and at least one other state to apportion and allocate Enter the amount of income your pass-through entity received income. Income from business activity includes apportionable and as payment from any program which provides compensation to nonapportionable income. The taxpayer’s income will be allocated agricultural producers who have suffered a loss as the result of a and apportioned according to Section 143.455. The taxpayer must disaster or emergency (Section 143.121.3(10), RSMo). You must determine which portion of the taxpayer’s Balance (Form MO-PTE, attach a copy of any Form 1099 indicating your agricultural payment. Line 5) constitutes “nonapportionable income.” The various items of For more information, visit dor.mo.gov. nonapportionable income are directly allocated to specific states, which may include Missouri. The apportionable income of the taxpayer is LINE 11 - DISALLOWED BUISNESS INTEREST EXPENSE divided between states by using the receipts factor. Enter any interest expense paid or accrued in the current taxable year, but Items of nonapportionable income may be reported on the Form not deducted on the federal return as a result of the limitation imposed MO-MS PTE and by attaching a detailed explanation. Only to the under 26 U.S.C. Section 163(j), as amended. (Section 143.121.3(11), RSMo). extent such items are included in Form MO-PTE, Line 5 (Balance). For 7 |
 Enlarge image | example, an item of nonapportionable income that was added on Form of tangible personal property are in this state to the extent that the MO-PTE, Line 2, would also be reported on Form MO-MS PTE. If all or tangible personal property is located in Missouri. part of an item of nonapportionable income was subtracted on Form • Real Property. Receipts from the sale, rental, lease, or license of MO-PTE Line 3, do not report the amount of nonapportionable income real property are in this state to the extent that the real property is so subtracted on Form MO-MS PTE. located in Missouri. • Services. Receipts from the sale of a service are in this state if and to APPORTIONABLE AND NONAPPORTIONABLE the extent that the ultimate beneficiary is in Missouri. Generally, the INCOME DEFINED ultimate beneficiary of the service (except for bartering and similar in-kind transactions) is the entity that receives benefit or value from, “Apportionable income” means all income that is apportionable under but does not also receive monetary or credit-based payment in direct the Constitution of the United States and is not allocated under the connection with, the service at issue (other than refunds, cashback, laws of this state. Apportionable income includes, but is not limited or discount-equivalents). In the event that the ultimate beneficiary to, income arising from transactions and activity in the regular is an entity that owns or operates in locations in multiple states, and the extent to which the ultimate beneficiary is located in Missouri course of the pass-through entity’s trade or business. Apportionable cannot reasonably be determined, the extent to which the ultimate income also includes, but is not limited to, income arising from beneficiary is located in Missouri may be reasonably approximated as tangible and intangible property if the acquisition, management, follows: employment, development, or disposition of the property is or was • The ratio of the number of Missouri locations, which the ultimate related to the operation of the pass-through entity’s trade or business. beneficiary owns or operates in, to the number of such locations “Nonapportionable income” means all income other than apportionable throughout the United States. income. The classification of income by the labels customarily given them, such as interest, dividends, rents, and royalties, is not conclusive in • If the ratio above cannot reasonably be determined, then the ratio of one to the number of states in which the ultimate beneficiary operates. determining whether the income is apportionable or nonapportionable income. Nonapportionable income will be considered only if a detailed • If the ratio above cannot reasonably be determined, then use fifty explanation is completed and attached. percent (50%). A taxpayer will not be subject to an addition to tax for negligence in relying upon this approximation of fifty percent (50%). TAXABLE IN ANOTHER STATE RENTAL, LEASE, OR LICENSE OF INTANGIBLE PROPERTY A taxpayer is “taxable in another state” if it meets either one of two tests: Receipts from the rental, lease, or license of intangible property are in (a) if by reason of business activity in another state the taxpayer this state to the extent that the intangible property is used in Missouri. is subject to one of these taxes: a net income tax, a franchise tax Intangible property that is rented, leased, or licensed and then used in this measured by net income, a franchise tax for the privilege of doing state in marketing a good or service to a consumer is used in this state if business, or a corporate stock tax; or the marketed good or service is purchased by a consumer in this state. (b) if another state has jurisdiction to subject the taxpayer to a net Franchise fees or franchise royalties received for the rent, lease, license, income tax, regardless of whether or not that state imposes such a tax or use of a trade name, trademark, service mark, or franchise system, or on the taxpayer. the right to conduct business activity in a specific geographic area, are receipts in this state to the extent that the franchise is located in this state. The first test is applicable only if a taxpayer carries on business activities in another state. If the taxpayer voluntarily files and pays one or more of SALE OF INTANGIBLE PROPERTY such taxes when not required to do so by the laws of that state or pays a minimal fee for qualification, organization, or for the privilege of doing Receipts from the sale of intangible property are in this state to the extent business in that state, but: the intangible property is used in Missouri. If the intangible property sold (a) does not actually engage in business activities in that state; or is a contract right, government license, or similar property that authorizes the holder to conduct a business activity in a specific geographic area, (b) does actually engage in some activity, not sufficient for nexus, and such intangible property is used in Missouri if the geographic area the minimum tax bears no relation to the entity’s activities within such state, the taxpayer is not “taxable” in another state. includes all or part of Missouri. If receipts from the intangible property sale is contingent on the productivity, use, or disposition of the intangible The second test applies if the taxpayer’s business activities are property, these receipts shall be treated as receipts from the rental, sufficient to give the state jurisdiction to impose a net income tax lease, or license of intangible property. All other receipts from a sale of under the Constitution and statutes of the United States. Jurisdiction intangible property shall be excluded from both the numerator and the to tax is not present where the state is prohibited from imposing the tax by reason of the provisions of Public Law 86-272, 15 U.S.C.A. denominator of the receipts factor. Sections 381–385. If you believe you do not have sufficient nexus If the state or states to which to assign receipts cannot be determined, and you are not liable for Missouri tax, you may complete a Form the state or states of assignment must be reasonably approximated 4458, Business Activity Questionnaire. For Missouri forms access the and you must attach a detailed statement explaining the basis of the Department of Revenue’s website at dor.mo.gov. reasonable approximation. LINES 1, 2, AND 3 - RECEIPTS FACTOR LINES 4 THROUGH 9 - ALLOCATION OF NONAPPORTIONABLE INCOME Complete Part 1, Lines 1 through 3. • The denominator of the receipts factor is generally all gross receipts Complete Lines 4 through 9 only if the taxpayer has nonapportionable received by a taxpayer from transactions and activity in the regular income. Nonapportionable income will be considered only if a detailed course of its trade or business. However, receipts from hedging explanation is completed and attached. In general, any income arising transactions or from the maturity, redemption, sale, exchange, loan, from transactions and activity in the regular course of the taxpayer’s or other disposition of cash or securities (e.g. stocks, stock options, trade or business, or any income arising from property if the acquisition, bonds) must not be included in either the numerator or denominator of the receipts factor. The numerator of the receipts factor is management, employment, development, or disposition of the property generally all gross receipts in Missouri from transactions and activity is or was related to the operation of the taxpayer’s trade or business, will in the regular course of the taxpayer’s trade or business. be apportionable income rather than nonapportionable income. • Tangible Personal Property. Receipts from the sale of tangible Rents and royalties from real or tangible personal property, capital personal property are in this state if the property is received in gains, interest, dividends, or patent or copyright royalties, are presumed Missouri by the purchaser. Receipts from the rental, lease, or license to be apportionable income unless the taxpayer clearly demonstrates 8 |
 Enlarge image | that they are nonapportionable income. To the extent one or more of If the mileage percentage on Form MO-MS PTE, Page 1, is applicable, these income items are nonapportionable income, allocate such item(s) or if the taxpayer has included any item of income to be allocated as follows: (as opposed to apportioned) on Form MO-PTE, Line 5, the taxpayer must complete Form MO-MS PTE, Part 1, Lines 4 through 9 and (a) Net rents and royalties from real property located in this state are enter the resulting percentage from Form MO-MS PTE, Part 1, Line 9 allocable to this state. onto Form MO-PTE, Line 6 Percent. When completing Form MO-MS (b) Net rents and royalties from tangible personal property are allocable PTE, Part 1, Lines 5 through 7, enter income allocated (as opposed to this state: (1) if and to the extent that the property is utilized in this to apportioned) everywhere and income allocated to Missouri, state; or (2) in their entirety if the taxpayer’s commercial domicile is in respectively, to the extent they are items included in the Balance this state and the taxpayer is not organized under the laws of, or taxable on MO-PTE, Line 5. Attach a detailed explanation supporting any in, the state in which the property is utilized. The extent of utilization of allocation (as opposed to apportionment) of income. tangible personal property in a state is determined by multiplying the rents and royalties by a fraction, the numerator of which is the number Method Seven Instructions of days of physical location of the property in the state during the rental or royalty period in the taxable year and the denominator of which is This method can only be used with prior approval from the Missouri the number of days of physical location of the property everywhere Director of Revenue or pursuant to a Missouri regulation creating an during all royalty or rental period during the taxable year. If the physical alternative industry-specific method under Section 143.455.13(1), location of the property during the rental or royalty period is unknown RSMo. At latest sixty days before the close of the tax year to which or unascertainable by the taxpayer, tangible personal property is utilized alternative apportionment is sought to apply, a taxpayer may file a in the state in which the property was located at the time the rental or petition for alternative apportionment, following all requirements of royalty payor obtained possession. 12 CSR 10-2.076 and section 143.455.13(2), RSMo, by emailing the petition to corporate@dor.mo.gov. Attach a detailed explanation (c) Capital gains and losses from sales of real property located in this of how any allocation and apportionment was performed. Either state are allocable to this state. a letter of approval must be attached to the return or the detailed (d) Capital gains and losses from sales of tangible personal property are explanation must identify the Missouri regulation that authorizes the allocable to this state if: (1) the property had a situs in this state at the time industry-specific method used and explain why the taxpayer qualifies of the sale; or (2) the taxpayer’s commercial domicile is in this state and the for the industry-specific method. The only industry-specific method taxpayer is not taxable in the state in which the property had a situs. currently allowed by Missouri regulation applies to broadcasters under 12 CSR 10-2.260. Entities defined as a broadcaster under 12 (e) Capital gains and losses from sales of intangible personal property are CSR 10-2.260 must choose Method Seven. allocable to this state if the taxpayer’s commercial domicile is in this state. Complete Form MO-MS PTE, Part 1, Lines 4 through 9 and enter (f) Interest and dividends are allocable to this state if the taxpayer’s the resulting percentage from Form MO-MS PTE, Part 1, Line 9 onto commercial domicile is in this state. Form MO-PTE, Line 6 Percent. When completing Form MO-MS PTE, (g) Patent and copyright royalties are allocable to this state: (1) if and to Part 1, Line 3, substitute the appropriate apportionment percentage the extent that the patent or copyright is utilized by the royalty payor in (without taking into account allocation of income) for the Receipts this state; or (2) if and to the extent that the patent or copyright is Factor. When completing Form MO-MS PTE, Part 1, Lines 5 and 7, utilized by the royalty payor in a state in which the taxpayer is not taxable enter income allocated (as opposed to apportioned) everywhere and and the taxpayer’s commercial domicile is in this state. A patent is utilized income allocated to Missouri, respectively, to the extent that item is in a state to the extent that it is employed in production, fabrication, included in the Balance on MO-PTE, Line 5. Include on the detailed manufacturing, or other processing in the state or to the extent that a explanation attachment support for any allocation (as opposed to patented product is produced in the state. A copyright is utilized in a state apportionment) of income. to the extent that printing or other publication originates in the state. If the basis of receipts from patent royalties or copyright royalties does not Definitions: permit allocation to states or if the accounting procedures do not reflect states of utilization, the patent or copyright is utilized in the state in which Affected business entity: Any partnership or S corporation that elects to the taxpayer’s commercial domicile is located. be subject to tax pursuant to Section 143.436, RSMo. Note: For allocation purposes, “commercial domicile” means the Member: principal place from which the trade or business of the taxpayer is (a) A shareholder of an S corporation; directed or managed. (b) A partner in a general partnership, a limited partnership, or a limited Methods Three, Four, Five, or Six Instructions liability partnership; or Enter Missouri miles, total miles, and percentage in the (c) A member of a limited liability company that is treated as a Apportionment Election section on Form MO-MS PTE, Page 1, if partnership or S corporation for federal income tax purposes. applicable. Enter the resulting mileage percentage on Form MO-MS Partnership: The same meaning as provided in 26 U.S.C. Section 7701(a) PTE, Part 1, Line 3 and Form MO-PTE, Line 6, unless required to (2) but, for all original Forms MO-PTE timely filed on or after August 28, complete Form MO-PTE, Part 1, Lines 4 through 9 as discussed 2024, not to include a publicly traded partnership. The term partnership below. If the mileage percentage on Form MO-MS PTE, Page 1, is shall include a limited liability company that is treated as a partnership inapplicable, attach a detailed explanation of how apportionment for federal income tax purposes. and allocation was performed. S corporation: A corporation or limited liability company that is treated as an S corporation for federal income tax purposes. 9 |
 Enlarge image | Pursuant to Section 105.1500, RSMo, the Department of Revenue is prohibited from requiring any entity exempt from federal income tax under Section 501(c) of the Internal Revenue Code, or any individual, to provide the Department with any list, record, register, registry, roll, roster, or other compilation of data of any kind that directly or indirectly identifies a person as a member, supporter, volunteer of, or donor of financial or nonfinancial support to, any entity exempt from federal income tax under Section 501(c) of the Internal Revenue Code. Nothing in this form should be read or understood as a requirement that you provide any such information. Notwithstanding any publication, webpage, form, instruction, regulation, or statement shared by the Department, you are not required to include such information on this form. If you encounter any technical difficulty in submitting this form without including information that you believe is protected by Section 105.1500, RSMo, feel free to contact the Department by email at corporate@dor.mo.gov or by phone at 573-751-4541. Checklist Before Mailing r Was the Form MO-PTE appropriately signed by someone consistent with these instructions? r Did you review your completed return? r Are the pass-through entity name and address correctly shown on the return? r Are your beginning and ending filing periods shown on the Form MO-PTE? r Have you verified all math calculations? r Did you receive a federal extension of time to file your return? If so, have you attached a copy of the federal extension (Federal Form 7004 and checked the box on the first page of the MO-PTE? r Have you attached a copy of the federal form or pro forma and sup porting schedules? r Have you addressed your envelope to the proper address? 10 |