BCinSC Posted March 21, 2009 Report Posted March 21, 2009 MA partnership has income generated only in SC, to be taxed only in SC. The apportionment factor calculation is handling the calculation correctly for MA Form 3, page 4. However, the MA K-1s still show all the partnership income reportable to MA. Not sure what I am missing. Does MA require all partnership income to be reported in MA, even if it is taxed in another state? Any clarification is appreciated! Quote
Catherine Posted March 21, 2009 Report Posted March 21, 2009 MA partnership has income generated only in SC, to be taxed only in SC. The apportionment factor calculation is handling the calculation correctly for MA Form 3, page 4. However, the MA K-1s still show all the partnership income reportable to MA. Not sure what I am missing. Does MA require all partnership income to be reported in MA, even if it is taxed in another state? Any clarification is appreciated! Do you have the Massachusetts apportionment percentage (Line 5, page 4) as 0%? That's the first thing I'd check. If that's 0% but it's still showing up, then I'd try to offset the amount on Page 6 Line 20 "Differences and Adjustments". If none of that works, reply back and I'll try to think up something else. Catherine Quote
BCinSC Posted March 22, 2009 Author Report Posted March 22, 2009 Catherine, The allocation percentage is showing 0. I can set up an adjustment and everything goes to zero. I just wanted to make sure that MA allows that. Thanks for your help and my sincerest sympathy about your aunt. Prayers and good thoughts coming your way. Becky Quote
Catherine Posted March 22, 2009 Report Posted March 22, 2009 Catherine, The allocation percentage is showing 0. I can set up an adjustment and everything goes to zero. I just wanted to make sure that MA allows that. Thanks for your help and my sincerest sympathy about your aunt. Prayers and good thoughts coming your way. Becky Thank you, Becky. As for Mass and the partnership -- in some ways, Massachusetts is very "stone-age" about partnership returns. The whole form is not well thought out (which could itself be a catch-phrase for the state government). I'm not sure if you'll be able to e-file if you make that adjustment, but Massachusetts should accept it just fine. You can always add a Form TDS (taxpayer disclosure statement) explaining what you did and why. Catherine Quote
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