Form CT-1120A-FS Corporation Business Tax Return - Apportionment Computation of Income From Financial Service Company Activities - Connecticut

Form CT-1120A-FS is a Connecticut Department of Revenue Services form also known as the "Corporation Business Tax Return - Apportionment Computation Of Income From Financial Service Company Activities". The latest edition of the form was released in December 1, 2017 and is available for digital filing.

Download a PDF version of the Form CT-1120A-FS down below or find it on Connecticut Department of Revenue Services Forms website.

ADVERTISEMENT
Form CT-1120A-FS
Department of Revenue Services
State of Connecticut
(Rev. 12/17)
Corporation Business Tax Return
Apportionment Computation of Income
From Financial Service Company Activities
Enter Income Year Beginning _____________________, _______ , and Ending ____________________, _________
Corporation name
Connecticut Tax Registration Number
Complete this form in blue or black ink only. See instructions.
Check here if the corporation elects to exclude receipts attributable to an international banking facility from the numerator
of its receipts factor and to include such receipts in the denominator of its receipts factor. The election is irrevocable for and
applicable for five successive income years.
Column A
Column B
Receipts Factor Apportionment
Connecticut
Everywhere
1. Receipts from the lease or rental of real property
1.
2. Receipts from the lease or rental of tangible personal property,
other than transportation property
2.
3. Receipts from the lease or rental of transportation property
3.
4. Interest, including fees and penalties, received on loans secured
by real property
4.
5. Interest, including fees and penalties, received on loans not
secured by real property
5.
6. Net gains from the sale of loans secured by real property
6.
7. Net gains from the sale of loans not secured by real property
7.
8. Loan servicing fees from loans secured by real property
8.
9. Loan servicing fees from loans not secured by real property
9.
10. Interest, dividends, gains (but not less than zero), and other income
from investment and trading assets and activities: See instructions.
Check method used for this item:
Average Value Method
Gross Income Method
10.
11. Receipts received for management, distribution, and administrative
services performed on behalf of an investment entity
11.
12. Receipts for management, distribution, and administrative services
performed on behalf of a pension fund or retirement account
Elect average fair market value of funds: See instructions.
12.
13. Any other receipts included in factor but not listed above:
Describe ________________________________________________ 13.
14. Total: Add Lines 1 through 13 for each column.
14.
Connecticut Apportionment Fraction
15. Receipts apportionment fraction: Divide Line 14, Column A, by
Line 14, Column B, and carry to six places. Enter the result here
0.
and on Form CT-1120, Schedule A, Line 2. Carry to six places.
15.
Form CT-1120A-FS
Department of Revenue Services
State of Connecticut
(Rev. 12/17)
Corporation Business Tax Return
Apportionment Computation of Income
From Financial Service Company Activities
Enter Income Year Beginning _____________________, _______ , and Ending ____________________, _________
Corporation name
Connecticut Tax Registration Number
Complete this form in blue or black ink only. See instructions.
Check here if the corporation elects to exclude receipts attributable to an international banking facility from the numerator
of its receipts factor and to include such receipts in the denominator of its receipts factor. The election is irrevocable for and
applicable for five successive income years.
Column A
Column B
Receipts Factor Apportionment
Connecticut
Everywhere
1. Receipts from the lease or rental of real property
1.
2. Receipts from the lease or rental of tangible personal property,
other than transportation property
2.
3. Receipts from the lease or rental of transportation property
3.
4. Interest, including fees and penalties, received on loans secured
by real property
4.
5. Interest, including fees and penalties, received on loans not
secured by real property
5.
6. Net gains from the sale of loans secured by real property
6.
7. Net gains from the sale of loans not secured by real property
7.
8. Loan servicing fees from loans secured by real property
8.
9. Loan servicing fees from loans not secured by real property
9.
10. Interest, dividends, gains (but not less than zero), and other income
from investment and trading assets and activities: See instructions.
Check method used for this item:
Average Value Method
Gross Income Method
10.
11. Receipts received for management, distribution, and administrative
services performed on behalf of an investment entity
11.
12. Receipts for management, distribution, and administrative services
performed on behalf of a pension fund or retirement account
Elect average fair market value of funds: See instructions.
12.
13. Any other receipts included in factor but not listed above:
Describe ________________________________________________ 13.
14. Total: Add Lines 1 through 13 for each column.
14.
Connecticut Apportionment Fraction
15. Receipts apportionment fraction: Divide Line 14, Column A, by
Line 14, Column B, and carry to six places. Enter the result here
0.
and on Form CT-1120, Schedule A, Line 2. Carry to six places.
15.
Form CT-1120A-FS Instructions
Administrative services include clerical, accounting, record
Complete this form in blue or black ink only.
keeping, transfer agency, bookkeeping, data processing,
Use Form CT-1120A-FS, Corporation Business Tax Return
custodial, internal auditing, legal, and tax services provided to
Apportionment Computation of Income From Financial Service
an investment entity, pension fund, or retirement account along
Company Activities, if the company is a financial service
with management or distribution services.
company, as defined in Conn. Gen. Stat. §12-218b, whose
business activity is taxable inside Connecticut, whether or not it
Distribution services include selling interests in an investment
is taxable outside Connecticut.
entity, pension fund, or retirement account. Distribution services
also include advertising, servicing, or marketing services
This form does not apply to net income from services or activities
provided to an investment entity, pension fund, or retirement
described in:
account by an entity that sells interests in such investment entity,
Conn. Gen. Stat. §12-218(e), services provided to a regulated
pension fund, or retirement account.
investment company. Use Form CT-1120A-IRIC;
Management services include:
Conn. Gen. Stat. §12-218(f), security brokerage services.
Use Form CT-1120A-SBC; and
1.
The rendering of investment advice to an investment entity,
pension fund, or retirement account;
Conn. Gen. Stat. §12-218(i), credit card activities. Use Form
CT-1120A-CCA.
2.
The determining when sales and purchases of property are
to be made on behalf of an investment entity, pension fund,
Such income shall be apportioned in accordance with subsections
or retirement account; and
(e), (f), or (i) of Conn. Gen. Stat. §12-218.
3.
The selling or purchasing of property constituting assets of
International banking facility: Receipts attributable to an
an investment entity, pension fund, or retirement account
international banking facility are not included in the numerator
pursuant to a contract with such investment entity, pension
or denominator of the receipts factor. In lieu of such exclusion
fund, or retirement account.
of receipts attributable to an international banking facility, the
taxpayer may, on or before the due date (or extended due date) of
General Instructions
its Corporation Business Tax return, make an election to exclude
Apportion the net income of a financial service company to
receipts attributable to an international banking facility from the
Connecticut by multiplying such income by an apportionment
numerator of its receipts factor and to include such receipts in
fraction that is calculated using the receipts factor that is reflected
the denominator of its receipts factor.
on Line 15. The numerator of the receipts factor is the total of
If the taxpayer makes the election, the taxpayer may not, in
the Connecticut receipts of the taxpayer during the income year
arriving at its net income, deduct the gross income attributable to
and is reflected in Column A, Line 14. The denominator of the
the international banking facility from its gross income. Expenses
receipts factor is the total of the receipts of the taxpayer within
or losses attributable to the international banking facility, to the
and outside Connecticut during the income year and is reflected
extent deductible under the Internal Revenue Code, may be
in Column B, Line 14. Use the same method to calculate receipts
deducted from its gross income. The election is irrevocable for
for purposes of the denominator as is used to determine receipts
and applicable for five successive income years.
for purposes of the numerator. For Lines 1 through 13, enter
Connecticut receipts in Column A and enter total receipts in
Definitions
Column B.
Financial service company is defined broadly and is intended
to include the traditional business entities that are generally
Line Instructions
considered to be engaged in the business of lending money,
Line 1 - Enter receipts from the lease, sublease, or rental of real
extending credit, or otherwise dealing in money capital. See
property on which the taxpayer may claim depreciation for federal
Conn. Gen. Stat. §12-218b(a)(6), Ruling 2000-4 and Ruling
income tax purposes or real property to which the taxpayer holds
2015-1.
legal title and on which no other person may claim depreciation
Loan means:
for federal income tax purposes. Connecticut receipts from the
lease or rental of real property are equal to receipts from the
1.
Any extension of credit resulting from direct negotiations
lease, sublease, or rental of real property that is owned by the
between the taxpayer and its customer; or
taxpayer and located in Connecticut.
2.
The purchase or receipt, in whole or in part, from another
Line 2 - Enter receipts from the lease, sublease, or rental of
of such extension of credit.
tangible personal property other than transportation property
Billing address means the location indicated in the books and
on which the taxpayer may claim depreciation for federal
records of the taxpayer, investment entity, pension fund, or
income tax purposes or tangible personal property to which the
retirement account as the address where any notice, statement,
taxpayer holds legal title and on which no other person may
or bill relating to the customer, investor, or participant’s account
claim depreciation for federal income tax purposes. Connecticut
is mailed. The billing address shall be determined as of the first
receipts from tangible personal property are equal to receipts
day of the taxable year, or the date during the taxable year when
from the lease, sublease, or rental of tangible personal property
the relationship began between the taxpayer, investment entity,
owned by the taxpayer if the tangible personal property is located
pension fund, or retirement account and the customer, investor,
within Connecticut when it is first placed in service by the lessee.
or participant.
Form CT-1120A-FS (Rev. 12/17)
Page 2 of 7
Line 3 - Enter receipts from the lease or rental of transportation
Line 9 - Enter loan servicing fees from loans other than loans
property, which means vehicles and vessels capable of moving
described in Line 8. Connecticut loan servicing fees derived from
under their own power (such as aircraft, trains, water vessels,
loans not secured by real property include the total of such fees
and motor vehicles) and any equipment or containers attached
multiplied by the amount in Column A, Line 5 and divided by the
to such vehicles and vessels. If the transportation property is
amount in Column B, Line 5. Connecticut loan servicing fees also
an aircraft then the Connecticut receipts are equal to the total
include fees for servicing such loans of another if the borrower is
receipts multiplied by the number of landings in Connecticut
located in Connecticut. A borrower is located in Connecticut if it
and divided by the total number of landings for the aircraft. If the
is engaged in a trade or business that maintains its commercial
transportation property is a motor vehicle then the Connecticut
domicile in Connecticut or it is not engaged in a trade or business
receipts are equal to the total receipts if the motor vehicle
and its billing address is in Connecticut.
is registered in Connecticut. If the extent of the use of any
Line 10 - Enter income from investment assets and activities
transportation property in Connecticut cannot be determined, the
and trading assets and activities, including:
property shall be deemed to be used wholly in the state which
1.
Interest;
the property has its principal base of operations.
2.
Dividends;
Line 4 - Enter interest received on loans where 50% or more
3.
Net gains (but not less than zero);
of the aggregate fair market value of the collateral used to
secure the loan is real property. Interest includes fees and
4.
Investment securities;
penalties in the nature of interest. Connecticut receipts from
5.
Account assets;
interest received on loans secured by real property are equal
6.
Federal funds;
to interest paid on loans if more than 50% of the fair market
value of the real property securing the loan is located within
7.
Securities purchased and sold under agreement to resell
Connecticut and interest paid on loans where more than 50%
or repurchase;
of the fair market value of the real property securing the loan
8.
Options;
is not located within any one state and the borrower is located
9.
Futures contracts;
within Connecticut. A borrower is located in Connecticut if it is
engaged in a trade or business that maintains its commercial
10. Forward contracts;
domicile in Connecticut or it is not engaged in a trade or business
11. Notional principal contracts (i.e. swaps, equities, foreign
and its billing address is in Connecticut. The location and the fair
currency transactions);
market value of the real property shall be determined at the time
12. Other income from investment assets and activities and
of the original agreement.
trading assets and activities;
Line 5 - Enter interest received on loans other than loans
13. The amount by which interest from federal funds sold
described in Line 4. Interest includes fees and penalties in the
exceeds interest expense on federal funds purchased;
nature of interest. Connecticut receipts from loans not secured by
real property are equal to interest on such loans if the borrower
14. The amount by which securities purchased under resale
is located in Connecticut. A borrower is located in Connecticut if
agreements exceeds interest expenses on securities sold
it is engaged in a trade or business that maintains its commercial
under repurchase agreements; and
domicile in Connecticut or it is not engaged in a trade or business
15. The amount by which the interest, dividends, gains, and
and its billing address is in Connecticut.
other income from trading assets and activities (including
Line 6 - Enter the net gain (but not less than zero) from the
assets and activities in the matched book, in the arbitrage
sale of loans where 50% or more of the aggregate fair market
book, and foreign currency transactions) exceeds the
value of the collateral used to secure the loan is real property.
amount paid in lieu of interest, the amount paid in lieu of
The Connecticut net gain from the sale of such loans is equal
dividends, and the losses from such assets and activities.
to the total net gain from the sale of such loans multiplied by
Connecticut income from investment assets and activities
the amount in Column A, Line 4 and divided by the amount in
and trading assets and activities is calculated using either the
Column B, Line 4.
Average Value Method or the Gross Income Method. The
Line 7 - Enter the net gain (but not less than zero) from the sale
taxpayer may elect either method or the Commissioner may
of loans other than loans described in Line 6. The Connecticut
require either method in order to accurately reflect the business
net gain from the sale of such loans is equal to the total net gain
of the taxpayer in Connecticut. For both methods, a taxpayer
from the sale of such loans multiplied by the amount in Column A,
shall have the burden of proving that an investment asset or
Line 5 and divided by the amount in Column B, Line 5.
activity is properly assigned to a regular place of business
outside Connecticut.
Line 8 - Enter loan servicing fees derived from loans where
50% or more of the aggregate fair market value of the collateral
Average Value Method:
used to secure the loan is real property. Connecticut loan
1.
Connecticut income from investment assets and
servicing fees derived from such loans include the total of such
activities in the investment account is equal to the total
fees multiplied by the amount in Column A, Line 4 and divided
income from such assets and activities multiplied by
by the amount in Column B, Line 4. Connecticut loan servicing
the average value of such assets properly assigned to
fees also include fees for servicing such loans of another if the
a place of business in Connecticut and divided by the
borrower is located in Connecticut. A borrower is located in
average value of all such assets.
Connecticut if it is engaged in a trade or business that maintains
2.
Connecticut income from federal funds sold and
its commercial domicile in Connecticut or it is not engaged in a
purchased and from securities purchased under resale
trade or business and its billing address is in Connecticut.
Form CT-1120A-FS (Rev. 12/17)
Page 3 of 7
agreement and securities sold under repurchase
Line 11 - Enter receipts for providing management, distribution,
agreement is equal to the total income from such funds
and administrative services performed on behalf of an
and securities multiplied by the average value of such
investment entity, which includes a separate account of an
funds and securities assigned to a regular place of
insurance company, an investment partnership, a real estate
business within Connecticut and divided by the average
investment trust, a real estate mortgage conduit, a financial
value of all such funds and securities.
asset securitization investment trust, or a similar investment
entity which is exempt from, or not subject to, federal income tax.
3.
Connecticut income from trading assets and activities
Connecticut receipts received from management, distribution,
(including assets and activities in the matched book, in
and administrative services performed on behalf of an investment
the arbitrage book, and foreign currency transactions)
entity are equal to the total amount of such receipts multiplied by
is equal to the total income from such assets and
the average value of the interests in the investment entity where
activities multiplied by the average value of such trading
the billing address of the owner is in Connecticut and divided by
assets assigned to a regular place of business within
the average value of the total interests in the investment entity.
Connecticut and divided by the average value of all
The average value of such interests is calculated by adding the
such assets. The average value of an asset, fund, or
value of such interests on the first day of the income year and
security is calculated by adding the value of the asset,
the value of such interests on the last day of the income year
fund, or security on the first day of the income year
and dividing that total by two.
and the value of the asset, fund, or security on the last
day of the income year and dividing that figure by two.
Line 12 - Enter receipts for providing management, distribution,
Either the taxpayer or the Commissioner may determine
and administrative services performed on behalf of a pension
Connecticut income by averaging the value of assets,
fund or retirement account, which generally means a fund, trust,
funds, or securities on a more frequent basis.
plan, account, annuity, or contract established according to a
federal or state statute which is designed to provide pension
Gross Income Method:
or retirement benefits. Connecticut receipts received from
1.
Connecticut income from investment assets and
management, distribution, and administrative services performed
activities in the investment account is equal to the total
on behalf of a pension fund or retirement account are equal to the
income from such assets and activities multiplied by
total amount of such receipts multiplied by the average number
the gross income from such assets which are properly
of participants in such pension fund or retirement account with
assigned to a regular place of business of the taxpayer
a billing address in Connecticut and divided by average number
within Connecticut and divided by the total gross income
of total participants with an interest in such pension fund or
from all such assets.
retirement account. The average number of such participants is
2.
Connecticut income from federal funds sold and
calculated by adding the number of participants on the first day
purchased and from securities purchased under resale
of the income year and the number of participants on the last
agreement and securities sold under repurchase
day of the income year and dividing that total by two.
agreement is equal to the total income from such funds
Election: The taxpayer may elect to calculate its Connecticut
and securities multiplied by the gross income from such
receipts based on the average fair market value of the funds
funds and securities assigned to a regular place of
under management of the pension fund or retirement account
business within Connecticut and divided by the gross
in each income year allocated to the commercial domicile of
income from all such funds and securities.
the sponsor of the pension fund or retirement account (plus the
3.
Connecticut income from trading assets and activities
fair market value of funds allocated to the billing address of the
(including assets and activities in the matched book, in
participant if there is no such sponsor.) The election shall be
the arbitrage book, and foreign currency transactions) is
irrevocable for five years and shall be applicable to all receipts
equal to the total income from such assets and activities
from management, distribution, or administrative services
multiplied by the gross income from such assets and
performed for any pension fund or retirement account.
activities assigned to a regular place of business within
Line 13 - Other receipts are included in Connecticut receipts if
Connecticut and divided by the gross income from all
such other receipts are derived from a customer with a billing
such assets and activities. If the taxpayer uses the
address in Connecticut. Otherwise, use Form CT-1120A.
Gross Income Method then it must continue to use the
Line 14 - Add Lines 1 through 13 in Column A and Column B,
Gross Income Method until it receives permission from
and enter the total.
the Commissioner to use the Average Value Method.
Line 15 - Divide Line 14, Column A, by Line 14, Column B. Enter
See Worksheets A, B, and C for additional assistance for Line 10.
the result here and on Form CT-1120, Corporation Business Tax
Return, Schedule A, Line 2.
Form CT-1120A-FS (Rev. 12/17)
Page 4 of 7
Worksheet A - Total Income from Investment Assets and Activities and Trading Assets and Activities
00
1.
Interest ....................................................................................................................................
1.
00
2.
Dividends ...............................................................................................................................
2.
00
3.
Net gains (not less than zero) ................................................................................................
3.
00
4.
Investment securities ..............................................................................................................
4.
00
5.
Account assets .......................................................................................................................
5.
00
6.
Federal funds .........................................................................................................................
6.
00
7.
Securities purchased and sold under agreement to resell or repurchase ..............................
7.
00
8.
Options....................................................................................................................................
8.
00
9.
Future contracts ......................................................................................................................
9.
00
10.
Forward contracts ..................................................................................................................
10.
00
11.
Notional principal contracts (swaps, equities, foreign currency transactions) ........................
11.
00
12.
Other income from investment assets and activities and trading assets and activities .........
12.
13.
Amount by which interest from federal funds sold exceeds interest expense on
00
federal funds purchased ........................................................................................................
13.
14.
Amount by which securities purchased under resale agreements exceeds interest
00
on securities sold under repurchase agreements ..................................................................
14.
15.
Amount by which the interest, dividends, gains, and other income from trading assets
and activities (including assets and activities in the matched book, in the arbitrage book,
and foreign currency transactions) exceeds the amount paid in lieu of interest, the amount
00
paid in lieu of dividends, and the losses from such assets and activities ..............................
15.
16.
Add Lines 1 through 15. Enter the total here and on Line 10, Column B, on the front
00
of the return. ...........................................................................................................................
16.
Form CT-1120A-FS (Rev. 12/17)
Page 5 of 7
ADVERTISEMENT
Page of 7