reglab/statecodes huggingface dataset:
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-401 - Basis of Filing › Section 35-3-08-06-401.02 - DIRECT OR SEPARATE ACCOUNTING

Current through June 25, 2024
1. Any taxpayer,
					 taxable both within and without this state, which maintains or could maintain
					 books of account detailing allocation of receipts and expenditures reflecting
					 clearly the business income attributable to property owned or business done in
					 this state, shall determine Mississippi net business income on the basis of
					 direct or separate accounting.
2.
					 Non-allocable general administrative expenses, and non-allocable net business
					 income derived from sales of capital assets, interest, dividends, rents,
					 royalties and other non-allocable business income shall be apportioned to
					 Mississippi on the basis of a sales ratio.
3. In the case, however, of contractors, the
					 non-allocable general and administrative expenses apportioned to this state
					 shall be determined by using the ratio between Mississippi direct job cost and
					 total direct job cost.
4. If at the
					 discretion of the Commissioner a sales ratio does not fairly apportion the
					 above items of income and expense, another ratio, such as an asset ratio, may
					 be required.
5. If a taxpayer feels
					 that a sales ratio does not fairly apportion the above mentioned income or
					 expense among all business activity, then the taxpayer may make application in
					 writing to the Commissioner. This application must explain why the sales ratio
					 does not fairly apportion and specify the ratio that the taxpayer wishes to
					 use. The taxpayer shall not use this other ratio unless approved in writing by
					 the Commissioner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-401 - Basis of Filing › Section 35-3-08-06-401.03

Current through June 25, 2024
ALLOCATION OF INCOME. Any taxpayer subject to the taxing
						jurisdiction of this state shall allocate non-business income or loss within
						and without this state in accordance with the further provisions of this
						Regulation. All expenses connected with earning non-business income, such as
						interest, taxes, general and administrative expenses and such other expenses
						relating to the production of non-business income, shall be deducted from gross
						non-business income. Non-business interest expense shall be computed by using
						the ratio of non-business assets to total assets applied to total interest
						expense. To the amount of non-business income allocated to this state, there
						shall be added the amount of net business income assigned, directly allocated
						or apportioned to this state under the other provisions of this Regulation to
						establish Mississippi taxable income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-401 - Basis of Filing › Section 35-3-08-06-401.04

Current through June 25, 2024
APPORTIONMENT OF INCOME. If the business activity in
						respect to any trade or business of a taxpayer occurs both within and without
						this state, and if by reason of such business activity the taxpayer in another
						state, portion of the net income (or net loss) arising from such trade or
						business which is derived from sources within this state shall be determined by
						apportionment in accordance with the further provisions of this regulation,
						where direct or separate accounting of net income or loss is not
						feasible.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-401 - Basis of Filing › Section 35-3-08-06-401.06

Current through June 25, 2024
CONSOLIDATED OR COMBINED RETURNS. See Regulation on
						Consolidated and Combined Returns.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.01 - Business Income of Producers of Mineral or Natural Resource Products

Current through June 25, 2024
1. Taxpayers engaged in the trade or business
					 of producing oil, gas, other liquid hydrocarbons, sulphur, coal, sand, gravel
					 and other mineral or natural resource products, except timber, shall determine
					 Mississippi net business income from such activity on a direct or separate
					 accounting basis. The Mississippi gross business income from the production of
					 mineral or natural resources shall include:
a. Sales of natural or mineral resources
					 produced in Mississippi and sold in this state;
b. The market value, at the time of transfer,
					 of all natural or mineral resources produced in this state and transferred by
					 the taxpayer to another state for sale, refining, processing or manufacturing,
					 provided that if the natural or mineral resources are sold by means of an
					 "arms-length" transaction prior to refining, processing or manufacturing, the
					 market value prescribed herein shall not exceed the selling price;
					 and;
c. The market value, at the
					 time of transfer, of all natural or mineral resources produced by the taxpayer
					 in Mississippi and transferred to a refinery, processing plant, or
					 manufacturing facility of the taxpayer in Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.02 - Business Income of Contractors

Current through June 25, 2024
1. The net business
					 income of taxpayers engaged in the business of contracting shall be accounted
					 for and assigned directly to this state for each contract performed within this
					 state. Taxpayers engaged in the business of contracting both within and without
					 the state shall determine such job cost which cannot be specifically allocated
					 to the Mississippi contract by multiplying such non-allocable business-related
					 expenses in the ratio that Mississippi direct job costs bears to total direct
					 job costs.
2. Where a contract is
					 performed partly within and partly without the state, the net business income
					 assignable directly to Mississippi shall be determined by first deducting from
					 the total contract receipts those job costs directly allocable to said contract
					 and then deducting a pro-rata part of expenses which cannot be directly
					 allocable to any contract, said pro-rata part to be determined by using the
					 ratio between the contract direct job costs and the direct job costs of total
					 contracts. The net business income from the contract, thus determined, shall
					 then be apportioned to Mississippi in the ratio that receipts from said
					 contract allocable to Mississippi for sales tax purposes bears to the total
					 receipts from said contract. In the event that no allocation has been or can be
					 made of the Mississippi gross receipts from said contract for Mississippi sales
					 tax purposes, and the Mississippi gross receipts from said contract cannot
					 otherwise be determined, then the apportionment of the net business income from
					 the contract to Mississippi shall be made by such reasonable method as is
					 acceptable to the Commissioner.
3.
					 In the case of a prime contractor, who enters into a contract with a
					 subcontractor for the performance of all or part of a contract within the State
					 of Mississippi, both prime contractor and subcontractor are required to report
					 any and all income from such contracts. 4. The net business income derived by a
					 contractor from gains or losses from sales of capital assets, interest,
					 dividends, rents and royalties shall be apportioned to Mississippi by
					 multiplying such net business income by a receipts factor, the numerator of
					 which is the total receipts located, assignable, allocated, or otherwise having
					 a situs in this state during the tax year, and the denominator of which is the
					 total receipts of the taxpayer everywhere during the tax year. In the case of
					 sales of capital assets (buildings, land, depreciable machinery and equipment,
					 stocks, bonds, etc.) receipts, for purposes of the receipts factor, shall
					 include only the net gain or loss resulting from such sales of capital
					 assets.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.03 - Business Income of Airlines. If an airline has any activity other than simply passing over this state, then it is "doing business" in this state and is required to file a return. The net business income of an airline company which has not been directly assigned, allocated or excluded as otherwise provided by this Regulation shall be apportioned to this state as provided in this section

Current through June 25, 2024
1. PASSENGER
					 TRAFFIC INCOME. Business income from passenger traffic shall be apportioned to
					 this state in the ratio that Mississippi revenue passenger miles bears to the
					 total revenue passenger miles. The numerator of the ratio shall be computed by
					 multiplying the number of revenue-producing passengers carried on flights
					 landing or taking off within this state by the number of miles flown over the
					 state by such flights. The denominator shall be determined by multiplying the
					 total number of revenue-producing passengers carried by the total number of
					 miles flown by flights carrying revenue-producing passengers.
2. CARGO TRAFFIC INCOME. Business income from
					 cargo traffic and other classes of traffic shall be apportioned to this state
					 in the ratio that Mississippi revenue ton miles, or other units of cargo
					 transported, multiplied by Mississippi miles flown bears to the total of such
					 elements of the factor. The numerator of each of such ratios shall be computed
					 by multiplying the number of revenue-producing tons, or other units of cargo
					 carried on flights landing or taking off within this state by the number of
					 miles flown over this state by such flights. The denominator of each of such
					 ratios shall be determined by multiplying the total number of revenue-producing
					 tons, or other units of cargo carried, by total number of miles flown by
					 flights carrying such revenue-producing cargo.
3. ALTERNATIVES BASIS. Business income of an
					 airline company, or business income from any class of traffic of an airline
					 company, may, as an alternative to the requirements of the paragraphs above, be
					 apportioned to this state in the ratio that Mississippi flight miles bears to
					 total flight miles during the tax year. The numerator of such alternative ratio
					 shall be computed by multiplying the number of miles flown over this state by
					 such flights. The denominator shall be determined by multiplying the total
					 number of revenue-producing flights by the total number of miles flown by such
					 flights.
4. In all of the
					 apportionment formulas above, mileage from states here the taxpayer is not
					 "doing business" will not be included in the apportionment formula.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.04 - Business Income of Motor Carriers. If a motor carrier picks up, delivers, services equipment, or has any activity other than simply passing through this state, then it is "doing business" in this state and is required to file a return. The net business income of motor carriers which has not been directly assigned, allocated or excluded as provided by this Regulation shall be apportioned to this state as provided in this section

Current through June 25, 2024
1.
					 PASSENGER TRANSPORTATION. Business income from the transportation of passengers
					 shall be apportioned to this state in the ratio that Mississippi revenue
					 passenger miles bears to the total revenue passenger miles of the taxpayer
					 during the tax period.
2. FREIGHT
					 TRANSPORTATION. Business income from the transportation of freight or cargo
					 shall be apportioned to this state in the ratio that Mississippi revenue ton
					 miles to the total revenue ton miles of the taxpayer during the tax
					 period.
3. PASSENGER-FREIGHT
					 TRANSPORTATION. Business income of taxpayers engaged in the transportation of
					 both passengers and freight shall first make a breakdown of the business income
					 between passenger traffic and freight traffic by using the several ratios
					 between gross revenue from each class of traffic and the total gross operating
					 revenues. Business income from each class or traffic shall then be apportioned
					 to this state in accordance with the two paragraphs above.
4. ALTERNATIVE BASIS. Business income of a
					 motor carrier, or business income from any class of traffic of a motor carrier,
					 may as an alternative to the requirements of the paragraph above, be
					 apportioned to this state (A) in the ratio that Mississippi vehicle miles bears
					 to total vehicle miles of the taxpayer during the tax period, or (B) in the
					 ratio that gross receipts from trips beginning, ending, or passing through
					 Mississippi bears to the total gross receipts.
5. In all of the apportionment formulas
					 above, mileage from states where the taxpayer is not "doing business" will not
					 be included in the apportionment formula.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.05

Current through June 25, 2024
Business Income of Certain Utilities. The net business
						income of taxpayers operating a railroad, express service, telephone or
						telegraph business, or other form of public service, other than public service
						companies specifically provided for elsewhere in this Regulation, which has not
						been directed to this state as provided by this Section.
1. FORMULA. Business income of public
					 utilities shall be apportioned to this state in the ratio that gross operating
					 revenues within Mississippi during the tax year bears to total gross operating
					 revenues everywhere by the taxpayer during the tax year.
2. GROSS OPERATING REVENUE WITHIN
					 MISSISSIPPI. The term "gross operating revenue within Mississippi" means an
					 equal mileage portion of revenue such as ton miles, passenger miles, message
					 miles, and the like as received for interstate business from activity in this
					 state whether such business originates, ends, or passes through Mississippi to
					 this result, there shall be added the Mississippi portions of all intrastate
					 revenue.
3. ALTERNATIVE. In cases
					 where the amounts of gross operating revenues within this state cannot be
					 accurately and adequately determined, the Commissioner may prescribe a method
					 for otherwise apportioning business income in Mississippi. Only methods
					 provided in this regulation may be used without the prior approval of the
					 Commissioner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.06

Current through June 25, 2024
Business Income of Retailers, Wholesalers, Service
						Companies and Lessors. The net business income of retailers, wholesalers,
						lessors and other service companies, merchants, traders, vendors, or dealers
						buying, selling or renting, other than those specifically provided for
						elsewhere in this Regulation, which has not been allocated, directly assigned,
						or excluded as otherwise provided, shall be apportioned to Mississippi by
						multiplying such net business income by a single sales-factor apportionment
						formula as defined in subsection 402.09 paragraph 3 of this
						Regulation.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.07 - Business Income of Pipelines. The net business income of a pipeline company which has not been allocated, directly assigned, or excluded as otherwise provided in this Regulation shall be apportioned to Mississippi by multiplying such net business income by a fraction, the numerator of which is the property factor plus the payroll factor, as defined in subsection 402.09, paragraphs 1 and 2 of this Regulation, plus the traffic miles factor, and the denominator where is three (3)

Current through June 25, 2024
1. TRAFFIC MILES
					 FACTOR. The term "traffic miles" means the movement or transportation of one
					 barrel of oil, one gallon of gasoline, or one thousand cubic feet of natural or
					 casinghead gas for a distance of one mile. In cases where MCF mileage units
					 cannot be determined, then capacity mileage of the pipeline in Mississippi to
					 total capacity mileage everywhere shall be used. Capacity mileage shall be
					 determined by squaring one-half (1/2) of the diameter of each size of pipe and
					 multiplying by the mileage of that size of pipe with a total computation for
					 each in Mississippi as compared to the total of such computations
					 everywhere.
2. PIPELINE COMPANY
					 DEFINED. A pipeline company means any taxpayer engaged in the trade or business
					 of moving, conveying or transporting through a system or conduit of pipes any
					 crude oil, natural gas, refined petroleum products, minerals or any other
					 mineral products to a point of delivery either in, out or through Mississippi,
					 and irrespective of whether such products of goods belong to the taxpayer or to
					 others. The term includes transmission lines and connecting field and storage
					 lines.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.08 - Business Income of Manufacturers

Current through June 25, 2024
1. MANUFACTURERS
					 SELLING PRINCIPALLY AT WHOLESALE. The net business income of a taxpayer,
					 engaged in the trade or business of manufacturing and selling principally at
					 wholesale, which has not been allocated, directly assigned, or excluded as
					 otherwise provided in this Regulation shall be apportioned to Mississippi by
					 multiplying such net business income by a fraction, the numerator of which is
					 the property factor plus the payroll factor plus the sales factor, as defined
					 subsection 402.09, paragraphs 1 and 2, and (c) of this Regulation, and the
					 denominator of which is three (3).
2. MANUFACTURERS SELLING PRINCIPALLY AT
					 RETAIL. The net business income of a taxpayer, engaged in the trade or business
					 of manufacturing and selling principally at retail, which has not been
					 allocated, directly assigned, or excluded as otherwise provided in this
					 Regulation shall be apportioned to Mississippi by multiplying such net business
					 income by a fraction, the numerator of which is the average of the sum of
					 property and payroll factors plus the sales factor, as defined in subsection
					 402.09, paragraphs 1 and 2 of this Regulation, and the denominator of which is
					 two (2).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 06 - Multistate Taxation › Section 35-3-08-06-402 - Computation of Basis of Filing › Section 35-3-08-06-402.10 - Other Provisions. If the allocation and apportionment provisions of this Regulation do not fairly represent the extent of the taxpayer's business activity in this state, the taxpayer may petition for, or the Commissioner may require, in respect to all or any part of the taxpayer's business activity, if reasonable

Current through June 25, 2024
1. Separate
					 accounting;
2. The exclusion of
					 any one of the factors;
3. The
					 inclusion of one or more additional factors which will fairly represent the
					 taxpayer's business activity in this state; or
4. The employment of any other method to
					 effectuate an equitable allocation and apportionment of the taxpayer's
					 income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 07 - Consolidated or Combined Returns › Section 35-3-08-07-100 - Taxpayer Election to File Consolidated or Combined Returns

Current through June 25, 2024
1. Two or more members of an affiliated group
				  of corporations may elect to file a consolidated income tax return when all the
				  business activities of the group of affiliated corporations included in the
				  consolidated return are conducted in, and are taxable solely in, Mississippi.
				  In determining whether the business activities of the group are conducted in
				  and are taxable in more than one state, the test of "taxable in another state"
				  as provided and defined in the Multistate Regulation, will apply.
2. Two or more members of an affiliated group
				  of corporations taxable in Mississippi and where one or more are taxable in
				  another state, as provided in the Multistate Regulation, may elect to file a
				  combined income tax return, as follows:
a. Net
				  income (or loss) of each member of the affiliated group included in the
				  combined return shall be computed on an individual corporate member
				  basis.
b. Mississippi taxable
				  income for each member included in the combined return shall be determined in
				  accordance with the provisions of the Multistate Regulation. The formula
				  prescribed in, or the direct accounting procedures prescribed in such
				  regulation, shall be applied to each member on an individual corporate basis to
				  determine net business income apportioned or directly assigned to Mississippi.
				  To that amount shall be added non-business income allocated or apportioned to
				  Mississippi by each member. The results from each member's computation shall
				  then be combined to determine the taxable income of the affiliated
				  group.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 07 - Consolidated or Combined Returns › Section 35-3-08-07-101 - Commissioner's Authority to Require Filing of Combined or Consolidated Return

Current through June 25, 2024
1. The Commissioner may require any or all
				  members of a group of affiliated corporations, whether or not subject to the
				  tax jurisdiction of this state, to file a combined or consolidated Mississippi
				  income tax return if he believes such combined or consolidated return is
				  necessary to clearly and equitably reflect the Mississippi taxable income of
				  the affiliated group, or included member or members thereof, subject to the
				  following conditions:
a. The net business
				  income (or loss) of each member required to be included in the combined income
				  tax return shall be determined on an individual corporate member basis. The net
				  business income (or loss) so computed for each member shall be combined to
				  determine the net business income (or loss) of the affiliated group of
				  corporations. The combined net business income (or loss) shall then be
				  apportioned by use of formulas prescribed and set forth in the Multistate
				  Regulation to determine the amount of net business income apportioned to
				  Mississippi. The apportionment formula provided in the Multistate Regulation
				  shall then be the consolidated elements or components of the required factors
				  for the affiliated group.
b. To the
				  amount determined in (a) above shall be added the combined net profit (or loss)
				  from non-business income of the affiliated group allocated or apportioned to
				  Mississippi to determine the total Mississippi taxable income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 07 - Consolidated or Combined Returns › Section 35-3-08-07-102 - In General › Section 35-3-08-07-102.01

Current through June 25, 2024
If no parent-subsidiary relationship exists, the
						consolidated or combined return will be determined using the income year of the
						affiliated corporation member expecting to have, on a recurring basis, the
						largest amount of Mississippi net taxable income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 07 - Consolidated or Combined Returns › Section 35-3-08-07-102 - In General › Section 35-3-08-07-102.02

Current through June 25, 2024
Generally, a newly organized affiliated corporate member
						will be, if eligible, included within the group filing the consolidated return
						in the year organized.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 07 - Consolidated or Combined Returns › Section 35-3-08-07-102 - In General › Section 35-3-08-07-102.03

Current through June 25, 2024
A newly acquired corporate member will also be eligible
						to be included in the combined return; but loss carryovers incurred prior to
						the time that the corporation became a member of the affiliated group can only
						offset income in that newly acquired corporation's future returns. Those losses
						will not be allowed to offset income of the other affiliated
						corporations.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 08 - Interest Expense › Section 35-3-08-08-100

Current through June 25, 2024
Section
					 27-7-9(j)(6)
					 requires that if a corporation or other legal entity enters into any
					 transaction that is for the benefit of its shareholders or for the benefit of
					 an affiliated corporation without an equal mutual business benefit to the
					 corporation, the transaction will be adjusted or eliminated. Interest expense
					 incurred for the purchase of its own stock, whether the corporation retires
					 this stock or not, or for leveraged buyouts are not for the benefit of the
					 corporation and may not be taken as an expense of the
					 corporation.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 08 - Interest Expense › Section 35-3-08-08-101

Current through June 25, 2024
Section
					 27-7-17
					 provides that an interest expense deduction will be denied or limited in the
					 case of a parent that makes a loan to a subsidiary which is not business
					 related. Subsidiaries that are undercapitalized and borrow money from a parent
					 corporation or other corporation of an affiliated group may not deduct any
					 interest on these loans. Corporations that borrow funds from affiliated
					 corporations for working capital and have been paying dividends instead of
					 retaining an amount of funds sufficient to maintain operations will be allowed
					 to deduct interest only on an amount equivalent to the borrowed funds less
					 dividends paid. Amounts of interest on borrowed funds used to pay dividends
					 will not be allowed as a deductible expense of the
					 corporation.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-100 - Definition

Current through June 25, 2024
For purposes of this regulation, the term
"partnership"
includes a syndicate, group, pool, joint venture or
					 other unincorporated organization through or by means of which any business,
					 financial operation or venture is carried on, and which is not within the
					 meaning of this title, a corporation or a trust or estate.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-101 - Return

Current through June 25, 2024
1. Every partnership, domestic or foreign,
				  deriving income from property owned within the State of Mississippi, or
				  business, trade, profession or occupation, carried on within the State shall
				  make a return for each taxable year. The return shall include the names,
				  addresses and social security numbers or identification numbers of all partners
				  who are entitled to share in the partnership net income. The return shall be
				  signed by any one of the partners and shall be filed on prescribed forms with
				  the Commissioner on or before the due date as provided by statute.
2. The individual partners are subject to tax
				  upon their distributive share of the partnership net income, whether
				  distributed to them or not. The partnership net income shall be computed in the
				  same manner and on the same basis as the net income of an individual, except
				  that the deduction for contributions or gifts is not allowed. These deductions
				  are allowed to the partners in their individual return.
3. Where the result of partnership operation
				  is a net loss, the loss will be divisible by the partners in the same
				  proportion as net income would have been divided (unless the partnership
				  agreement provides otherwise) and may be taken by the partners in their return.
				  The amount of partnership loss that may be allowed to a partner is limited to
				  the amount of the adjusted basis of this interest in the partnership at the end
				  of the partnership taxable year in which the loss occurred.
4. Payments made to a partner for services
				  rendered and for interest on capital contributions are not deductible in
				  computing the net income of the partnership, such payments being held to
				  represent a division of partner profits.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-102 - Nonresident Partner

Current through June 25, 2024
A nonresident individual, who is a member of a partnership
					 owning property or doing business in the State of Mississippi, is subject to
					 tax on his share of the partnership net income, whether distributed or not. If
					 the partnership does business both within and without the state, it will be
					 necessary to compute the income (or loss) of the partnership from sources
					 within the state separately from the other income in order to determine the
					 amount of income taxable to (or the amount of the loss deductible by) the
					 nonresident partners. The nonresident partner is subject to tax only on such
					 share of his income, whether or not distributed, as is assignable to
					 Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-103 - Liability of Partnership

Current through June 25, 2024
1. The partnership
				  and general partners shall be jointly and severally liable for any tax not paid
				  by the partners. Each partner in a partnership, whether general or limited,
				  resident or nonresident, is responsible for paying tax on his share of the net
				  gain or profit from the partnership. If the collection of such tax might not be
				  otherwise reported by the partners, the Commissioner shall require the
				  partnership or the general partners to remit the tax.
2. However, the partnership may withhold five
				  percent (5%) of the net gain or profit of the partnership and remit to the
				  Commissioner. The remittance shall be deemed estimated payments of the partners
				  and shall be allocated pro rata to the partners estimated tax account and would
				  be available for refund to the partner if his individual return indicates his
				  tax liability to be less than the five percent (5%) withheld.
3. A partnership that elects to withhold the
				  five percent (5%) should file the prescribed form with the Commissioner and
				  remit the tax. This form shall be filed by the due date of the partnership
				  return and a copy shall be provided to the partners after the form is submitted
				  to the Commissioner.
4. A
				  partnership that has income from sources within and without Mississippi should
				  withhold from Mississippi source income only.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-104 - Composite Returns

Current through June 25, 2024
1. A partnership is
				  allowed to file a composite return on behalf of its partners in very limited
				  circumstances. A composite return is a return in which a partnership pays the
				  income tax due for some, or all, of its partners. The only partners who are
				  eligible to be included in the composite return are nonresident partners
				  without any activity in Mississippi other than that from the
				  partnership.
2. Resident partners
				  and nonresident partners with other activity in Mississippi cannot be included
				  in a composite return. Each of these partners must file his own
				  return.
3. If a composite return is
				  filed, the partnership return is completed like any other partnership return,
				  but an additional schedule is attached listing the partners, the partner's
				  identification or social security number, and the partner's distribution that
				  is to be included in the composite return. The partnership then files a
				  nonresident individual return under the partnership name and identification
				  number in which it includes the composite income.
4. The partnership is allowed to deduct 10%
				  of adjusted gross income not to exceed $5,000 per composite return on the
				  income that relates to individuals as the amount for personal exemptions or
				  standard deductions.
5. Once a
				  partnership begins filing a composite return, it must continue unless
				  permission to change is granted in writing by the Commissioner.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 09 - Partnerships › Chapter 1 - Partnerships › Section 35-3-09-1-105 - Tax Years

Current through June 25, 2024
If the taxable year of a partner is different from that of
					 the partnership, the share of the partnership income to be reported by that
					 partner is based upon the income of the partnership for any taxable year of the
					 partnership ending with or within the partner's taxable year.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-100

Current through June 25, 2024
Fiduciary
means a guardian, trustee,
					 executor, administrator, receiver, conservator or any person, whether
					 individual or corporate, acting not for his own benefit, but for the benefit of
					 another, as to whom he stands in a relation necessitating great confidence and
					 trust, and a high degree of good faith, or acting in any fiduciary capacity for
					 any person, trust or estate.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-101 - Returns by Fiduciaries

Current through June 25, 2024
All legal fiduciaries must file a fiduciary return unless
					 the gross income does not exceed the allowable exemption, or unless there is a
					 specific exception in the regulations. A fiduciary who is the guardian of a
					 minor or incompetent, and where no legal trust or estate has been established,
					 is an exception and is not required to file a return.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-102 - Returns by Fiduciaries as Agent

Current through June 25, 2024
Every fiduciary, or at least one of joint fiduciaries
					 (except receivers appointed by authority of law, in possession of part only of
					 the property of the taxpayer) is required to make a return, or returns, of
					 income for the individual (decedent, minor or incompetent) whose entire income
					 from whatever source derived is in his charge, if the gross income of such
					 individual exceeds the exemption plus the standard deduction to which such
					 individual may be entitled.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-103 - Fiduciary Distinguished from Agent

Current through June 25, 2024
There may be a fiduciary relationship between an agent and
					 a principal, but the word "agent" does not denote a fiduciary. A fiduciary
					 relationship cannot be created by a power of attorney. An agent having entire
					 charge of property, with authority to effect and execute leases with tenants
					 entirely on his own responsibility and without consulting his principal, merely
					 turning over the net profits from the property periodically to his principal by
					 virtue of authority conferred upon him by a power of attorney, is not a
					 fiduciary within the meaning of the statute. In cases where no legal trust has
					 been created in the estate controlled by the agent and attorney, the liability
					 to make a return rests with the principal.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-104 - Minors

Current through June 25, 2024
A minor is taxable on his wages, on the income he receives
					 from the property he owns, and on income from funds held in trust for him. If
					 the gross income of a minor is in excess of the exemption provided for under
					 the Income Tax Act of 1952, he must file a return. On his return, the minor is
					 entitled to his own deductions and exemptions, like any other taxpayer. All
					 expenditures by the parent of the child attributable to amounts which are
					 includable in the gross income of the child (and not of the parents) shall be
					 treated as paid or incurred by the child. If a minor's income tax is not paid,
					 an assessment made against the minor will be treated as if it were made
					 directly against the minor's parent or guardian.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-105 - Guardians

Current through June 25, 2024
A guardian, whether of an infant or other person, is a
					 fiduciary, and as such is required to make and file the return for his ward and
					 pay the tax. Such a fiduciary is subject to all the provisions of this law
					 which apply to individuals, including the allowance of personal exemptions and
					 credits.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-106 - Decedents

Current through June 25, 2024
The net income of deceased individuals who, at the time of
					 death, were residents and who died during the taxable year or subsequent
					 thereto without having made a return shall be taxed at the rates and in the
					 same manner as living persons. A return for any year or period for which no
					 return has been filed by the decedent prior to his death shall be made and
					 filed by the executor or administrator of the estate of such decedent or the
					 person or persons having charge of the properties of such
					 decedent.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-107

Current through June 25, 2024
Devises, for income tax purposes, must report the income
					 derived from the realty devised to them for all taxable periods subsequent to
					 the testator's death, except in cases where a trustee or conservator is duly
					 appointed to take possession of the realty pending the outcome of a judicial
					 proceeding or action. In such case, the income from the realty would be
					 properly taxable, pending the contest, to the fiduciary as the income of
					 property held in trust under the provisions of the act.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-108

Current through June 25, 2024
A bequest is a gift by will of personal property. A devise
					 is a gift of real property by the last will and testament of the donor. A
					 bequest or devise received by a legatee under the provisions of a will or by an
					 heir in accordance with the statutes of descent and distribution is tax exempt,
					 but not the income thereof.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-109

Current through June 25, 2024
The income tax imposed upon individuals shall be
					 applicable to the income of estates or of any kind of property held in trust as
					 well as the net income received during the taxable year by deceased individuals
					 who, at the time of death, were residents and who have died during the taxable
					 year or subsequent thereto without having made a return, and the net income of
					 resident insolvent or incompetent individuals where the fiduciary has complete
					 charge of such net income. The rate of tax, the statutory provisions respecting
					 gross income, and, with certain exceptions, the deductions, exemptions and
					 credits allowed to individuals apply also to estates and
					 trusts.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-110

Current through June 25, 2024
The provisions of this regulation relating to estates and
					 trusts, fiduciaries and beneficiaries contemplate that the corpus of a trust,
					 or the income therefrom is, within the meaning of the act, no longer to be
					 regarded as that of the grantor. If, by virtue of the nature and purpose of the
					 trust, the corpus or income therefrom remains attributable to the grantor,
					 these provisions do not apply.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-111

Current through June 25, 2024
In general, the income of an estate or trust for the
					 taxable year which is currently distributed to the respective beneficiaries
					 must be returned by and will be taxed to the beneficiaries, but the income of a
					 trust which is to be accumulated or held for future distribution, whether
					 consisting of ordinary income or gain from the sale of assets included in the
					 corpus of the trusts, must be returned by and will be taxed to the fiduciary.
					 However, regardless of whether or not the income is taxable to the fiduciary or
					 to the distributee, the fiduciary is responsible for reporting all income,
					 allocation of the tax being affected by permitting the fiduciary, under certain
					 circumstances, to show as a deduction the amounts credited or paid to the
					 distributee.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-112 - Income to Fiduciary

Current through June 25, 2024
Generally, the gross income of an estate or trust is
					 determined in the same manner as that of an individual. Gross income of an
					 estate or trust includes all items of gross income received during the taxable
					 year, including:
1. Income accumulated
				  in trust for the benefit of unborn or unascertained person or persons with
				  contingent interest, and income accumulated or held for future distribution
				  under the terms of the will or trust. This income is taxed to the
				  fiduciary.
2. Income which is
				  distributed currently by the fiduciary to the beneficiaries, and income
				  collected by the guardian of an infant which is to be distributed as the court
				  may direct. This income is usually deductible by the fiduciary and is taxed to
				  the beneficiary. (See deductions for fiduciaries.)
3. Income received by the estate of a
				  deceased person during the period of administration or settlement of the
				  estate. This income may be taxed to the fiduciary or to the beneficiary,
				  depending upon the amounts which are properly paid or credited to the
				  beneficiary. (See deductions for fiduciaries.)
4. Income which, in the discretion of the
				  fiduciary, may be either distributed to the beneficiaries or accumulated. This
				  income may be taxed to the fiduciary or to the beneficiary, depending upon the
				  amounts which are properly paid or credited to the beneficiary. (See deductions
				  for fiduciaries.)
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 10 - Other Entities and Miscellaneous › Chapter 01 - Fiduciaries › Section 35-3-10-01-113 - Exemptions of Fiduciaries

Current through June 25, 2024
The personal exemptions allowed to fiduciaries are as
					 follows:
1. Estates. In the case of an
				  estate, a specific exemption of six hundred dollars ($600.00).
2. Trusts. In the case of a trust which,
				  under its governing instrument, is required to distribute all of its income
				  currently, a specific exemption of three hundred dollars ($300.00). In the case
				  of all other trusts, a specific exemption of one hundred dollars
				  ($100.00).