reglab/statecodes huggingface dataset:
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-100 - Owner and Land Eligibility

Current through June 25, 2024
1. An eligible
				  owner may be a non-resident; however, eligible lands include only land located
				  within the State of Mississippi. If one person as a life tenant holds property
				  with remainder to another person, the life tenant is considered to be the
				  eligible owner of the property that may qualify as eligible land for
				  reforestation tax credit purposes. For purposes of this section, eligible lands
				  shall not include leased property. Accordingly, a lessee cannot qualify as an
				  eligible owner with respect to costs incurred for reforestation practices on
				  leased land.
2. Land on which cost
				  share assistance was received for a particular practice is not eligible for the
				  reforestation tax credit for that practice, unless the eligible owner's
				  adjusted gross income is less than the federal earned income credit level for
				  that taxable year. The STC will determine the federal earned income credit
				  level each year based on information provided by the Internal Revenue
				  Service.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-101 - Credit Limitations

Current through June 25, 2024
1. When married
				  taxpayers own eligible land jointly and implement a reforestation plan on that
				  land, they are considered to be one taxpayer for purposes of applying the
				  limitations on the amount of reforestation tax credit earned on that property.
				  Each spouse may also qualify as an eligible owner, in their own right, (each
				  being eligible for the maximum lifetime RTC of $10,000) provided that each
				  spouse individually had qualified expenditures on eligible land which followed
				  a certified reforestation plan. When each spouse qualifies as an eligible
				  owner, and a reforestation tax credit was earned on eligible land owned jointly
				  by the spouses, each spouse will be considered to have earned one-half of the
				  reforestation tax credit with respect to the jointly owned property/properties.
				  When married taxpayers file jointly and each spouse qualifies for the
				  reforestation tax credit, each spouse must file a separate RTC form to claim
				  their respective reforestation tax credit. In computing their respective
				  reforestation tax credit on their individual RTC form, each spouse must use
				  one-half of the total income tax liability reflected on the combined return and
				  one-half of the total amount of all other credits available to be claimed on
				  the joint return.
2. In the case of
				  a pass-through entity (partnership or S Corporation), the maximum qualifying
				  expenditure ($20,000) giving rise to the maximum $10,000 lifetime reforestation
				  tax credit shall be applied at both the pass-through entity level and at the
				  investor (partner or shareholder) level. The maximum $10,000 reforestation tax
				  credit earned by the pass-through entity is allocated to each investor, partner
				  or shareholder based on their ownership interest. 3. Where more than one person
				  has an undivided ownership interest in eligible land, and two or more of the
				  interest holders implement a reforestation plan on that land, for purposes of
				  this section, the project will be considered a joint venture and treated in the
				  same manner as a partnership. Accordingly, the joint venture will be considered
				  the eligible owner and the maximum qualifying expenditure limitation shall be
				  applied at the joint venture level as in other pass-through entity
				  situations.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-102 - Applications

Current through June 25, 2024
1. For purposes of computing eligible costs
				  on which the RTC is computed, total expenditures made during the taxable year
				  on all eligible acres must be reduced by the amount of any cost-sharing
				  proceeds received from federal and/or state forestry incentives programs with
				  respect to such eligible acres.
2.
				  Reforestation costs generally must be capitalized and included in the adjusted
				  basis of the qualified timber property. Any reforestation costs incurred and
				  paid during a tax year must be reduced by the amount of any federal and/or
				  state cost-sharing proceeds received, and the adjusted basis of the property
				  decreased accordingly. If the taxpayer claims investment tax credit and
				  reforestation amortization deductions with respect to qualifying reforestation
				  expenditures for Federal income tax purposes, the basis of the qualified timber
				  property (for State purposes) shall first be reduced by 50% of the federal
				  investment tax credit. In addition, the adjusted basis of the property must be
				  reduced by 100% of the reforestation tax credit earned with respect to that
				  property. With respect to the property on which the Federal investment tax
				  credit and reforestation amortization deductions are claimed, amortization for
				  State purposes may be claimed on the portion of the qualifying state
				  reforestation expenditures (after being reduced by the Federal investment tax
				  credit adjustment and the RTC earned) which exceeds the basis of the Federal
				  qualifying reforestation expenditures (after being reduced by the Federal
				  investment tax credit adjustment and the Federal amortization to be claimed.)
				  Amortization for state purposes is to be computed in the same manner as for
				  Federal purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-104 - Record Keeping

Current through June 25, 2024
Since the RTC may be carried forward and claimed until such
					 time as 100% of the credit is utilized, the taxpayer must maintain appropriate
					 records to substantiate the amount of the credit earned, by year, up to the
					 maximum lifetime $10,000 credit; copies of the reforestation prescription(s) or
					 plan(s); copies of the RTC forms containing the signature of the forester
					 certifying the completion of the prescription or plan; and copies of all RTC
					 forms filed so that the utilization of the credit against tax liability can be
					 verified. When claiming RTC carried over from an earlier year or years, a copy
					 of the RTC form containing the original certification of a qualified forester
					 for the tax year in which the RTC was earned should be attached to the RTC form
					 filed for the current year. Recordkeeping is extremely important since failure
					 to adequately document the credit may result in the disallowance of the credit
					 claimed.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-105 - Other

Current through June 25, 2024
In order to provide statistical information concerning the
					 participation in reforestation activities, a copy of the "Reforestation Tax
					 Credit - Cost Worksheet" (page 2 only of each RTC form filed), must be mailed
					 to the Mississippi Forestry Commission at the address shown on the
					 form.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-106 - Example 1

Current through June 25, 2024
During taxable year 1, Taxpayer incurs qualifying
					 reforestation costs in the amount of $15,000. All of the costs incurred qualify
					 for federal investment credit and reforestation amortization and for the
					 Mississippi reforestation tax credit. The taxpayer elects to claim the
					 investment tax credit and to amortize the maximum expenditure ($10,000) for
					 federal tax purposes. Taxpayer also claims a reforestation tax credit of $7,500
					 ($15,000 X 50%) for Mississippi tax purposes. The taxpayer must make the
					 following basis adjustments and is entitled to reforestation amortization
					 deductions for both federal and state purposes as shown below:
Year
Item
Amortization Federal
Basis State
Qualifying Reforestation Costs
$15,000
$15,000
Investment Credit (Federal)
-500
-500
Reforestation Tax Credit Earned
-7,500
Remaining Basis
14,500
7,000
Federal Amortization to be Claimed
9,500
Remaining Basis After Federal Amortization
5,000
-5,000
State Amortization to be Claimed
2,000
1
Amortization: $9,500/84 = 113 x 6 months
679
Amortization: $2,000/84 = 24 x 6 months
142
2
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
3
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
4
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
5
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
6
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
7
Amortization: $9,500/84 = 113 x 12 months
1,357
Amortization: $2,000/84 = 24 x 12 months
286
8
Amortization: $9,500/84 = 113 x 6 months
679
Amortization: $2,000/84 = 24 x 6 months
142
Adjusted Basis (After federal amortization period)
$5,000
$5,000
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 05 - Business Deductions General › Chapter 09 - Reforestation Tax Credit › Section 35-3-05-09-107 - Example 2

Current through June 25, 2024
During year 1, Taxpayer has a reforestation prescription
					 prepared which includes site preparation, planting seedlings by machine, and
					 post-planting site preparation, on a 100 acre plot of land. In the fall of year
					 1, site preparation work was completed at a cost of $12,500. In the spring of
					 year 2, planting of the seedlings was completed at a cost of $6,400. Later in
					 year 2, post-planting site preparation was performed at a cost of $4,000,
					 completing all of the reforestation practices contained in the prescription.
					 For year 1, Taxpayer has eligible expenditures of $12,500. Upon certification
					 by a qualified forester that site preparation work was completed and that the
					 reforestation prescription was followed, Taxpayer may determine the amount of
					 RTC earned for year 1. For year 2, Taxpayer has eligible expenditures of
					 $10,400. Upon certification by a qualified forester that the prescription
					 practices were completed and that the reforestation prescription was followed,
					 Taxpayer may determine the amount of RTC earned for year 2. A RTC Form must be
					 filed for each year covering the practices completed and each RTC Form must be
					 signed by a qualified forester certifying that the practices were completed in
					 accordance with the prescription or plan. In the event that Taxpayer chooses
					 not to complete the prescription plan in Year 2 and uses the property for other
					 purposes, the RTC earned in year 1 must be recaptured.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-100

Current through June 25, 2024
A casualty loss is a loss due to some sudden, unexpected
					 or unusual event. Casualty losses include losses caused by fire, storm,
					 shipwreck, hurricane, flood, quarry blast, vandalism, sonic boom, earthquake or
					 earth slide.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-101

Current through June 25, 2024
For the purpose of this regulation, a
"disaster
					 loss"
is a casualty loss that occurs from an event in an area that the
					 President of the United States declares as a disaster area warranting Federal
					 assistance.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-102

Current through June 25, 2024
Mississippi Law differs from Federal Law in the carryback
					 and carryover provisions. Normally, casualty losses must be used in the year of
					 occurrence. An exception to this is a disaster loss as defined above. Disaster
					 losses may be carried back 3 years and carried forward 7 years. Casualty losses
					 that occurred to property used in a trade or business do not qualify as a
					 disaster loss. For treatment of these losses, see the regulation on casualty
					 losses incurred in a trade or business.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-103

Current through June 25, 2024
The amount of a casualty loss shall be computed the same
					 for Mississippi purposes as for Federal purposes. Each separate casualty, theft
					 and disaster loss in excess of $100.00 is deductible to the extent that the
					 total losses after the $100.00 deduction per loss exceeds 10% of adjusted gross
					 income.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-104

Current through June 25, 2024
Disaster losses are computed the same way with certain
					 limitations. In the year of the loss, for the carryback or carryover
					 computations, a taxpayer may not deduct his personal exemptions, a disaster
					 loss carryback or carryover from another year, or a net operating loss
					 deduction from another year. The carryback and carryover amount is limited to
					 the net disaster loss after the computation in the preceding
					 paragraph.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-105

Current through June 25, 2024
A disaster loss occurring after the end of the taxpayer's
					 filing year, but before the due date of the return, may deduct such loss on the
					 aforementioned return. The order of carryback and carryover is as
					 follows:
1. Third preceding taxable
				  year;
2. Second preceding taxable
				  year;
3. First preceding taxable
				  year;
4. First succeeding taxable
				  year;
5. Second succeeding taxable
				  year;
6. Third succeeding taxable
				  year;
7. Fourth succeeding taxable
				  year;
8. Fifth succeeding taxable
				  year;
9. Sixth succeeding taxable
				  year; and
10. Seventh succeeding
				  taxable year.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 01 - Casualty Losses of Individuals › Section 35-3-06-01-106 - Example

Current through June 25, 2024
In March, 1986, the taxpayer suffers a casualty loss from
					 the flooding of his personal residence. The casualty sustained is $80,000,
					 computed in accordance with provisions of the Internal Revenue Code, Rules,
					 Regulations and Revenue Procedures. The taxpayer elects to deduct the loss on
					 his return for the preceding year. The original 1985 return reveals the
					 following data:
Husband
Wife
Net Income (Adjusted Gross Income)
$30,000.00
$15,000.00
Itemized Deductions:
Medical Expenses
$ 400.00
Taxes
1,500.00
Misc. Deductions
100.00
Interest Expense
3,500.00
Contributions
2,000.00
7,500.00
.00
Balance
22,500.00
15,000.00
Personal Exemption
Married
9,500.00
Dependents (2 Children)
3,000.00
7,500.00
5,000.00
Taxable Income
15,000.00
10,000.00
Tax Due
$ 950.00
$ 600.00
$ 350.00
Computation of Net Casualty Loss-Form
							 62-170-Amended Return
Return For 1985
Taxable Income Before
Personal Exemption:
$22,500.00
$15,000.00
Casualty Loss
$80,000.00
Per Casualty Deductible
( 100.00)
10% AGI Limitation
(
4,500.00
)
60,400.00
15,000.00
Net Casualty Loss
$37,900.00
$ .00
Refund Due Taxpayers
$950.00
Application of Net Casualty Loss.
1982 Return Gross Income
$25,000.00
$10,000.00
Net Casualty Loss Balance from 1985
(
27,900.00
)
(
10,000.00
)
Balance
$ (2,900.00)
$ ( .00)
1983 Return-Gross Income
$25,000.00
$10,000.00
Net Casualty Loss Balance from 1982
(
2,900.00
)
.00
1983 Gross Income after Carryback
$22,100.00
$10,000.00
Note that a net casualty loss carryback or
							 carryover is deducted from gross income (before itemized deductions and
							 personal exemption.)
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-100

Current through June 25, 2024
Except as otherwise provided, any loss arising from fire,
					 storm, shipwreck or other casualty is allowable as a deduction for the taxable
					 year in which the loss is sustained.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-101

Current through June 25, 2024
In determining the amount of loss deductible under this
					 regulation, the fair market value of the property immediately before and
					 immediately after the casualty shall generally be ascertained by competent
					 appraisal. This appraisal must recognize the effects of any general market
					 decline affecting undamaged as well as damaged property which may occur
					 simultaneously with the casualty, in order that any deduction under this
					 regulation shall be limited to the actual loss resulting from damage to the
					 property.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-102

Current through June 25, 2024
In the case of property which originally was not used in
					 the trade or business or for income-producing purposes and which is thereafter
					 converted to either of such uses, the fair market value of the property on the
					 date of conversion, if less than the adjusted basis of the property at such
					 time, shall be used, after making proper adjustments in respect of basis, as
					 the basis for determining the amount of loss.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-103

Current through June 25, 2024
The amount of loss to be taken into account for purposes
					 of this regulation shall be the lesser of either:
1. The amount which is equal to the fair
				  market value of the property immediately before the casualty reduced by the
				  fair market value of the property immediately after the casualty; or
2. The amount of the adjusted basis for
				  determining the loss from the sale or other disposition of the property
				  involved.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-104

Current through June 25, 2024
However, if the property used in a trade or business or
					 held for the production of income is totally destroyed by casualty, and if the
					 fair market value of such property immediately before the casualty is less than
					 the adjusted basis of such property, the amount of the adjusted basis of such
					 property shall be treated as the amount of the loss.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-105

Current through June 25, 2024
A casualty loss incurred in a trade or business for profit
					 shall be determined by references to the single, identifiable property damaged
					 or destroyed. Thus, for example, in determining the fair market value of the
					 property before and after the casualty in a case where damage by casualty has
					 occurred to a building and ornamental trees used in a trade or business, the
					 loss is computed separately for the building and separately for the trees. This
					 rule does not apply to non-business property.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 06 - Losses › Chapter 02 - Casualty Losses Incurred in a Trade or Business › Section 35-3-06-02-106

Current through June 25, 2024
Casualty losses incurred in a trade or business are not
					 subject to the $100 floor, however, where property is used partially for
					 business and partially for personal purposes, the $100 floor would apply to the
					 portion of the property used for personal purposes. Casualty losses to property
					 connected with a trade or business may be deducted in the taxable year in which
					 the loss occurred. Such business casualty loss may give rise to a "net
					 operating loss" deduction for the taxable year; however, a casualty loss to
					 property used in a trade or business does not give rise to a "net operating
					 loss" deduction as provided for individuals.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-100

Current through June 25, 2024
The term
"resident"
includes natural persons
					 domiciled in this state for other than temporary or transitory purposes or
					 natural persons who maintain a legal or actual residence within this state. All
					 other individuals are nonresidents.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-101

Current through June 25, 2024
Domicile is the place where an individual lives and has
					 his permanent home and principal establishment, and to which he has the
					 intention of returning whenever he is absent. Actual residence may or may not
					 necessarily mean domicile, for domicile is the fixed place of abode which in
					 the intention of the taxpayer is permanent rather than transitory. It is the
					 place in which an individual has voluntarily fixed the habitation of himself
					 and his family, not for a special or limited purpose, but with the present
					 intention of making a permanent home, until some unexpected event shall occur
					 to induce him to adopt some other permanent home. A domicile once established
					 continues until a new domicile is established through the intent and purpose of
					 establishing, and the actual establishment, of a new domicile coupled with the
					 abandonment of the old. Every person has one and only one domicile. What
					 constitutes domicile is a question of fact rather than of law, frequently
					 depending on a variety of circumstances. The Commissioner may require of an
					 individual claiming domicile outside the State of Mississippi a statement of
					 information with respect to the particular case.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-102

Current through June 25, 2024
An individual who maintains a home, apartment or other
					 place of abode in Mississippi, or who exercises the rights of citizenship in
					 Mississippi by meeting the requirements as a voter or who enjoys the benefits
					 of homestead exemption, is a legal resident of the State of Mississippi and
					 remains a resident although temporarily absent from the state for varying
					 intervals of time. A person may, therefore, be living without Mississippi and
					 still be a legal resident of Mississippi for tax purposes. If an individual
					 establishes the status of a legal resident of Mississippi, he retains that
					 status until such time as such individual takes positive action to establish
					 legal residence in some other state or country and relinquishes his rights and
					 privileges of residency in Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-103

Current through June 25, 2024
Every natural person who, though not necessarily a legal
					 resident of Mississippi, nevertheless resides within this state on a more or
					 less regular or permanent basis and not on the temporary or transitory basis of
					 a visitor or sojourner, is defined as an actual resident of this state for
					 income tax purposes.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-104

Current through June 25, 2024
If an individual is simply passing through this state on
					 his way to another state or country or is here for a brief rest or vacation or
					 to complete a particular transaction or fulfill a particular engagement, which
					 will require his presence in this state but for a short period of time, he is
					 in this state for temporary or transitory purposes and will not be considered
					 to be a resident or domiciled here by virtue of his presence within the state.
					 If an individual is in this state to improve his health, and his illness is of
					 such character as to require a relatively long or indefinite period to
					 recuperate or is here for business purposes which will require a long or
					 indefinite period to accomplish or is employed in a position that may last
					 permanently or indefinitely or is retired from business and moves to
					 Mississippi with no definite intention of leaving shortly thereafter or is
					 otherwise physically present in this state for an indefinite period of time,
					 such individual is domiciled in Mississippi, and taxable upon his entire net
					 income, even though such person may retain his legal residence in some other
					 state or country. As to whether an individual is in a temporary or transitory
					 situation will depend to a large extent upon the facts and circumstances of
					 each particular case.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-105

Current through June 25, 2024
An actual or legal resident of Mississippi who accepts
					 temporary employment in another state or country or who may travel extensively
					 abroad or who may accept a temporary teaching assignment in another state or
					 foreign country or who may otherwise leave the state with intentions, at the
					 time of departure, of returning to this state, remains a resident of this state
					 during the period of his absence from the state. An individual, however, who
					 moves to another state or to a foreign country with no intentions, at the time
					 of departure, of returning to Mississippi, and who surrenders all rights and
					 privileges as a resident of this state, ceases to be a resident of the state
					 from the date of his departure.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 01 - Residents › Section 35-3-07-01-106

Current through June 25, 2024
A resident of Mississippi, who is employed in an
					 occupation that has a periodic work schedule and the work location is outside
					 of the State of Mississippi, is required to file a Mississippi resident return.
					 An example of this is an offshore oilfield worker whose work schedule is seven
					 (7) days on and seven (7) days off. If this individual resides in Mississippi
					 during the seven days off period, he is required to file a Mississippi resident
					 return. If the employer is not required to withhold Mississippi income tax, or
					 does not withhold Mississippi income tax, then the employee would be subject to
					 making estimated income tax payments. See the estimated payments regulation for
					 requirements on who must make estimated payments. If the work location is in
					 another state, then the taxpayer may be allowed to take a tax credit for tax
					 paid to the other state, if the taxpayer filed a return with the other
					 state.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 02 - Part-Year Resident › Section 35-3-07-02-100

Current through June 25, 2024
A taxpayer, who is not liable for Mississippi income tax
					 for an entire year because of moving into this state or moving from this state,
					 shall include on his return income received from all sources during the time he
					 is a resident of Mississippi, plus income from all sources within Mississippi
					 for the taxable year while a nonresident of Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 02 - Part-Year Resident › Section 35-3-07-02-101

Current through June 25, 2024
Deductions of a personal nature such as authorized
					 individual non-business itemized deductions, the optional standard deduction
					 and the personal and additional exemptions allowed, shall be allowed only in
					 the ratio that reported Mississippi net income bears to the taxpayer's total
					 net income from all sources for the entire year. In the case of married
					 individuals, the term "taxpayer's total net income" means the total net income
					 of both husband and wife.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 02 - Part-Year Resident › Section 35-3-07-02-102

Current through June 25, 2024
Moving expense reimbursement is included both in
					 Mississippi and total income if the taxpayer is moving into Mississippi and is
					 included in total income only if moving outside Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 02 - Part-Year Resident › Section 35-3-07-02-103

Current through June 25, 2024
If a taxpayer moves to Mississippi, his payment to an IRA
					 may be deducted from Mississippi income as well as total income (to the extent
					 such payment is deductible for Federal income tax purposes).
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-100

Current through June 25, 2024
The term
"nonresident"
includes those natural
					 persons not meeting the requirements of a resident. A nonresident individual
					 shall be allowed the same personal and additional exemptions as are authorized
					 for resident individuals; however, the nonresident individual is entitled only
					 to that proration of the personal and additional exemptions as his adjusted
					 gross income from sources within the State of Mississippi bears to his total or
					 entire adjusted gross income from all sources.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-101

Current through June 25, 2024
A nonresident individual who is married and whose spouse
					 has income from independent sources must declare the joint income of himself
					 and his spouse from sources within and without Mississippi, and claim as a
					 personal exemption that proportion of the authorized and additional exemptions
					 which the total adjusted gross income from Mississippi sources bears to the
					 total adjusted gross income of both spouses from all sources.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-102

Current through June 25, 2024
In the case of married individuals where one (1) spouse is
					 a resident and the other is a nonresident, the personal exemption of the
					 resident individual shall be prorated on the same basis as if both were
					 nonresidents having net income from within and without the State of
					 Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-103

Current through June 25, 2024
Nonresidents, foreign corporations, and citizens of
					 foreign countries, shall include as gross income from sources within the state,
					 all income derived from services rendered, business done, or property located
					 within the state.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-104

Current through June 25, 2024
The income of a nonresident who is assigned to a business
					 location in this state or who draws a salary, fee, commission or other income
					 for work performed at or from a Mississippi location and who regularly travels
					 to such location is considered income derived from services rendered in this
					 state and such income shall be allocated to this state.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-105

Current through June 25, 2024
A nonresident of Mississippi may deduct an IRA payment
					 from total income only. In the case of married individuals, if both spouses
					 work and both have an IRA, calculate each spouse's deduction
					 separately.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-106

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 taxable on
					 his share of the net income of the partnership, whether distributed or not. If
					 the partnership does business within and without the state, a nonresident
					 partner is taxable on such share of his income, whether distributed or not, as
					 is assignable to Mississippi.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 03 - Nonresidents › Section 35-3-07-03-107

Current through June 25, 2024
Unless a nonresident or foreign taxpayer files with the
					 Commissioner the complete return required of him, then no deductions or
					 exemptions will be allowed to such taxpayer by the Commissioner in computing
					 such taxpayer's taxable income. Supporting schedules are required for any
					 adjustments, deductions, exemptions, or credit.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-100

Current through June 25, 2024
Section 574 of the Soldiers and Sailors Civil Relief Act
					 provides that military duty pay can be taxed only by the state in which the
					 armed forces member is domiciled or is a legal resident. A Mississippi resident
					 who enters the military service remains a resident of this state during the
					 tenure of military service or until such time as legal and positive action is
					 taken to establish residence in some other state and the personnel records are
					 changed accordingly by executing through his or her command a state of Legal
					 Residence Certificate, Department of Defense Form DD 2058.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-101

Current through June 25, 2024
A member of the Armed Forces who claims Mississippi as his
					 or her state of legal residence/domicile is subject to Mississippi income tax
					 on his or her total gross income, regardless of the source of the income and
					 regardless of where the member is stationed in the line of duty. If the spouse
					 of a resident member is also a legal resident of Mississippi, he or she must
					 also report total income to Mississippi, regardless of where earned. A tax
					 credit is allowed for income taxes paid to another state on nonmilitary income
					 earned in another state. Mississippi resident individual income tax return,
					 Form 62-100 must be filed by a resident member on or before April 15, following
					 the close of the calendar year.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-102

Current through June 25, 2024
A nonresident member of the Armed Forces stationed in
					 Mississippi who realizes income from nonmilitary sources within the state or
					 whose resident or nonresident spouse realizes income within the state is
					 subject to the requirements of filing a Mississippi nonresident individual
					 income tax return, Form 62-200. A Mississippi nonresident income tax return is
					 also required in the case of a resident member of the Armed Forces whose spouse
					 is a nonresident of Mississippi. In the above cases concerning nonresidents,
					 only the nonmilitary income earned in Mississippi and the total income earned
					 by a Mississippi resident would be reported as Mississippi income; however, the
					 total income of both taxpayers must be reflected on the nonresident form in
					 order to properly prorate the allowable exemptions and
					 deductions.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-103

Current through June 25, 2024
The pay of military personnel employed by Non-appropriated
					 Fund Instrumentalities such as post exchanges, military stores, officers' clubs
					 and other such instrumentalities was declared by the Department of Defense to
					 be off-duty or nonmilitary pay taxable and reportable in the same manner as for
					 civilian employees of NAFI's. Military pay of members of the Armed Forces who
					 claim Mississippi as their state of legal residence/domicile and the pay of
					 members from NAFI sources in Mississippi are subject to the requirements of
					 Mississippi income tax withholding.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-104

Current through June 25, 2024
Members of the United States Armed Forces generally
					 include in income the same items as civilians. The following list of taxable
					 and nontaxable items of income and deductible items of expense is intended to
					 serve as a guide in answering questions frequently encountered by the taxpayer
					 and is not to be considered as all inclusive.
1.
Taxable Items
:
Compensation for service in the Armed Forces:
a. Mileage allowance (less expenses for
				  self)
b. Bonus paid for
				  re-enlistment
c. Service
				  pay
d. Voluntary
				  allotments
e. Interest on G. I.
				  life insurance dividends left on deposit with the Veterans
				  Administration
f. Payments received
				  from a former employer
g.
				  Retirement pay
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 07 - Individuals › Chapter 04 - Military › Section 35-3-07-04-105 - Exclusions from Gross Income

Current through June 25, 2024
1.
Retirement Income-Armed Forces
:
a. Retirement allowances received by a
				  retired member of the Armed Forces, including the National Guard and Military
				  Reserve, not based on disability, must be included in gross income to the
				  extent of income from retirement pay, annuities and pensions that exceeds the
				  sum of six thousand dollars ($6,000) for the taxable year. Income from
				  retirement allowances, pensions and annuities up to $6,000 for each taxable
				  year may be excluded from gross income.
b. The amount of reduction in retirement pay
				  of a retired member of the Armed Forces representing contributions to a Retired
				  Serviceman's Family Protection Plan (
				  10 U.S.C.
				  1431 ) or a Survivor Benefit Plan (
				  10
				  U.S.C. 1447 ) must be included in gross
				  income for the taxable year in which the contribution or reduction is made for
				  Mississippi income tax purposes. The total retirement allowances, annuities or
				  pensions are subject to the $6,000 exclusion. Mississippi Law does not conform
				  with Section 122, IRC, with respect to the exclusion from gross income of the
				  amount by which the retirement or retainer pay of a member or former member of
				  the uniformed services is reduced in order to provide a survivor
				  benefit.
c. Upon the death of a
				  member or former member of the uniformed services, where the "consideration for
				  the contract" (cost basis of the annuity) has not been excluded in whole or in
				  part from gross income for Mississippi income tax purposes, the survivor of
				  such member who is receiving an annuity shall exclude from gross income such
				  annuity payments equaling "consideration for the contract" (cost basis of the
				  annuity) not previously excluded from gross income by the member or former
				  member of the uniformed services. The $6,000 retirement income exclusion is
				  also available to the spouse or other beneficiary at the death of the primary
				  retiree.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 01 - Liquidations and Distributions › Section 35-3-08-01-100 - Effects on Corporation

Current through June 25, 2024
1. Distributions of
				  the property of a corporation, including partial and complete liquidations,
				  shall be recognized by the distributing corporation and the gain or loss shall
				  be computed on the difference of the fair market value of the assets
				  distributed and their basis. The above would be applicable to a subsidiary
				  liquidating into a parent unless the parent assumes the same basis that was on
				  the books of the subsidiary. If the parent assumes a basis different from that
				  on its subsidiary's books, then the gain would be recognized on the excess
				  amount placed on the parent's books over the amount recorded on the
				  subsidiary's books. A corporation shall also recognize any gain on the sale of
				  its assets in a partial or complete liquidation, the gain recognized being the
				  difference in the cash and fair market value of property received less the
				  basis of the property given up.
2.
				  A gain or loss will be recognized in the year of the sale of the assets, or if
				  a distribution of assets, in the year of the distribution. A corporation that
				  distributes property over two taxable years must report the gain or loss in
				  each year the distribution is made. The distributing corporation may not elect
				  an installment basis for reporting the sale of its assets.
3. A tax credit is allowed to the
				  shareholders for the tax paid by the corporation on the distribution. This
				  credit to each shareholder is determined by the ratio of the percentage of
				  shares owned by the shareholder to the total number of shares relinquished for
				  the property, applied against the tax paid on the distribution gain by the
				  distributing corporation.
4. The
				  corporation shall provide the State Tax Commission a list of all shareholders
				  with their percentage of ownership, distribution, tax credit allowed, and
				  identification number on Form 62-465. The corporation shall also provide to the
				  shareholder their percentage of ownership, distribution, tax credit allowed,
				  and identification number.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 01 - Liquidations and Distributions › Section 35-3-08-01-101 - Effect on Shareholders

Current through June 25, 2024
1. Shareholders
				  shall report any distribution by the corporation to them at its fair market
				  value. The basis of any stock surrendered shall be applied against and reduce
				  any gain on the property received. Gain shall be reported by the shareholder on
				  the difference between the basis of the shareholder and the fair market value
				  of the property received.
2. A
				  credit for the tax paid by the distributing or liquidating corporation from the
				  gain of the sale or gain on the distribution of property will be apportioned to
				  each shareholder. The shareholder should attach Form 62-465, that has been
				  furnished by the corporation, to his income tax return to be allowed credit for
				  the tax paid by the corporation. A shareholder who receives an installment note
				  in return for the surrender of a portion or all of his stock may report his
				  gain on the installment method; however, the credit for tax paid by the
				  distributing corporation is only allowed in the year the property is
				  distributed to the shareholder. The credit is applied against, but limited to,
				  the tax liability from this gain reported by the shareholder and none of the
				  credit may be refunded. A loss must be reported in the year of distribution to
				  the shareholder.
3. Distributions
				  received by one corporation in complete liquidation of another corporation are
				  treated as full payment in exchange for stock in the other corporation. Gain
				  realized to the shareholder corporation from the distribution is recognized and
				  shall be treated as ordinary income. A loss sustained is deductible in full in
				  the tax year of the distribution.
Mississippi Administrative Code › Title 35 - Department of Revenue › Part 3 - Income and Franchise › Subpart 08 - Corporations › Chapter 01 - Liquidations and Distributions › Section 35-3-08-01-102 - State 338 Election

Current through June 25, 2024
1.
Seller elects 338 [338h(10)
].
a. Corporations that elect a Section 338 sale
				  of assets for Federal tax purposes must also make a similar election for
				  Mississippi tax purposes. The treatment of the election will be different for
				  Mississippi in that the subsidiary corporation must report any gain as if it
				  distributed assets in liquidation to the parent and the parent will report gain
				  on the disposition of its stock as if the subsidiary is liquidated. The
				  subsidiary will increase the bases of its assets by gain reported.
b. Tax paid by the subsidiary on the gain
				  from the increase in basis can be used by the parent as a tax credit to offset
				  tax due on gain from the disposal of the subsidiary's stock. The parent cannot
				  use the tax credit for tax paid on the increase in basis by the subsidiary to
				  offset tax due from any other activity. Additionally, the tax credit cannot be
				  carried forward or refunded.