The Montana PR-1 form is a tax return specifically designed for partnerships operating in Montana. This form is essential for reporting income, deductions, and tax liabilities for partnerships with over 100 partners, which must e-file. Understanding how to accurately complete the PR-1 is crucial for compliance and to avoid potential penalties.
The Montana PR-1 form serves as a crucial document for partnerships operating within the state, particularly those with more than 100 partners, as they are mandated to file electronically. This form is primarily used to report partnership income and deductions, as well as to determine the tax obligations of the partnership and its partners. To complete the PR-1, partnerships must include a full copy of the federal Form 1065, along with all necessary schedules and related forms. The form requires detailed information, including the partnership's name, mailing address, and federal employer identification number (FEIN). It also collects data on the number of resident and nonresident partners, and it allows partnerships to mark whether the return is an initial, final, amended, or refund return. Additionally, the PR-1 outlines the distributive share of income and deductions for each partner, including ordinary business income, rental income, guaranteed payments, and various types of deductions. It further addresses Montana-specific additions and deductions to income, ensuring that the partnership's tax liability aligns with both federal and state requirements. The form culminates in a calculation of the total amount owed or refunded, factoring in any applicable credits and withholding payments, thereby providing a comprehensive overview of the partnership's tax situation for the year.
Form PR-1
Important! Partnerships with more than 100 partners are required to e-file this form.
P
No
2018 Montana Partnership Information and Composite Tax Return
Staples
Include a complete copy of federal Form 1065 and all related forms and schedules.
For calendar year 2018 or tax year beginning
MMDD 2 0 1 8
and ending
M MD DYYYY
Mark all that apply:
Initial return Final return Amended return Refund return
PTP
Name
Mailing Address
City
State Zip Code + 4
FEIN
Enter number of:
Schedules K-1 Included
Resident Partners
Nonresident Partners
Other Types of Partners
Date Registered in Montana
M
D
Y
MT Secretary of State ID #
State formed in
on
Federal Business Code/NAICS
Partners’ Distributive Share of Income Items (Form 1065, Schedule K)
1.
Ordinary business income (loss)
2.
Net rental real estate income (loss) (include federal Form 8825)
3a.
Other gross rental income (loss)
00
b.
Expenses from other rental activities (include detailed statement)
3b.
c.
Subtract line 3b from line 3a. This is your other net rental income or loss
3c.
4.
Guaranteed payments
5.
Interest income
6.
Ordinary dividends
7.
Royalties
8.
Net short-term capital gain (loss) (include federal Schedule D, Form 1065)
9.
Net long-term capital gain (loss) (include federal Schedule D, Form 1065)
10.
Net section 1231 gain (loss) (include federal Form 4797)
11.
Other income (loss) (include detailed statement)
12.
Add lines 1 through 11 and enter result. This is your total federal income or loss
Partners’ Distributive Share of Deduction Items (Form 1065, Schedule K)
13a.
Section 179 deduction (include federal Form 4562)
Contributions
13b.
Investment interest expense
13c.
d.
Section 59(e)(2) expenditures (include detailed statement)
13d.
e.
Other deductions (include detailed statement)
13e.
14.
Add lines 13a through 13e and enter result. This is your total federal deductions
15.
Subtract line 14 from line 12. This is your federal income from all sources
Partners’ Distributive Share of Montana Additions and Deductions to Income
16a.
Interest and dividends not taxable under the Internal Revenue Code
Taxes based on income or profits
16b.
Other additions (include detailed statement)
16c.
Add lines 16a, 16b, and 16c; enter result. This is your total Montana additions to income
16.
17a.
Interest on U.S. government obligations (include detailed statement)
Deduction for purchasing recycled material (include Form RCYL)....
17b.
17c.
Nonapportionable income/(loss) (include detailed statement)
17d.
Add lines 17a through 17d; enter result. This is your total Montana deductions to income
17.
18.
Add lines 15 and 16, then subtract line 17 from that result
Apportioned and Allocated Montana Source Income
Schedule I Not Required (see instructions)
19.
Income apportioned to Montana. Multiply line 18x
% (see instructions)
20.
Income or loss allocated directly to Montana (see instructions)
........................................................
21.
Add lines 19 and 20; enter result. This is your total Montana source income
Office Use Only Date Received
*18DY0101*
Form PR-1, Page 2 - 2018
Calculation of Amount Owed or Refund
22.
Enter your Montana total composite tax from Schedule IV, column H
...............................................
23.
Enter the sum of pass-through withholding from all Montana Schedules K-1, part 5, line 2a
Withholding
24 a. Total Montana mineral royalty tax withheld on your behalf (see instructions) 24a.
b. Mineral royalty tax withheld distributed to partners
24b.
c. Subtract 24b from 24a. Montana mineral royalty tax withheld attributable to partnership
24c.
25 a. Total Montana pass-through withholding paid on your behalf (see instructions)..25a.
b. Montana pass-through withholding distributed to partners
25b.
c. Subtract line 25b from 25a. Montana pass-through withholding attributable to partnership
25c.
26.
Add lines 24c and 25c. This is the total withholding payments attributable to partnership
Return Payments
27 a.
2017 overpayment applied to 2018
27a.
2018 estimated payments
27b.
2018 extension payment
27c.
For amended returns only—payments made with original return
27d.
For amended returns only—previously issued refunds (see instructions) 27e.
f.
Add lines 27a through 27d, then subtract line 27e. This is your total return payments
27f.
28. Add lines 22 and 23, then subtract lines 26 and 27f. This is your amount due or (overpaid)
28.
Penalties and Interest (see instructions)
29 a. Partnership information return late filing penalty
29a.
b. Interest on underpayment of estimated composite tax
29b.
c. Composite income tax return late filing penalty
29c.
d. Late payment penalty
29d.
e. Interest
29e.
Add lines 29a through 29e. This is your total penalties and interest
29f.
Amount Owed or Refund
30. Add lines 28 and 29f
30.
31. If line 30 results in an amount due, enter it here. This is the amount you owe
31.
Pay online at revenue.mt.gov. If writing a check, make it payable to MONTANA DEPARTMENT OF REVENUE.
32.If line 30 results in an overpayment, enter it here. This is your overpayment. Enter as a positive number. 32.
33.Enter the amount from line 32 that you want applied to your 2019 composite
.............................................................................................estimated tax
33.
34. Subtract line 33 from line 32 and enter the amount here. This is your refund
.................................
34.
Direct Deposit
1. RTN#
2. ACCT#
Your Refund
Complete 1, 2, 3 and 4
3.
If using direct deposit, you are required to mark one box. ►
Checking
Savings
(see instructions).
Is this refund going to an account that is located outside of the
United States or its territories?
Yes
Under penalties of false swearing, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete.
Signature of Officer
Date
Printed Name and Title
Telephone Number
X ____________________________________________
Print/Type Preparer’s Name
Firm’s Name
Preparer’s SignatureDate
____________________________________
M M D D Y Y Y Y
Firm’s Address
PTIN
Firm’s FEIN
May the DOR discuss this tax return with your tax preparer? Yes No
*18DY0201*
Form PR-1, Page 3 - 2018FEIN
Schedule I - Apportionment Factors for Multistate Partnerships
Enter amounts in columns A and B. Enter percentages in column C.
A. Everywhere
B. Montana.
C. Factor
1.Property Factor: Use average value for real and tangible personal property.
1a.
.............................................................................................Land
1b.
......................................................................................Buildings
....................................................................................1c. Machinery
1d.
Equipment
1e.
...................................................................Furniture and fixtures
1f.
.........................................................Leases and leased property
1g.
...................................................................................Inventories
1h.
........................................................................Depletable assets
1i.
........................................................................Supplies and other
..................1j. Property of foreign subs included in combined group
....1k. Property of unconsolidated subs included in combined group
1l.
.....Property of pass-through entities included in combined group
............................1m.Multiply amount of rents by 8 and enter result
1m.
....................................Total Property Value add lines 1a through 1m
Divide the total in column B by the total in column A. Multiply the result
by 100. This is your
property
factor
2. Payroll Factor:
2a.
.............................................................Compensation of officers
2b.
.....................................................................Salaries and wages
Payroll included in:
2c.
.....................................................................Costs of goods sold
2d.
..................................................Other expenses and deductions
2e.
....................Payroll of foreign subs included in combined group
2f.
........Payroll of unconsolidated subs included in combined group
2g.
......Payroll of pass-through entities included in combined group
........................................Total Payroll Value add lines 2a through 2g
by 100. This is your payroll
3. Gross Receipts Factor:
.............................Gross Receipts, less returns and allowances
Receipts delivered or shipped to Montana purchasers:
.................................................................................(1) Shipped from outside Montana
3b.(1)
...................................................................................(2) Shipped from within Montana
3b.(2)
3c. Receipts shipped from Montana to:
........................................................................................(1) United States government
3c.(1)
..........................................(2) Purchasers in a state where the taxpayer is not taxable
3d.
......................Receipts other than receipts of tangible personal property (e.g. service income)
3e.
........Net gains reported on federal Schedule D and Form 4797
3f.
....................Other gross receipts (rents, royalties, interest, etc.)
3g.
................Receipts of foreign subs included in combined group
3h.
...Receipts of unconsolidated subs included in combined group
3i. Receipts (pro-rata share) of pass-through entities
. ................................................included in combined group
3j.
............................................Less: All intercompany transactions
......................................Total Receipts Value add lines 3a through 3j
by 100. This is your receipts
.................................................4. Add the percentages on lines 1, 2, and 3 in column C. This is the sum of your factors
5.Divide the percentage on line 4 by the number of factors included in the calculation of line 4. If a property,payroll
or receipts factor is 0%, it is included in the calculation of line 4 if there’s is a value in column A (see instructions).
Enter the result here and also on page 1, line 19 of this form. This is your apportionment factor
%
*18DY0301*
Form PR-1, Page 4 - 2018FEIN
Schedule II - Montana Partnership Tax Credits
Type of Credit
Amount of Credit
Dependent Care Assistance Credit
include Form DCAC
College Contribution Credit
include Form CC
Health Insurance for Uninsured Montanans Credit
include Form HI
Recycle Credit
include Form RCYL
Alternative Energy Production Credit
include Form AEPC
Contractor’s Gross Receipts Tax Credit. If multiple CGR accounts, mark here.
CGR Account ID:
C
G
R
.......................................................................................................Alternative Fuel Credit
include Form AFCR
Infrastructure User Fee Credit
include Form IUFC
Historic Property Preservation Credit
include federal Form 3468
Mineral and Coal Exploration Incentive Credit
include Forms MINE-CERT and MINE-CRED
Empowerment Zone Credit
Biodiesel Blending and Storage Credit
include Form BBSC
13.Innovative Educational Program Credit.............................................................................................................
14.Student Scholarship Organization Credit ..........................................................................................................
15. Emergency Lodging Credit
include Form ELC
16.Unlocking Public Lands Credit...........................................................................................................................
17.Apprenticeship Tax Credit..................................................................................................................................
Type of Credit Recapture
Recapture
Historic Property Preservation Credit Recapture
Film Production Credit Recapture
Biodiesel Blending and Storage Credit Recapture
Oilseed Crushing and Biodiesel/Biolubricant Production Credit Recapture
When attributing any credit or credit recapture from a partnership to its partners, use the same proportion the partnership used to report each partner’s income or loss for Montana tax purposes. Include a detailed breakdown that shows each partner’s share of the credit or credit recapture.
Use Montana Schedule K-1 to notify each partner of the amount of credit available to the partner.
*18DY0401*
Form PR-1, Page 5 - 2018
Schedule IV – Montana Partnership Composite Income Tax Schedule
Part I. Eligible Participating Partners
Enter the number of eligible participating partners. See instructions for more information about eligible participating partners.
Part II. Composite Tax Ratio
1
2
3
Use the amount in column 3
Enter the amount from
Divide column 2 by
to complete the calculation
page 1, line 15
page 1, line 21
column 1
Do not enter more than
in column H below.
of this form.
1.000000
Part III. Enter below in columns A through H the required information and amounts for each eligible participating partner.
A
B
E
F
H
Social security
Montana taxable
Montana composite
number or
Partner’s share of
Enter the appropriate
income tax. Multiply
Standard
Exemption
income – Subtract
federal employer
federal income from
deduction
$2,440
columns D and E
tax from the tax table
column G times
identification
entity
below.
composite tax ratio
from column C.
number
from Part II.
Enter the total composite tax from all additional
pages, if used
Add column H, lines 1 through 11. This is your total composite income tax liability.
Transfer the amounts from column H to each partner’s Montana Schedule K-1, Part 5, Line 1.
*18DY0501*
If additional space is needed, make copies of this page. Include all additional pages from line 11 with the tax return.
If Your Taxable
But Not More Than
Multiply Your
And Subtract
This Is Your
Income Is More Than
Taxable Income By
Tax
$0
$3,000
1% (0.010)
$5,200
2% (0.020)
$30
$8,000
3% (0.030)
$82
$10,800
4% (0.040)
$162
$13,900
5% (0.050)
$270
$17,900
6% (0.060)
$409
More Than $17,900
6.9% (0.069)
$570
Form PR-1, Page 6 - 2018FEIN
Schedule VI – Reporting of Special Transactions
Complete Schedule VI only if your partnership filed any of the federal income tax forms described below. Mark the appropriate box indicating which form(s) you filed with the Internal Revenue Service for this tax year. If your answer is “Yes” to one or more of these forms, you need to include a complete copy of your federal tax return Form 1065.
The partnership filed federal Form 8918 – Material Advisor Disclosure Statement with the Internal
Revenue Service.
Material advisors to any reportable transactions must file Form 8918.
The partnership filed federal Form 8824 – Like-Kind Exchanges with the Internal Revenue Service.
NOTE: Mark the box if your like-kind exchange includes Montana property. Nonresidents do not
have to report a like-kind exchange if the properties involved do not include Montana property.
Use Form 8824 to report each exchange of business or investment property for property of a like-
kind.
The partnership filed federal Form 8865 – Return of U.S. Persons With Respect to Certain
Foreign Partnerships with the Internal Revenue Service.
Use Form 8865 to report the information required under 26 USC 6038 (reporting with respect to
controlled foreign partnerships), Section 6038B (reporting of transfers to foreign partnerships) or
Section 6046A (reporting of acquisitions, dispositions and changes in foreign partnership interest).
The partnership filed federal Form 8886 – Reportable Transaction Disclosure Statement with the
Internal Revenue Service.
Use Form 8886 to disclose information for each reportable transaction in which you participated.
Complete this section if you made a disbursement to a related party.
5.During this tax year, the partnership made payments to one or more related parties
(excluding salary compensation) that exceed $100,000 per recipient.
If you answer “Yes” to this question, please provide the name and federal employer identification number of each related party below and the amount that you paid to each related party:
Amount of Payment
*18DY0601*
Where to Sign W9 - The form includes a section for certification that the provided tax identification number is correct and the entity is not subject to backup withholding.
When dealing with the transfer of vehicle ownership, utilizing a reputable source for documentation is essential. The Texas Motor Vehicle Bill of Sale, which is a legal form that captures all pertinent details regarding the sale, can be conveniently obtained from TopTemplates.info, ensuring a smooth transaction and minimizing potential disputes.
Montana Nr 1 - Verification of residency in North Dakota for the entire taxable year is required on the form to ensure eligibility under the reciprocal income tax agreement between Montana and North Dakota.