How to calculate Florida Apportionment on the Florida Department of Revenue Corporate Income Tax Return (F-1120)

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calculate Florida Apportionment on the Florida Department of Revenue Corporate Income Tax Return (F-1120)
calculate Florida Apportionment on the Florida Department of Revenue Corporate Income Tax Return (F-1120) (Image: www.looklocally.com)

Corporations that conduct business or earn income in Florida are required to file a Florida Corporate Income Tax return, including out-of-state, and even if no tax is due. Individuals, sole proprietorships, estates and testamentary trusts are exempted. Each corporation is also allowed a $5,000 exemption. The tax is based on federal income tax due, adjusted and apportioned based on a three part formula.

Calculate the property factor. Property is defined as the average value of real and tangible personal property owned or rented. To calculate the property factor:

(Property value in Florida / Property value outside of Florida) * 25% = property factor

The second factor is the payroll factor. Payroll is defined as the total wages, salaries, commissions, back pay awards and cash value of all reimbursements paid in any other form other than cash. To calculate the payroll factor:

(Total payroll in Florida / Total payroll outside of Florida) * 25% = payroll factor

The third factor is the sales factor. Sales are defined as the total gross revenue from transactions and activities derived from a business or trade. To calculate the sales factor:

(Total sales in Florida / Total sales outside of Florida) * 50% = sales factor

Total all these factors and this calculates the apportionment fraction.

Multiply the corporation's federal adjusted income by the apportionment fraction and this calculates the Florida portion of adjusted federal taxable income.

Tips & Warnings

  • please visit www.myflorida.com/dor or contact 1.800.482.8293 for any additional help
  • Property rented is valued at eight times the net annual rental rate by the taxpayer.
  • Insurance, transportation, and citrus industries have a special one factor which calculates their Florida apportionment.

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