Tennessee Consolidated Apportionment Schedules

Consolidated Apportionment Schedules
Schedule 170NC & 170SF - Consolidated Net Worth Apportionment
RV-F1404801 (9/21)

Account No./FEIN

Taxpayer Name

Taxable Year

Apportionment Schedules for Taxpayers Electing to Report Net Worth on a Consolidated Basis
Schedule 170NC - Consolidated Net Worth Franchise Tax Apportionment
	

Property	

Use original cost of assets

In Tennessee (Single Entity)	
a. Beginning of
Taxable Year

b. End of
Taxable Year

Total Everywhere (Consolidated)
a. Beginning of
Taxable Year

b. End of
Taxable Year

	 1.	 Land, buildings, leaseholds, and
		improvements ............................................ 	 _______________________________________________________________________________________________ 	
	 2.	 Machinery, equipment, furniture, and
	 	 fixtures.......................................................... 	 _______________________________________________________________________________________________
	 3. 	Automobiles and trucks............................. 	 _______________________________________________________________________________________________
	 4.	 Inventories and work in progress ............ 	 _______________________________________________________________________________________________
	 5.	 Prepaid supplies and other property........ 	 _______________________________________________________________________________________________
	 6.	 Ownership share of real and tangible
		 property of a partnership that does not
	 	 file a return................................................... 	 _______________________________________________________________________________________________
	 7.	 Exempt inventory ....................................... 	 _______________________________________________________________________________________________ 	
	 8.	 Franchise tax total (add Lines 1 through 6,
		 subtract Line 7)............................................ 	 _______________________________________________________________________________________________
	 9.	 Franchise tax average value (add Lines
	 	 8(a) & (b), divide by two)............................. 	 _______________________________________________________________________________________________
	10.	 Rented property (rent paid x 8)................. 			
Use triple weighted sales factor

a. In Tennessee

b. Total Everywhere

c. Franchise Ratio	

%	 	
	11.	 Franchise tax property factor (add Lines 9 and 10)......................... 	 ________________________________________________________________________
%
	12. 	Payroll factor......................................................................................... 	 ________________________________________________________________________
%	
	13.	 Sales factor (business gross receipts)................................................ 	 ________________________________________________________________________
%
	14.	 Total ratios (add Lines 11,12 and (Line 13 x three))..........................................................................................................	 ________________________
	15.	 Apportionment ratio (divide Line 14 by five, or by the number of factors with everywhere values; enter here
%
		 and on Schedule F2, Line 2) ..............................................................................................................................................				

Schedule 170SF - Financial Institution Non-Unitary Group Member Apportionment Schedule for Franchise Tax Purposes
a. In Tennessee
(Single Entity)

Types of receipts defined in Tenn. Code Ann. § 67-4-2118

b. Everywhere
(Consolidated)

	 1.	 Receipts from leases of real property.................................................................................... 	 ________________________________________________ 	
	 2.	 Interest income and other receipts from loans or installment sales secured by real or
		 tangible personal property...................................................................................................... 	 ________________________________________________ 	
	 3.	 Interest income and other receipts from consumer loans which are not secured.......... 	 ________________________________________________ 	
	 4.	 Interest income and receipts from commercial and installment loans which are not
		 secured by real or tangible property...................................................................................... 	 ________________________________________________ 	
	 5.	 Receipts and fee income from letters of credit, acceptance of drafts, and other devices
		 for guaranteeing loans or credit.............................................................................................. 	 ________________________________________________ 	
	 6.	 Interest income, merchant discount, and other receipts including service charges from
		 credit card and travel and entertainment credit cards, and credit card holders’ fees..... 	 ________________________________________________ 	
	 7.	 Sales of an intangible or tangible assets................................................................................ 	 ________________________________________________ 	
	 8.	 Receipts from the sale of a security by a dealer in such property...................................... 	 ________________________________________________ 	
	 9.	 Receipts from fiduciary and other services............................................................................ 	 ________________________________________________ 	
	10.	 Receipts from the issuance of travelers checks, money orders and U.S. savings bonds.	 ________________________________________________ 	
	11.	 Interest income and other receipts from participation loans............................................. 	 ________________________________________________ 	
	12.	 Other financial institution receipts......................................................................................... 	 ________________________________________________ 	
	13.	 Receipts of an affiliated group member that is not a financial institution........................ 	 ________________________________________________ 	
14.		 Total receipts (add Lines 1 through 13).................................................................................. 	 ________________________________________________
	15.	 Apportionment ratio (divide total Tennessee receipts by total everywhere receipts; enter here and on Line 2,
%
		 Schedule F2).......................................................................................................................................................................... 	 ________________________

Schedule 170SC - Manufacturer or Financial Asset Management Company Consolidated Net Worth Apportionment
In Tennessee
(Single Entity)
	 1.	 Sales (business gross receipts) (Enter here and on Line 2,
		 Schedule F2)........................................................................................

Everywhere
(Consolidated)

Apportionment
Ratio
%

Instructions: Schedule 170NC, Schedule 170SF, and Schedule 170SC
General Information
Every taxpayer that is a member of an affiliated group that has made an election to compute its
net worth on a consolidated basis must complete this form.
The consolidated net worth election does not entitle the affiliated group to file a consolidated tax
return. Each member of the affiliated group will use the same net worth (reported on Schedule
F2, Line 1) in conjunction with its separately calculated apportionment ratio (calculated on
this schedule and carried to Schedule F2, Line 2). The numerator values of this ratio are each
individual taxpayer’s Tennessee property, payroll and/or sales. The denominator values of this
ratio are the affiliated group’s everywhere property, payroll and sales.
Members of a financial institution affiliated group should complete Schedule 170SF. A financial
institution affiliated group is an affiliated group in which more than 50% of the group’s aggregate
gross income, excluding dividends and receipts resulting from transactions between members,
comes from conducting the business of a financial institution.
A manufacturer that is part of an affiliated group that has made an election to compute its
net worth on a consolidated basis and has also made an election to use single sales factor
apportionment should complete Schedule 170SC. The election made by the manufacturer does
not impact other members of the group. Other members of the affiliated group must complete
the property and payroll portions of Schedule 170NC and include the manufacturer’s property,
payroll, and sales in the denominators.
All other taxpayers should complete Schedule 170NC.
Schedule NC – Consolidated Net Worth Franchise Tax Apportionment
Lines 1-3	
Complete all four columns for each line using the original cost of the tangible
property. Beginning and end of year values are reported in the respective columns
for property located in Tennessee and for all property of the affiliated group
located everywhere.
Line 4	
Include all types of inventory on this line.
Line 5	
Enter all tangible assets, including those classified as “current assets” or “other
assets.”
Line 6	
Enter the taxpayer’s percentage of ownership (shown on federal Schedule K-1)
multiplied by the amount of real and tangible personal property shown on the
balance sheet of an entity treated as a partnership for federal tax purposes. Only
include on this line the taxpayer’s ownership share of a partnership’s property if
the partnership itself is not required to file its own franchise and excise tax return.
Line 7	
Enter the amount of exempt inventory on this line. Exempt inventory is any
amount in excess of $30,000,000 of finished goods located in Tennessee that
would otherwise be included in the franchise tax base. This $30,000,000 cap on
finished goods inventory is calculated on a separate entity basis and is not a single
cap that can be applied to the affiliated group as a whole.
Line 8	
Add Lines 1 through 6, and subtract Line 7.
Line 9	
Add Lines 8(a) and (b) and divide by 2.
Line 10	
Enter the year-end value of rented property, determined by multiplying the annual
rental rate by eight. The value of owned or leased mobile/moveable property will
be determined based on the percentage of time the property was within the state
during the tax period. However, the value of an automobile/truck assigned to a
traveling employee is entirely sourced to Tennessee if the vehicle is registered
in this state or if the employee’s compensation is assigned to Tennessee for
purposes of the payroll factor.

Line 11	
Line 12	

Line 13	

Line 14	
Line 15	

Add the Lines 9 and 10 and enter in the appropriate columns. Divide 11(a) by 11(b)
to calculate the property ratio.
Enter the separate entity’s total compensation paid during the taxable period in
Tennessee on Line 12(a) and the affiliated group’s compensation paid everywhere
during the taxable period on Line 12(b). Divide 12(a) by 12(b) to calculate the
payroll ratio.
Enter the separate entity’s total business gross receipts during the taxable period
in Tennessee on Line 13(a) and the affiliated group’s total everywhere business
gross receipts during the taxable period on Line 13(b). Divide 13(a) by 13(b) to
calculate the sales ratio.
Add Lines 11 and 12 and Line 13 multiplied by three.
Divide Line 14 by the lesser of five or the number of factors with everywhere
values greater than zero. Enter result here and on Schedule F2, Line 2.

Schedule SF – Financial Institution Non-Unitary Group Member Apportionment Schedule for
Franchise Purposes
Lines 1-12	
Enter the financial institution affiliated group’s gross receipts everywhere in
Column (b). See Tenn. Code Ann. § 67-4-2118.
Line 13	
Enter the separate entity’s total business gross receipts during the taxable period
in Tennessee on Line 13(a), and enter the everywhere total business gross receipts
during the taxable period of the affiliated group members who are not financial
institutions on 13(b). See Tenn. Code Ann. § 67-4-2111 (h)-(k).
Line 14	
Add Lines 1 through 13.
Line 15	
Divide Line 14(a) by Line 14(b). Enter the result here and on Schedule F2, Line 2.
Schedule SC – Manufacturer Single Sales Factor Consolidated Net Worth Apportionment
Line 1	
Enter the separate entity’s total business gross receipts in Tennessee in the first
column and the affiliated group’s total business gross receipts everywhere in the
second column. Divide the first column by the second column to calculate the
sales ratio. Enter the result here and on Schedule F2, Line 2.