Colorado Partnership / S-Corporation Pass-Through Entities Tax Booklet

Partnership / S-Corporation Pass-Through Entities Tax Booklet
2022 Book 106 Partnership and S Corporations and Composite Filing for Nonresidents
(01/12/23)

Booklet Includes:

Instructions | DR 0106 | Related Forms

106
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2022

BOOK

Partnerships and S corporations and
Composite Filing for Nonresidents

Colorado Partnerships and
S corporations and Composite Filing for
Nonresidents Income Tax Filing Guide
This book includes:

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	 	y
	 	y
	 	y
	 	y
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DR 0107 2022 Colorado Nonresident Partner or
Shareholder Agreement
DR 0108 2022 Statement of Colorado Tax Remittance for Nonresident Partner or Shareholder
DR 0158-N Automatic Filing Extension for Composite
Nonresident Income Tax Return
DR 0106 2022 Colorado Partnership and S corporation and Composite Nonresident Income Tax Form
DR 0106K 2022 Colorado K-1
DR 0106CR 2022 Colorado Pass-Through Entity Credit Schedule

Tax.Colorado.gov
Mailing Address FOR FORM DR 0106 AND DR 0106CR
With
Payment

Colorado Department of Revenue
Denver, CO 80261-0006

Without
Payment

Colorado Department of Revenue
Denver, CO 80261-0005

These addresses and zip codes are exclusive to the Colorado Department of Revenue, so a street address is not required.

Mailing Address FOR FORM DR 0158-N AND DR 0108
Colorado Department of Revenue, Denver, CO 80261-0008

*220107==19999*

DR 0107 (06/22/22)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0008
Tax.Colorado.gov
Page 1 of 1

2022 Colorado Nonresident Partner or Shareholder Agreement
Taxable Year of Partner or Shareholder

Taxable Year of Pass-Through Entity

Beginning MM/DD/YYYY

Beginning MM/DD/YYYY

Ending MM/DD/YYYY

Name and Address of Nonresident Partner or Shareholder
SSN or ITIN

Name and Address of Pass-Through Entity

FEIN

Colorado Account Number

Last Name or Business Name

First Name

Middle Initial

First Name

Middle Initial

Street or Mailing Address

City

City

ZIP

FEIN

Last Name or Business Name

Street or Mailing Address

State

Ending MM/DD/YYYY

State

ZIP

I agree to file a Colorado income tax return and make timely payment of all taxes imposed by the state of Colorado
with respect to my share of the Colorado income of the pass-through entity named above. I also agree to be subject to
personal jurisdiction in the state of Colorado for purposes of the collection of unpaid income tax together with related
penalties and interest. I furthermore understand the Department of Revenue will consider the timely first filing of this
agreement as applicable to all future filing periods unless notified otherwise.
Taxpayer's or Authorized Agent's Signature

Date (MM/DD/YY)

Submit this agreement when filing the Colorado form DR 0106
A nonresident partner or shareholder can complete this form DR 0107 to establish that they will report the Colorado source
income and pay the Colorado tax on any income derived from a Colorado partnership or S corporation.
This form shall be delivered by the nonresident partner or shareholder to the partnership or S corporation, which shall later
be submitted by the partnership or S corporation with form DR 0106. This form need only to be filed with the Department
for the year in which the agreement is made.
See the instructions for Nonresident Partners and Shareholders in the 106 Book and the income tax guidance publications
available at Tax.Colorado.gov for more information.

0018

DR 0108 (06/08/21)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0008
Tax.Colorado.gov
Page 1 of 1

*220108==19999*

2022 Statement of Colorado Tax Remittance
for Nonresident Partner or Shareholder

In general, partnerships and S Corporations must remit
tax payments on behalf of their nonresident partners or
shareholders using this DR 0108. However, a payment should
not be remitted using DR 0108 for any nonresident partner
or shareholder included in a composite return. Payments
remitted with DR 0108 are due on the 15th day of the fourth
month following the end of the taxable year.
See the instructions for Nonresident Partners and Shareholders
in the Book 106 for more information.

ATTENTION TAXPAYERS:

Please note, a MAXIMUM of fifty (50) DR 0108 forms
may be submitted with a single payment in a single
envelope or mailing. DR 0108 totals must exactly match
the payments. The Department WILL NOT transfer
the funds on behalf of the partnership and payments
without matching DR 0108 forms WILL be RETURNED.
DO NOT remit payment via EFT.

DR 0108 (06/08/21)

Return this form with check or money order payable to the “Colorado Department of Revenue”. Mail payments to Colorado Department
of Revenue, Denver, Colorado 80261-0008. These addresses and zip codes are exclusive to the Colorado Department of Revenue, so
a street address is not required. Enter on DR 0108 the name and Social Security number, ITIN or FEIN of the nonresident partner or
shareholder who will ultimately claim this payment. Do not send cash. Enclose, but do not staple or attach, your payment with this form.
Shareholder or Partner is (Mark one):

Individual (SSN or ITIN)

Estate or Trust (FEIN)

SSN or ITIN

FEIN

Last name of nonresident partner or shareholder

First Name

Middle Initial

Address

City

Name of Pass-Through Entity

State

Do not use this form for a Corporation or Partnership

Colorado Account Number

ZIP

FEIN

Address

City

State

ZIP

The State may convert your check to a one-time electronic banking transaction. Your bank account may be debited as early as the same day received by the State. If converted, your check will
not be returned. If your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your bank account electronically.

If No Payment Is Due, Do Not File This Form.
1. Colorado-source income for nonresident partner or shareholder

1 $

2. Colorado tax remitted, 4.55% of amount on line 1

2 $

Page 7

Colorado Partnership and S Corporation Income Tax Return
This filing guide will assist you with completing your Colorado Partnership and S Corporation Income Tax Return. Please
read through this guide before starting your return. Once you finish the form, file it with a computer, smartphone or tablet
using our free and secure Revenue Online service at Colorado.gov/RevenueOnline. You may also file using private e-File
software or with a paid tax preparer. You significantly reduce the chance of errors by filing your return electronically. If
you cannot file electronically for any reason, mail the enclosed forms as instructed. All Colorado forms and publications
referenced in this guide are available for download at Tax.Colorado.gov — the official Taxation website.
Any partnership or S corporation must file a DR 0106 for any year it is doing business in Colorado. A partnership or S
corporation is doing business in Colorado whenever it meets the criteria set forth in Rule 39-22-301(1). Partnerships
subject to these requirements include any 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, for federal
income tax purposes, considered a C corporation, trust, or estate.
A change or correction on your return must be reported on a corrected DR 0106 on Revenue Online. If filing
on paper, mark the Amended Return box at the top of the corrected DR 0106. The corrected form must include all
required schedules even if the schedule was submitted with the original return and has not changed.

What’s new this year?

General Instructions

Colorado K-1 Form

Due Dates for Filing Return

Statute generally requires partnerships and S corporations
to furnish copies of certain return information to partners
and shareholders on or before the day the DR 0106 return
is filed. Partners and S corporations will now provide that
information on the Colorado K-1 form (DR 0106K). Copies
of the Colorado K-1 must also be filed with the Department
when form DR 0106 is filed. Electronic copies may be
uploaded through Colorado.gov/RevenueOnline or filed
with from DR 1706. Do not submit copies of the Colorado
K-1 issued to partners or shareholders with the DR 0106
return as attachments. Refer to the instructions for form
DR 0106K for further details.

SALT Parity Act Election

Beginning in tax year 2022, partnerships and S
corporations may elect to be subject Colorado income
tax at the entity level pursuant to the SALT Parity Act.
The election is binding upon all partners or shareholders,
regardless of whether the partner is an individual,
corporation, or other legal entity. The election applies
to, and Colorado tax must be paid with respect to, both
resident and nonresident partners and shareholders.
Each partner or shareholder is allowed a credit against
their Colorado income tax liability equal to the share of
the tax imposed upon and paid by the entity with respect
to the partner’s or shareholder’s income. All other credits
are passed through to the partner or shareholder and
must be claimed on a return filed by the partner or
shareholder along with the refundable SALT Parity Act
credit. When a partnership or S corporation makes the
SALT Parity Act election, all partners or shareholders must
add back any deduction taken under section 199A of the
Internal Revenue Code.
Forms to make elections and amend returns for tax years
2018 through 2021 will be released in the fall of 2023. Do
not use this form to make retroactive elections.

The return is due to be filed the fifteenth day of the fourth
month after the close of the tax year, or after the automatic
six-month extension if applicable. See the extension
payment instructions for further information. Calendar
year returns are due on April 15. If the due date falls
on a weekend or federal holiday, return will be due the
next business day. On or before the due date (including
extensions), you must provide each partner or shareholder
a copy of their Colorado K-1 (DR 0106K). Copies of the
Colorado K-1 must also be transmitted to the Colorado
Department of Revenue when you file this return. For more
information on transmitting copies of the Colorado K-1,
refer to the instructions for form DR 1706.

Nonresident Partners and Shareholders
Every partnership and S corporation is required to ensure
that its nonresident partners and shareholders satisfy their
Colorado income tax liabilities resulting from Colorado
source partnership or S corporation income as follows:
•	File a composite return on behalf of the nonresident
partner or shareholder by completing Part II of
this return. The tax due on the composite filing
is 4.4% of the Colorado source income of the
nonresident partners or shareholders included in the
composite return. Certain credits may be applied to
reduce the tax due.
•	Provide a completed Nonresident Partner or
Shareholder Agreement (form DR 0107) for the
nonresident partner or shareholder. By completing
this form, the partner or shareholder agrees to file
a Colorado income tax return. The partnership or
S corporation is responsible for collecting form
DR 0107 and submitting it to the Department with
the partnership's or S corporation's return. The
timely submission of form DR 0107 will be effective
for all future periods unless the Department is
notified otherwise.

Page 8

•	Remit a withholding payment with a completed
DR 0108 for each nonresident partner or shareholder.
The required payment is 4.4% of the nonresident
partner’s or shareholder’s Colorado source income. A
separate DR 0108 must be submitted for each partner
or shareholder for whom payment is made. Submit no
more than 50 DR 0108 forms with a single check.
You must indicate on the Colorado K1 (form DR 0106K)
which of these three filing requirements has been elected by
each nonresident partner or shareholder. A different method
may be elected for each nonresident partner or shareholder.
In lieu of the methods described above, the partnership or
S corporation may elect under the SALT Parity Act to be
subject Colorado income tax at the entity level (see below).

SALT Parity Act Election

Beginning in tax year 2022, partnerships and S corporations
may elect to be subject Colorado income tax at the entity
level. The election is binding up all of the partners or
shareholders. To make this election, check box I. The
partnership or S corporation may also make the election by
filing form DR 1705. Check the SALT Parity Election box on
every Colorado K-1 issued to a partner or shareholder.
If a partnership or S corporation makes a SALT Parity Act
election, its tax liability must be calculated with respect to
all partners or shareholders (resident and nonresident).
Each partner or shareholder must also file a return. A
partnership or S corporation that makes a SALT Parity Act
election may not also make a composite return on behalf of
nonresident partners or shareholders.
Each partner or shareholder is allowed a credit against their
Colorado income tax liability equal to the share of the tax
imposed upon and paid by the entity with respect to the
partner’s or shareholder’s income. All other credits are passed
through to the partner or shareholder and must be claimed on
the return filed by the partner or shareholder along with the
refundable SALT Parity Act credit. When a partnership or S
corporation makes the SALT Parity Act election, all partners
or shareholders must add back any deduction taken under
section 199A of the Internal Revenue Code.

Estimated Tax Payments
In most cases, a partnership or S corporation must pay
estimated tax if it will file a composite return on behalf of
nonresident partners, and the Colorado income tax liability
for any individual partner or shareholder per the composite
return will be more than $1,000.
For tax year 2022, partnerships and S corporations making
a SALT Parity Act election are not required to make
estimated payments. In general, for tax years beginning
on or after January 1, 2023, a partnership or S corporation
that will make a SALT Parity Act election must remit
quarterly estimated payments if its net Colorado tax liability
for the year will exceed $5,000.
Partnerships and S corporations making estimated
payments must remit payment with form DR 0106EP.

Modifications and Credits
Colorado modifications and credits are allocated to
shareholders and partners pursuant to applicable state
law. In general, modifications and credits are allocated to
partners in accordance with their distributive share, or to
shareholders in accordance with their pro rata share, of
the item to which the modification relates. Advise each
Colorado partner, shareholder or member of their share of
the partnership or S corporation modifications and credits
on the Colorado K-1 (form DR 0106K), a copy of which
must also be filed with the Department. Partnerships
and S corporations must also advise partners and
shareholders of their share of any taxes paid by the entity
to another state so they can compute the credit for tax
paid to other state(s), and the related state income tax
addback. Refer to Rules 39-22-104(3)(d) and 39-22-108
for more information. Detailed instructions regarding
modifications and credits are provided with the Colorado
K-1 (form DR 0106K).

Apportionment and Sourcing of Income
Partnerships and S corporations doing business in more
than one state must apportion or source their income as
described below. This ensures income is reported to the
state in which the income is earned and taxable. See the
Corporate Income Tax Guide for details regarding the
following apportionment methods.
The partnership must compute each partner’s or
shareholder’s share of income and other items that is
attributable to Colorado and show the amount attributable
to Colorado on the Colorado K-1 (DR 0106K).

Partnerships

The Colorado-source income resulting from partnership
activity is generally determined pursuant to section 39-22109, C.R.S. (Direct Sourcing), or, at the partnership's election,
apportioned and allocated pursuant to section 39-22-303.6,
C.R.S. (Receipts-Factor Apportionment). The ordinary
income of a partnership will generally be sourced using
receipts-factor apportionment even if the partnership does not
elect to apportion and allocate all income using this method.

S Corporations

Section 39-22-321(1) and (2), C.R.S. requires S corporations
to apportion and allocate income pursuant to section
39-22-303.6, C.R.S. (Receipts-Factor Apportionment).

Direct Sourcing

Each item of income, gain, loss, deduction, or credit is
sourced separately to determine whether it is derived from
sources within Colorado. In general, items are considered
to be derived from sources within Colorado when they are
attributable to:
•	The ownership of any interest in real or tangible
personal property in Colorado (see Rule
39-22-109(3)(a));
•	A business, trade, profession, or occupation carried on in
Colorado (see Rule 39-22-109(3)(b)); or

Page 9

•	Intangible property, including annuities, dividends,
interest, and gains from the disposition of intangible
property, to the extent such income is from property
employed in a business, trade, profession, or
occupation carried on in Colorado (see Rule
39-22-109(3)(e).

Receipts-Factor Apportionment

Under formulary apportionment, income from business activity
that is taxable both within and outside Colorado is apportioned
and allocated in the same manner as the income of a C
corporation. Apportionable income must be apportioned
using the receipts factor. Nonapportionable income may either
be directly allocated to the appropriate state or treated as
apportionable income, subject to receipts-factor apportionment.
Complete and include Part V with your return if you are
sourcing income using receipts-factor apportionment. For more
information on apportionment and allocation, refer to Part 6 of
the Colorado Corporate Income Tax Guide.

Not Apportioning Income

If a partnership or S corporation has no income from
business activity outside Colorado, then the partnership or
S corporation will source 100% of its income to Colorado.

Specific Instructions
Information about the Partnership or
S Corporation
If the partnership’s or S corporation’s tax year is not a
calendar year, enter the start and end dates of the fiscal year.
If this filing amends a previously filed 2022 return, mark
the amended return box. Enter the as amended values in
the appropriate lines or fields. Complete all lines and fields
even if the value is not changed from the original return.
Submit all schedules and supporting documentation,
including those schedules that are not being amended.
Enter the legal name, “doing business as” or trade name, and
address of the partnership’s or S corporation’s principal offices.

Account Numbers

The Colorado Account Number (CAN) is 8 digits and must
be listed in addition to the Federal Employer Identification
Number (FEIN) on any form where requested. The CAN
used on this form is usually the same number use on sales
tax licenses and forms related to wage withholding.

Listed Transactions

A partnership or S corporation who is required to report a
federal listed or reportable transaction, or a Colorado listed
transaction, must mark the listed or reportable transaction
box and attach IRS form 8886 or form DR 1831,
as applicable. Refer to sections 39-22-651 through
659, C.R.S., and related rules, for further information.

Box A Legal Form

Mark the box that represents the true legal form of the
partnership or S corporation filing this return.

Boxes B and C Depreciable Assets

Enter the beginning and ending depreciable assets from
the federal return net of any accumulated depreciation.
Refer to line 10b (columns (b) and (d)) of Schedule L of IRS
form 1065 or 1120-S, as applicable.

Box D Principal Business Activity

Enter a short description of the partnership’s or S
corporation’s principal business activity or profession
including the principal product or service.

Box E Commencement Date

Enter the date the partnership was organized or the S
corporation was incorporated, as applicable.

Box F Final Return

If this is the partnership’s or S corporation’s final Colorado
income tax return, mark box F.

Box G Federal Changes

Mark this box G if, for any of the previous four tax years:
•	The IRS made any adjustments to the partnership’s or
S corporation’s federal income tax return, including any
adjustments resulting from a waiver of restrictions on
assessment and collection of deficiency, acceptance of
overassessment, acceptance of an examining officer’s
findings, or otherwise; or
•	The partnership or S corporation filed an amended
federal return, a federal claim for refund, or a federal
administrative adjustment request.
Explain the nature and date of the change in the space
under this Box G.

Box H Number of Partners or Shareholders

Enter the number of partners or shareholders as of the end
of the tax year.

Box I SALT Parity Act Election

Mark this box I to elect to be subject to tax at the entity
level under the SALT Parity Act (section 39-22-343,
C.R.S.). Mark this box I if the partnership or S corporation
previously filed an election on form DR 1705. This
election is binding for this tax year on all partners and
shareholders, regardless of whether the partner is an
individual, corporation, partnership, or other legal entity,
and regardless of whether the partner or shareholder is a
resident or nonresident. Complete Part III of this return. Do
not complete Part II of this return. Mark the SALT Parity
Election box on all Colorado K-1 forms (DR 0106K) and
complete the forms accordingly.

Part I: Computation of Colorado Income
Line 1 Ordinary Income or (Loss)
Enter the ordinary income or (loss) from line 1 of federal
Schedule K. Enter income and gains as positive numbers;
enter losses and deductions as negative numbers. For
paper returns, put negative amounts in parentheses, for
example, ($1,234).

Page 10

Line 2 Other Income or (Loss)
Enter the total of all other income listed on federal Schedule
K. For partnerships, this is the total of the amounts entered
on lines 2, 3c, 4c, 5, 6a, 7, 8, 9a, 10 and 11 of federal
Schedule K (IRS form 1065). For S corporations, this is the
total of the amounts entered on lines 2, 3c, 4, 5a, 6, 7, 8a,
9 and 10 of federal Schedule K (IRS form 1120-S). Also
include any gain from the sale of assets subject to section
179 of the Internal Revenue Code that is not reported on
Schedule K. Enter income and gains as positive numbers;
enter losses and deductions as negative numbers. For
paper returns, put negative amounts in parentheses, for
example, ($1,234).
Line 3 Colorado Additions
To the extent excluded from federal taxable income on
lines 1 and 2 of this form, enter the sum of the following
Colorado additions on this line 3:
•	Interest income (net of premium amortization)
from state or municipal obligations subject to
tax by Colorado. Do not include interest from
obligations issued by the State of Colorado or a
subdivision thereof.
•	Expenses deducted in the calculation of federal
taxable income for wages or remuneration paid to an
unauthorized alien for the physical performance of
services in Colorado.
•	Expenses deducted in the calculation of federal taxable
income that were incurred with respect to expenditures
made at, or payments made to, any club that is
licensed pursuant to section 44-3-418, C.R.S., that
has a policy to restrict membership on the basis of sex,
sexual orientation, gender identity, gender expression,
marital status, race, creed, religion, color, ancestry, or
national origin.
•	An amount equal to a federal deduction claimed for
the income tax year for a food and beverage expense
that exceeds 50% of the amount of the expense and
that was allowed under section 274(n)(2)(D) of the
Internal Revenue Code.
•	For S corporations, any income, war profits, or excess
profits taxes paid or accrued to any foreign country
or to any possession of the United States deducted
by the S corporation on line 12 of IRS Form 1120-S
for the tax year.
Line 4 Subtotal
Sum of lines 1 through 3.
Line 5 Federal Deductions
Enter the allowable deductions from federal Schedule K. For
partnerships, this is the total of lines 12, 13a, 13b, 13c(2),
and 13d of federal Schedule K (IRS form 1065); and for S
corporations, this is the total of lines 11, 12a, 12b, 12c(2),
and 12d of federal Schedule K (IRS form 1120-S). Show the
total deductions on this line 5 as a positive number.
Line 6 Colorado Marijuana Business Subtraction
For Colorado-licensed marijuana businesses, list any
expenditure that is eligible to be claimed as a federal
income tax deduction but is disallowed by section 280E

of the Internal Revenue Code because marijuana is a
controlled substance under federal law.
To calculate this subtraction, you must create pro forma
federal schedule(s) for Business Profit or Loss as if the federal
government would have allowed the expenditures from the
marijuana business. The Colorado subtraction is the difference
between the profit/loss as calculated on the ACTUAL
schedule(s) filed with the federal return and the pro forma
schedule(s) described above. You must include the pro forma
schedule(s), the MED license number and the actual federal
schedule(s) with your Colorado return to claim this subtraction.
Show the subtraction on this line 6 as a positive number.
Line 7 Other Colorado Subtractions
To the extent included in the federal taxable income
on line 4 of this form, enter the sum of the following
Colorado subtractions on this line 7:
•	Any interest income earned on obligations of the
United States government and any interest income
earned on obligations of any authority, commission, or
instrumentality of the United States to the extent such
obligations are exempt from state tax under federal law.
•	For partnerships, the modification for foreign source
income of an export taxpayer. For purposes of this
modification, an "export taxpayer" means:
1.) any partnership which sells 50% or more of its
products which are produced in Colorado in states
other than Colorado, or in foreign countries; or 2.) if
the gross receipts of such partnership are derived
from the performance of services, such services are
performed in Colorado by a partner or employee of the
partnership and 50% or more of such services provided
by the partnership are sold or provided to persons
outside of Colorado. If a partnership qualifies as an
export taxpayer, it may exclude for Colorado income tax
purposes any income or gain which constitutes foreign
source income for federal income tax purposes.
•	For S corporations, any portion of wages or salaries
paid or incurred by the S corporation for the tax year, but
which are not deductible for federal income tax purposes
due to section 280C of the Internal Revenue Code.
Show the total subtractions on this line 7 as a positive number.
Line 10 Colorado-Source Income
Partnerships
•	If the partnership has no income from business activity
outside of Colorado, mark the box indicating that all
income is Colorado income, and enter the amount from
line 9 on this line 10.
•	For a partnership with income from sources within and
outside of Colorado, refer to the general instructions for
Apportionment and Sourcing of Income to determine the
proper sourcing method.
•	If the partnership is making an election under section
39-22-203(1)(a) to apportion or allocate income pursuant
to section 39-22-303.6, C.R.S., mark the Part V box and
complete Part V of this form. Enter the result from line 14 of
Part V of this form on this line 10.

Page 11

•	If the partnership is using direct sourcing, mark the
Other box. Enter the total of the income attributable to
Colorado as shown on the Colorado K-1 forms (DR 0106K)
issued to partners (sum of column B, lines 1 through 12)
on this line 10.
The partnership will not normally determine income from
Colorado sources for any corporate partner as the corporation
will include its share of the partnership's income and factors
in its own income and factors subject to allocation and
apportionment. Refer to lines 13 and 14 of the Colorado K-1
(DR 0106K) for more information.
S Corporations
•	If the S corporation has no income from business
activity outside of Colorado, mark the box indicating
that all income is Colorado income, and enter the
amount from line 9 on this line 10.
•	For an S corporation with income from sources within and
outside Colorado, mark the Part V box and complete Part
V of this form. Enter the result from line 14 of Part V of
this form on this line 10.

Part II: Composite Return
Complete lines 11 through 16 of this form only if
a composite return is being filed for nonresident
partners or shareholders. Do not complete this Part II
if the partnership or S corporation is making a SALT
Parity Act Election (see Box I).
Refer to the general instructions for nonresident partners
and shareholders for more information about composite
returns and other options.
Line 11 Colorado-source income
Enter the Colorado-source income of the nonresident
partners or shareholders who are included in this
composite return. This amount should be the sum of
column B, lines 1-11 of the Colorado K-1 (DR 0106K) for
all nonresident partners or shareholders included in this
composite return. Do not include any resident partners
or shareholders.
Line 12 Colorado Tax
Multiply the amount on line 11 by 4.4% (0.044) and enter
the result on this line 12.
Line 13 Non-refundable Credits
Enter the non-refundable tax credits from the Colorado
Pass-Through Entity Credit Schedule (DR 0106CR) line 27,
Column C that are allocated to the nonresident partners
or shareholders included in the composite return. Do not
include any amounts from Column B on this line. You must
submit the DR 0106CR with your return.
Line 14 Conservation Easement Credit
Enter the gross conservation easement credit available to
the nonresident partners or shareholders included in the
composite return from the DR 1305G line 33. You must
submit the DR 1305G with your return.
Line 15 Net tax
Add lines 13 and 14, then subtract this sum from line 12.

The sum of 13 and 14 may not exceed the amount on line
12. Enter the result from this line 15 on line 21 of this form.
Line 16 Refundable Credits
Enter the refundable tax credits from the DR 0106CR
line 33, Column C that are allocated to the nonresident
partners or shareholders included in the composite return.
Do not include any amounts from Column B on this line.
You must submit the DR 0106CR with your return. Enter
the amount from this line 16 on line 24 of this form.
Proceed to line 21.

Part III: SALT Parity Act Income Tax Return
Complete lines 17 through 20 only if the partnership
or S corporation is making a SALT Parity Act election
for this tax year. Refer to the general instructions
regarding SALT Parity Act elections, and the
instructions for Box I, for more information. If the
partnership or S corporation is making a SALT Parity
Act election, do not complete Part II of this form.
Line 17 Resident Income
Enter the total of all resident partners' or shareholders
income. This amount should equal the sum of the amounts
on lines 1 through 3 and lines 5 through 12 in column A of
the Colorado K-1 for all resident partners or shareholders.
Line 18 Nonresident Income
Enter the total of all nonresident partners' or shareholders
Colorado-source income. This amount should equal
the sum of the amounts on lines 1 through 3 and lines
5 through 12 in column B of the Colorado K-1 for all
nonresident partners or shareholders.
Line 19 Colorado Taxable Income
Add lines 17 and 18 and enter the sum on this line 19.
Line 20 Colorado Tax
Multiply line 19 by 4.4% (0.044) and enter the product on this
line 20. Enter the result from this line 20 on line 21 of this form.

Part IV: Computation of Amount Owed
or Overpayment
Line 21 Colorado Tax
Enter the amount from line 15 (Part II) or line 20 (Part III) of
this form. There should not be amounts on both lines, as only
Part II or Part III (but not both parts) should be completed.
Line 22 Prepayments
Carefully review payment records before completing this
line. Use Revenue Online (Colorado.gov/RevenueOnline)
to verify estimated taxes paid on the account. Doing so will
reduce processing delays. Enter the amount of credit for
prepayments. Include the sum of the following on this line 22:
•	Estimated tax payments for 2022; and
•	Any overpayment from 2021 that was carried
forward to 2022; and
•	Extension payment(s) remitted with the DR 0158-N; and
•	Payments remitted with the DR 1079 to satisfy
withholding requirements for the sale of Colorado real

Page 12

estate that closed during the tax year for which you
are filing this return. You must submit the DR 1079
with your return.
Line 23 Gambling Withholding
Enter the total of any Colorado withholdings reported on
Form W-2G made on lottery or gambling winnings. This will
not apply to most taxpayers. You must submit the W-2G(s)
with your return.
Line 24 Refundable Credits
Enter the amount from line 16 in Part II of this form on
this line 24. If Part II was not completed, enter 0 (zero)
on this line 24.
Line 26 Delinquent Payment Penalty
If 90% of the tax is not paid by the original due
date (without extension), you must add a delinquent
payment penalty. The penalty is the greater of $5
or 5% of the additional tax due for the first month of
delinquency and 0.5% for each additional month up to
a maximum of 12%. A delinquent payment penalty will
also apply if the remaining tax due is not paid by the
extension due date.
Line 27 Interest
Interest is due on any unpaid tax balance paid after the
original due date (without extension). Refer to Penalties
and Interest (FYI General 11) for an explanation on the
calculation of interest.
Line 28 Estimated Tax Penalty
The estimated tax penalty is computed for each partner
or shareholder on form DR 0204. This penalty applies
only when the tax due for a partner or shareholder
included in the composite filing is more than $1,000, and
estimated payments were not made in a timely manner.
If this penalty is due, you must submit form DR 0204 for
each partner or shareholder who owes the penalty and
include the total penalty for all partners or shareholders
on this line 28. If estimated tax penalty on this line 28
exceeds the Department's calculations, any amount of
overpayment of penalty will be refunded to you.
Line 29 Balance Due
If line 21 is greater than line 25, subtract line 25 from line
21 and add any penalty or interest due from lines 26, 27,
and 28. This is the amount due.
Line 30 Overpayment Amount
If line 25 is greater than line 21, subtract line 21 from line
25. This is the overpayment amount.
Line 31 Estimated Tax Credit
Enter the amount from line 30 you want to credit to next
year's estimated tax.
Line 32 Refund Amount
Subtract line 31 from 30 to calculate the amount
of your refund.
Direct Deposit – You have the option of authorizing the
Department to directly deposit these funds into your bank
account. Otherwise, a refund check will be mailed to the
address you have designated on this return.
Enter the routing and account numbers and account
type. The routing number is 9 digits. Account numbers

can be up to 17 characters (numbers and/or letters).
Include hyphens, but do NOT enter spaces or special
symbols. We recommend that you contact your
financial institution to ensure you are using the correct
information and that they will honor a direct deposit.
Intercepted Refunds – The Department will intercept your
refund if you owe back taxes or if you owe a balance to
another Colorado government agency or the IRS.

Paid Preparer Authorization
Mark the "Yes" box to appoint the paid preparer entered
on the return as the designee to receive and inspect
confidential tax information related to this tax return.
If a firm or organization is listed, this tax information
authorization will apply to any of its employees.
A designee may:
•	Call for information about the return, including
processing time and refund status;
•	Request copies of notices, bills or transcripts related to
the return; and
•	Respond to inquiries regarding calculations and
supporting documentation for the return.
However, a designee cannot sign any form or protest,
request any other change to the account, receive any
refund, or otherwise represent or act on behalf of the
taxpayer with the Colorado Department of Revenue.
This authorization expires four years after the date the
return is signed. A taxpayer may change or revoke it, or
an appointee may withdraw from it. For more information,
see the instructions for form DR 0145, Tax Information
Authorization or Power of Attorney.

Signature and Mailing
The law requires the return to be signed under penalty of
perjury. Any partner may sign a return for a partnership.
Persons authorized to sign a return for an S corporation
must either be the president, vice president, treasurer,
assistant treasurer, chief accounting officer, or other
officer that is duly authorized to act on behalf of the
corporation. In cases where receivers, trustees in
bankruptcy, or assignees are operating the property or
business of corporations, such receivers, trustees, or
assignees shall make returns for such corporations in
the same manner and form as corporations are required
to make returns.
If the return was prepared by a paid preparer, enter the
preparer’s name and phone number.
To file this return WITH a check or payment, mail the return
and payment to:
Colorado Department of Revenue
Denver CO, 80261-0006
To file this return WITHOUT a check or payment,
mail the return to:
Colorado Department of Revenue
Denver CO, 80261-0005

*220158-N19999*

(0049)

DR 0158-N (06/14/22)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0008
Tax.Colorado.gov
Page 1 of 1

2022 Automatic Filing Extension for Composite Nonresident
Income Tax Return
Filing extensions are granted automatically.
Return this form only if you need to make an additional payment of tax.
Colorado income tax returns are due the fifteenth day of
the fourth month after the end of your tax year, or by April
15 for traditional calendar year filers. If you are unable
to file by your prescribed due date, you may file under
extension. This will allow you an additional six months to
file your return, or until October 15 for traditional calendar
year filers. If the due date falls on a weekend or federal
holiday, payment will be due the next business day. While
there is an extension to file, there is not an extension to
the payment due date. Penalty and interest are assessed
if certain payment criteria are not met. Please review FYI
General 11 for more information on penalty and interest.
Pay Online
Visit Colorado.gov/RevenueOnline to pay online. Online
payments reduce errors and provide instant payment
confirmation. Revenue Online also allows users to submit
various forms and to monitor their tax account. Electronic

Funds Transfer (EFT) Debit and Credit options are
free services offered by the department. EFT services
require pre-registration before payments can be made.
Visit Tax.Colorado.gov/electronic-funds-transfer for
more information.
The DR 0158-N is not required to be sent if an
online payment is made. Please be advised that a
nominal processing fee may apply to e-check or
credit card payments.
Pass-Through Entities
Use this form only if the entity intends to file a composite
return and claim the extension payment against the
tax reported on the composite return. Payments made
using the DR 0158-N for the composite entity cannot
be distributed to or claimed on individual partner or
shareholder returns.

DR 0158-N

Fiscal Year Beginning (MM/DD/22)

For the calendar year 2022 or the fiscal year
Fiscal Year Ending (MM/DD/YY)

Return this form with check or money order payable to the "Colorado Department of Revenue". Mail payments to Colorado
Department of Revenue, Denver, Colorado 80261-0008. These addresses and ZIP codes are exclusive to the Colorado
Department of Revenue, so a street address is not required. Write your Colorado Account Number or Federal Employer
Identification Number and “2022 DR 0158-N” on your check or money order. Do not send cash. Enclose, but do not staple
or attach, your payment with this form.
FEIN

Colorado Account Number

Business Name

Address

City

State

ZIP

Amount of Payment
The State may convert your check to a one-time electronic banking transaction. Your bank account may be debited as early as the same
day received by the State. If converted, your check will not be returned. If your check is rejected due to insufficient or uncollected funds,
the Department of Revenue may collect the payment amount directly from your bank account electronically.

$

DO NOT CUT – Return Full Page. IF NO PAYMENT IS DUE, DO NOT FILE THIS FORM.

DR 0106 (11/28/22)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 1 of 5

*220106==19999*

2022 Colorado Partnership and S Corporation and
Composite Nonresident Income Tax Return
Fiscal Year Beginning (MM/DD/22)

Ending (MM/DD/YY)

(0043)

Mark for Amended Return
Name of Organization

Colorado Account Number

Doing Business As

Federal Employer ID Number

Address

City

State

ZIP

If you are including a statement disclosing a listed or reportable transaction, mark this box	
A. This return is being filed for (mark one):
Partnership

S Corporation

LLC

LP

LLP

LLLP

Association

B. Beginning depreciable assets from federal return

C. Ending depreciable assets from federal return

D. Business or profession

E. Date of organization or incorporation (MM/DD/YY)

Non-Profit

F. If this is a final return, mark this box	

G. If the IRS has made any adjustments to your federal return or you have
filed amended federal returns during the last four years, mark this box:

H. Number of partners or shareholders as of year end

Explain:

I. I f this pass-through entity is electing to be subject to tax at the entity level under the SALT Parity Act
(section 39-22-343, C.R.S.) for this income tax year, mark this box.
Round to the
nearest dollar

Part I: Computation of Colorado Income
1.	Ordinary income from line 1 federal Schedule K	

	 1

00

2.	Sum of all other income	

	 2

00

3.	Modifications increasing federal income	

	 3

00

4

00

5.	Allowable deductions from federal Schedule K	

	 5

00

6.	Colorado Marijuana Business Deduction	

	 6

00

7.	Other modifications decreasing federal income	

	 7

00

4.	Sum of lines 1 through 3	

8.	Sum of lines 5 through 7	

	

8

00

*220106==29999*

Form 106

DR 0106 (11/28/22)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 2 of 5

Name

Account Number

9.	Modified federal taxable income, subtract line 8 from line 4	
10.	Colorado-Source Income from (mark one):

9

00

Income is all Colorado Income
	 10

00

Do not complete lines 11-16 unless you are filing a composite nonresident return.
11.	Colorado-source income of nonresident partners or shareholders electing to be
included in this composite filing.	
	 11

00

				

Part V

Other (include explanation)

	

Part II: Composite Nonresident Income Tax Return

12.	Tax; 4.4% of the amount on line 11	
	 12
13.	Non-refundable credits from the DR 0106CR line 27 column C, you must
include the DR 0106CR with your return.	
	 13
14.	Gross Conservation Easement credit allocated to these partners or shareholders
from the DR 1305G line 33. You must submit the DR 1305G with your return.	
	 14
15.	Net tax, sum of lines 13 and 14, then subtract this sum from line 12. The sum
of lines 13 and 14 may not exceed the amount on line 12.	
	 15
16.	Refundable credits from the DR 0106CR line 33 column C, you must include the
DR 0106CR with your return.	
	 16

Part III: SALT Parity Act Income Tax Return

00
00
00
00
00

Do not complete lines 17-20 unless you are filing a return for a pass-through entity making the election under the
SALT Parity Act.
17.	Resident partners' or shareholders' total share of income	

	 17

00

18.	Colorado-source income of nonresident partners or shareholders	

	 18

00

	 19

00

	 20

00

	 21

00

22.	Estimated tax, extension payments, and credits	

	 22

00

23.	Withholding from lottery or gambling winnings. 	

	 23

00

24.	Refundable credits from line 16	

	 24

00

	 25

00

26.	Penalty (include on line 29)	

	 26

00

27.	Interest (include on line 29)	

	 27

00

28.	Estimated tax penalty (include on line 29) 	

	 28

00

29.	If line 21 is greater than line 25, enter amount owed	

	 29

19.	Colorado taxable income of pass-through entity, sum of lines 17 and 18	
20.	Net Tax; 4.4% of the amount on line 19.	

Part IV: Computation of Amount Owed and Overpayment
21.	Enter the amount from line 15 or line 20, whichever applies	

25.	Subtotal; sum of lines 22, 23, and 24	

Form 106

DR 0106 (11/28/22)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 3 of 5

*220106==39999*
Name

Account Number

30.	Overpayment, subtract line 21 from line 25 	

	 30

00

31.	Overpayment to be credited to 2023 estimated tax 	

	 31

00

32.	Overpayment to be refunded 	

	 32

00

I declare this return to be true, correct and complete under penalty of perjury in the second degree.
Declaration of preparer is based on all information of which preparer has any knowledge.

Direct
Deposit

Routing Number

Type:

Checking

Savings

Account Number

Do you want to allow the paid preparer entered below to discuss this return and any related
information with the Colorado Department of Revenue? See the instructions.

Yes

Signature of partner or signature and title of officer

Date (MM/DD/YY)

Person or firm preparing return (name and phone number)

Date (MM/DD/YY)

No

The State may convert your check to a one-time electronic banking transaction. Your bank account may be debited as early as the same day received by the State. If converted, your check will not be returned. If
your check is rejected due to insufficient or uncollected funds, the Department of Revenue may collect the payment amount directly from your bank account electronically.

File and pay at: Colorado.gov/RevenueOnline
If you are filing this return with a check or payment, If you are filing this return without a check or payment,
please mail the return to:
please mail the return to:
COLORADO DEPARTMENT OF REVENUE
Denver, CO 80261-0006

COLORADO DEPARTMENT OF REVENUE
Denver, CO 80261-0005

These addresses and ZIP codes are exclusive to the Colorado Department of Revenue,
so a street address is not required.

*220106==49999*

DR 0106 (11/28/22)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 4 of 5

Name

Form 106
Part V

Account Number

Part V — Apportionable Income Apportioned to Colorado by use of the Receipts Factor
Do not send federal return forms or schedules with this return. Complete this form in accordance with section
39-22-303.6 C.R.S., and the regulations thereunder.
	
	

1.	Total modified federal taxable income from the DR 0106, Part I, line 9		
1
Apportionable Income Apportioned to Colorado by use of the Receipts Factor
Do Not Include Foreign-source income modified out on the DR 0106, Part I, Line 7
Colorado
Everywhere
2.	Gross receipts from the sale of
00
00
tangible personal property	
	2
3.	Gross receipts from the sale of
00
00
services	
	3
4.	Gross receipts from the sale, rental,
00
00
lease, or license of real property	 	 4
5.	Gross receipts from the rental, lease, or
00
00
license of tangible personal property	 	 5
6.	Gross receipts from the sale, rental, lease,
00
00
or license of intangible property	
	6
7.	Distributive share of partnership
00
00
factors	
	7
8.	Total receipts (total of lines 2
00
00
through 7 in each column)	
	8

9.	Line 8 (Colorado) divided by line 8 (Everywhere)	
	 9
Complete lines 10 and 13 only if nonapportionable income is being directly allocated.
If all income is being treated as apportionable income, enter 0 (zero) on lines 10 and 13.

00

%

10.	Less income directly allocable to any state, including Colorado:
(a) Net rents and royalties from real or tangible property	

00

(b) Capital gains and losses	

00

(c) Interest and dividends	

00

(d) Patents and copyright royalties	

00

(e) Other nonapportionable income	

00
10

00

11.	Modified federal taxable income subject to apportionment, subtract line 10(f) from line 1	 11

00

12.	Income apportioned to Colorado, line 9 multiplied by line 11	

00

(f) Total income directly allocable [add lines (a) through (e)]	

12

*220106==59999*

DR 0106 (11/28/22)
COLORADO DEPARTMENT OF REVENUE
Tax.Colorado.gov
Page 5 of 5

Name

Form 106
Part V

Account Number

13.	Add income directly allocable to Colorado:
(a) Net rents and royalties from real or tangible property	

00

(b) Capital gains and losses	

00

(c) Interest and dividends	

00

(d) Patents and copyright royalties	

00

(e) Other nonapportionable income	

00

(f) Total income directly allocable [add lines (a) through (e)]	
13
14.	Total income apportioned and allocated to Colorado, sum of lines 12 and 13(f). Enter here
and on the DR 0106, Part I, line 10	
14
15.	

	Pursuant to §39-22-303.6(8) C.R.S., taxpayer elects to treat all income as apportionable income for the tax
year covered by this return.

00
00

Page 21

Partnership Instructions for Colorado K-1 (DR 0106K)
Partnerships must complete a Colorado K-1 (DR 0106K)
for each of its partners for each tax year. Completed
Colorado K-1s must be filed with the Department, as
described below. On or before the date the Colorado K-1s
are filed with the Department, the partnership must furnish
each partner with a copy of the Colorado K-1 reporting
their income, deductions, modifications, and credits.

Due Dates
Colorado K-1s due to be filed the fifteenth day of the fourth
month after the close of the tax year, or after the automatic
six-month extension, if applicable. Colorado K-1s for
calendar year 2022 are due on April 15, 2023. If the due
date falls on a weekend or federal holiday, the Colorado
K-1s will be due the next business day.

Filing Colorado K-1s with the Department
Partnerships must submit a copy of each partner’s Colorado
K-1 to the Department. These copies may be submitted in
spreadsheet or XML form at Colorado.gov/RevenueOnline.
Partnerships may also enter the data manually at
Colorado.gov/RevenueOnline. Finally, paper copies may
be submitted with the Annual Transmittal of DR 0106K –
Colorado K-1 Forms cover sheet (form DR 1706) by mail to:

Part-Year Residents & Nonresidents for additional
assistance in determining Colorado residency
for individuals.
•	An estate is a Colorado resident if it is the estate of a
deceased person that is administered in Colorado in a
proceeding other than an ancillary proceeding.
•	A trust is a Colorado resident if it is
administered in Colorado.
A C corporation that is a partner in a partnership
is a Colorado resident partner if it is organized
under Colorado law.
A partnership that is a partner in another partnership is a
Colorado resident partner if it is organized under Colorado
law. A limited liability company (LLC) that is treated as a
partnership for federal income tax purposes is treated as a
partnership for Colorado income tax purposes.

Part-Year Resident Partners

If a partner was a resident for only part of the tax year,
check the box to indicate that they were a resident and
complete the Colorado K-1 for the partner following the
instructions for resident partners.

SALT Parity Act Election

Completing the Colorado K-1

If the partnership has made an election for the tax year
pursuant to section 39-22-343, C.R.S., to be subject to tax
at the entity level, check the applicable box to indicate the
SALT Parity Act election. A SALT Parity Act election made
by a partnership is binding on all of its partners, regardless
of whether the partner is an individual, corporation, or other
legal entity, and regardless of whether the partner is a
resident or nonresident.

Fiscal Year Filers

Nonresident Partners

Colorado Department of Revenue
Denver, CO 80261-0006
Do not submit the copies of the Colorado K-1s issued
to partners (or the DR 1706 transmittal form) as an
attachment to the partnership’s income tax return.

If the partnership’s tax year is a fiscal year, enter the dates
the partnership’s fiscal year begins and ends.

Information About the Partner
Enter the partner’s name and address.

Enter the partner’s applicable tax identification number.
If the partner is an individual, enter the individual’s social
security number (SSN) or individual taxpayer identification
number (ITIN). If the partner is an estate, trust, corporation,
partnership, or other legal entity, enter the partner’s federal
employer identification number (FEIN).
Check the applicable box to indicate whether the partner is
a Colorado resident or nonresident. Check the applicable
box to indicate the partner is a resident if they were a
Colorado resident for the entire tax year or for any part
of the tax year.
•	An individual is a Colorado resident if they are
domiciled in Colorado or if they maintain a permanent
place of abode in Colorado and spend in the aggregate
more than six months of the taxable year in Colorado.
See Department publication Income Tax Topic:

If the partnership did not make a SALT Parity Act election
and the partner is a nonresident of Colorado, check the
applicable box to indicate whether the partnership is, with
respect to the nonresident partner, filing a composite return,
filing a DR 0107, or remitting payment with a DR 0108.
•	Composite Return – A partnership may file a
composite return on behalf of one or more of its
nonresident partners, reporting and remitting the
Colorado income tax due on the Colorado-source
income of the nonresident partner(s) included in the
composite return. If the nonresident partner has no
other Colorado-source income, the composite return
satisfies their Colorado income tax filing obligation
for the tax year.
•	DR 0107 – A nonresident partner may complete and
sign form DR 0107 thereby agreeing to file a Colorado
income tax return, make timely payment of the tax due,
and be subject to personal jurisdiction in Colorado for
the purpose of income tax collection. The partnership
must submit a copy of the signed form DR 0107 with its
return (form DR 0106).

Page 22

•	DR 0108 – If a nonresident partner is not included in a
composite return filed by the partnership and has not
completed and signed form DR 0107, the partnership
must, with form DR 0108, remit payment of the
Colorado income tax due on the nonresident partner’s
Colorado source income. The nonresident partner may
claim credit on their Colorado income tax return for the
payment remitted on their behalf by the partnership.
Enter the partnership’s name, address, and either
Colorado account number or federal employer
identification number (FEIN).

Column A that is derived from sources within Colorado as
determined pursuant to 1 CCR 201-2, Rule 39-22-109(3)
(b)(xii). Enter on lines 1 through 3, lines 5 through 8,
and line 11 in Column B the portions of the partner’s
distributive shares of income and deduction from Column
A that are derived from sources within Colorado as
determined pursuant to section 39-22-203(1)(a), C.R.S.
Amounts derived from sources within Colorado are
either determined in accordance with the provisions of
section 39-22-109, C.R.S., and Rule 39-22-109 or, at the
partnership’s election, apportioned or allocated to Colorado
pursuant to section 39-22-303.6, C.R.S., and the related
rules. See also General Information Letter 22-003.

Partner’s or Shareholder’s Share of
Income and Other items

Line 9. State income tax addback
Partner’s or Shareholder’s Share of Income and Other
Items (Column A)

Information About the Partnership

On each Colorado K-1, the partnership must report in
Column A (Partner’s or Shareholder’s Share of Income
and Other Items) the partner’s distributive share of each
item listed. In Column B (Partner’s or Shareholder’s Share
of Income and Other Items Attributable to Colorado), the
partnership must report the portion of each listed item
attributed to Colorado. In each column, enter income and
gains as positive numbers; enter losses and deductions as
negative numbers. For paper returns, put negative amounts
in parentheses, for example, ($1,234). The following
instructions provided guidance for determining the amounts
to enter in each column.

Federal Income and Deductions

Enter on lines 1 through 8 and line 11 in Column A the
income and deduction information about the partner’s
share of income and deductions from the partner’s
federal Schedule K-1. Enter income and gains as positive
numbers. Enter any losses on lines 1, 2, 3, or 8, and any
federal deductions on line 11, as negative amounts.
Colorado K-1
(Form DR 0106K)

Partner’s Schedule
K-1 (IRS Form 1065)

1. Ordinary
business income (loss)

Box 1

2. N
 et rental real
estate income (loss)

Box 2

3. Other net rental income (loss)

Box 3

4. Total guaranteed payments

Box 4c

5. Interest and dividends
6. Royalties
7. Net capital gain

Sum of Boxes
5 and 6a
Box 7
Sum of Boxes
8, 9a, and 10

8. Other income (loss)

Box 11

11. Federal deductions

Sum of
Boxes 12 and 13

Enter on line 4 in Column B (Partner’s or Shareholder’s
Share of Income and Other Items Attributable to Colorado)
the portion of the partner’s guaranteed payments from

For all partners that are not C corporations, enter on line
9 in Column A the partner’s distributive share of any state
income tax deducted by the partnership on line 14 of IRS
Form 1065 for the tax year, regardless of the state to which
the income tax was paid or accrued.
For all partners that are C corporations, enter on line 9 in
Column A the partner’s distributive share of any Colorado
income tax deducted by the partnership on line 14 of IRS
Form 1065 for the tax year.
The partner’s distributive share of the deduction is
determined with the same ratio used to determine the
partner's distributive share of partnership taxable income
or loss generally for federal income tax purposes.
Partner’s or Shareholder’s Share of Income and Other
Items Attributable to Colorado (Column B)
Enter on line 9 in Column B the partner’s distributive
share of any Colorado income tax deducted by the
partnership on line 14 of IRS Form 1065 for the tax year.
The partner’s distributive share of the deduction claimed
by the partnership must be determined in accordance
with the partner's distributive share, for federal income tax
purposes, of partnership taxable income or loss generally.
Line 10. Other Colorado additions
Partner’s or Shareholder’s Share of Income and Other
Items (Column A)
Enter on line 10 in Column A the partner’s distributive
share of any required Colorado additions.
Include on line 10 the partner’s distributive share of any
addition required for non-Colorado state or local bond interest.
A partner’s distributive share of state and local bond interest
is generally included in the amount reported in box 18 of the
partner’s Schedule K-1 (IRS Form 1065). The required addition
does not include any amortization of the bond premium and
is reduced by the amount of the deductions required by the
Internal Revenue Code to be allocated to the interest income.
Include on line 10 the partner’s distributive share of following
additions. The partner’s distributive share of any addition
is determined with the same ratio used to determine the
partner's distributive share of partnership taxable income or
loss generally for federal income tax purposes.

Page 23

•	Business expenses deducted in the calculation of
federal taxable income for wages or remuneration paid
to an unauthorized alien for the physical performance
of services in Colorado;
•	Expenses deducted in the calculation of federal taxable
income that were incurred with respect to expenditures
made at, or payments made to, any club that is
licensed pursuant to section 44-3-418, C.R.S., that
has a policy to restrict membership on the basis of sex,
sexual orientation, gender identity, gender expression,
marital status, race, creed, religion, color, ancestry, or
national origin; and
•	An amount equal to a federal deduction claimed for
the income tax year for a food and beverage expense
that exceeds 50% of the amount of the expense and
that was allowed under section 274(n)(2)(D) of the
Internal Revenue Code.
Partner’s or Shareholder’s Share of Income and Other
Items Attributable to Colorado (Column B)
Enter on line 10 in Column B the portions of the partner’s
distributive shares of the additions from Column A that are
attributable to Colorado.
Include on line 10 in Column B the full amount of any of the
following additions entered in Column A:
•	Business expenses deducted in the calculation of
federal taxable income for wages or remuneration paid
to an unauthorized alien for the physical performance
of services in Colorado; and
•	Expenses deducted in the calculation of federal taxable
income that were incurred with respect to expenditures
made at, or payments made to, any club that is licensed
pursuant to section 44-3-418, C.R.S., that has a policy to
restrict membership on the basis of sex, sexual orientation,
gender identity, gender expression, marital status, race,
creed, religion, color, ancestry, or national origin.
Include on line 10 in Column B the amount of the
following addition entered in Column A to the extent that
the underlying or related expenses were from business
activity in Colorado:
•	An amount equal to a federal deduction claimed for
the income tax year for a food and beverage expense
that exceeds 50% of the amount of the expense and
that was allowed under section 274(n)(2)(D) of the
Internal Revenue Code.
See sections 39-22-104, 39-22-202, and 39-22-203,
C.R.S., and 1 CCR 201-2, Rules 39-22-109 and 39-22-110
for additional information regarding Colorado additions.
Line 12. Colorado subtractions
Partner’s or Shareholder’s Share of Income and Other
Items (Column A)
Enter on line 12 in Column A the partner’s distributive
share of any allowable Colorado subtractions. Enter
subtractions on line 12 as a negative amount.
Include on line 12 the partner’s distributive share of
any interest income on obligations of the United States

and its possessions. A partner’s distributive share of
U.S. government interest is generally included in the
amount reported in box 5 of the partner’s Schedule K-1
(IRS Form 1065).
Include on line 12 the partner’s distributive share of following
subtractions, The partner’s distributive share of any subtraction
is determined with the same ratio used to determine the
partner's distributive share of partnership taxable income or
loss generally for federal income tax purposes.
•	If the partnership is licensed under the “Colorado
Marijuana Code,” any expenditure that is eligible to
be claimed as a federal income tax deduction but is
disallowed by section 280E of the Internal Revenue
Code because marijuana is a controlled substance
under federal law;
•	If the partnership is an “export taxpayer” as defined in
section 39-22-206, C.R.S., any partnership income or
gain that constitutes foreign source income for federal
income tax purposes;
•	For all partners that are not C corporations, the
amount of any refund or credit for overpayment of
income taxes imposed by Colorado or any other taxing
jurisdiction to the extent included in the partnership’s
gross income for federal income tax purposes but not
previously allowed as a deduction for Colorado income
tax purposes; and
•	For all partners that are C corporations, the amount
of any refund or credit for overpayment of income
taxes imposed by Colorado to the extent included in
the partnership’s gross income for federal income tax
purposes but not previously allowed as a deduction for
Colorado income tax purposes.
Partner’s or Shareholder’s Share of Income and Other
Items Attributable to Colorado (Column B)
Enter on line 12 in Column B the portions of the partner’s
distributive shares of the subtractions from Column A that
are attributable to Colorado.
Include on line 12 in Column B the full amount of any of the
following subtraction entered in Column A:
•	If the partnership is licensed under the “Colorado
Marijuana Code,” any expenditure that is eligible to
be claimed as a federal income tax deduction but is
disallowed by section 280E of the Internal Revenue
Code because marijuana is a controlled substance
under federal law;
Include on line 12 in Column B the amount of the
following subtraction entered in Column A to the extent
the underlying or related income is included on lines 1
through 8 in Column A:
•	The amount of any refund or credit for overpayment of
income taxes imposed by Colorado or any other taxing
jurisdiction to the extent included in the partnership’s
gross income for federal income tax purposes but
not previously allowed as a deduction for Colorado
income tax purposes.

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See sections 39-22-104, 39-22-202, and 39-22-203,
C.R.S., and 1 CCR 201-2, Rules 39-22-109 and 39-22-110
for additional information regarding Colorado subtractions.
Lines 13 and 14. Partner’s Share of Total Receipts and
Non-Apportionable Income
Lines 13 and 14 of the Colorado K-1 must be completed for
any partner that is a C corporation or that is treated as a C
corporation for Colorado income tax purposes, but is not
required for any other partner, unless the partner needs th