Colorado Partnership / S-Corporation Pass-Through Entities Tax Booklet
Extracted from PDF file 2022-colorado-form-106.pdf, last modified January 2023Partnership / S-Corporation Pass-Through Entities Tax Booklet
(01/12/23) Booklet Includes: Instructions | DR 0106 | Related Forms 106 { { 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: y y y y y y 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. Page 24 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
2022 Book 106 Partnership and S Corporations and Composite Filing for Nonresidents
More about the Colorado Form 106 Corporate Income Tax Tax Return TY 2022
Colorado Pass-Through Entities and Composite Filing for Nonresidents Income Tax Filing Guide: This book includes:
- DR 0106 2017 Colorado Pass-Through Entity Composite Nonresident Income Tax Form
- DR 0107 Colorado Nonresident Partner, Shareholder or Member Agreement
- DR 0108 Statement of Colorado Tax Remittance for Nonresident Partner, Shareholder or Member
- DR 0158-N Automatic Filing Extension for Composite Nonresident Income Tax Return
- DR 0106CR Colorado Pass-Through Entity Credit Schedule
We last updated the Partnership / S-Corporation Pass-Through Entities Tax Booklet in February 2023, so this is the latest version of Form 106, fully updated for tax year 2022. You can download or print current or past-year PDFs of Form 106 directly from TaxFormFinder. You can print other Colorado tax forms here.
Related Colorado Corporate Income Tax Forms:
TaxFormFinder has an additional 64 Colorado income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the Colorado Form 106.
Form Code | Form Name |
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Form 106EP | Colorado Composite Nonresident Estimated Tax Payment Form |
View all 65 Colorado Income Tax Forms
Form Sources:
Colorado usually releases forms for the current tax year between January and April. We last updated Colorado Form 106 from the Department of Revenue in February 2023.
Form 106 is a Colorado Corporate Income Tax form. Like the Federal Form 1040, states each provide a core tax return form on which most high-level income and tax calculations are performed. While some taxpayers with simple returns can complete their entire tax return on this single form, in most cases various other additional schedules and forms must be completed, depending on the taxpayer's individual situation, to create a complete income tax return package.
About the Corporate Income Tax
The IRS and most states require corporations to file an income tax return, with the exact filing requirements depending on the type of company.
Sole proprietorships or disregarded entities like LLCs are filed on Schedule C (or the state equivalent) of the owner's personal income tax return, flow-through entities like S Corporations or Partnerships are generally required to file an informational return equivilent to the IRS Form 1120S or Form 1065, and full corporations must file the equivalent of federal Form 1120 (and, unlike flow-through corporations, are often subject to a corporate tax liability).
Additional forms are available for a wide variety of specific entities and transactions including fiduciaries, nonprofits, and companies involved in other specific types of business.
Historical Past-Year Versions of Colorado Form 106
We have a total of eleven past-year versions of Form 106 in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:

2022 Book 106 Partnership and S Corporations and Composite Filing for Nonresidents
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