Tennessee Franchise and Excise Tax Exempt Entity Disclosure of Activity
Extracted from PDF file 2017-tennessee-form-fae-disc.pdf, last modified October 2016
Franchise and Excise Tax Exempt Entity Disclosure of ActivityTennessee Department of Revenue Franchise and Excise Tax Exempt Entity Disclosure of Activity Exemption Period Entity Name Exempt Account No. Organizational Structure (a) Member/Partner Name (b) Ownership Percentage (c) Relationship 1. 2. 3. 4. Part I Family-Owned Non-Corporate Entity (“FONCE”) (a) Passive Investment Income Source of Income Receipts Royalties Dividends Annuities Interest Source of Income Gain on sale/exchange of stock Gain on sale/exchange of securities Rent from residential property Rent/income from farming Receipts (b) Non-Passive Income Source of Income Industrial & Commercial Real Estate Rental Other (please describe): Receipts Total Non-Passive Income Part II Farming Activity (a) Type of Income Farm Income Other Income Total Income Part III $ (b) Assets at cost/FMV (see Instructions) Assets used in farming Other assets Total assets $ $ $ $ $ $ Holding a Personal Residence (a) Description of Property (b) Property Address (c) Resident(s) / Number of days residing at property during the exemption period Contact Person: Title: Phone Number: Email address: Attach additional schedules as needed. RV-F1320501 INTERNET (9-16) Franchise and Excise Tax Exempt Entity Instructions for Disclosure of Activity Exemption Requirements Not Met If the entity does not meet the exemption requirements in any given year, it is taxable on all activities for that year. A completed franchise and excise tax return (FAE170) must be filed electronically with payment of any taxes due by the th th 15 day of the 4 month following the close of the taxable year. Definitions: Family Member - To determine who is considered a family member for the FONCE exemption, identify one person (either an owner or non-owner, living or deceased) to whom the owners are potentially related. With respect to that person, the following are considered members of the family: 1. 2. 3. 4. 5. Ancestor (Mother, grandfather, great grandmother, etc.) Spouse or former spouse Lineal descendent of such individual, their spouse or former spouse or of their parent. (Brother, daughter, grandson, niece, step-daughter, step-grandson, etc.) Spouse or former spouse of #3 above. The estate or trust (testamentary) of a deceased individual who, while living, was one of the above Relative – To determine who is considered a relative for the farming/personal residence exemption, natural persons shall be considered relatives, if, by blood or adoption, they are descended from a common ancestor and their relationship with each other is that of a first cousin or closer than that of a first cousin, or if they are spouses of one another; Farming – The growing of crops, nursery products, timber or fibers, such as cotton, for human or animal use or consumption; the keeping of horses, cattle, sheep, goats, chickens or other animals for human or animal use or consumption; the keeping of animals that produce products, such as milk, eggs, wool or hides for human or animal use or consumption; or the leasing of the land to be used for farming Filing Requirement The following entities must include this form with form FAE183 – Annual Exemption Renewal that is due by the th 15 day of the fourth month following the close of the entity’s taxable year: 1. 2. 3. Family-owned non-corporate entities (“FONCE”) qualifying for exemption. Complete the Organizational Structure section and Part I, LLCs, LPs, and LLPs qualifying for the farming activity exemption. Complete the Organizational Structure section and Part II, or LLCs, LPs, and LLPs qualifying for the holding a personal residence exemption. Complete the Organizational Structure section and Part III. Organizational Structure (a) Provide the full names of all members or partners. (b) Enter each member or partner’s percentage interest in the entity. The total must equal 100%. (c) Identify the relationship of each partner, (e.g. Spouse, Daughter, etc.). See definition of “family member” and “relative” above. Part I – Family-Owned Non-Corporate Entity Passive Investment Income (a) Enter the gross amount received from each source. However, enter the net gain for capital gains on the sale of stock or securities. For a capital loss on the sale of stock or securities, enter $0. Non-Passive Income (b) List the source and gross amount of non-passive income received during the reporting period. WARNING: In order for an entity to qualify for the FONCE exemption: 1) at least 95% of its ownership must be held by members/partners who are family members; and 2) at least 66.67% of its income must be from passive investments and/or farming. If the entity has no income for the year, it meets the passive investment income test. Part II – Farming Activity (a) Enter the amount of gross receipts earned by the entity from farming activities and all other activities. Farm income includes gross receipts derived from the property, including capital gains from the sale of land and other assets. (b) Enter the original cost of assets owned by the entity. In the event an asset’s original cost cannot be determined, or there is no original cost to the entity, the property should be reported at its fair market value at the time of acquisition by the entity. WARNING: In order for an entity to qualify for the Farming exemption: 1) at least 66.67% of its income is from farming, and 2) at least 66.67% of its assets must be used in farming, and 3) at least 95% of the voting rights, capital interest or profits must be owned by family members as defined above. Part III – Holding a Personal Residence (a) Enter a complete description of the property owned by the entity, including how the property is used. (b) Enter the complete address of the property. (c) If the property listed is residential property, enter the name of the person(s) residing at the property and the length of time during the year that the person occupied the dwelling. WARNING: In order for an entity to qualify for the Holding a Personal Residence exemption at least 66.67% of its activity must be holding of one (1) or more personal residences where one (1) or more of the members/partners reside. In addition, at least 95% of the voting rights, capital interest or profits must be owned by family members as defined above.
More about the Tennessee Form FAE-Disc Corporate Income Tax
We last updated the Franchise and Excise Tax Exempt Entity Disclosure of Activity in February 2018, and the latest form we have available is for tax year 2017. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the Tennessee Department of Revenue. You can print other Tennessee tax forms here.
Other Tennessee Corporate Income Tax Forms:
|Form Code||Form Name|
|Form FAE-170||Franchise and Excise Tax Return Kit|
|Form BUS415-2||County Business Tax Return - Classification 2|
|Form FAE-183||Franchise and Excise Tax Annual Exemption Renewal|
|Form FAE-173||Application for Extension of Time to File|
|Form BUS416-2||Municipal Business Tax Return - Classification 2|
Tennessee usually releases forms for the current tax year between January and April. We last updated Tennessee Form FAE-Disc from the Department of Revenue in February 2018.
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 Tennessee Form FAE-Disc
We have a total of four past-year versions of Form FAE-Disc in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:
Franchise and Excise Tax Exempt Entity Disclosure of Activity
Franchise and Excise Tax Exempt Entity Disclosure of Activity
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