2017 and 2018 Montana Corporate Income Tax Return
Water’s Edge Filers
Taxpayers who file on a water’s edge basis should attach their IRC 965 Transition Tax Statement to their Montana return. Add the total amount of gross income from 965 dividends on Page 3, line 2i, of the Montana Form CIT “other additions.” Deduct 80% of the total amount of gross income from 965 dividends on Page 3, line 3g, of the Montana Form CIT “other reductions.”
If any of the 965 dividends included in “other additions” are from subsidiaries included in the Montana water’s edge filing and incorporated in tax haven countries listed in Section 15-31-322, MCA, deduct 100% of the total amount of gross income related to these entities on Page 3, line 3g, of the Montana Form CIT “other reductions.”
Worldwide Filers
Taxpayers who file on a worldwide basis should attach their IRC 965 Transition Tax Statement to their Montana return. Add the total amount of gross income from 965 dividends reported on Page 3, line 2i, of the Montana Form CIT “other additions.” Deduct 100% of the total amount of gross income from 965 dividends received from unitary subsidiaries included in the Montana worldwide filing on Page 3, line 3g, of the Montana Form CIT “other reductions.”
If any of the 965 dividends included in “other additions” are from subsidiaries that are not included in the Montana worldwide filing, no Montana deduction is allowed related to this income.
Separate Company, Domestic or Limited Combination Filers
Attach your IRC 965 Transition Tax Statement to your Montana return. Add the total amount of gross income from 965 dividends reported on Page 3, line 2i, of the Montana Form CIT “other additions.” Deduct 100% of the total amount of gross income from 965 dividends received from unitary subsidiaries included in your Montana filing on Page 3, line 3g, of the Montana Form CIT “other reductions.”
If any of the 965 dividends included in “other additions” are from subsidiaries that are not included in your Montana filing, no Montana deduction is allowed related to this income.