CT-1120A-SBC: Corporation Business Tax Return Apportionment Computation - Securities Brokerage Services (Revision 2016-12)
Connecticut · Connecticut DRS · Used for tax years 2024, 2025, 2026
Form CT-1120A-SBC computes the Connecticut apportionment of net income from securities brokerage services for corporation business tax purposes. It uses brokerage commissions and margin interest associated with customers domiciled in Connecticut and customers everywhere to calcul
Who files this form
A corporation must use Form CT-1120A-SBC to apportion income from securities brokerage services separately from its other income.
- If all of the corporation’s net income comes from securities brokerage services, complete Schedule R-SBC.
- If some net income comes from other sources, complete both Schedule R-SBC and Schedule A-1.
Corporations providing securities brokerage services that file as part of Form CT-1120CU may apportion their income if any member of the combined group does business outside Connecticut or is a financial service company.
What you'll need
Have the following information available to complete the form:
- Corporation name, Connecticut Tax Registration Number, and income-year beginning and ending dates.
- Brokerage commissions and total margin interest paid on behalf of customer brokerage accounts, both for customers domiciled in Connecticut and for customers wherever domiciled.
- Customer mailing addresses in the corporation’s records, which are used to determine presumed domicile.
- For Schedule A-1, net income from Form CT-1120, Schedule A, Line 1, separated into the income categories shown on the form. Form CT-1120CU filers enter securities brokerage services net income in Column A only.
- If applicable, the financial service company apportionment fraction from Form CT-1120A-FS, Line 15, and the fraction from the applicable apportionment form for other income.
Common mistakes
- Use blue or black ink only.
- Carry apportionment fractions to six decimal places.
- Transfer Schedule R-SBC, Line 3, to Form CT-1120, Schedule A, Line 2, only if the corporation’s entire net income comes from securities brokerage services.
- Form CT-1120CU filers should complete Schedule A-1, Column A, and must not complete Columns B and C.
- When reporting the Schedule A-1, Line 9 total on Form CT-1120, Schedule A, Line 3, make no entries on Schedule A, Lines 1 and 2.
Questions people ask
How is the securities brokerage services apportionment fraction calculated?
Divide Schedule R-SBC, Line 1, by Line 2. Line 1 covers brokerage commissions and total margin interest paid on behalf of accounts owned by customers domiciled in Connecticut. Line 2 covers those amounts for customers wherever domiciled. Carry the result to six decimal places.
How is a customer’s domicile determined?
The customer’s domicile is presumed to be the mailing address shown in the corporation’s records.
What counts as brokerage commissions?
Brokerage commissions include all sales fees on agency or principal transactions, whether charged explicitly or implicitly. The definition is not limited to those fees.
How is income other than securities brokerage services income apportioned?
If the corporation qualifies as a financial service company, all other income is apportioned using Form CT-1120A-FS. If it does not qualify, all other income must be apportioned using the appropriate schedule. For combined filers, receipts from financial services other than securities brokerage services belong in the combined group’s apportionment calculation on Form CT-1120A-CU.