CT-1120CU-MTB: Tax on Combined Group Minimum Tax Base (2024)
Connecticut · Connecticut DRS · Used for tax years 2024
Form CT-1120CU-MTB calculates Connecticut tax on a combined group’s minimum tax base, also called its capital base. It reports members’ beginning and ending capital amounts, group adjustments, apportionment fractions, and the resulting tax, and is attached to Form CT-1120CU.
Who files this form
Combined groups use Form CT-1120CU-MTB to calculate tax on their combined minimum tax base, also called the capital base. Complete it and attach it to Form CT-1120CU.
Combined groups are subject to tax on the greater of their net income base or minimum tax base. The form includes columns for both taxable and nontaxable members, with special rules for financial service companies, REITs, and RICs.
What you'll need
- Federal Form 1120, Schedule L: Beginning- and end-of-year amounts from Lines 22a and 22b for capital stock and Lines 23, 24, and 25 for surplus and retained earnings.
- Supporting schedules: Attach schedules for surplus reserves and holdings of stock of private corporations.
- Intercompany information: Amounts needed for adjustments and eliminations for stock holdings and other transactions among group members.
- Form CT-1120CU-MI: Use the member numbers from this form, along with each corporation’s name.
- Form CT-1120A-CU, Schedule S, or the appropriate apportionment form: Use each taxable member’s minimum tax base apportionment fraction.
- Form CT-1120CU and registration information: You will need the main return and the designated taxable member’s Connecticut tax registration number.
How to file
Complete Form CT-1120CU-MTB and attach it to Form CT-1120CU. Enter the tax from Line 14 on Form CT-1120CU, Part I, Line 2.
Complete a column for each taxable and nontaxable member, following the special rules for financial service companies, REITs, and RICs. If the group has more than six members, attach copies of Page 2 as needed, using the same format.
The supplied text does not specify a mailing address or an e-file method.
Common mistakes
- Report any deficit as a negative number on Lines 1 and 4.
- Do not deduct stock holdings in other members of the combined group on Lines 2 and 5.
- Nontaxable members must enter zero for their apportionment fraction on Line 8, subject to the special blank-line rules for financial service companies, REITs, and RICs.
- Leave Lines 12 and 13 blank if Line 11 is $1,000,000 or less.
- Do not prorate a member’s $250 minimum tax when reducing the group’s total to $1,000,000.
- Remember to carry Line 14 to Form CT-1120CU, Part I, Line 2.
Questions people ask
How is the average combined minimum tax base calculated?
Add the Combined Group Total amounts on Lines 3 and 6, then divide by two. Enter the result on Line 7.
What tax rate and limits apply?
Line 10 uses a rate of 0.26% (.0026), with a minimum tax of $250 for each taxable member, except for REITs and RICs. The combined group’s aggregate minimum tax on capital cannot exceed $1 million before the surtax. Do not prorate any member’s $250 minimum tax.
How do financial service companies complete the form?
They leave Lines 1 through 9 blank. A taxable financial service company enters $250 on Line 10. A nontaxable financial service company enters $0 on Line 10.
How do REITs and RICs complete the form?
REITs and RICs leave all lines in Part A and Part B blank.