5327: City of Detroit Business Income Apportionment Schedule (2024)
Michigan · Michigan Treasury · Used for tax years 2024
Form 5327 is the 2024 City of Detroit Business Income Apportionment Schedule. It uses property, employee compensation, and gross receipts to calculate the Detroit share of business income, with adjustments for applicable losses and deductions. Do not file this schedule; retain a
Who files this form
Complete the 2024 Form 5327 if either of these applies:
- You have income from more than one business to apportion on Form 5119.
- You are filing Form 5120 and have business activity both inside and outside Detroit while a nonresident.
This is a worksheet to keep with your records. The form says not to file it.
What you'll need
Have the following information available to complete the schedule:
- Your name and full Social Security number, plus your spouse’s if filing a joint return.
- The business entity’s name and federal employer identification number (FEIN).
- Property, rent, employee compensation, and gross receipts figures for everywhere the business operates and for Detroit.
- Net profit or loss from U.S. Schedule C or Schedule F.
- The applicable net operating loss carryover and self-employment retirement deduction amounts.
- Form 5119 or Form 5120, whichever you are completing.
How to file
Do not file Form 5327. Keep a copy for your records. Type or print in blue or black ink.
Use the completed schedule to report the amount on your city return:
- Form 5119: Add the line 19 amounts from all Forms 5327 to Form 5119, line 47. Enter the total on Form 5119, line 10.
- Form 5120: Add the line 19 amounts from all Forms 5327. Enter the total on Form 5120, line 14, Column B.
Common mistakes
- Submitting the schedule instead of keeping it: The form specifically says, “Do not file. Retain a copy for your records.”
Questions people ask
What does the Detroit percentage measure?
The schedule compares Detroit amounts with amounts everywhere for property, employee compensation, and gross receipts. Column C is the Detroit amount in column B divided by the everywhere amount in column A, expressed as a percentage.
How is the property factor calculated?
Add the average net book value of real and tangible personal property on line 7 to gross annual rent for real property multiplied by 8 on line 8. On line 9, divide the Detroit total by the everywhere total and enter the percentage in column C.
Do I always divide by three to calculate the average?
No. Line 13 normally divides the total on line 12 by 3. If any of the factors on lines 9, 10, or 11 are not used anywhere, divide by the number of factors actually used. If all business was conducted in Detroit, enter 100%.
How do I calculate the final amount on line 19?
Multiply the percentage on line 13 by the net profit or loss from U.S. Schedule C or Schedule F on line 14. Then subtract the total of the applicable net operating loss carryover and self-employment retirement deduction shown on lines 16 and 17.