Schedule 170NC/170SF: Consolidated Net Worth Apportionment Schedule (Revision 2025-09)
Tennessee · Tennessee DOR · Used for tax years 2025
These Tennessee schedules calculate a taxpayer’s franchise tax apportionment ratio when net worth is reported on a consolidated basis. They compare the individual taxpayer’s Tennessee receipts or property, payroll, and sales with the affiliated group’s amounts everywhere, with a
Who files this form
Every taxpayer that belongs to an affiliated group that has elected to compute net worth on a consolidated basis must complete this form.
- Members of a financial institution affiliated group complete Schedule 170SF. This means a group with more than 50% of its aggregate gross income coming from financial institution business, excluding dividends and receipts from transactions between members.
- Other taxpayers complete Schedule 170NC or 170NC1. Schedule 170NC1 is for taxpayers electing the property, payroll, and triple-weighted sales method and for Telecom Qualified Members.
What you'll need
Have the information needed for your applicable schedule ready:
- Identification: Taxable year, taxpayer name, and account number/FEIN.
- Schedule 170NC: The separate entity’s Tennessee business gross receipts and the affiliated group’s business gross receipts everywhere.
- Schedule 170NC1: Beginning- and end-of-year property values at original cost, inventory and exempt inventory amounts, rental information, compensation paid, and business gross receipts. The schedule separates Tennessee single-entity amounts from consolidated everywhere amounts.
- Partnership property reported on Schedule 170NC1: Federal Schedule K-1 showing the ownership percentage and the partnership’s balance sheet showing real and tangible personal property.
- Schedule 170SF: Receipts by the categories listed on the schedule, including receipts of affiliated group members that are not financial institutions.
Common mistakes
- Treating the election as permission to file a consolidated return. The consolidated net worth election does not allow the affiliated group to file a consolidated tax return.
- Using group totals for the Tennessee numerator. Use the individual taxpayer’s Tennessee amounts in the numerator and the affiliated group’s everywhere amounts in the denominator.
- Applying one finished-goods inventory cap to the whole group. The $30,000,000 cap is calculated separately for each entity.
- Including partnership property when the partnership must file its own return. Include an ownership share on Schedule 170NC1, Line 6, only if the partnership is not required to file its own franchise and excise tax return.
Questions people ask
Do all group members use the same net worth and apportionment ratio?
Each member uses the same consolidated net worth on Schedule F2, Line 1, but calculates its own apportionment ratio.
How do I calculate the Schedule 170NC sales ratio?
Divide the separate entity’s Tennessee business gross receipts by the affiliated group’s business gross receipts everywhere.
Where do I report the finished apportionment ratio?
Enter it on the applicable apportionment schedule and on Schedule F2, Line 2.
How is rented property valued on Schedule 170NC1?
Line 10 uses a year-end value determined by multiplying the annual rental rate by eight. The form also provides sourcing rules for mobile or moveable property and vehicles assigned to traveling employees.