Schedule G (RV-F700012): Determination of Real and Tangible Property (Revision 2024-12)

Who files this form

Complete Schedule G only if you have made the annual election under Tenn. Code Ann. § 67-4-2123 to use the minimum tax base in § 67-4-2108 as it applied to tax periods ending before December 31, 2023.

Taxpayers who want to use this minimum tax base must submit the election form each year. Taxpayers who have made the election must complete Schedule G.

What you'll need

• Taxpayer information: Account number or FEIN, taxable year, and taxpayer name.
• Asset records: Books and records showing year-end net book values of Tennessee tangible assets, plus inventory and work-in-progress amounts.
• Partnership records, if applicable: Federal Schedule K-1 showing your ownership percentage and the partnership’s balance sheet showing real and tangible property owned or used in Tennessee.
• Rental records: Total net annual rent paid for Tennessee property, separated into the categories on Lines 11 through 14.
• Equipment certificates, if applicable: Line 8 says to include a copy of the pollution control equipment certificate. The instructions also say to maintain pollution control and green energy production facility certifications and furnish them to the Commissioner upon request.
• Short Period Return Worksheets, if applicable: Complete these worksheets and retain them with your records when filing a return covering less than 12 months.

Common mistakes

• Leaving out assets because of their classification: The instructions say to include all tangible assets in Lines 1 through 5, regardless of how they are classified.
• Including an ineligible partnership’s property on Line 6: Include property only if the partnership itself is not required to file a Tennessee franchise and excise tax return.
• Omitting Line 8 equipment from Lines 2 or 3: The equipment amounts entered on Line 8 must also have been reported on Lines 2 or 3.
• Taking an unrestricted sub-rental deduction: A sub-rental deduction may be made only in accordance with TENN. Comp. R. & REGS. 1320-6-1-.18(1).
• Not annualizing short-period rents: Annualize rents for returns covering less than 12 months, and complete and retain the Short Period Return Worksheets.
• Not carrying over the total: Enter the Line 15 total on Schedule A, Line 2, as well.

Questions people ask

How should I value property I own?

Use year-end net book values from the entity’s book-basis books and records for Lines 1 through 5. Schedule G values must follow generally accepted accounting principles (GAAP), except as permitted by Tenn. Code Ann. § 67-4-2108(a)(3).

What inventory goes on Lines 7a and 7b?

Include all inventory and work in progress on Line 7a. On Line 7b, include exempt inventory, defined as finished goods inventory in excess of $30,000,000 under Tenn. Code Ann. § 67-4-2108(a)(6)(B).

How do I calculate the rental values on Lines 11 through 14?

Enter total net annual rent paid for Tennessee property in the first column. Multiply real property rent by 8; manufacturing and processing machinery and equipment rent by 3; furniture, office machinery, and equipment rent by 2; and delivery or mobile equipment rent by 1. Enter the resulting amounts on Lines 11 through 14.

How do I calculate the Tennessee total?

For Line 10, add Lines 1 through 7a and subtract Lines 7b through 9. For Line 15, add Lines 10 through 14. Enter that total on Schedule A, Line 2, too. It represents total real and tangible property owned or used in Tennessee.

Official sources

• https://www.tn.gov/content/dam/tn/revenue/documents/forms/fae/RV-F700012.pdf