BI-477: Vermont Income Adjustment Calculation: Pass-Through Nonresident (2024)
Vermont · Vermont Department of Taxes · Used for tax years 2024
Vermont Schedule BI-477 calculates the pass-through nonresident income adjustment percentage using federal and Vermont income amounts. It also calculates the Vermont sales and receipts factor and reports wages and property values for Vermont and everywhere. The schedule is includ
What you'll need
Have your federal Form 1065, Schedule K, or federal Form 1120-S available for the federal income amounts referenced on BI-477. You will also need the entity name used on Form BI-471, FEIN, and fiscal year ending date.
Prepare these attachments for the applicable entries:
- Line 22: Affiliation Schedule BA-410 and necessary worksheets for income or loss from lower-tier partnerships or pass-through entities.
- Lines 23 and 29: Detailed explanations of adjustments.
- Line 41: A detailed supporting statement for other apportionable business income.
- Line 50: A schedule for other assets.
The form also asks for federal and Vermont income amounts, sales and receipts, salaries and wages, and property values.
How to file
Include the completed 2024 Schedule BI-477 with Form BI-471. Also enter the income adjustment percentage from BI-477, line 32, on Schedule BI-473, line 2.
Common mistakes
- Including the wrong interest or dividends: Lines 13 and 14 say to include only apportionable interest and dividends.
- Stopping the percentage calculations too soon: Lines 32 and 44 require multiplying the calculated ratio by 100 and carrying the result to the sixth decimal place.
- Forgetting to transfer the result: Enter the line 32 income adjustment percentage on Schedule BI-473, line 2.
- Leaving out required attachments: Attach the schedules, worksheets, and explanations requested for applicable entries on lines 22, 23, 29, 41, and 50.
Questions people ask
What does Schedule BI-477 calculate?
The schedule calculates the Vermont income adjustment for pass-through nonresidents. It includes an income adjustment calculation, Vermont apportionment, and wage and property factor reporting.
How do I calculate the income adjustment percentage?
Divide Vermont income on line 31 by the federal adjusted gross income equivalent on line 30. Multiply the result by 100 and carry it to the sixth decimal place. Enter the percentage on line 32 and on Schedule BI-473, line 2.
How do I calculate the Vermont gross receipt factor?
Divide Vermont total gross receipts on line 43B by everywhere total gross receipts on line 43A. Multiply by 100 and carry the result to the sixth decimal place. Enter it on line 44 and use it on line 20.
Do I need to report salaries and wages?
Yes. Part VIII labels salaries and wages as required for reporting only. Line 45 asks for everywhere and Vermont totals.
How is rented property entered in the property factor section?
For rented real and personal property on line 51, multiply annual rent by 8. The form provides separate columns for everywhere and Vermont amounts.