Calculating the FIT liability for taxpayers filing a combined return

# (A)

all of the adjusted gross income of the resident taxpayer members of the unitary group; plus

# (B)

the adjusted gross income of all nonresident taxpayer members of the unitary group for the taxable year multiplied by the quotient of:

(i) the receipts of the nonresident taxpayer members of the unitary group attributable to transacting business in Indiana, as determined under

section 10 of this rule; divided by

(ii) the receipts of the nonresident taxpayer members of the unitary group from transacting business in all taxing jurisdictions, as determined

under section 10 of this rule.

The above calculation does not permit each member to separately calculate its own Indiana adjusted gross income.

STEP THREE: Subtract from the result in STEP TWO an amount equal to the unitary group's net operating losses attributed to Indiana

that were incurred in taxable years beginning after December 31, 1989. The amount of the net operating loss deduction shall be computed similar

to STEP TWO above for the tax year in which the net operating loss occurred. The unitary group's net operating loss deduction consists of:

(A) all of the adjusted gross income of the resident taxpayer members of the unitary group for the loss year; plus

(B) all of the adjusted gross income of all nonresident taxpayer members of the unitary group for the loss year multiplied by the quotient

of:

(i) the receipts during the loss year of the nonresident taxpayer members of the unitary group attributable to transacting business in Indiana,

as determined under section 10 of this rule; divided by

(ii) the receipts during the loss year of the nonresident taxpayer members of the unitary group from transacting business in all taxing

jurisdictions.

STEP FOUR: Subtract from the result in STEP THREE an amount equal to the unitary group's capital loss carry forward for taxable

years beginning after December 31, 1989, and the capital loss for the current taxable year which is attributable to Indiana. The amount of losses

available to be deducted are limited to the extent of the current year's capital gains attributed to Indiana. (Note: Capital losses unused during the

taxable year may be carried forward to each of the five (5) succeeding taxable years or until exhausted, whichever occurs first.) The current year's

capital gains attributed to Indiana is determined by the sum of the capital gains of the resident members plus the capital gains attributed to Indiana

for the nonresident members. The unitary group's capital losses attributed to Indiana for the current taxable year must be multiplied by the capital

loss ratio. The capital loss ratio is determined by the sum of Indiana's resident member's total receipts plus nonresident member's receipts attributed

to Indiana divided by the unitary group's total receipts derived from all taxing jurisdictions. The unitary group's capital loss carry forward attributed

to Indiana for taxable years beginning after December 31, 1989, must be multiplied by the capital loss ratio used for the respective loss year. The

capital loss ratio is determined by the sum of Indiana's resident member's total receipts plus nonresident member's receipts attributed to Indiana

divided by the unitary group's total receipts derived from all taxing jurisdictions.

STEP FIVE: Multiply the result in STEP FOUR by the FIT rate.

(Department of State Revenue; 45 IAC 17-3-6; filed Jan 22, 1991, 4:55 p.m.: 14 IR 1217)