INSTRUCTIONS: VERMONT PARTNERSHIP/LIMITED LIABILITY COMPANY SCHEDULE (Form BI-473)

Partnerships and limited liability companies doing business in Vermont who have nonresident shareholders use a form BI-473 to determine the amount of state-sourced income distributed to them. This document can be obtained from the website of the Vermont Department of Taxes.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 1: Enter your business name and federal identification number.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 2: On line 1, enter your ordinary trade or business income or loss.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 3: On line 2, enter your net income or loss from real estate and related rental activities.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 4: On line 3, enter your portfolio income or loss.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 5: Document section 1231 and 1250 gains and losses on line 4.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 6: Enter royalties and related proceeds on line 5.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 7: Enter non-Vermont municipal bond income on line 6.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 8: Add lines 1 through 6 and enter the resulting sum on line 7.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 9: On line 8, enter the American government interest included in line 3.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 10: Subtract line 8 from line 7. Enter the resulting difference on line 9.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 11: On line 10, enter your income allocated everywhere.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 12: Subtract line 10 from line 9. Enter the resulting difference on line 11.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 13: Calculate your Vermont apportionment percentage as directed on line 12 to six decimal places.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 14: Multiply line 11 by line 12. Enter the resulting product on line 13.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 15: Complete lines 14 through 17 as directed to compute the amount of income that will be taxed on a state entity level.

Vermont Partnership/Limited Liability Company Schedule BI-473 Step 16: Mail the completed form to the address given in the instructions on the second page.