Mississippi Form 84-110-21-8-1-000, officially titled S-Corporation Franchise Tax Schedule, is a tax schedule used to calculate the franchise tax capital base of an S corporation operating in Mississippi. The 2021 version of the form is issued by the Mississippi Department of Revenue and provides a structured method for determining the corporation’s taxable capital attributable to Mississippi.
The primary purpose of this schedule is to calculate the capital subject to Mississippi franchise tax. Unlike an income tax calculation that focuses on business profits and taxable income, this schedule focuses on the corporation’s capital structure, including capital stock, paid-in capital, surplus, retained earnings, shareholder loans, deferred taxes, contingent liabilities, and other qualifying financial amounts. It also accounts for treasury stock and applicable holding company exclusions.
The form begins by calculating the corporation’s total capital base. It then determines how much of that capital should be apportioned to Mississippi based on the corporation’s property and gross receipts within the state compared with its corresponding amounts everywhere. This apportionment calculation helps establish the portion of the corporation’s capital attributable to Mississippi rather than its total capital across all operating locations.
Another important component is the assessment of Mississippi property. The schedule requires corporations to report the assessed value of real property and personal property located in each applicable Mississippi county. The total assessed property value is then compared with the apportioned capital amount. The larger of these two figures becomes the starting point for determining taxable capital.
The schedule also includes an adjustment for short tax periods. When a return covers less than twelve months, the taxable capital must generally be prorated according to the number of months covered by the return. An initial return is treated differently under the instructions printed on the form.
Finally, the schedule allows a capital exemption to be deducted from the applicable taxable capital amount. The resulting figure is rounded upward to the next highest $1,000 and transferred to Mississippi Form 84-105, line 1. If the calculation produces a negative amount, zero must be entered on Form 84-105, line 1.
Form 84-110-21-8-1-000 contains three principal calculation sections: Capital Base, Apportionment Ratio, and Taxable Capital. It also includes a Mississippi property assessment table for reporting real and personal property values by county.
Completing this schedule accurately is important because the final amount determines the taxable capital used in the corporation’s Mississippi franchise tax calculation. Errors in capital reporting, apportionment, property assessments, or exemptions can affect the amount transferred to the main franchise tax return.
How To File Mississippi Form 84-110-21-8-1-000
Mississippi Form 84-110-21-8-1-000 is a supporting schedule for the S-corporation franchise tax calculation. The form directs taxpayers to transfer the final taxable capital amount to Form 84-105, line 1.
The schedule identifies the tax year as 2021. Corporations should use the financial and property information applicable to the reporting period.
Information To Prepare Before Completing The Schedule
Gather the following information before starting:
- Corporation’s Federal Employer Identification Number (FEIN).
- Applicable tax year and reporting period.
- Capital stock information.
- Paid-in capital balances.
- Surplus and retained earnings.
- Loans from shareholders or affiliates.
- Deferred taxes.
- Contingent liabilities.
- Details of true reserves and other capital elements.
- Treasury stock balances.
- Holding company exclusion information.
- Supporting schedules for applicable exclusions.
- Net book value of real and tangible personal property owned at year-end.
- Gross receipts for Mississippi.
- Gross receipts everywhere.
- Mississippi property information.
- Mississippi county names.
- Assessed values of real property in each applicable county.
- Assessed values of personal property in each applicable county.
- Number of months covered by the return, if the period is shorter than twelve months.
- Capital exemption calculation and supporting schedule.
- Information needed to complete Form 84-105.
Important Filing Considerations
Capital Base Calculation
The first section calculates the corporation’s total capital base using the amounts reported on lines 1 through 7.
Supporting Schedules
Line 5 and line 7 specifically require supporting schedules when reporting the applicable amounts.
Apportionment Between Mississippi And Everywhere
The apportionment section compares Mississippi property and gross receipts with the corresponding amounts everywhere.
Property Assessment
The form requires Mississippi assessed property values to be reported separately for real property and personal property by county.
Short Tax Periods
If the return covers fewer than twelve months, line 16 requires a prorated calculation, except for an initial return.
Capital Exemption
The capital exemption must be supported by an attached schedule.
Transfer To Form 84-105
The final taxable capital amount is transferred to Form 84-105, line 1, after applying the required rounding instructions.
How To Complete Mississippi Form 84-110-21-8-1-000
The schedule contains 18 numbered lines divided into three main sections. Complete the capital base first, followed by the apportionment calculation and the final taxable capital calculation.
Taxpayer Identification Information
FEIN
Enter the corporation’s Federal Employer Identification Number in the designated field.
Use the FEIN associated with the S corporation filing the Mississippi franchise tax return.
Verify that the number matches the corporation’s tax registration and supporting documents.
Year Ending – Month
Enter the month in which the corporation’s tax year ends.
Use the applicable reporting period.
Year Ending – Year
Enter the year in which the corporation’s tax year ends.
The form is designated for the 2021 tax year.
Capital Base
The Capital Base section calculates the corporation’s total capital before applying the Mississippi apportionment ratio.
It includes the corporation’s equity and other specified financial obligations, less applicable exclusions.
All amounts in this section must be rounded to the nearest dollar, as instructed on the form.
Line 1: Capital Stock
Enter the corporation’s capital stock amount.
Use the applicable capital stock balance from the corporation’s financial records.
This amount represents the capital stock included in the corporation’s capital base.
Line 2: Paid-In Capital
Enter the corporation’s paid-in capital.
Paid-in capital generally represents amounts contributed by shareholders in exchange for ownership interests beyond the stated capital stock amount.
Use the applicable amount reflected in the corporation’s financial records.
Line 3: Surplus And Retained Earnings
Enter the corporation’s surplus and retained earnings.
Include the applicable balances reported in the corporation’s accounting records.
This line captures accumulated earnings and surplus amounts included in the capital base.
Line 4: Loans From Shareholders Or Affiliates
Enter qualifying loans received from shareholders or affiliated entities.
Use the outstanding loan balances applicable to the reporting period.
Include the amounts required to be reported under the form’s capital base calculation.
Line 5: Deferred Taxes, Contingent Liabilities, All True Reserves And Other Elements
Enter the applicable amounts for deferred taxes, contingent liabilities, true reserves, and other capital elements.
The form specifically requires an attached supporting schedule for this line.
The supporting schedule should identify the amounts included and explain their composition.
Ensure that the reported amount agrees with the corporation’s financial records.
Line 6: Less Treasury Stock
Enter the amount of treasury stock to be deducted from the capital base.
Treasury stock represents the corporation’s own shares that it has reacquired and holds.
Because this line is identified as a deduction, enter the applicable amount to be subtracted from the preceding capital components.
Line 7: Holding Company Exclusion
Enter the applicable holding company exclusion.
The form requires an attached supporting schedule explaining the exclusion.
Use the amount supported by the applicable holding company information.
Do not enter an unsupported exclusion amount.
Line 8: Total Capital Base
Calculate the total capital base by adding the amounts on lines 1 through 5 and subtracting the applicable amounts on lines 6 and 7.
The calculation is:
\[ \text{Line 8}= L1+L2+L3+L4+L5-L6-L7 \]
Enter the resulting amount on line 8.
This represents the corporation’s total capital base before Mississippi apportionment.
Apportionment Ratio
The Apportionment Ratio section determines the portion of the corporation’s total capital base attributable to Mississippi.
It contains two reporting columns:
- Column A – Mississippi: Reports the applicable property and gross receipts attributable to Mississippi.
- Column B – Everywhere: Reports the corresponding property and gross receipts for all applicable locations.
Complete both columns using the corporation’s financial and business records.
Line 9: Real And Tangible Personal Property Owned At Year-End (Net Book Value)
Enter the net book value of real and tangible personal property owned by the corporation at year-end.
Complete the amounts separately:
- Column A – Mississippi: Enter the net book value of qualifying real and tangible personal property located in Mississippi.
- Column B – Everywhere: Enter the net book value of the corresponding property owned everywhere.
Use the applicable accounting records to determine the net book values.
Ensure that the Mississippi amount is included within the everywhere amount.
Line 10: Gross Receipts
Enter the corporation’s gross receipts.
Report the amounts separately in the two columns:
- Column A – Mississippi: Enter gross receipts attributable to Mississippi.
- Column B – Everywhere: Enter gross receipts from all applicable locations.
Use the corporation’s gross receipts records for the reporting period.
Ensure that the amounts in both columns are calculated consistently.
Line 11: Total
Add line 9 and line 10 separately for each column.
The calculation for Mississippi is:
\[ \text{Line 11A}=\text{Line 9A}+\text{Line 10A} \]
The calculation for everywhere is:
\[ \text{Line 11B}=\text{Line 9B}+\text{Line 10B} \]
Enter the two resulting totals in their respective columns.
These amounts establish the figures used to calculate the Mississippi apportionment ratio.
Line 12: Mississippi Ratio
Divide the total in line 11A by the total in line 11B.
The calculation is:
\[ \text{Line 12}= \frac{\text{Line 11A}}{\text{Line 11B}}\times100 \]
Enter the resulting percentage.
This percentage represents the portion of the corporation’s combined property and gross receipts attributable to Mississippi under the calculation shown on the form.
Line 13: Taxable Capital Apportioned To Mississippi
Multiply the total capital base on line 8 by the Mississippi ratio on line 12.
The calculation is:
\[ \text{Line 13}=\text{Line 8}\times\text{Line 12} \]
Use the ratio as a decimal when performing the multiplication.
For example, a ratio of 40% should be entered into the calculation as 0.40.
If 100% of the corporation’s applicable capital is attributable to Mississippi, enter the amount from line 8 directly.
Enter the resulting apportioned capital amount on line 13.
This figure represents the corporation’s capital apportioned to Mississippi before considering the assessed value of Mississippi property.
Assessed Value Of Mississippi Property
This section collects the assessed values of real and personal property located in Mississippi.
The form provides a table for reporting property by Mississippi county.
Two separate property categories must be reported:
- Mississippi assessed value of real property.
- Mississippi assessed value of personal property.
Complete a separate entry for each applicable county.
Understanding The Property Assessment Columns
Mississippi County
Enter the name of the Mississippi county in which the property is located.
If the corporation owns property in multiple counties, list each county separately.
Mississippi Assessed Value Of Real Property
Enter the assessed value of the corporation’s real property located in the corresponding county.
Use the applicable assessed property information.
Mississippi Assessed Value Of Personal Property
Enter the assessed value of the corporation’s personal property located in the corresponding county.
Report the applicable personal property assessment separately from real property.
Reporting Multiple Counties
County Entry 1
Enter the first Mississippi county name and report its real property and personal property assessed values in the corresponding columns.
Additional County Entries
Repeat the same process for every other Mississippi county in which the corporation has applicable property.
Do not combine real and personal property into one amount.
Additional Property Schedule
If the available table does not provide enough space to report all applicable counties, attach an additional schedule as instructed by the form.
Ensure that the additional schedule identifies each county and provides separate real and personal property values.
Taxable Capital
The Taxable Capital section determines the final amount of capital used for the Mississippi franchise tax calculation.
It compares the Mississippi-apportioned capital with the assessed value of Mississippi property and applies the relevant adjustments.
Line 14: Total Assessed Value Of Mississippi Property
Enter the total assessed value of all Mississippi property reported in the property assessment section.
Combine the applicable real property and personal property assessed values across all reported Mississippi counties.
The calculation is:
\[ \text{Line 14}= \text{Total Assessed Real Property} + \text{Total Assessed Personal Property} \]
Enter the resulting amount on line 14.
Attach an additional property schedule if the available table is insufficient.
Line 15: Taxable Capital
Compare line 13 and line 14.
Enter the larger of the two amounts.
The calculation is:
\[ \text{Line 15}=\max(\text{Line 13},\text{Line 14}) \]
This amount becomes the starting point for the final taxable capital calculation.
Line 16: Prorate
This line adjusts taxable capital for a reporting period shorter than twelve months.
For an initial return, follow the form’s exception and do not apply the short-period proration described below.
For a return covering fewer than twelve months, multiply line 15 by the number of months covered by the return and divide the result by twelve.
The calculation is:
\[ \text{Line 16}= \frac{\text{Line 15}\times\text{Number of Months}}{12} \]
For example, if the reporting period covers six months, multiply line 15 by six and divide by twelve.
If the return covers twelve months, the amount is not reduced by this short-period calculation.
Enter the resulting amount on line 16.
Line 17: Capital Exemption
Enter the applicable capital exemption.
The form requires an attached supporting schedule for this amount.
Use the applicable exemption calculation and supporting documentation.
Ensure that the exemption is properly substantiated.
Line 18: Final Taxable Capital
Determine the final taxable capital by using the applicable amount from line 15 or line 16 and subtracting the capital exemption reported on line 17.
The calculation is:
\[ \text{Line 18}= \text{Applicable Capital Amount}-\text{Line 17} \]
For a prorated return, use line 16 as the applicable capital amount. For an initial return or a return not requiring proration, follow the applicable line 15 treatment.
If the result is negative, enter zero on Form 84-105, line 1.
If the result is positive, round the amount upward to the next highest $1,000.
For example:
- $25,001 becomes $26,000.
- $25,500 becomes $26,000.
- $26,000 remains $26,000.
Enter the final rounded amount on Form 84-105, line 1.
This is the final taxable capital figure transferred to the main Mississippi franchise tax form.
Final Review Before Filing
Before completing Mississippi Form 84-110-21-8-1-000, review all 18 lines and verify that the capital base, apportionment ratio, property assessments, and final taxable capital calculations are accurate.
Use the following checklist to conduct a final review.
Taxpayer Identification
- Enter the corporation’s FEIN.
- Verify the reporting year.
- Enter the correct year-ending month and year.
- Confirm that the schedule corresponds to the corporation filing the franchise tax return.
Capital Base
- Enter capital stock on line 1.
- Report paid-in capital on line 2.
- Enter surplus and retained earnings on line 3.
- Report shareholder and affiliate loans on line 4.
- Include deferred taxes, contingent liabilities, true reserves, and other elements on line 5.
- Attach the required supporting schedule for line 5.
- Deduct treasury stock on line 6.
- Enter the holding company exclusion on line 7, if applicable.
- Attach the supporting schedule for line 7.
- Recalculate total capital base on line 8.
- Round the applicable amounts to the nearest dollar.
Apportionment Ratio
- Report Mississippi property net book value on line 9A.
- Report everywhere property net book value on line 9B.
- Enter Mississippi gross receipts on line 10A.
- Enter everywhere gross receipts on line 10B.
- Calculate Mississippi and everywhere totals on line 11.
- Calculate the Mississippi ratio on line 12.
- Multiply the capital base by the Mississippi ratio on line 13.
- Verify the 100% Mississippi exception where applicable.
Mississippi Property Assessments
- Identify every applicable Mississippi county.
- Report real property assessed values separately.
- Report personal property assessed values separately.
- Verify county-level assessment amounts.
- Attach an additional property schedule if necessary.
- Calculate the total assessed value on line 14.
Taxable Capital
- Compare lines 13 and 14.
- Enter the larger amount on line 15.
- Determine whether short-period proration is required on line 16.
- Apply the correct number of months for a short reporting period.
- Follow the initial-return exception.
- Enter the capital exemption on line 17.
- Attach the supporting capital exemption schedule.
- Calculate final taxable capital on line 18.
- Enter zero on Form 84-105, line 1, if the result is negative.
- Round a positive final amount upward to the next highest $1,000.
- Transfer the final amount to Form 84-105, line 1.
Final Filing Checks
- Verify that all calculations are mathematically correct.
- Ensure that Mississippi and everywhere figures are reported separately.
- Reconcile property values with the applicable property assessment records.
- Check all supporting schedules.
- Verify the short-period proration calculation, if applicable.
- Confirm that the capital exemption is properly supported.
- Retain a copy of the completed schedule and supporting documentation.
Important Filing Reminder
Mississippi Form 84-110-21-8-1-000 is used to determine the taxable capital of an S corporation for Mississippi franchise tax purposes for the 2021 tax year.
The most important calculations occur in the Capital Base, Apportionment Ratio, and Taxable Capital sections. The capital base establishes the corporation’s total capital. The apportionment section determines the portion attributable to Mississippi using property and gross receipts information. The final section compares apportioned capital with Mississippi property assessments and applies the relevant proration and exemption adjustments.
Particular attention should be given to lines 12, 13, 15, 16, and 18 because they directly affect the final taxable capital amount.
Accurate reporting of capital balances, shareholder loans, gross receipts, property values, apportionment percentages, and capital exemptions is essential for correctly calculating the Mississippi S-corporation franchise tax capital reported on Form 84-105, line 1.