The Mississippi Direct Accounting Income Statement is used to report income and deductions connected to Mississippi when direct accounting is required or allowed for certain pass-through entity filings. This statement helps separate Mississippi income from total business income by showing receipts, cost of goods sold, dividends, interest, rents, royalties, gains, losses, other income, operating deductions, depreciation, depletion, advertising, employee benefits, and other deductible expenses. Producers of mineral or natural resource products use Lines 1 through 31 to calculate direct income or loss. Multistate construction contractors use Lines 32 through 46 to calculate Mississippi gross profit, allocate non-allocable business income, deduct non-allocable general and administrative expenses, and arrive at Mississippi net income or loss. The final result from this statement is carried to the Mississippi pass-through entity income schedule, which makes this form important for accurate Mississippi income reporting when business activity is not reported only through standard apportionment.
How To File The Mississippi Direct Accounting Income Statement
Complete this statement with the entity’s Mississippi income records, job records, cost records, federal income statement details, depreciation schedules, deduction schedules, and any supporting schedules required for specific lines. Enter the FEIN at the top of each page. Round amounts to the nearest dollar. Producers of mineral or natural resource products should complete Lines 1 through 31. Multistate construction contractors should complete Lines 32 through 46. Attach schedules wherever the form requests additional support, such as cost of goods sold, dividends, capital gains, net gains or losses, other income, taxes, other deductions, non-allocable business income, and non-allocable general and administrative expenses. After calculating net income or loss, carry the final amount to the required line on Form 84-122.
How To Complete The Mississippi Direct Accounting Income Statement
Header Information
Form Year: Use the correct tax year for the statement. This version is for 2025.
FEIN: Enter the entity’s Federal Employer Identification Number on each page where requested.
Rounding Rule: Round all dollar amounts to the nearest dollar.
Filing Scope Note: Producers of mineral or natural resource products should complete Lines 1 through 31. Multistate construction contractors should complete Lines 32 through 46.
Income
Line 1: Gross Receipts Or Sales: Enter gross receipts or gross sales from the business activity. Reduce this amount by returns and allowances so the reported amount reflects sales after customer returns, credits, or allowances.
Line 2: Cost Of Goods Sold And / Or Operations: Enter the cost of goods sold or cost of operations. Attach a schedule showing how the amount was calculated.
Line 3: Gross Profit: Subtract Line 2 from Line 1. Enter the result as gross profit.
Line 4: Dividends: Enter dividend income. Attach a schedule listing the dividend details.
Line 5: Interest: Enter interest income earned during the tax year.
Line 6: Gross Rents: Enter gross rental income before related deductions.
Line 7: Gross Royalties: Enter gross royalty income before related deductions.
Line 8: Allocable Capital Gain: Enter allocable capital gain. Attach a schedule explaining the gain and how it was assigned.
Line 9: Allocable Net Gain Or Loss: Enter the allocable net gain or loss. Attach a schedule supporting the calculation.
Line 10: Other Income Or Loss: Enter any other income or loss not already reported on Lines 3 through 9. Attach a schedule describing the amount.
Line 11: Total Income: Add Lines 3 through 10. Enter the total income on this line.
Deductions
Line 12: Compensation Of Officers: Enter compensation paid to officers.
Line 13: Salaries And Wages: Enter salaries and wages paid to employees, not including amounts already reported as officer compensation.
Line 14: Repairs: Enter repair expenses that are deductible for the tax year.
Line 15: Bad Debts: Enter deductible bad debt expenses.
Line 16: Rents: Enter rent expenses paid or incurred by the business.
Line 17: Taxes: Enter deductible tax expenses. Attach a schedule showing the taxes included.
Line 18: Interest: Enter deductible interest expense.
Line 19: Contributions: Enter deductible contribution expenses.
Line 20a: Total Depreciation: Enter total depreciation for the year before any adjustment for depreciation claimed on the return.
Line 20b: Depreciation Claimed On Return: Enter the amount of depreciation claimed on the return.
Line 21: Depreciation Balance Claimed: Subtract Line 20b from Line 20a. Enter the balance on this line.
Line 22: Depletion: Enter depletion expense, if applicable.
Line 23: Advertising: Enter advertising expenses.
Line 24: Pension, Profit-Sharing Plans, Etc.: Enter deductible pension, profit-sharing, and similar plan expenses.
Line 25: Employee Benefit Programs: Enter deductible employee benefit program expenses.
Line 26: Other Deductions: Enter other deductible expenses not listed on Lines 12 through 25. Attach a schedule explaining the deductions.
Line 27: Total Deductions: Add Lines 12 through 19 and Lines 21 through 26. Enter the total deductions.
Net Income
Line 28: Net Direct Income Or Loss: Subtract Line 27 from Line 11. Enter the net direct income or loss.
Line 29: Non-Allocable Business Income Or Loss: Enter non-allocable business income or loss, including ordinary or capital gains apportioned to Mississippi using a sales-to-sales ratio. Attach a schedule supporting the amount.
Line 30: Non-Allocable General And Administrative Expenses: Enter non-allocable general and administrative expenses apportioned to Mississippi using a sales-to-sales ratio. Attach a schedule showing the calculation.
Line 31: Net Income Or Loss: Add Line 28 and Line 29, then subtract Line 30. Enter the result on this line and carry it to Form 84-122, Line 25.
Gross Profit For Multistate Construction Contractors
Only multistate construction contractors complete Lines 32 through 46.
Line 32: Gross Receipts Or Gross Sales From Jobs In Mississippi: Enter gross receipts or gross sales from construction jobs located in Mississippi.
Line 33: Adjustments: Enter any adjustments related to Mississippi construction job receipts or sales. Attach a schedule explaining the adjustments.
Line 34: Direct Cost From Jobs In Mississippi: Enter direct costs from construction jobs in Mississippi.
Line 35: Mississippi Gross Profit: Add Line 32 and Line 33, then subtract Line 34. Enter the Mississippi gross profit.
Add: Non-Allocable Business Income
Line 36: Total Company Non-Allocable Business Income: Enter total company non-allocable business income. Attach a schedule supporting the amount.
Line 37: Total Mississippi Sales: Add Line 32 and other Mississippi business income. Enter the total Mississippi sales.
Line 38: Total Company Sales: Enter total company sales, including sales from jobs and other business income.
Line 39: Ratio: Divide Line 37 by Line 38. Enter the result as a percentage.
Line 40: Mississippi Non-Allocable Business Income: Multiply Line 36 by Line 39. Enter the Mississippi share of non-allocable business income.
Deduct: Non-Allocable General And Administrative Expenses
Line 41: Total Company Non-Allocable General And Administrative Expenses: Enter total company non-allocable general and administrative expenses. Attach a schedule supporting the amount.
Line 42: Mississippi Direct Cost: Enter Mississippi direct cost.
Line 43: Total Company Direct Cost: Enter total company direct cost.
Line 44: Ratio: Divide Line 42 by Line 43. Enter the result as a percentage.
Line 45: Mississippi Non-Allocable General And Administrative Expenses: Multiply Line 41 by Line 44. Enter the Mississippi share of non-allocable general and administrative expenses.
Line 46: Net Income Or Loss: Add Line 35 and Line 40, then subtract Line 45. Enter the result on this line and carry it to Form 84-122, Line 25.
Final Review Before Filing
Before filing, review the statement carefully. Confirm that the FEIN is entered on each page, dollar amounts are rounded to the nearest dollar, and the correct section is completed based on the entity type. Make sure all income, deductions, depreciation, gains, losses, construction job receipts, direct costs, ratios, and final net income or loss amounts are calculated correctly. Attach all required schedules before submitting the return.