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Instructions for Schedule A–C—Apportionment and Allocation–Continuation Sheet

41A720A-C (10-16)

Page 3

Commonwealth of Kentucky

DEPARTMENT OF REVENUE

doing business in Kentucky shall also include its pro rata share of the distributive

PURPOSE OF SCHEDULE—Schedule A-C is required if a corporation filing the tax

return is a partner or member of a limited liability pass-through entity or general

share income in the sales factor, the numerator of which is the distributive share

partnership (organized or formed as a general partnership after January 1, 2006)

income from the pass-through entity multiplied by the pass-through entity’s

apportionment fraction and the denominator of which is the distributive share

doing business in Kentucky; or if the pass-through entity filing the tax return is

a partner or member of a pass-through entity doing business in Kentucky.

income. A corporation or pass-through entity that owns an interest in a pass-

through entity not doing business in Kentucky shall include its pro rata share of

If filing a mandatory nexus consolidated tax return, Schedule A-C is required if

the distributive share income in the denominator of the sales factor.

any corporation in the affiliated group is a partner or member of a limited liability

pass-through entity or general partnership (organized or formed as a general

For the other columns enter the following:

partnership after January 1, 2006). The limited liability pass-through entity’s

Corporation—A corporation shall enter from each limited liability pass-through

or general partnership’s Kentucky sales, total sales, average value of Kentucky

entity’s or general partnership’s (organized or formed as a general partnership

real/tangible property, average value of total real/tangible property, Kentucky

after January 1, 2006) Kentucky Schedule K-1 on the applicable line of each

payrolls and total payrolls applicable to each corporation in the affiliate group

column: name; federal employer identification number (FEIN); Kentucky

shall be combined with its Kentucky sales, total sales, average value of Kentucky

Corporation/LLET Account Number; Kentucky sales; total sales; average value

real/tangible property, average value of total real/tangible property, Kentucky

of Kentucky real/tangible property; average value of total real/tangible property;

payrolls and total payrolls on the Schedule A-N, Apportionment Factor Schedule

Kentucky payrolls; and total payrolls.

(For a Nexus Consolidated Tax Return).

Pass-through Entity—A pass-through entity shall enter from each pass-through

Schedule(s) A-C and Schedule A must be submitted with the applicable tax

entity’s Kentucky Schedule K-1 on the applicable line of each column: name;

return (Form 720, 720S, 725, 765 or 765-GP).

federal employer identification number (FEIN); Kentucky Corporation/LLET

KRS 141.206(10)(b) provides that for taxable years beginning on or after January

Account Number; Kentucky sales; total sales; average value of Kentucky real/

1, 2007, a corporation that owns an interest in a limited liability pass-through

tangible property; average value of total real/tangible property; Kentucky

entity or a general partnership organized or formed as a general partnership

payrolls; and total payrolls.

after January 1, 2006, shall include its proportionate share of the sales, property

If Schedule A-C does not have enough columns for all entities, copy page 2 of

and payroll of the limited liability pass-through entity or general partnership

Schedule A-C and attach as needed, identifying pages alphabetically.

in computing its own apportionment fraction. Accordingly, when completing

Schedule A-C for a corporation, include only limited liability pass-through

For the Total column enter the following:

entities or general partnerships (organized or formed as general partnerships

Line 1—Enter the total of the amounts on Line 1 from all columns and pages of

after January 1, 2006) doing business in Kentucky.

Schedule A-C.

KRS 141.206(11) provides that a pass-through entity that is a partner or member

Line 2—Enter the total of the amounts on Line 2 from all columns and pages of

in another pass-through entity shall include its pro rata share of the property

Schedule A-C.

owned or leased by the other pass-through entity, and shall also include its pro

rata share of the other pass-through entity’s payroll and sales in computing

Lines 3 and 4—No entries are required for these lines. Computations are made

its own apportionment fraction. Accordingly, when completing Schedule A-C

on Schedule A.

for a pass-through entity, include only pass-through entities doing business in

Line 5—Enter the total of the amounts on Line 5 from all columns and pages of

Kentucky.

Schedule A-C.

LINE–BY–LINE INSTRUCTIONS

Line 6—Enter the total of the amounts on Line 6 from all columns and pages of

For the “Corporation or Pass-through Entity filing the return” column, enter the

Schedule A-C.

following:

Line 7—No entry is required for this line. Computation is made on Schedule A.

Lines 1, 2, 5, 6, 8 and 9 are computed in the same manner as Schedule A, Section

Line 8—Enter the total of the amounts on Line 8 from all columns and pages of

I, Lines 1, 2, 5, 6, 8 and 9. Accordingly, a corporation or pass-through entity shall

Schedule A-C.

enter on the applicable lines its Kentucky sales; total sales; average value of

Line 9—Enter the total of the amounts on Line 9 from all columns and pages of

Kentucky real/tangible property; average value of total real/tangible property;

Schedule A-C.

Kentucky payrolls; and total payrolls. Section III and Section IV of Schedule A

should be completed to determine the average value of the corporation’s or

Lines 10, 11 and 12—No entries are required for these lines. Computations are

pass-through entity’s Kentucky real/tangible property and total real/tangible

made on Schedule A.

property.

Enter the amounts from the Total column, Lines 1, 2, 5, 6, 8 and 9 on the

A corporation or pass-through entity that owns an interest in a pass-through entity

corresponding lines of Schedule A, Section I, Lines 1, 2, 5, 6, 8 and 9.

Schedule A-C (Form 41a720a-C) Draft - Apportionment And Allocation - Continuation Sheet - 2016 Page 3

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