Schedule Rc-R (Form 41a720rc-R) - Recycling Or Composting Equipment Tax Credit Recapture Page 2
Download a blank fillable Schedule Rc-R (Form 41a720rc-R) - Recycling Or Composting Equipment Tax Credit Recapture in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Schedule Rc-R (Form 41a720rc-R) - Recycling Or Composting Equipment Tax Credit Recapture with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
241A720RC-R (10-13)
Page 2
Commonwealth of Kentucky
INSTRUCTIONS – RECYCLING OR COMPOSTING
DEPARTMENT OF REVENUE
EQUIPMENT TAX CREDIT RECAPTURE
Purpose of Schedule – KRS 141.390(4) provides that the Recycling/
be prorated based on the cost of the equipment. Enter in the Total
Composting Equipment Tax Credit provided by KRS 141.390 shall be
column the total of the amounts on Line 9 of Columns A, B and C.
recaptured in whole or in part if a taxpayer sells, transfers, or disposes
Line 10 – LLET credit balance: if the amount on Line 7 of the Total
of qualifying recycling or composting equipment before the end of the
column is greater than the amount on Line 8 of the Total column,
recapture period. If the total tax credit used in prior tax years exceeds
enter the difference on this line.
the recomputed tax credit, the difference shall be recaptured on the
tax return for the tax year in which the sale, transfer, or disposition
Line 11 – Income tax credit balance: if the amount on Line 7 of the
occurred. If the total tax credit taken in prior tax years does not exceed
Total column is greater than the amount on Line 9 of the Total column,
the recomputed tax credit, the unused portion of the tax credit shall be
enter the difference on this line.
allowed against the income tax imposed by KRS 141.020 or 141.040
and the limited liability entity tax imposed by KRS 141.0401, subject
Line 12 – LLET credit recapture: if the amount on Line 8 of the Total
to the limitations provided by KRS 141.390(2), for the taxable year in
column is greater than the amount on Line 7 of the Total column, enter
the difference on this line.
which the sale, transfer or disposition occurs. Any tax credit balance
not used in the taxable year in which the sale, transfer or disposition
Line 13 – Income tax credit recapture: if the amount on Line 9 of the
occurs cannot be carried forward to another taxable year.
Total column is greater than the amount on Line 7 of the Total column,
enter the difference on this line.
General Instructions – KRS 141.390(5) provides the percentage of
the original tax credit allowed if recycling or composting equipment
Line 14 – Tax credit reduction: enter the amount on Line 6 of the Total
is sold, transferred, or disposed of before the end of its useful life as
column less the amount on Line 7 of the Total column.
provided by IRC §168. The Table – Allowable Tax Credit Percentage
on Schedule RC-R shows the tax credit percentage allowed for the
Enter the amount from Line 12 (LLET credit recapture) on the
holding periods provided by KRS 141.390(5).
applicable tax return as follows:
Section A – Recycling or Composting Equipment Disposed of Before
Form 720 – Enter on Form 720, Part I, Line 2.
the End of the Recapture Period
Form 720S – Enter on Form 720S, Part II, Line 2.
For each item of equipment sold, transferred or disposed of before
Form 725 – Enter on Form 725, Part II, Line 2.
the end of its useful life as provided by IRC §168, enter a description
of each item of equipment on Lines A, B and C and check the box
Form 765 – Enter on Form 765, Part II, Line 2.
to indicate the useful life of the equipment. If the taxpayer disposed
of more than three items of equipment during the tax year, attach
Enter the amount from Line 13 (Income tax credit recapture) on the
additional Schedules RC-R as needed.
applicable tax return as follows:
Section B – Computation of Tax Credit Balance or Tax Credit
Form 720 – Enter on Form 720, Part II, Line 2.
Recapture
Form 740 – Enter on Form 740, page 1, Line 13.
For each item of equipment identified on Lines A, B and C of Section A,
Form 740-NP – Enter on Form 740-NP, page 1, Line 14 (combine with
enter the following information in Columns A, B and C, respectively:
income tax amount).
Line 1 – Enter the date the equipment was purchased or installed.
Form 741 – Enter on Form 741, Line 17.
Line 2 – Enter the date the equipment was sold, transferred or
Enter the amount from Line 14 as follows:
disposed.
Schedule RC – The recycling or composting equipment tax credit
Line 3 – Enter the number of full years the equipment was held
balances for LLET and income tax on Schedule RC, Part III or Part VI
(difference between the dates on Line 1 and Line 2).
shall be reduced as follows: (i) for LLET by the total of Lines 10 and
Line 4 – Enter the tax year (month and year) that the tax credit on the
14 less Line 12, and (ii) for income tax by the total of Lines 11 and 14
equipment was approved by the Department of Revenue.
less Line 13.
Line 5 – Enter the allowable tax credit percentage from the Table –
Pass-Through Entities – A pass-through entity shall attach a copy of
Allowable Tax Credit Percentage.
Schedule RC-R to each partner’s, member’s or shareholder’s Kentucky
Schedule K-1.
Line 6 – Enter the amount of tax credit originally approved by the
Department of Revenue. The amount of the tax credit is the amount
Each partner, member or shareholder shall prepare a Schedule RC-R
originally approved on Schedule RC, Part I, Column G multiplied by
to be attached to the partner’s, member’s or shareholder’s tax return.
fifty percent (50%). Enter in the Total column the total of the amounts
A partner, member or shareholder shall include its pro rata share
on Line 6 of Columns A, B and C.
of the items of equipment amounts from the pass-through entity’s
Schedule RC-R, Lines 1 through 7 and Line 14 when preparing the
Line 7 – Enter the amount of Line 6 multiplied by the percentage on
partner’s, member’s or shareholder’s Schedule RC-R. The remaining
Line 5. Enter in the Total column the total of the amounts on Line 7
Lines 8 through 13 of Schedule RC-R shall be computed by the partner,
of Columns A, B and C.
member or shareholder. A partner, member or shareholder shall
reduce the recycling or composting equipment tax credit balances for
Line 8 – Enter the tax credit used by the taxpayer against LLET (KRS
141.0401) in prior years. If the original tax credit approved was for more
LLET and income tax on Schedule RC, Part III or Part VI as follows: (i)
for LLET by the total of Lines 10 and 14 less Line 12, and (ii) for income
than one item of equipment, the tax credit shall be prorated based on
tax by the total of Lines 11 and 14 less Line 13.
the cost of the equipment. Enter in the Total column the total of the
amounts on Line 8 of Columns A, B and C.
Line 9 – Enter the tax credit used by the taxpayer against income
tax (KRS 141.020 or 141.040) in prior years. If the original tax credit
approved was for more than one item of equipment, the tax credit shall
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial