Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits

North Dakota Ofﬁ ce of State Tax Commissioner

2011 Schedule RZ instructions

Note: If the taxpayer has more than

The amount of investment income that

•

S corporation—

For an S corporation

one zone project for which the taxpayer

may be exempted is entered in Part 1,

ﬁ ling North Dakota Form 60 that carries

qualiﬁ es for the business or investment

line 15, of Schedule RZ.

on 100 percent of its business in North

income exemption, complete a separate

Dakota, enter the amount from the 2011

Schedule RZ, Part 1, for each project. Add

Speciﬁ c line

Form 60, Schedule KS, line 1.

the separately calculated amounts and

Regardless of where the corporation

instructions

enter the total in Part 7, line 1, of one of

carries on its business, if all of its

the schedules.

Note: Passthrough entity owner

shareholders are full-year residents of

If the taxpayer owns an interest in a

North Dakota, enter the amount from

Line 8

passthrough entity, and the taxpayer is

the 2011 Form 60, Schedule KS, line 1.

Enter the exemption period start date for

completing Schedule RZ only to claim

If the corporation carries on its

the zone project, as shown on the ﬁ nal

the taxpayer’s share of the business or

business both within and without North

zone project approval letter. This date

investment income exemption passed

Dakota (and is required to complete

establishes the beginning of the ﬁ ve-year

through to the taxpayer by the entity,

lines 1 through 14 of Schedule FACT,

(60-month) exemption period that applies

enter the taxpayer’s name and applicable

Form 60), and all of the shareholders

to the zone project. This date does not

identiﬁ cation number at the top of page 1

are full-year nonresidents of North

change even if the property is transferred

of Schedule RZ. Enter the exemption

Dakota, multiply the amount from the

Five-year

to another taxpayer. See

amount on lines 14 and 16 of Part 1. Do

exemption period

2011 Form 60, Schedule KS, line 1, by

on page 3 for more

not make an entry on lines 1 through 13

the apportionment factor from the 2011

information.

and 15. Complete Part 7 as instructed.

Form 60, Schedule FACT, line 14, and

Attach Schedule RZ and a copy of

Line 9

enter the result.

the North Dakota Schedule K-1 or

North Dakota business income

If the corporation’s shareholders include

Renaissance Zone Passthrough Member

If the taxpayer qualiﬁ ed for the

both residents and nonresidents of

Notice to the taxpayer’s return. See

investment income exemption, do not

North Dakota, calculate the amount

Passthrough entity owner

on page 2 for

enter any of the investment income on

to enter on this line by combining the

more information.

this line—see line 15.

amounts calculated for the shareholders

Line 1

as follows:

Note: If you are claiming both the

Enter the project number assigned to the

Full-year resident—Include the

business income exemption under the Act

zone project by the local zone authority, as

shareholder’s amount from the 2011

and the new or expanding business income

shown on the ﬁ nal zone project approval

Form 60, Schedule KS, Column 5.

exemption under N.D.C.C. ch. 40-57.1, see

letter. If the taxpayer does not have a

Multiple income exemptions

on page 2

Full-year nonresident—If an

copy of the ﬁ nal zone project approval

before completing this line.

individual, include the shareholder’s

letter, contact the local zone authority to

amount from the 2011 Form 60,

The amount to enter on this line depends

obtain one. Attach a copy of the ﬁ nal

Schedule KS, Column 6. If an estate

on the type of North Dakota return ﬁ led by

zone project approval letter to the North

or trust, include the North Dakota

the taxpayer. If any amount determined for

Dakota return.

distributive share of the amount from

a taxpayer is a net loss, the amount to enter

the 2011 Form 60, Schedule KS,

Line 2

is zero. Enter the amount as follows:

Column 5.

Enter the name of the renaissance zone city

•

Resident individual—

For a resident

Part-year resident—Include the sum of

where the zone project is located.

individual ﬁ ling North Dakota Form

the shareholder’s amounts attributable

ND-1, enter the net income from the

Line 3

to the resident and nonresident portions

2011 Federal Form 1040, Schedule C or

Enter the street address of the zone project

of the tax year. To calculate the amount

Schedule C-EZ.

property. Include the apartment, suite, or

for the resident portion of the tax year,

•

Nonresident or part-year resident

other unit number, if applicable. Do not

multiply the shareholder’s amount

individual—

For a nonresident or part-

enter a post ofﬁ ce box number.

from the 2011 Form 60, Schedule KS,

year resident individual ﬁ ling North

Column 5, by a ratio equal to the

Dakota Form ND-1, enter the amount

Line 4

number of months of North Dakota

from the 2011 Schedule ND-1NR,

residence divided by 12 months. To

If the taxpayer qualiﬁ ed for more than one

line 3, Column B.

calculate the amount for the nonresident

zone project at the same street address,

•

C corporation—

For a C corporation

portion of the tax year, ﬁ rst multiply

check the “Yes” box and enter the project

ﬁ ling North Dakota Form 40, enter the

the shareholder’s amount from the 2011

numbers for all of them on the line

amount from the 2011 Form 40, page 1,

Form 60, Schedule KS, Column 5, by a

provided on the schedule.

line 6. However, if Schedule CR was

ratio equal to the number of months not

completed, enter the amount from

a resident of North Dakota divided by

Schedule CR, Part 1, line 6 of the

12 months; and then multiply this result

applicable column.

by the apportionment factor from the

2011 Form 60, Schedule FACT, line 14.

Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits - 2011 Page 6

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