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

North Dakota Ofﬁ ce of State Tax Commissioner

2011 Schedule RZ instructions

Lines 12a through 12c

•

Partnership—

Non-individual partner—

For a partnership ﬁ ling

If a partner

Exemption period limitation

North Dakota Form 58 that carries on

is an estate or trust, include the North

(business income only)

100 percent of its business in North

Dakota distributive share of the amount

Full-year eligibility. If the taxpayer is

Dakota, enter the amount from the 2011

from the 2011 Form 58, Schedule KP,

Form 58, Schedule KP, line 1.

Column 5. If a partner is a corporation,

eligible for the exemption for the entire

contact the Ofﬁ ce of State Tax

tax year, skip lines 12a and 12b, and enter

Regardless of where the partnership

1.000000 on line 12c. Then go to line 13.

Commissioner, Corporation Income

carries on its business, if all of its

Tax Section, for information on how to

This applies if all of the following apply:

partners are full-year residents of North

determine the amount to include.

•

The taxpayer is eligible for the business

Dakota, enter the amount from the 2011

income exemption as of the beginning

Form 58, Schedule KP, line 1.

•

Financial institution—

For a ﬁ nancial

Five-year

of the tax year. See

institution ﬁ ling North Dakota Form 35,

If the partnership carries on its

exemption period

on page 3.

enter the amount from the 2011

business both within and without North

•

The taxpayer used the zone project

Form 35, page 1, line 6 less line 9.

Dakota (and is required to complete

property in the business for the entire

lines 1 through 14 of Schedule FACT,

•

Fiduciary—

For a ﬁ duciary ﬁ ling

tax year.

Form 58), and all of the partners are

North Dakota Form 38 that operates a

•

full-year nonresidents of North Dakota,

The 60-month exemption period did

business as a sole proprietorship, enter

not expire during the tax year. This

multiply the amount from the 2011

the net income from the Schedule C or

Form 58, Schedule KP, line 1, by the

condition is satisﬁ ed if the 60th month

Schedule C-EZ (Form 1040) attached to

apportionment factor from the 2011

of the exemption period falls in the last

the 2011 Federal Form 1041.

month of the tax year or later.

Form 58, Schedule FACT, line 14, and

Note: For a nonresident estate or trust,

enter the result.

Partial year eligibility. The taxpayer is

enter only that portion of the net income

If the partnership’s partners include

eligible for the business income exemption

from Schedule C or Schedule C-EZ

different types of partners, i.e., resident

for only part of the tax year if any of the

(Form 1040) that is attributable to

individual, nonresident individual,

following apply:

North Dakota.

corporation, etc., calculate the amount

•

to enter on this line by combining the

Lines 10a through 10h

The taxpayer became eligible for the

amounts calculated for the partners as

Zone apportionment factor

business income exemption during the

(business income only)

follows:

tax year in a month other than the ﬁ rst

Five-year

If all of the taxpayer’s business real

month of the tax year. See

Full-year resident—Include the

exemption period

on page 3.

property in North Dakota is located at

partner’s amount from the 2011

the zone project location, skip lines 10a

•

The taxpayer sold the zone project

Form 58, Schedule KP, Column 5.

through 10g and enter 1.000000 on line

property, terminated the lease on the

Full-year nonresident—Include

10h. Then go to line 11.

zone project property, or permanently

the partner’s amount from the 2011

withdrew the zone project property

Form 58, Schedule KP, Column 6.

If only a portion of the taxpayer’s business

from use in the business during the tax

real property in North Dakota is located at

Part-year resident—Include the sum

year.

the zone project location, complete lines

of the partner’s amounts attributable to

•

The maximum 60-month exemption

10a through 10g to calculate the zone

the resident and nonresident portions of

period allowed for the zone project

apportionment factor to enter on line 10h.

the tax year. To calculate the amount

property expired during the tax year,

The instructions for lines 10a through 10g

for the resident portion of the tax year,

and the 60th month is a month other

are on page 11 of these instructions.

multiply the partner’s amount from the

than the last month of the tax year.

2011 Form 58, Schedule KP, Column 5,

Real property includes leaseholds, i.e., real

by a ratio equal to the number of

property that the taxpayer is leasing and

If any of the above conditions apply,

months of North Dakota residence

using in the business.

complete lines 12a through 12c to calculate

divided by 12 months. To calculate the

If the zone project consists of the lease of

an exemption period eligibility factor.

amount for the nonresident portion of

space in a building for business purposes,

Enter on line 12a the smaller of the

the tax year, ﬁ rst multiply the partner’s

and the taxpayer had previously qualiﬁ ed

following:

amount from the 2011 Form 58,

for a zone project for leasing space in the

•

Number of months in the 60-month

Schedule KP, Column 5, by a ratio

same building for use in the same business,

exemption period available as of

equal to the number of months not a

complete lines 10a through 10h. For

the beginning of the tax year. If the

resident of North Dakota divided by 12

purposes of completing lines 10a through

60-month exemption period began in

months; and then multiply this result by

10h, do not include the previously leased

the 2011 tax year, use 60 months.

the apportionment factor from the 2011

space or its contents in Column B (Zone

Form 58, Schedule FACT, line 14.

project property location).

Schedule Rz - Booklet - Renaissance Zone Act Exemptions And Tax Credits - 2011 Page 7

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