Fillable Schedule K-87 - Declared Disaster Capital Investment Credit (Page 2 of 2) in pdf

INSTRUCTIONS FOR SCHEDULE K-87

GENERAL INFORMATION

LINE 3 – Multiply line 1 by line 2, and enter the result here. Do not

enter more than $100,000.

K.S.A. 79-32,262 provides an income, privilege or premiums tax

LINE 4 – Enter the amount of credit approved by KDOR (Kansas

credit for tax years 2008, 2009 and 2010 for any taxpayer who

Department of Revenue). This is line 4 minus line 7 from the

makes a capital investment in a business that is located in the city

previous year’s K-87 credit schedule. The pre-approved

limits, or within one mile of, the following Kansas cities: Chanute,

amount must be from the same Certificate Number as entered

Coffeyville, Erie, Fredonia, Greensburg, Independence, Iola,

in the header.

Neodesha or Osawatomie. The investment must be made within

LINE 5 – Available credit. Enter the lesser of lines 3 or 4 here.

three years of the date of the disaster’s occurrence which is the

LINE 6 – Partners, shareholders or members: Enter the percentage

subject of major disaster declaration DR 1699 or DR 1711. The

that represents your proportionate share in the partnership,

credit shall not exceed 10% of the investment. The total amount of

S corporation, LLC or LLP. All other taxpayers: Enter 100%.

credit allowed for any one taxpayer shall not exceed $100,000. In

no event shall the total amount of credits or refunds exceed

LINE 7 – Your share of the credits. Multiply line 5 by line 6, and

$5,000,000 for any one fiscal year.

enter the result here.

The amount of credit shall be reduced by an amount equal to

If you are electing to use the refund option

any assistance payment received by the taxpayer from the

skip lines 8 through 11 and proceed to Part C.

Southeast Kansas Business Restoration Assistance Program, or

PART B - COMPUTATION OF TOTAL CREDIT CLAIMED THIS YEAR

from the Kiowa County Business Assistance Program. No taxpayer

shall claim more than one credit for the same investment, except

LINE 8 – Prior year’s carry forward. Enter the amount of available

that nothing shall prevent a taxpayer from making a claim for and

carry forward from the prior year’s Schedule K-87. (Make no entry

being allowed credit in a subsequent tax year when such taxpayer

for tax year 2008.)

was not allowed the credit in a previous tax year. If the amount of

LINE 9 – Total credit available this tax year. Add lines 7 and 8 and

this tax credit exceeds the income, privilege or premium tax liability

enter the result.

for the taxpayer for any taxable year in which the qualified

investment is made, the excess credit may be carried over for

LINE 10 – Enter your total Kansas tax liability for this tax year after

deduction from such taxpayer’s tax liability in the next succeeding

all credits other than this credit.

year or years until the total amount of the credit has been deducted

LINE 11 – Amount of credit this tax year. Enter the lesser of lines

from the tax liability, except that no such credit shall be carried over

9 or 10. Enter this amount on the appropriate nonrefundable

for deduction after the 10th taxable year succeeding the taxable

credit line of Form K-40, K-41, K-120 or K-130. Skip lines 12

year in which the qualified investment was made.

through 14 and proceed to line 15.

A taxpayer may receive a refund in lieu of the above described

PART C - COMPUTATION FOR REFUNDABLE PORTION OF CREDIT

nonrefundable credit. The refund shall be 50% of the computed

credit. The amount of refund shall also be reduced by an amount

LINE 12 – Your share of the credit for the capital investments.

equal to any assistance payments received by the taxpayer. Should

Enter the amount from line 9 above.

the taxpayer elect to receive the cash in lieu of the credit, the

LINE 13 – The authorized refundable credit percentage is 50%.

remaining portion of the tax credit shall be lost. Any refund shall be

allowed against the tax liability in the tax year the qualified

LINE 14 – Amount of credit to be refunded. Multiply line 12 by

investment is placed into service.

line 13 and enter the result here, and on the appropriate

refundable credit line of Form K-40, K-41, K-120, or K-130.

IMPORTANT: Before you can claim this credit on Form

PART D - COMPUTATION OF CREDIT CARRY FORWARD

K-87, the amount of credit MUST BE APPROVED by

KDOR (Kansas Department of Revenue). An on-line

LINE 15 – Amount of excess credit available to carry forward to

application can be found at:

next year’s return. Subtract line 11 from line 9 and enter the

result here and on line 8 of next year’s Schedule K-87.

SPECIFIC LINE INSTRUCTIONS

IMPORTANT: Do not send enclosures with this schedule,

Enter all requested information at the top of this schedule.

however keep copies of important documentation with

your records. KDOR reserves the right to request

PART A - COMPUTATION OF CREDIT

additional information as necessary.

LINE 1 – Amount of capital investment in a business which is

TAXPAYER ASSISTANCE

located in the city of Chanute, Coffeyville, Erie, Fredonia,

Greensburg, Independence, Iola, Neodesha or Osawatomie,

For assistance in completing this schedule contact KDOR:

Kansas or within one mile of the city limits of these cities.

Do not include investment for which you have received, or

Tax Operations

Docking State Office Building, 1

Floor

will receive, assistance through the Southeast Kansas

915 SW Harrison St.

Business Restoration Assistance Program or from the Kiowa

Topeka, KS 66625-2007

County Business Restoration Assistance Program.

LINE 2 – The authorized credit percentage is 10%.

Phone: (785) 368-8222

Schedule K-87 - Declared Disaster Capital Investment Credit Page 2

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