Instructions For Form 720 - Kentucky Corporation Income Tax And Llet Return

Line 4—Add the totals for Lines 1 through 3.

Line 12—Enter the 2013 LLET overpayment from Part I, Line 18

credited to the 2013 income tax. If filing an amended return,

Line 5—Enter the amount from Line 8 of the worksheet below.

enter the amount from the original return.

KRS 141.0401(3)(a) provides that the LLET credit allowed a

Line 13—Enter the corporation income tax paid on the original

member or partner of a limited liability pass–through entity

return. This line is used only when filing an amended return.

against tax imposed by KRS 141.040 shall be a member's or

partner's proportionate share of the LLET for the current year

Line 14—Enter the corporation income tax overpayment on the

after the subtraction of the minimum tax of $175 and any credits

original return. This line is used only when filing an amended

identified in KRS 141.0205. The LLET credit allowed shall be

return.

applied to income tax assessed on income from the limited

liability pass–through entity. Any remaining LLET credit from the

Line 15—If the total of Lines 8 and 14 is greater than the total of

limited liability pass–through entity shall be disallowed.

Lines 9 through 13, enter the difference on this line and on the

Tax Payment Summary.

Corporation LLET Credit Worksheet

Line 16—If the total of Lines 8 and 14 is less than the total of

Enter on Line 2 of the worksheet below, the Kentucky net

Lines 9 through 13, enter the difference on this line.

distributive share income from the limited liability pass–through

entity that is included in the corporation's Kentucky taxable

Line 17—Enter the portion of Line 16 to be credited to the 2013

income on Line 1. If the corporation is taxable only in Kentucky,

LLET on Part I, Line 13. If filing an amended return, do not enter

enter the net distributive share income from the Kentucky

an amount on this line.

Schedule K–1. If the corporation is taxable in Kentucky and

taxable in another state, enter the net distributive share income

from the Kentucky Schedule K–1 multiplied by the corporation's

Line 18—Enter the portion of Line 16 to be credited to 2014

apportionment fraction on Schedule A, Section I, Line 12.

corporation income tax. If filing an amended return, do not

enter an amount on this line.

Complete a separate worksheet for each limited liability pass–

through entity. Attach each worksheet to the return and retain

Line 19—Enter the portion of Line 16 to be refunded (Line 16

a copy for your records.

less Lines 17 and 18).

Name ____________________________________________________

PART III—TAXABLE INCOME COMPUTATION

Address __________________________________________________

Line 1—Enter the amount of federal taxable income in

accordance with the following instructions:

FEIN ____________________

KY Acct # ____________________

Percentage of Ownership __________________________________

(a) Separate Entity Kentucky Return/Separate Entity Federal

Return—If this is a separate entity income tax return and

1. Kentucky taxable income,

the corporation filed a separate entity federal income tax

Form 720, Part III, Line 25 ........................

return for the taxable year, enter the amount from Line 28

of Form 1120. Attach a copy of Form 1120, all pages.

2. Kentucky net distributive share income

from Kentucky Schedule K-1

(see instructions above) ...........................

(b) Separate Entity Kentucky Return/Consolidated Federal

Return—If this is a separate entity income tax return and

3. Line 1 less Line 2 ......................................

the corporation filed a consolidated federal income tax

4. Income tax from Form 720, Part II,

return for the taxable year, enter the amount from Line

Line 1 .........................................................

28 of the pro forma Form 1120 prepared on a separate

5. Income tax on the amount on Line 3 ......

entity basis. Attach a copy of the pro forma Form 1120, all

pages.

6. Line 4 less Line 5. If Line 5 is greater

than Line 4, enter -0- ................................

7. Nonrefundable LLET credit from

forma federal Form 1120 and supporting Schedule CR

Kentucky Schedule K-1 (Form 765

and Schedule(s) CR-C showing the federal income and

or Form 765-GP) .......................................

deductions of each member of the mandatory nexus

8. Lesser of Line 6 or Line 7, enter here

consolidated group and the consolidated totals. Enter the

and on Form 720, Part II, Line 5 ...............

amounts from Schedule CR and Schedule(s) CR-C, Line 28

on Schedule KCR and Schedule(s) KCR-C, Line 1. Enter the

Line 6—Enter the amount from Part I, Line 6 less $175.

statutory additions and subtractions from federal taxable

income of each member of the nexus consolidated group

Line 7—Enter total credits from Kentucky Schedule TCS, Part III,

and the consolidated totals. Enter the consolidated totals

Column F, Line 2.

from Schedule KCR Lines 1 through 18 on Form 720, Part

III, Lines 1 through 18.

Line 8—Enter the amount of Line 4, less Lines 5 through 7, but

not less than zero.

Attach Form 851-K and an organizational chart showing

the ownership percentages and indicating which entities

Line 9—Enter the total of estimated income tax payments made

have Kentucky nexus.

for the taxable year. Do not include the amount credited from

the prior year.

Special Returns—If the corporation is an organization which

filed a special return for federal purposes (e.g., 1120H, 1120POL),

Line 10—Enter the total of income tax paid with Form 41A720SL,

enter the amount from the line on the special return which is

Application for Six-Month Extension of Time to File Kentucky

comparable to Line 28 (Form 1120), federal taxable income.

Corporation or Limited Liability Pass–Through Entity Return.

Attach all pages of form comparable to all the pages of Form

Line 11—Enter the amount credited to the 2013 income tax from

1120.

Form 720, Part II, Line 18 of the 2012 return.

Instructions For Form 720 - Kentucky Corporation Income Tax And Llet Return - 2013 Page 9

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