Schedule Keoz-Sp - Kentucky Tax Computation Schedule (For A Keoz Project Of A Pass-Through Entity) Page 2
Download a blank fillable Schedule Keoz-Sp - Kentucky Tax Computation Schedule (For A Keoz Project Of A Pass-Through Entity) 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 Keoz-Sp - Kentucky Tax Computation Schedule (For A Keoz Project Of A Pass-Through Entity) 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
241A720-S41 (10-15)
Page 2
INSTRUCTIONS –SCHEDULE KEOZ-SP
Commonwealth of Kentucky
DEPARTMENT OF REVENUE
PURPOSE OF SCHEDULE—This schedule is used by a
such that it is not practical to use a separate accounting
pass-through entity which has entered into a tax incentive
method to determine the net income, Kentucky gross receipts
agreement for a Kentucky Economic Opportunity Zone Act
and Kentucky gross profits from the facility at which the
(KEOZ) project that received preliminary or final approval
economic development project is located, the approved
under KRS Chapter 154.23 on or before June 26, 2009, to
company shall use an alternative method approved by
determine the credit allowed against the Kentucky income
the Department of Revenue. A copy of the letter from the
tax and LLET attributable to the project in accordance with
Department of Revenue approving the alternative method
KRS 141.401.
must be attached to this schedule.
Pass-through entities should first complete Form 720S, 765
Separate Accounting—If the economic development project
or 765-GP to determine net income (loss), deductions, etc.,
is a totally separate facility, net income shall reflect only
from the entire operations of the pass-through entity. The
the gross income, deductions, expenses, gains and losses
pass-through entity should then complete Schedule KEOZ-
allowed under this chapter directly attributable to the
SP to determine the KEOZ tax credit and the tax due, if any,
facility and overhead expenses apportioned to the facility;
from the KEOZ project. A pass-through entity is subject to
and Kentucky gross receipts or Kentucky gross profits shall
tax as provided by KRS 141.020 and KRS 141.0401 on the net
reflect only Kentucky gross receipts or Kentucky gross profits
income and the Kentucky gross receipts or Kentucky gross
directly attributable to the facility.
profits from the project and the KEOZ credit is applied against
If the economic development project is an expansion to a
the tax of the KEOZ project. Consequently, the pass-through
previously existing facility, net income of the entire facility
entity must use Form 720S(K), Form 765(K) or Form 765-
shall reflect only the gross income, deductions, expenses,
GP(K) in lieu of Schedule K (Form 720S), Schedule K (Form
gains and losses allowed under this chapter directly
765) or Schedule K (Form 765-GP) in order to exclude the net
attributable to the facility and overhead expenses apportioned
income from the KEOZ project from the partners, members
to the facility; and Kentucky gross receipts and Kentucky
or shareholders’ distributive share income, and Schedule
gross profits shall reflect only Kentucky gross receipts and
LLET(K) in lieu of Schedule LLET in order to exclude the
Kentucky gross profits directly attributable to the facility. Net
Kentucky gross receipts or the Kentucky gross profits of the
income, Kentucky gross receipts and Kentucky gross profits
KEOZ project from the LLET at the entity level.
of the entire facility attributable to the economic development
Multiple Projects—A pass-through entity with multiple
project shall be determined by apportioning the net income,
economic development projects must complete an applicable
Kentucky gross receipts and Kentucky gross profits by a
schedule (Schedule KREDA-SP , Schedule KIDA-SP , Schedule
formula approved by the Department of Revenue.
KEOZ-SP , Schedule KJRA-SP , Schedule KIRA-SP , Schedule
Line 2—Enter the net operating loss from the KEOZ project,
KJDA-SP , Schedule KBI-SP , Schedule KRA-SP or Schedule
if any, being carried forward from previous years.
IEIA-SP) to determine the credit and net tax liability, if any,
for each project.
Note: Just as the income from a KEOZ project does not flow
through to partners, members or shareholders, neither do the
Line 1—If the pass-through entity’s only operation is the KEOZ
losses. The project’s net operating loss from prior years must
project, the amount entered on Line 1 is the net income (loss)
from Form 720S, 765 or 765-GP . If the pass-through entity has
be subtracted from the project income before calculating the
operations other than the KEOZ project, a schedule must be
KEOZ credit.
attached reflecting the computation of the net income (loss)
General Partnership—Lines 5 and 6 of this schedule shall
from the KEOZ project in accordance with the following
not be completed by a general partnership as a general
instructions, and such amount entered on Line 1.
partnership is not subject to LLET.
Separate Facility—In accordance with KRS 141.401(6), if the
Line 5—Using Schedule LLET, create a new Schedule LLET
project is a totally separate facility, net income, Kentucky
to compute the LLET of the KEOZ project using only the
gross receipts and Kentucky gross profits attributable to
Kentucky gross receipts and Kentucky gross profits of the
the project shall be determined by a separate accounting
project. Enter “KEOZ” at the top center of the Schedule LLET
method.
and attach it to the tax return.
Expansion of Existing Facility—In accordance with KRS
Line 9—In lieu of the tax credit, the approved company
141.401(7), if the KEOZ project is an expansion to a previously
may elect, on an annual basis, to apply as an estimated tax
existing facility, the net income, Kentucky gross receipts and
payment an amount equal to the allowable tax credit. Any
Kentucky gross profits shall be determined under a separate
estimated tax payment shall be in satisfaction of the tax
accounting method reflecting the entire facility, and the net
liability of the partners, members or shareholders of the pass-
income, Kentucky gross receipts and Kentucky gross profits
through entity, and shall be paid on behalf of the partners,
shall be determined by apportioning the net income, Kentucky
members or shareholders. Enter an amount on either (a) or
gross receipts and Kentucky gross profits of the entire facility
(b), but in no case shall there be an entry on both (a) and
to the economic development project by a formula approved
(b). In accordance with KRS 141.401(5), this estimated tax
by the Department of Revenue. A copy of the letter from the
payment is excluded in determining each partner, member
Department of Revenue approving the percentage must be
or shareholder’s distributive share income or credit from a
attached to the schedule.
pass-through entity. Accordingly, the partners, members or
Alternative Methods—In accordance with KRS 141.401(8),
shareholders are not entitled to claim any portion of this
if the approved company can show that the nature of the
estimated tax payment against their Kentucky income tax
operations and activities of the approved company are
liability.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Schedule Kjra-sp - Kentucky Tax Computation Schedule (for A Kjra Project Of A Pass-through Entity)
Financial
Schedule Kra-sp - Kentucky Tax Computation Schedule (for A Kra Project Of A Pass-through Entity)
Financial
Schedule Kida-sp - Kentucky Tax Computation Schedule (for A Kida Project Of A Pass-through Entity)
Financial
Schedule Kjda-sp - Kentucky Tax Computation Schedule (for A Kjda Project Of A Pass-through Entity)
Financial
Schedule Kira-sp - Kentucky Tax Computation Schedule (for A Kira Project Of A Pass-through Entity)
Financial
Schedule Kreda-sp - Kentucky Tax Computation Schedule (for A Kreda Project Of A Pass-through Entity)
Financial
Schedule Fon-sp - Kentucky Tax Computation Schedule (for A Fon Project Of A Pass-through Entity)
Financial
Schedule Ieia-sp - Kentucky Tax Computation Schedule (for An Ieia Project Of A Pass-through Entity)
Financial
Related Categories
Parent category: Financial