Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions

Line 8—Enter the refundable certified rehabilitation tax credit

enter the amount from Line 6 of the federal Schedule D (Form

(attach the Kentucky Heritage Council certification(s) or Kentucky

1065) that is portfolio income.

Schedule(s) K–1 (Form 765–GP)).

Line 4(e)—See page 3 of the 2011 Form 765 instructions

Line 9—Enter the refundable film industry tax credit (attach the

regarding differences in gain or loss from disposition of

assets, and if applicable, enter the amount from Line 13 of

Kentucky Film Office certification(s) or Kentucky Schedule(s) K–1

the Kentucky Schedule D that is portfolio income. Report any

(Form 765–GP)).

gain or loss that is not portfolio income on Line 7, Schedule

Line 10—Enter the amount of LLET paid with Form 41A720SL,

K, Form 765. Kentucky Schedule D must be attached to Form

Application for Six–Month Extension of Time to File Kentucky

765. Otherwise, enter the amount from Line 13 of the federal

Corporation or Limited Liability Pass–Through Entity Return.

Schedule D (Form 1065) that is portfolio income.

Line 11—Enter the amount credited to 2011 from Form 765, Part

Line 4(f)—Enter any other portfolio income not reported on

II, Line 14 of the 2010 tax return.

Lines 4(a) through 4(e), Schedule K, Form 765.

Line 12—If Line 6 is greater than the total of Lines 7 through 11,

Line 5—Enter guaranteed payments to partners from federal

enter the difference on this line and enter the amount in the

Schedule K, Form 1065.

Tax Payment Summary.

Line 6—See page 3 of the 2011 Form 765 instructions regarding

Line 13—If Line 6 is less than the total of Lines 7 through 11, enter

differences in gain or loss from disposition of assets. If

the difference on this line.

applicable, enter the amount from Line 7 of the Kentucky Form

4797, and Kentucky Form 4797 must be attached to Form 765.

Line 14—Enter the portion of Line 13 to be credited to 2012

Otherwise, enter net gain (loss) under Section 1231 from federal

LLET.

Form 4797. Do not include net gains (losses) from involuntary

conversions due to casualties or thefts on this line. Instead,

Line 15—Enter the portion of Line 13 to be refunded (Line 13

report them on Line 7.

less Line 14).

Line 7—Enter all other items of income (loss) of the partnership

SCHEDULE K (FORM 765)

not included on Lines 1 through 6. See federal instructions for

Schedule K, Form 1065.

General Instructions—Complete all applicable lines entering

the total pro rata share amount for each item listed. Federal

Line 8—Enter total contributions paid by the partnership during

instructions for Form 1065 and federal Schedule K provide

its taxable year and attach a schedule showing separately

additional information which will assist the partnership in

the contributions subject to the 50 percent, 30 percent and

completing Schedule K, Form 765.

20 percent limitations. These percentage limitations must

be applied to the Kentucky amounts rather than the federal

A partnership must use Form 765(K), Kentucky Schedule K

amounts.

For Partnerships With Economic Development Project(s), if

the partnership has one or more projects under the Kentucky

Also, enter amount of deduction allowable from Schedule

Rural Economic Development Act (KREDA), Kentucky Industrial

HH for the value of leasehold interest of property donated for

Development Act (KIDA), Kentucky Economic Opportunity

living quarters for a homeless family. The ordinary charitable

Zone Act (KEOZ), Kentucky Jobs Retention Agreement (KJRA),

contribution deduction must be reduced by any amount

Kentucky Industrial Revitalization Act (KIRA), Kentucky Jobs

attributable to property on which this deduction is taken.

Development Act (KJDA), Kentucky Business Investment

Program (KBI), Kentuck y Reinvestment Act (KRA) and

Line 9—See page 3 of the 2011 Form 765 instructions regarding

Incentives for Energy Independence Act (IEIA).

depreciation and Section 179 deduction differences, and if

applicable, include the amount from Line 12 of the Kentucky

Section I—Income (Loss) and Deductions

Form 4562. Kentucky Form 4562 must be attached. Otherwise,

enter Section 179 deduction from federal Form 4562.

Line 1—Enter Kentucky ordinary income (loss) from trade or

business activities reported on Form 765, Part I, Line 10.

Line 10—Enter the expenses related to portfolio income

reported on federal Schedule K, Form 1065, adjusted to exclude

Line 2—Enter net income (loss) from rental real estate activities

expenses related to tax–exempt interest income and other

reported on federal Schedule K, Form 1065, adjusted to reflect

exempt income.

any differences in Kentucky and federal income tax laws.

Line 11—Enter any other deductions of the partnership not

Line 3(a)—Enter the gross income from other rental activities

included on Lines 8, 9 and 10. See federal instructions for

reported on federal Schedule K, Form 1065.

Schedule K, Form 1065.

Line 3(b)—Enter the expenses from other rental activities

Line 12(a)—Enter the partnership’s deductible interest expense

reported on federal Schedule K, Form 1065, adjusted to reflect

allocable to debt on property held for investment purposes.

any differences in Kentucky and federal income tax laws.

Property held for investment purposes includes property that

produces investment income (interest, dividends, annuities,

Line 3(c)—Enter the difference of Line 3(a) and Line 3(b).

royalties, etc.). The total amount entered should equal the

Line 4(a)—Enter interest income from federal Schedule K, Form

amount of interest expense reported on federal Schedule K,

1065, adjusted to exclude tax-exempt U.S. government interest,

Form 1065, adjusted to exclude any interest expense on debts

if any, and to include interest income from obligations of states

incurred to purchase or carry investment property producing, or

other than Kentucky and their political subdivisions.

held for the production of, U.S. government interest income.

Lines 4(b) and 4(c)—Enter the amount of dividend and royalty

Lines 12(b)(1) and (b)(2)—Enter only the investment income

income reported on federal Schedule K, Form 1065.

included on Lines 4(a), 4(b), 4(c) and 4(f), Schedule K, Form

765, and only the investment expenses related thereto included

Line 4(d)—See page 3 of the 2011 Form 765 instructions

on Line 10, Schedule K, Form 765. See federal instructions for

regarding differences in gain or loss from disposition of assets,

Schedule K, Form 1065.

and if applicable, enter the amount from Line 6 of the Kentucky

Line 13 – Enter the Kentucky Small Business Investment Credit

Schedule D that is portfolio income. Report any gain or loss

Program (KSBIC) tax credit as provided by KRS 141.384 and

that is not portfolio income on Line 7, Schedule K, Form 765.

attach a copy of the Kentucky Economic Development Finance

Kentucky Schedule D must be attached to Form 765. Otherwise,

Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions - 2011 Page 9

Related Articles

Related forms

Related Categories