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

Principal Business Activity in Kentucky—Enter the entity’s

Line 3—See instructions on page 3 regarding depreciation and

principal business activity in Kentucky.

Section 179 deduction differences, and if applicable, include

the depreciation amount from Line 16a of Form 1065 (do not

North American Industrial Classification System (NAICS)—

include the Section 179 deduction). If federal Form 4562 is

Enter your six-digit NAICS code. To view a complete listing of

required to be filed for federal income tax purposes, a copy

NAICS codes, visit the United States Census Bureau at www.

must be attached.

census.gov.

Line 4—Enter related party cost additions from Schedule RPC,

Part II, Section B, Line 1.

Item E—Check the applicable boxes:

Line 5—Enter the amount from Schedule O–PTE, Part I, Line 6.

(a) LLC—Check this box if the partnership is organized as a

limited liability company (LLC).

Line 6—Enter the total of Lines 1 through 5.

(b) LP—Check this box if the partnership is organized as a

Subtractions from Federal Ordinary Income—Lines 7 through

limited partnership (LP).

9 itemize additional deductions allowed which are differences

between federal ordinary income and Kentucky ordinary

income.

limited liability partnership (LLP).

Line 7—Enter the amount of the work opportunity credit reflected

on federal Form 5884. For Kentucky purposes, the partnership

(d) Qualified Investment Pass-through Entity—Check this box

may deduct the total amount of salaries and wages paid or

if the partnership is a qualified investment pass–through

incurred for the taxable year. This adjustment does not apply

entity as provided by KRS 141.206(15)(a).

for other federal tax credits.

(e) Amended Return—Check this box if this is an amended

Line 8—Enter Kentucky depreciation (do not include Section 179

return. Attach statement giving explanation of changes to

deduction). See instructions on page 3 regarding depreciation

income, apportionment factor, and/or taxes.

and Section 179 deduction differences, and if applicable,

Kentucky converted Form 4562 must be attached.

(f)

Initial Return—Check this box if this is the partnership’s

first time filing a partnership return in Kentucky. Complete

Line 9—Enter the amount from Schedule O-PTE, Part II, Line

questions 1, 2 and 3 on Schedule Q–Kentucky Partnership

10.

Questionnaire.

Line 10—Subtract Lines 7, 8 and 9 from Line 6.

(g) Final Return—Check this box if this is the partnership’s final

return. If the partnership has dissolved or withdrawn, attach

PART II—LLET COMPUTATION

an explanation.

Line 1—Enter the amount from Schedule LLET, Section D, Line

(h) Change of Address—Check this box if the partnership has

1. A partnership must use Schedule LLET(K), Limited Liability

changed its address.

Entity Tax (For a Limited Liability Pass-through Entity with

Economic Development Project(s)), if the partnership has one or

(i)

Short-period Return—Check this box and submit an

more projects under the Kentucky Rural Economic Development

explanation for the short–period return that is not an initial

Act (KREDA), Kentucky Industrial Development Act (KIDA),

return.

Kentucky Economic Opportunity Zone Act (KEOZ), Kentucky

Jobs Retention Agreement (KJRA), Kentuck y Industrial

(j)

Change of Name—Check this box if the partnership has

Revitalization Act (KIRA), Kentucky Jobs Development Act

changed its name.

(KJDA), Kentuck y Business Investment Program (KBI),

Kentucky Reinvestment Act (KRA) and Incentives for Energy

(k) Change of Accounting Period—Check this box if the

Independence Act (IEIA).

partnership has changed its accounting period. Attach

a statement to the tax return showing the partnership’s

Line 2—Enter the recycling /composting equipment LLET

taxable year end before the change and its new taxable

credit recapture amount from Schedule RC–R, Line 12. Attach

year end. If the partnership received written approval from

Schedule RC–R, Recycling or Composting Equipment Tax

the Internal Revenue Service to change its taxable year,

Credit Recapture.

attach a copy of the letter.

Line 3—Enter the total of Lines 1 and 2.

Item F—Enter the number of partners (Attach K–1s).

Line 4—Enter the nonrefundable LLET credit from Kentucky

Schedule(s) K-1. Copies of Kentucky Schedule(s) K–1 must be

PART I—ORDINARY INCOME (LOSS) COMPUTATION

attached to the tax return in order to claim the credit.

Line 1—Enter the amount from federal Form 1065, Line 22,

Line 5—Enter the total tax credits from Schedule TCS, Part III,

ordinary business income (loss) from trade or business activities.

Column E, Line 1.

Attach Form 1065, all pages.

Line 6—Enter the greater of Line 3 less Lines 4 and 5, or $175.

Additions to Federal Ordinary Income—Lines 2 through 5

itemize additional income or unallowed deductions which are

Line 7—Enter the total estimated LLET payments made for

differences between federal ordinary income and Kentucky

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

ordinary income.

prior year.

Line 2—Enter state taxes measured in whole or in part by

Line 8—Enter the refundable Certified Rehabilitation Tax Credit

gross or net income. “State” means any state of the United

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

States, the District of Columbia, the Commonwealth of Puerto

Schedule(s) K–1 (Form 765–GP)).

Rico, any territory or possession of the United States or any

foreign country or political subdivision thereof. Attach a

Line 9—Enter the refundable Film Industry Tax Credit (attach

schedule reflecting the total taxes deducted on Form 1065.

the Kentucky Film Office certification(s) or Kentucky Schedule(s)

KRS 141.010(11)(d)

K–1 (Form 765–GP)).

Form 41a765(I) - Kentucky Partnership Income And Llet Return Instructions - 2012 Page 8

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