Form 58 - North Dakota Partnership Income Tax Booklet

Form 58 Instructions

2012

North Dakota Partnership Income Tax Return

“N.D.C.C.” references are to the North Dakota Century Code, which contains North Dakota’s statutes.

“N.D. Admin. Code” references are to the North Dakota Administrative Code, which contains North Dakota’s rules.

Special Reminders

The credit is equal to 45% of the amount

In the case of a passthrough entity that makes

invested, up to a maximum credit of $45,000

a qualifying contribution, the total allowable

per tax year. The credit is calculated at the

credit is passed through to the entity’s owners

Withholding and composite

passthrough entity level and passed through to

based on their respective ownership interests.

the entity’s owners based on their respective

return tax rate reduction

ownership interests. For credits based on

For more information on qualifying for the

Starting with the 2011 tax year, the tax rate

investments made during the 2012 and

credit, contact the North Dakota Housing

for passthrough withholding and composite

subsequent tax years, no more than $150,000

Finance Agency. For more information on

ﬁ ling purposes was reduced to 3.99%.

in credits is allowed to a taxpayer (including

how to claim the credit on the North Dakota

For more information, see “Withholding

a passthrough entity) over the taxpayer’s

income tax return, contact the Ofﬁ ce of State

from nonresident individual partners” and

lifetime.

Tax Commissioner.

“Composite ﬁ ling method” on page 3 of this

booklet.

New automation and robotic

For the 2011 and 2012 tax years only, a

equipment tax credit

taxpayer (including a passthrough entity) may

New electronic payment

make an irrevocable election to sell, assign,

Note: This new tax credit does not take

options

or otherwise transfer an angel fund tax credit

effect until the 2013 tax year.

In prior years, electronic payments could

to another taxpayer. There are conditions and

be made using ACH credits. Beginning in

reporting requirements that must be satisﬁ ed

For the 2013 through 2015 tax years

early 2013, there will be additional options

to make this election.

only, a new income tax credit is allowed

for making electronic payments. All types

to a taxpayer for purchasing automation

of payments, including return payments,

For more information on the angel fund

and robotic equipment for the purpose of

estimated payments, or account payments can

tax credit, go to the Ofﬁ ce of State Tax

automating a manufacturing process. To

be made using a credit card, debit card, or

Commissioner’s web site at

qualify, a taxpayer must be certiﬁ ed as a

electronic check. The fee that is charged by

primary sector business by the North Dakota

the vendor varies depending on the method

New housing incentive fund

Commerce Department, and the equipment

of payment. Additional information on

tax credit

purchased must be approved as qualifying

each of these payment methods and the fees

For the 2011 and 2012 tax years only, a new

equipment by the Commerce Department.

can be found on our web site. Also note

income tax credit is allowed to a taxpayer

The credit is equal to 20% of the purchase

ACH “debit” payments can only be made in

for contributing monies to a new housing

cost of the approved equipment, and is

conjunction with an electronically ﬁ led (MeF)

incentive fund administered by the North

allowed in the tax year in which the purchase

return.

Dakota Housing Finance Agency (Agency).

is made. If the entire credit cannot be used in

The credit is equal to the amount contributed

the tax year in which the purchase is made,

“New” angel fund tax credit

to the fund. Upon receipt of a contribution,

the unused portion may be carried over and

Under pre-2011 tax law, a tax credit was

the Agency will issue a credit certiﬁ cate to the

used on subsequent years’ returns for up to

allowed for making an investment in a

taxpayer showing the amount of the allowable

ﬁ ve tax years. The total credits allowed to all

certiﬁ ed North Dakota angel fund. However,

credit. If the entire credit allowed for the tax

taxpayers is limited to $2 million per calendar

the credit was only available to an individual,

year cannot be used, the unused portion may

year. For more information, see N.D.C.C.

estate, trust, or “C” corporation. Starting with

be carried over and used on subsequent years’

§ 57-38-01.33.

the 2011 tax year, the angel fund investment

returns for up to ten tax years. North Dakota

tax credit is allowed to a partnership, “S”

Schedule FACT instructional

taxable income must be increased by the

corporation, or a limited liability company

change

amount of the contribution upon which the

treated like a partnership or “S” corporation.

credit is based to the extent the contribution

The instructions to the 2012 Schedule FACT

reduced federal taxable income.

(Calculation of North Dakota Apportionment

Factor) have been changed to incorporate new

language that applies to a partnership that

receives a 2012 North Dakota Schedule K-1

(Form 58) showing amounts in Part 6

(Partnership or corporation partners only).

For more information, see page 5 of this

booklet.

Form 58 - North Dakota Partnership Income Tax Booklet - 2012 Page 3

Related Articles

Related forms

Related Categories