Form 06-05-04 Instructions Page 3
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4SPECIFIC INSTRUCTIONS
The Occupational License Net Profits Tax Return has been designed to accommodate the filing needs of individuals, sole proprietors, partnerships and
corporations. Complete only those items that apply to your operation.
A.
Schedule C, E, F, or 1099 Misc. - Individuals receiving income from operations of a trade, business or profession, complete the column marked
INDIVIDUAL. Lines 1 through 31 as applicable.
B.
Form 1065 - Partnerships complete the column marked PARTNERSHIP. Lines 6 through 31 as applicable.
C.
Form 1120, 1120A, 1120S - Corporations complete the column marked CORPORATION. Lines 7 through 31 as applicable.
READ THE INSTRUCTIONS FOR THE ITEMS THAT APPLY TO YOUR OPERATION BEFORE COMPLETING FORM NP.
Enter the net profit or loss as shown on Federal Schedule C or the amount or other income per Form 1040. (Attach a copy of page 1 and 2 of
Line 1:
Federal Schedule C)
Line 2:
Enter 100% of the short term capital gains and long term capital gains carried over from Federal Form 4797 or Federal Form 6252
(installment sales) to Federal Schedule D representing gain from the sale of property used in your trade or business. (Attach a copy of Form
4797 or Form 6252)
Line 3:
Enter the total real estate rental income or loss, including farm rental, per Federal Schedule E. If applicable apportion per lines 19-22 (Attach
a copy of Federal Schedule E)
Line 4:
Enter the net farm profit or loss per Federal Schedule F (Attach a copy of Federal Schedule F). NOTE: Farm losses should be reported only
if the farm is located in Henderson. Farm losses for farms located in Henderson are subject to the hobby loss rules (U.S. Department of
Treasury Regulations 1.183.1(c) and 1.183.2(b)).
Line 5:
Enter the net gain or loss from the sale of property used in your trade or business per Federal Form 4797. (Attach a copy of form 4797)
Line 6:
Enter the ordinary income or loss per Federal Form 1065. (Attach a copy of Federal Form 1065, Pages 1, 2, and 3 and Rental Schedule(s), if
applicable)
Line 7:
Enter the taxable income after special deductions and net operating loss per Federal Form 1120, or 1120A or the Ordinary Income or loss per
Federal Form 1120S. (Attach a copy of Federal form 1120, 1120A, 1120S, Pages 1, 2, and 3 and Rental Schedule(s), if applicable)
If a deduction is taken for occupational taxes by an individual on Schedule C, E, F, by a partnership on Form 1065, or by a corporation on
Line 8:
Form 1120S, then the amount of those occupational taxes should be inserted on Line 8. If a deduction is taken on Federal Form 1120 for
occupational taxes or state taxes based upon income, then the amount of those taxes should be inserted on Line 8.
Line 9:
The following income items which are allocated to the partners or shareholders are not included as income on Federal Form 1065 or 1120S
and thus must be added to income on Line 9.
Net short-term capital gain
*
Net income from rental real estate activities
*
Net long-term capital gain
*
Net income from other rental activities
*
Other portfolio income
*
Portfolio income
*
Guaranteed payments to partners
*
Interest income
*
Net gain under Section 1231 (other than due to casualty or theft)
*
Dividend income
*
*
Royalty income
Enter total of these items on Line 9. (Attach a copy of schedule K and Rental Schedules, if applicable)
Line 10:
If a deduction is taken on Federal Form 1120 for a net operating loss, then the amount of the net operating loss should be entered on Line 10
as a positive amount.
Line 11:
Add Lines 1 through 10 as applicable. Enter total on Line 11.
Line 12:
The following items which are allocated to the partners or shareholders are not included as losses or expenses on Federal Form 1065 or
Form 1120S and are allowed as deductions for occupational tax purposes on Line 12.
Net loss under Section 1231 (other than due to casualty or theft)
*
Net loss from rental real estate activities
*
Charitable contributions
*
Net loss from other rental activities
*
Expense deductions for recovery property (Section 179)
*
Portfolio loss
*
Deductions related to portfolio income
*
Net short-term capital loss
*
*
Net long-term capital loss
Enter total of these items on Line 12. (Attach a copy of Schedule K and Rental Schedule(s), if applicable)
NOTE: Contributions to KEOGH Plans, Simplified Employee Pension Plan, and Medical Insurance Premiums on behalf of partners or
shareholders are not deductible on Form NP.
Form 06-05-04
Revised 8/27/2013
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