Form 06-05-04 Instructions (Page 4 of 4) in pdf

Line 13:

Follow instructions below for computing alcoholic beverage deduction and attach a copy of the computations to the tax form. Kentucky

alcoholic beverage sales divided by total sales equals the alcoholic beverage percentage.

* Individuals - Multiply the alcoholic beverage percentage by the net profit of the business engaged in the sale of alcoholic beverages as

reported on Line 1.

* Partnerships - Multiply the alcoholic beverage percentage by the net of Lines 11 and 12.

* Corporations - Multiply the alcoholic beverage percentage by the net of Lines 11 and 12.

NOTE: A deduction may be taken only if the business engaged in the selling of alcoholic beverages has a profit.

Line 14:

Adjustments can be made on Form NP if any sum is elected by the licensee as a credit against its federal income tax liability in lieu of a

deduction for business expenses otherwise available to the licensee. Included in this list are the following:

(1) If wages and salary expense is being reduced as a result of the new jobs or win credit.

(2) If the depreciable basis of an asset was reduced by the amount of investment credit claimed, then ACRS depreciation may be taken on

that basis reduced over the life of the asset.

Line 15:

Taxpayers may deduct the following amounts without proof of non-unitary source (Attach a Schedule itemizing this deduction):

* Foreign dividend gross-up under Section 78 of the Internal Revenue code.

* Income from controlled foreign corporations under subpart F, not actually received.

* Interest earned on U.S. Obligations.

* Ordinary income from other partnerships or S corporations which is included in income on Line 6 or 7 of Form NP.

Line 16:

Enter the amount of professional expenses claimed by the partners on their individual Form 1040 which are related to, but not reimbursed by

the partnership (Include a schedule listing partners name(s), the type of deduction and the amount of each deduction).

Line 17:

Add Lines 12 through 16 as applicable. Enter total on Line 17.

Line 18:

Subtract entry on Line 17 from entry on Line 11. Enter total on Line 18 and Line 23. The entry on Line 18 represents your "Adjusted Net

Profit".

Lines 19-22: Businesses whose total gross receipts and payroll were confined solely to the City of Henderson are to skip Lines 19-22. Proceed to Line 23.

Businesses whose total gross receipts and payroll were not confined solely to the City of Henderson must complete Line 19-22. All

percentages should be carried out to five decimal places. Gross figures must be used when completing Line 19 and 20.

"Henderson Gross Receipts." Enter total gross receipts (less returns and allowances) from sales, rents, work or services performed in

Line 19A:

Henderson.

Line 19B:

"Total Gross Receipts." Enter total gross receipts (less returns and allowances) from sales, rents, work or services performed everywhere

per the Federal return.

Line 19C:

"Henderson Receipt Percentage." Divide entry on Line 19, Column A by entry on Line 19, Column B. Enter the resulting percentage on Line

19, Column C.

Line 20A:

"Henderson Gross Wages." Enter total wages paid to employees for work performed within the City of Henderson.

Line 20B:

"Total Gross Wages." Enter total gross wages paid to employees everywhere per the Federal return.

Line 20C:

"Henderson Wage Percentage." Divide entry on Line 20, Column A by entry on Line 20, Column B. Enter the resulting percentage on Line

20, Column C.

Line 21C:

"Total Henderson Percentages." Add entry on Line 19, Column C to entry on Line 20, Column B. Enter result on Line 21, Column C.

Line 22C:

"Average Percentage City of Henderson." If your business has both receipts and wages, (entries on Line 19 and 20, Column B were greater

than zero) then divide entry on Line 21, Column C by 2 and enter on Line 22, Column C and Line 24.

However, if the business had either (a) receipts (Line 19, Column B, greater than zero) or (b) wages (Line 20, Column B greater than zero)

but not both, the entry on Line 21, Column C, should be transferred to line 22, Column C and Line 24.

Line 23:

Individuals, partnerships, and corporations enter "Adjusted Net Profit" figure from Line 18.

Line 24:

Insert the percentages from Line 22. If taxpayers total business operations are in the City of Henderson enter 100% on Line 24.

Line 25:

Multiply percentage on Line 24 by entry on Line 23. Enter result on Line 25.

Line 26:

"Occupational License Tax" - Multiply Line 25 by 1%.

Line 27:

"Total Tax Due" - Add entry on Line 26 or $25 whichever is greater.

Line 28:

Enter any credit due from prepayments of tax for the tax year in Line 28.

Line 29:

"Balance Tax Due" - Subtract Line 28 from Line 27. Enter result on Line 29. If Line 28 is greater than Line 27, stop here.

Line 30:

Penalty resulting from late filing or late payment of the occupational tax should be entered on Line 30 (See General Instructions under

"Penalty and Interest"). The minimum penalty is $25.

Line 31:

Interest resulting from the late payment of the tax due should be entered on Line 31.

"Total Due" - Add Lines 29, 30 and 31. The amount of this line reflects the total liability for the tax year. Payment of the total tax liability

Line 32:

including penalty and interest charges should accompany the return as filed.

Form 06-05-04

Revised 8/27/2013

Form 06-05-04 Instructions Page 4

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