Form 58 - Partnership Income Tax - 2013 (Page 9 of 35) in pdf

Line 18

Line 23

• A statement on which each item of

Workforce recruitment tax credit

Professional service partnership

nonbusiness income is shown along with

guaranteed payments

If the partnership employs extraordinary

its related expenses.

Lines 23a through 23c apply only if the

recruitment methods to hire an employee to

• A statement explaining the basis for

partnership marked “Yes” to Item H on

ﬁ ll a hard-to-ﬁ ll position in North Dakota,

treating the item of income as nonbusiness

page 1 of Form 58. See the instructions to

it is allowed a tax credit equal to 5% of the

Item H on page 4.

income subject to allocation.

compensation paid during the ﬁ rst 12 months

to the employee hired to ﬁ ll that position.

• If an item of nonbusiness income is

Line 23a. Enter the total guaranteed

The credit may be claimed in the ﬁ rst

allocated to a state other than North

payments from Federal Form 1065,

taxable year beginning after the employee

Dakota, a copy of that other state’s

Schedule K, line 4, or from Federal

completes the ﬁ rst 12 consecutive months

income tax return must be attached. If

Form 1065-B, Schedule K, line 7.

of employment. For details, see N.D.C.C.

the partnership is not required to ﬁ le an

§ 57-38-01.25.

income tax return with the other state,

Line 23b. Enter the portion of the amount on

the partnership must indicate this in the

line 23a that was made to individual partners

Line 18a.

Enter the allowable credit on this

attached statement.

as a reasonable salary for personal services,

line.

regardless of where the services were

Line 24a. Enter the total allocable income

Line 18b.

Enter the number of eligible

performed. Do not include any guaranteed

(less related expenses) from all sources within

employees whose ﬁ rst 12 months of

payments for other than personal services.

and without North Dakota.

employment ended in 2012.

Line 23c. Enter the portion of the amount

Line 24b. Enter the portion of the amount on

Line 18c.

Enter the total compensation

on line 23b that was made to nonresident

line 24a that is allocable to North Dakota.

paid during the eligible employees’ ﬁ rst 12

individual partners for personal services

consecutive months of employment ending in

Line 25

performed within North Dakota.

2012.

Disposition of I.R.C. Section 179

property

Line 24

Line 19

Lines 25a through 25d apply only if the

Allocable (nonbusiness) income

Credit for wages paid to a mobilized

partnership sold, exchanged, or disposed of

employee

Lines 24a and 24b apply only if the

property for which an I.R.C. Section 179

partnership:

Enter on this line the amount from

deduction was passed through to the partners.

Schedule ME, line 13. Attach Schedule ME.

• Is a multistate partnership, i.e., it carries

Note: The partnership is required to report

on its trade or business activity both within

Line 20

this same information on a separate statement

Angel fund investment tax credit

and without North Dakota;

attached to Federal Form 1065, Schedule K,

• Has one or more nonresident individual,

A credit is allowed for making a qualiﬁ ed

line 20c.

estate, or trust partners; and

investment in a North Dakota angel fund.

• Has nonbusiness income as deﬁ ned under

The credit is equal to 45% of the total

For lines 25a through 25d, multiply the

N.D. Admin. Code § 81-03-09-03.

qualiﬁ ed investments made during the tax

corresponding combined amount for all

year, up to a maximum credit of $45,000.

partners as reported on Federal Form 1065,

Nonbusiness income is not apportioned using

Enter the allowable credit on this line.

Schedule K, line 20c, by the apportionment

the apportionment factor (from Schedule

factor from Schedule FACT, line 14, and enter

FACT) but is allocated within or without

Line 21

the result. However, if the property disposed

Housing incentive fund tax credit

North Dakota as provided under N.D.C.C.

of is treated as a nonbusiness asset the gain or

§§ 57-38.1-04 through 57-38.1-08 and N.D.

A credit is allowed for making a qualiﬁ ed

loss from which is subject to allocation under

Admin. Code § 81-03-09-09. Expenses must

contribution to the Housing Incentive Fund

N.D.C.C. §§ 57-38.1-04 through 57-38.1-08,

be attributed to the nonbusiness income in

under N.D.C.C. § 57-38-01.32. Enter on

subtract the amounts for that asset before

a manner which fairly distributes all of the

this line the total credit amount shown on

multiplying by the apportionment factor.

partnership’s expenses to its business and

the credit certiﬁ cate received from the North

Include the nonbusiness gain or loss from the

nonbusiness income.

Dakota Housing Finance Agency.

disposition on Schedule K, line 24.

If the partnership has an item of nonbusiness

Line 22

income subject to allocation, the partnership

Automation tax credit

Instructions for

must take this into account when calculating

A credit is allowed to a primary sector

Schedule KP

the North Dakota distributive share of income

business for purchasing new or used

or loss reportable on Schedule KP and

automation machinery or equipment under

(Form 58, page 5)

Schedule K-1 (Form 58) for a nonresident

N.D.C.C. § 57-38-01.33. Application must

individual, estate, or trust partner. See the

be made to the North Dakota Commerce

Schedule KP must be completed to provide

instructions to Schedule KP, Column 6, for

Department for approval of the purchases.

information about each partner. In the case

more information. In addition to completing

Enter on this line the amount of the credit

of a nonresident individual partner only, the

lines 24a and 24b, the partnership must attach

shown on the credit approval letter received

schedule must show the partner’s distributive

the following to Form 58:

from the Ofﬁ ce of State Tax Commissioner.

share of North Dakota income (loss) and

the amount of North Dakota income tax

withheld or the amount of composite income

Form 58 - Partnership Income Tax - 2013 Page 9

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