Form 41A720-S36 Schedule KRA-SP "Tax Computation Schedule (For a Kra Project of a Pass-Through Entity)" - Kentucky

What Is Form 41A720-S36 Schedule KRA-SP?

This is a legal form that was released by the Kentucky Department of Revenue - a government authority operating within Kentucky. As of today, no separate filing guidelines for the form are provided by the issuing department.

Form Details:

  • Released on October 1, 2016;
  • The latest edition provided by the Kentucky Department of Revenue;
  • Easy to use and ready to print;
  • Quick to customize;
  • Compatible with most PDF-viewing applications;

Download a fillable version of Form 41A720-S36 Schedule KRA-SP by clicking the link below or browse more documents and templates provided by the Kentucky Department of Revenue.

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Download Form 41A720-S36 Schedule KRA-SP "Tax Computation Schedule (For a Kra Project of a Pass-Through Entity)" - Kentucky

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SCHEDULE KRA–SP
*1600010319*
Taxable Year Ending
__ __ / __ __
41A720–S36 (10–16)
Mo.
Yr.
Commonwealth of Kentucky
T
C
S
AX
OMPUTATION
CHEDULE
DEPARTMENT OF REVENUE
➤ See instructions.
(FOR A KRA PROJECT OF A PASS–THROUGH ENTITY)
➤ Attach to Form 720S, 765 or 765–GP .
KRS 154.34–010 to 120
Name of Pass-through Entity
Federal Identification Number
Kentucky Corporation/LLET
Account Number
__ __ __ __ __ __ __ __ __
__ __ __ __ __ __
Location of Project
Activation Date of KRA
Economic Development
Incentive Agreement
Project Number
/
/
City
County
Mo.
Day
Yr.
PART I—Computation of KRA Tax Credit and Tax Due
1. Kentucky taxable income on KRA project (see instructions) ...........................................................
1
00
2. Net operating loss deduction on KRA project ...................................................................................
2 (
)
00
3. Kentucky taxable income on KRA project after net operating loss deduction
(line 1 less line 2) .................................................................................................................................
3
00
4. Income tax on amount from line 3:
Taxable Net Income
Rate
Tax
(a) First $3,000 ........................
x
2%
00
(b) Next $1,000 ........................
x
3%
00
(c) Next $1,000 ........................
x
4%
00
(d) Next $3,000 ........................
x
5%
00
(e) Over $8,000 up to $75,000
x
5.8%
00
(f) Over $75,000.......................
x
6%
00
(g) Total income tax liability of KRA project (add lines 4(a) through 4(f)) ..................................... 4(g)
00
5. LLET on KRA project (see instructions). Not applicable for Form 765–GP .....................................
5
00
6. LLET credit allowed (line 5 less $175, but not more than line 4(g)). Not applicable for
Form 765–GP ........................................................................................................................................
6
00
7. Total tax on KRA project (lines 4(g) and 5 less line 6) ......................................................................
7
00
8. Limitation (Column B from Schedule KRA–T) ...................................................................................
8
00
9. Enter the limitation as provided by KRS 154.34–120(5) (see instructions) .....................................
9
00
10. Enter the lesser of line 7, 8 or 9 as either:
(a) KRA tax credit ............................................................................................................................... 10(a)
00
or
(b) Estimated tax payment and complete election in Part II ........................................................... 10(b)
00
11. If line 7 is larger than line 10(a) or 10(b), enter difference here as a liability of the
pass–through entity. (Any pass–through entity reflecting a tax liability, complete
Tax Payment Summary below and remit payment.) ........................................................................
11
00
PART II—Estimated Tax Election
In accordance with KRS 141.415(4)(b),
Name of Pass–through Entity
elects for the taxable year ended
, in lieu of the
tax credit, to have an amount equal
KRA
to the lesser of line 7 or line 8 above applied as an estimated tax payment.
Signature of Shareholder, Partner or Member
Date
TAX PAYMENT SUMMARY (Make check payable to Kentucky State Treasurer.)
Tax
Interest
Penalty
TOTAL
SCHEDULE KRA–SP
*1600010319*
Taxable Year Ending
__ __ / __ __
41A720–S36 (10–16)
Mo.
Yr.
Commonwealth of Kentucky
T
C
S
AX
OMPUTATION
CHEDULE
DEPARTMENT OF REVENUE
➤ See instructions.
(FOR A KRA PROJECT OF A PASS–THROUGH ENTITY)
➤ Attach to Form 720S, 765 or 765–GP .
KRS 154.34–010 to 120
Name of Pass-through Entity
Federal Identification Number
Kentucky Corporation/LLET
Account Number
__ __ __ __ __ __ __ __ __
__ __ __ __ __ __
Location of Project
Activation Date of KRA
Economic Development
Incentive Agreement
Project Number
/
/
City
County
Mo.
Day
Yr.
PART I—Computation of KRA Tax Credit and Tax Due
1. Kentucky taxable income on KRA project (see instructions) ...........................................................
1
00
2. Net operating loss deduction on KRA project ...................................................................................
2 (
)
00
3. Kentucky taxable income on KRA project after net operating loss deduction
(line 1 less line 2) .................................................................................................................................
3
00
4. Income tax on amount from line 3:
Taxable Net Income
Rate
Tax
(a) First $3,000 ........................
x
2%
00
(b) Next $1,000 ........................
x
3%
00
(c) Next $1,000 ........................
x
4%
00
(d) Next $3,000 ........................
x
5%
00
(e) Over $8,000 up to $75,000
x
5.8%
00
(f) Over $75,000.......................
x
6%
00
(g) Total income tax liability of KRA project (add lines 4(a) through 4(f)) ..................................... 4(g)
00
5. LLET on KRA project (see instructions). Not applicable for Form 765–GP .....................................
5
00
6. LLET credit allowed (line 5 less $175, but not more than line 4(g)). Not applicable for
Form 765–GP ........................................................................................................................................
6
00
7. Total tax on KRA project (lines 4(g) and 5 less line 6) ......................................................................
7
00
8. Limitation (Column B from Schedule KRA–T) ...................................................................................
8
00
9. Enter the limitation as provided by KRS 154.34–120(5) (see instructions) .....................................
9
00
10. Enter the lesser of line 7, 8 or 9 as either:
(a) KRA tax credit ............................................................................................................................... 10(a)
00
or
(b) Estimated tax payment and complete election in Part II ........................................................... 10(b)
00
11. If line 7 is larger than line 10(a) or 10(b), enter difference here as a liability of the
pass–through entity. (Any pass–through entity reflecting a tax liability, complete
Tax Payment Summary below and remit payment.) ........................................................................
11
00
PART II—Estimated Tax Election
In accordance with KRS 141.415(4)(b),
Name of Pass–through Entity
elects for the taxable year ended
, in lieu of the
tax credit, to have an amount equal
KRA
to the lesser of line 7 or line 8 above applied as an estimated tax payment.
Signature of Shareholder, Partner or Member
Date
TAX PAYMENT SUMMARY (Make check payable to Kentucky State Treasurer.)
Tax
Interest
Penalty
TOTAL
41A720–S36 (10–16)
Page 2
INSTRUCTIONS–SCHEDULE KRA–SP
Commonwealth of Kentucky
DEPARTMENT OF REVENUE
PURPOSE OF SCHEDULE—This schedule is used by any pass–through
chapter directly attributable to the facility and overhead expenses
entity which has entered into a tax incentive agreement for a Kentucky
apportioned to the facility; and Kentucky gross receipts or Kentucky
Reinvestment Act (KRA) project to determine the credit allowed against
gross profits shall reflect only Kentucky gross receipts or Kentucky
the Kentucky income tax and LLET in accordance with KRS 141.415
gross profits directly attributable to the facility.
on the income and Kentucky gross receipts or Kentucky gross profits
from the project.
If the economic development project is an expansion to a previously
existing facility, net income of the entire facility shall reflect only
Pass–through entities should first complete Form 720S, 765 or
the gross income, deductions, expenses, gains and losses allowed
765–GP to determine net income (loss), deductions, etc., from the
under this chapter directly attributable to the facility and overhead
entire operations of the pass–through entity. The pass–through entity
expenses apportioned to the facility; and Kentucky gross receipts and
should then complete Schedule KRA–SP to determine the KRA tax
Kentucky gross profits shall reflect only Kentucky gross receipts and
credit and the tax due, if any, from the KRA project. A pass–through
Kentucky gross profits directly attributable to the facility. Net income,
entity is subject to tax as provided by KRS 141.020 and KRS 141.0401
Kentucky gross receipts and Kentucky gross profits of the entire facility
on the net income and the Kentucky gross receipts or Kentucky gross
attributable to the economic development project shall be determined
profits from the project and the KRA credit is applied against the tax
by apportioning the net income, Kentucky gross receipts and Kentucky
of the KRA project. Consequently, the pass–through entity must use
gross profits by a formula approved by the Department of Revenue.
Form 720S(K), Form 765(K) or Form 765–GP(K) in lieu of Schedule K
(Form 720S), Schedule K (Form 765) or Schedule K (Form 765–GP)
Line 2—Enter the net operating loss from the KRA project, if any, being
in order to exclude the net income from the KRA project from the
carried forward from previous years.
partners, members or shareholders’ distributive share income, and
Schedule LLET(K) in lieu of Schedule LLET in order to exclude the
Note: Just as the income from a KRA project does not flow through to
Kentucky gross receipts or the Kentucky gross profits of the KRA
partners, members or shareholders, neither do the losses. The project’s
project from the LLET at the entity level.
net operating loss from prior years must be subtracted from the project
income before calculating the KRA credit.
Multiple Projects—A pass–through entity with multiple economic
development projects must complete an applicable schedule (Schedule
General Partnership—Lines 5 and 6 of this schedule shall not be
KREDA–SP , Schedule KIDA–SP , Schedule KEOZ–SP , Schedule KJRA–SP ,
completed by a general partnership as a general partnership is not
Schedule KIRA–SP , Schedule KJDA–SP , Schedule KBI–SP , Schedule
subject to LLET.
KRA–SP or Schedule IEIA–SP) to determine the credit and net tax
liability, if any, for each project.
Line 5—Using Schedule LLET, create a new Schedule LLET to compute
the LLET of the KRA project using only the Kentucky gross receipts
Line 1—If the pass–through entity’s only operation is the KRA project,
and Kentucky gross profits of the project. Enter “KRA” at the top
the amount entered on Line 1 is the net income (loss) from Form 720S,
center of the Schedule LLET and attach it to the tax return.
765 or 765–GP . If the pass–through entity has operations other than the
KRA project, a schedule must be attached reflecting the computation
Limitation—For an approved company which received preliminary
of the net income (loss) from the KRA project in accordance with the
approval for a reinvestment project prior to February 1, 2010, the
following instructions, and such amount entered on Line 1.
amount of incentives allowed in any tax year shall not exceed the
lesser of: (i) the tax liability of the approved company related to the
Separate Facility—In accordance with KRS 141.415(6), if the KRA project
reinvestment project for that taxable year, or (ii) the approved costs
is a totally separate facility, net income, Kentucky gross receipts, and
that have not yet been recovered.
Kentucky gross profits attributable to the project shall be determined
by a separate accounting method.
For an approved company which received preliminary approval for
a reinvestment project on or after February 1, 2010, the amount of
Expansion of Existing Facility—In accordance with KRS 141.415(7),
incentives allowed in any tax year shall not exceed the lesser of: (i)
if the KRA project is an expansion to a previously existing facility,
the tax liability of the approved company related to the reinvestment
the net income, Kentucky gross receipts and Kentucky gross profits
project for that taxable year, (ii) twenty percent (20%) of the total
shall be determined under a separate accounting method reflecting
amount of the approved costs, or (iii) the approved costs that have
the entire facility, and the net income, Kentucky gross receipts and
not yet been recovered.
Kentucky gross profits shall be determined by apportioning the net
income, Kentucky gross receipts and Kentucky gross profits of the
Line 9—Enter: (i) the total amount of the approved costs, if the company
entire facility to the economic development project by a formula
received preliminary approval for the project prior to February 1, 2010;
approved by the Department of Revenue. A copy of the letter from
or (ii) twenty percent (20%) of the total amount of the approved costs,
the Department of Revenue approving the formula must be attached
if the company received preliminary approval for the project on or
to the schedule.
after February 1, 2010.
Alternative Me thods—In ac c ordanc e with K RS 141.415 ( 8 ) ,
Line 10—In lieu of the tax credit, the approved company may elect,
if the approved company c an show that the nature of the
on an annual basis, to apply as an estimated tax payment an amount
o p e r a t i o n s a n d a c t i v i t i e s o f t h e a p p r ove d c o m p a ny a r e
equal to the allowable tax credit. Any estimated tax payment shall
such that it is not practical to use a separate accounting method to
be in satisfaction of the tax liability of the partners, members or
determine the net income, Kentucky gross receipts and Kentucky
shareholders of the pass–through entity, and shall be paid on behalf
gross profits from the facility at which the economic development
of the partners, members or shareholders. Enter an amount on either
project is located, the approved company shall use an alternative
(a) or (b), but in no case shall there be an entry on both (a) and (b).
method approved by the Department of Revenue. A copy of the letter
In accordance with KRS 141.415(5), this estimated tax payment is
from the Department of Revenue approving the alternative method
excluded in determining each partner, member or shareholder’s
must be attached to this schedule.
distributive share income or credit from a pass–through entity.
Accordingly, the partners, members or shareholders are not entitled
Separate Accounting—If the economic development project is
to claim any portion of this estimated tax payment against their
a totally separate facility, net income shall reflect only the gross
Kentucky income tax liability.
income, deductions, expenses, gains and losses allowed under this
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