Form 741-K-1 Kentucky Beneficiary's Share of Income, Deductions, Credits, Etc.

(a) Allocable Share Item (b) Federal Amount (c) Difference (d) Kentucky Amount (see federal instructions) 1 Interest 2 Dividends 3 Net short term capital gain 4 Net long term capital gain 5 a Annuities royalties and other nonpassive income 6 a Trade or business rental real estate and other 7 Federal estate tax deduction (attach computation) 8 Foreign taxes (attach schedule) 9 Deductions in the final year of estate or trust: a Excess deductions on termination (attach computation) Adjusted Gross Income Age 65 or over and blind and $ 6 600 Age 65 or over or blind and $ 5 330 Amended K 1 amounts and subtract (loss) and deduction amounts (see instructions) b Depreciation b Refundable Certified Rehabilitation Credit (KRS 141 382(1)(b)) 12b b Short term capital loss carryover before directly apportioned deductions Both age 65 or over and $ 7 100 Both under age 65 and $ 4 330 c Depletion c Film Industry Tax Credit (KRS 141 383) 12c c Long term capital loss carryover Complete a separate Schedule K 1 d Amortization d Net operating loss (NOL) carryover d Nonresident Withholding from Form PTE WH not included on Form 741 line 21e 12d deductions (see federal instructions) Enter on Form 740 Schedule M line 3 if difference is positive or Estate or trust s federal Final K 1 for each beneficiary Four or More and $23 050 from a partnership or S corporation doing business in Kentucky from activities carried on in Kentucky; from Kentucky sources; from real or tangible property located in Kentucky; and from the performance of services in Kentucky; Husband and Wife Husband and Wife If Your Family Size is: Income is greater than: If Your Filing Status is: is greater than: line 15 if difference is negative (see instructions) One age 65 or over and $ 6 000 One and $11 170 rental income before directly apportioned Single Person Single Person Three and $19 090 Two and $15 130 Under age 65 and $ 3 330 Your Kentucky Your Modified Gross *1200020033* 10 Other: (itemize) 11 Add lines 1 through 6 and portions of lines 9 and 10 in column (c) Add income 12 a Limited liability entity tax credit (KRS 141 0401(2)) 12a 42A741(K 1) beginning 2012 and ending 2013 Beneficiary s identifying number employer identification number Beneficiary s name address and ZIP code Fiduciary s name address and ZIP code Chart A Chart B Department of Revenue Family Size Consists of yourself your spouse if married and living in the same household and qualifying children For calendar year or fiscal year FORM 741 Generally all income of Kentucky residents regardless of where it was earned is subject to Kentucky income tax INSTRUCTIONS TO BENEFICIARY Kentucky Adjusted Gross Income Consists of your federal adjusted gross income plus any additions and subtractions from Schedule M Modifications to Federal Adjusted Gross Income KENTUCKY BENEFICIARY S SHARE Kentucky Resident Beneficiaries (Form 740 Filers) If Line 11 column (c) is a positive amount enter the difference as an addition to federal adjusted gross income on Form 740 Schedule M Line 3 If Line 11 column (c) is a negative amount enter the difference as a subtraction on Form 740 Schedule M Line 15 Line 12a Enter this amount on Line 7 of the Kentucky Limited Liability Entity Tax Credit Worksheet located in the Form 740 and Form 740 NP instructions under Business Incentive Credits Line 12b Enter this amount on Form 740 or Form 740 NP Line 30c Line 12c Enter this amount on Form 740 or Form 740 NP Line 30d Line 12d Enter this amount on Form 740 Line 30a or Form 740 NP Line 30e Modified Gross Income Consists of your federal adjusted gross income your spouse s federal adjusted gross income if living in the same household plus any tax exempt interest from municipal bonds (non Kentucky) or any lump sum distribution amount taxed on Form 4972 K Name of estate or trust Nonresident Beneficiaries (Form 740 NP Filers) This Schedule K 1 should reflect all income that has been claimed as part of the income distribution deduction However nonresident beneficiaries are only subject to tax on the following types of income: Nonresidents and Part year Residents Nonresidents with income from Kentucky sources and part year residents receiving income while a Kentucky resident or from Kentucky sources while a nonresident must file a Kentucky Form 740 NP based on the above criteria Persons moving into Kentucky must report all income received from Kentucky sources prior to becoming residents and income received from all sources after becoming Kentucky residents Residents moving out of Kentucky during the year must report income from all sources while a resident and from Kentucky sources while a nonresident Note: Nonresidents and part year residents are entitled to the family size tax credit OF INCOME DEDUCTIONS CREDITS ETC PASS THROUGH CREDIT Passive Activity Limitations Form 740 filers see Form 8582 K and instructions for passive activity loss adjustments Nonresident beneficiaries (740 NP filers) must complete Form 8582 K and federal Schedule E with Kentucky amounts Qualifying Child Means a qualifying child as defined in Internal Revenue Code Section 152(c) Resident Adjustment Resident beneficiaries use Charts A and B below to determine if you need to file a Kentucky return Nonresidents use Chart A only SCHEDULE K 1 SCHEDULE K 1 (FORM 741) Taxpayers With Self Employment Income Must file a Kentucky individual income tax return regardless of the amount of Kentucky adjusted gross income used in the Chart B if you have gross receipts from self employment in excess of modified gross income for your family size in Chart A When to Report Include your share of the estate or trust s income deductions credit etc as shown by your Schedule K 1 (Form 741) on your Kentucky income tax return for the year in which the tax year of the estate or trust ends For example if you the beneficiary are on a calendar year and the estate or trust s tax year ends January 31 2012 you must take the items listed on Schedule K 1 (Form 741) into account on your tax return for calendar year 2012 Who Must File If you were a Kentucky resident for the entire year your filing requirement depends upon your family size modified gross income Kentucky adjusted gross income and income from self employment