Form IT-565 Partnership Return of Income and Form IT-565B Apportionment

Address City State ZIP Federal Employer Identification Number Federal net income Instructions for Completing Form IT 565 Partnership Return of Income Located at (1) the amount of each class of exempt income; and (2) the amount of expense items allocated to each such class (the amount allocated by apportionment being shown separately) (a) Banks (a) Other than last in first out (b) Last in first out (b) Others (R S 47:55) Show details on Schedule C (TDD) (225) 219 2114 1 Capital account at beginning of year 2 Capital contributed during year 3 Income not included in Column 4 plus nontaxable income 4 Ordinary income (or loss) from Line 28 Page 1 5 Losses not included in Column 4 plus un allowable deductions 6 Withdrawals and distributions 7 Capital account at end of year 1 Current and 3 prior years 2 Net profit from business 3 Sales on account 4 Bad debts (See instruc tions for Line 19 ) If organization carried a reserve 1 Description of property 2 Date acquired 3 Date sold 4 Gross sales price 5 Depreciation al lowed (or allowable) since acquisition or Jan 1 1934 (Attach schedule ) 6 Cost or other basis and cost of improve ments subsequent to acquisition or Jan 1 1934 7 Expense of sale 8 Gain or loss (Column 4 plus Column 5 less the sum of Columns 6 and 7) 1 Kind of property (If buildings state materials of which constructed ) Exclude land and other nondepreciable property 2 Date acquired 3 Cost or other basis (Exclude land ) 4 Depreciation al lowed (or allowable) in prior years 5 Method of comput ing depreciation 6 Rate (%) or life (years) 7 Depreciation for this year 1 State name and address of each partner (Designate nonresident individuals if any ) 2 Social Security Number 3 Ordinary income (or loss) (Line 28 Page 1) 4 Payments to partners (salaries and interest) (Line 14 Page 1) 5 Net gain from sale of capital assets (from Schedule D) 6 Percentage of time devoted to business 1 Total $ 10 Intangible assets (amortizable only) 10 Net gain (or loss) from sale of property other than capital assets (Schedule E) 11 Other assets (Attach schedule ) 11 Other income (Attach schedule ) 12 Total assets $ 12 Total income (Add Lines 3 through 11 ) $ 14 Mortgages notes and loans payable (short term): 14 Payments to partners (salaries and interest) 15 Other current liabilities (Attach schedule ) 15 Rent 16 Interest (Explain on Schedule C ) 16 Mortgages notes and loans payable (long term): 17 Other liabilities (Attach schedule ) 17 Taxes (Explain on Schedule C ) 18 Losses by fire storm shipwreck or other casualty or theft (Attach schedule ) 18 Partners capital accounts 19 Bad debts (Schedule F) 19 Total liabilities and capital $ 2 Less: amount of depreciation claimed in Schedules A and B and elsewhere on return 2 Less: Cost of goods sold (Schedule A) 2 Notes and accounts receivable 20 Repairs (Attach schedule ) 21 Depreciation (Schedule G) 22 Amortization (Attach schedule ) 23 Depletion of mines oil and gas wells timber etc (Attach schedule ) 24 Other deductions authorized by law (Explain on Schedule H ) 25 Total deductions (Add Lines 13 through 24 ) $ 26 Net income (or loss) (Subtract Line 25 from Line 12 ) 27 Net gain from sale of capital assets (Line 9) 28 Ordinary income (or loss) (Subtract Line 27 from Line 26 ) $ 3 Balance (Print here and on Line 21 Page 1 ) $ 3 Gross profit (Line 1 less Line 2) 3 Inventories: 4 Income (or loss) from other partnerships syndicates etc (Attach schedule ) 4 Investments in Government obligations 5 Dividends (Attach schedule ) 5 Gross amount added to reserve 6 Amount charged against reserve 5 Other current assets including short term marketable investments (Attach schedule ) 6 Interest (Attach schedule ) 6 Other investments (Attach schedule ) 617 North Third Street Baton Rouge LA 70802 5428 7 Buildings and other fixed depreciable assets 7 Rents and royalties (Schedule B) 8 Depletable assets 8 Net farm profit (or loss) (Attach schedule ) 9 Land (net of any amortization) 9 Net gain from sale of capital assets (Schedule D) A change by any partnership from one taxable year to another or the adoption by a new partnership for an initial taxable year must meet the provisions of R S 47:206(B)(1) A change by a principal partner from one taxable year to another must meet the provisions of R S 47:206(B) (2) A principal partner is one who has an interest of five percent or more in the partnership profits or capital A partnership receiving any exempt income other than interest or holding any property or engaging in any activ ity the income from which is exempt shall submit with its return as a part thereof an itemized statement showing A partnership return is not required if all partners are natural persons who are residents of Louisiana (R S 47:201) Accrued or received income Amounts received under a life insurance contract paid by reason of the death of the insured and paid at the death of the insured For treatment of amounts paid at a date later than death see Any partnership doing business in Louisiana or deriving any income from sources therein regardless of the amount and regardless of the residence of the partners must file a return of income on Form IT 565 if any partner is a nonresident of Louisiana or if any partner is not a natural person If the partnership has income that is derived from sources partly within and partly outside of Louisiana Form IT 565B must be filed with Form IT 565 The term partnership includes syndicates groups pools joint ventures or other unincorporated organizations through or by means of which any business financial operation or venture is carried on and that are not trusts estates or corporations within the meaning of the Louisiana Income Tax Law Any person firm partnership trust corporation or organization making payments totaling $1 000 or more during any calendar year for lease bonuses delay rentals and/or royalties respecting mineral leases affecting lands located in Louisiana and rentals paid with respect to real property located in Louisiana to a nonresident individual or a firm partnership trust corporation or organization not located in Louisiana shall file an information return with the Secretary of Revenue on or before June 1 of the following year for each such payee The return shall include the name address Federal Employer Identification Number and/or Social Security Number of both the payor and payee There shall also be included the amount and description of payments to each such payee The Federal Information Return Form (Form 1099) for reporting such payments may be used for reporting the required information Federal Form 1099 shall be accompanied by Federal Form 1096 furnishing the payor s name address Federal Employer Identification Number and/or Social Security Number and the number of Forms 1099 enclosed Informational returns reporting other items of income that would normally appear on Federal Form 1099 are required only upon the specific request of the Secretary of Revenue Any person(s) firm or corporation who prepares a taxpayer s return must also sign If a return is prepared by a firm or corporation the return must be signed in the name of the firm or corporation This verification is not required where the return is prepared by a regular full time employee of the taxpayer Apportionment of Income Schedule Assets 1 Cash Baton Rouge Main Office (225) 219 7462 Beginning of taxable year End of taxable year Cash or accrual basis Date of organization Declining balance method This method may be used with a rate not in excess of twice the applicable straight line rate Deduction for losses from sales or exchanges of capital assets are allowed only to the extent of the gains from such sales or exchanges (See R S 47:72 ) Deductions Deductions 13 Salaries and wages (other than to partners) $ Describe the property briefly using Schedule D; give location and state the actual consideration of price received or the fair market value of the property received in exchange Expenses connected with the sale such as commissions paid agents may be deducted in computing the amount received Each partner that is a natural person must include on his individual return his distributive share whether or not such share is distributed to or withdrawn by the partner the net income of the partnership during the partnership s accounting period (whether fiscal or calendar year) that ended during his taxable year (whether fiscal or calendar year) Form IT 540 is for resident individuals A nonresident member of a partnership who does not have a valid agreement on file with LDR must be included in a Composite Partnership Return (Form R 6922) Nonresident partners who have a valid agreement or who have other income derived from Louisiana sources must include all income derived from Louisiana sources on Form IT 540B Enter as depreciation the amount of exhaustion wear and tear obsolescence or depletion that has been allowed (but not less than the amount allowable) in respect to such property since date of acquisition or since January 1 1934 if the property was acquired before that date In addition if the property was acquired before January 1 1934 and if the cost of such property is greater than its fair market value as of that date the cost shall be reduced by the depreciation actually sustained before that date [See R S 47:156(A) ] Explanation Amount Explanation Amount Federal Employer Identification Number Please supply the employer identification number assigned to the partnership by the Internal Revenue Service Print this number in the space provided on Form IT 565 page 1 Federal Net Income Print the amount of the partnership s Federal net income reported to the Internal Revenue Service on Form IT 565 page 1 This information is required by R S 47:103(B) Gifts (not received as a consideration for services rendered) and money and property acquired by bequest devise or inheritance However the income derived from such property is taxable Gross Income 1 Gross receipts or gross sales $ Less: Returns and allowances [ ] = Gross income and deductions If a deduction is claimed for depreciation Schedule G must be completed When obsolescence is included state separately the amount claimed and the basis upon which it is computed If a gain or a loss is computed on the sale of property acquired before January 1 1934 both the cost and the acquired value must be shown with information as to how the January 1 1934 value was determined as provided by R S 47:155 If the amount shown as cost is other than actual cash cost of the property sold full details must be furnished regarding the acquisition of the property If an asset is constructed reconstructed or erected by the taxpayer so that much of the basis of the asset is computed in accordance with 47:65(F)(2) and is attributable to construction reconstruction or erection after December 31 1953 the asset may be depreciated under any of the following methods provided that the asset is tangible and has an estimated useful life of three years or more: If records are kept on an accrual basis report all income accrued even though it has not been actually received or entered in the records and report all expenses incurred not just expenses paid If records do not show income accrued and expenses incurred report all income received or constructively received such as bank interest credited to your account and expenses paid If the installment method is used attach a schedule to the return showing the following information separately for the current year and each of the three preceding years: (a) Gross sales; (b) Cost of goods sold; (c) Gross profits; (d) Percentage of profits to gross sales; (e) Amount collected; and (f ) Gross profit on amount collected Print on Line 3 the gross profit on collections made during the current year [See R S 47:94(A) ] If the partnership has one or more nonresident partners and derives income from sources within and without the State of Louisiana secure Form IT 565B for further instructions and apportionment of net income Kind of business If the production purchase or sale of merchandise is an income producing factor in the trade or business inventories of the merchandise on hand should be taken at the beginning and end of the taxable year The inventories may be valued using either the cost method or the lower of cost or market method If the inventories reported do not agree with the inventories in the records attach a statement explaining how the difference occurred Income items exempt from tax Income tax returns of partners Individuals should use the information reported on the federal partnership return instead of the amounts shown in the partners allocation schedule Corporations should refer to LRS 47:287 93(A)(5) Information at the source Interest on obligations of the State of Louisiana and its politi cal or municipal subdivisions to the extent as is now exempt by law Interest on obligations of the United States Government and/or its instrumentalities IT 565i (1/12) Item Amount Item Amount J Do not deduct losses incurred in transactions that were neither connected with the trade or business nor entered into for profit No deduction is allowed for any expense incurred to produce income not subject to Louisiana Income Tax If an expense is incurred in part for the production of taxable income and in part for the production of tax exempt income then only the portion of the expense that can reasonably be attributed to the production of taxable income is deductible Land values or costs must not be included in this schedule and where land and buildings were purchased for a lump sum the cost of the building subject to depreciation must be established The total amount of depreciation allowed on each property in prior years must be shown and if the cost of any asset has been fully recovered through previous depreciation allowances the cost of such assets must not be included in the cost shown in the schedule of depreciable assets (See R S 47:65 and R S 47:157 ) LDR Baton Rouge Main Office Less: Accumulated amortization ( Less: Accumulated amortization and depreciation ( Less: Accumulated depletion ( Less: Reserve for bad debts ( Liabilities and Capital 13 Accounts payable Line 1 Gross Sales Print the gross sales less goods returned and any allowance or discounts from the sale price if engaged in business where inventories are an income determining factor Line 10 Profit or Loss from Sale of Property Other Than Capital Assets Print the profit or loss from the sales or exchanges of property other than capital assets reported on Schedule E of the return and furnish the information required by the Line 9 instructions Line 11 Other Income Print any other taxable income and explain its nature on an attached schedule except items requiring separate computation that are required to be reported on Schedule J Include taxable income from annuities and insurance proceeds Line 12 Total Income Add the amounts on Lines 3 through 11 and print that amount on Line 12 Line 13 Salaries and Wages Print all salaries and wages not included as a deduction on Line 3 of Schedule A except salaries to partners Line 14 Payments to Partners Salaries and Interest (Guaranteed Payments) Print the deduction taken for payments to a partner for services or the use of capital where such payments are determined without regard to the income of the partnership Do not include distributive share of partnership profits Allocate these profits to the appropriate partners in Column 4 Partners Allocations Page 1 Line 15 Rent Print the amount of rent paid on business property used in a trade or business activity Do not deduct rent for a dwelling occupied by any partner for personal use Line 16 Interest Print the amount of interest paid for business indebtedness Amounts paid by a partnership to a partner for the use of capital should be printed on Line 14 Amounts paid as interest by a partnership to a partner as a result of a transaction wherein the partner acts in a capacity other than as a partner should be printed on this line Do not include interest incurred to purchase or carry obligations producing tax exempt interest The limitations on deductions for unpaid interest are set forth in R S 47:75 Show details on Schedule Line 17 Taxes Print the amount of taxes paid or accrued during the taxable year Do not include Louisiana income taxes taxes assessed against local benefits that increase the value of the property assessed or taxes not imposed upon the taxpayer Line 18 Losses by Fire Storm Shipwreck or Other Casualty or Theft Print the amount of losses sustained during the year if arising by fire storm shipwreck or other casualty or from theft and not compensated for by insurance or otherwise nor reflected in cost of goods sold [See R S 47:60(3) ] Theft losses can be deducted only in the year in which the partnership discovers the loss Attach a statement setting forth a description of the property date acquired cost subsequent improvements depreciation allowed or allowable since acquisition insurance salvage value and deductible loss claimed Line 19 Bad Debts Print the amount of debts that became bad during the year Bad debts may be deducted either (1) when they become wholly or partially worthless; or (2) by a reasonable addition to a reserve for bad debts No change of method is allowed without permission of the Secretary of Revenue Line 2 Cost of Goods Sold Print the cost of goods sold as determined on Schedule A on Page 2 of the return Line 20 Repairs Print the cost of incidental repairs including labor supplies and other items that do not add to the value or appreciably prolong the life of the property repaired Expenditures for new buildings machinery equipment or for permanent improvements or betterments that increase the value of the property are chargeable to capital accounts Expenditures for restoring or replacing property are not deductible since such expenditures are chargeable to capital accounts or to depreciation reserves Line 21 Depreciation Deduction Print the amount of depreciation computed on Schedule G A reasonable allowance for the exhaustion wear and tear and obsolescence of property used in the trade or business or of property held by the taxpayer for the production of income shall be allowed as a depreciation deduction The allowance does not apply to inventories or stock in trade or to land apart from the improvements or physical development added to it Line 22 Amortization Print the amount of deduction with respect to the amortization of the adjusted basis of any emergency facility constructed or erected in taxable years beginning after December 31 1955 (R S 47:65 (I)) with respect to which the Government has issued a certificate of necessity A statement of the pertinent facts should be filed with the return No amortization is permitted with respect to the adjusted basis of a grain storage facility or certain expenditures relating to research and experiment and trademark and trade name expenditures Line 23 Depletion of Mines Oil and Gas Wells Timber etc Print the amount of depletion of mines oil or gas wells timber etc If complete valuation data has been filed in previous years file with the return the information neces sary to bring the depletion schedule up to date setting forth in full a statement of all the transactions bearing on the deductions from or additions to the value of physical assets during the taxable year with an explanation of how the depletion deduction for the taxable year has been de termined Line 24 Other Deductions Authorized by Law Print the amount of other authorized deductions for which no space is provided elsewhere on Page 1 of the return exclusive of items requiring separate computation and required to be reported on Schedule Line 25 Total Deductions Add the amounts on Lines 13 through 24 and print that amount on Line 25 Line 26 Net Income (or Loss) Subtract Line 25 from Line 12 and print that amount on Line 26 Line 27 Net Gain from Sale of Capital Assets Print on Line 27 the amount of gain from the sale or exchange of capital assets found on Line 9 Line 28 Ordinary Income (or Loss) Subtract Line 27 from Line 26 and print the amount on Line 28 Line 3 Gross Profit from Sales Print on Line 3 the gross profit that is obtained by deducting Line 2 the cost of goods sold as extended from Line 1 the gross sales Line 4 Income (or loss) from Other Partnerships Syndicates etc Print the partnership s distributive share (whether or not distributed) of the profits of another partnership s capital gains or losses If the distributive share is a loss the loss is limited to the amount of the adjusted basis of such partner s interest in the other partnership at the end of the partnership year in which such loss occurred If the taxable year of the return filed does not coincide with the tax year of the other partnership include the distributive share of the net profits (or losses) from the other partnership in the tax year in which the other partnership s tax year ends Line 5 Dividends Print on Line 5 all dividends (except certain stock dividends) received from any corporation regardless of whether or not the corporation has paid any income tax to Louisiana Line 6 Interest Print on Line 6 all interest received or credited to the partnership during the taxable period on bank deposits notes mortgages corporation bonds and bonds of states cities and other political subdivisions Do not include bonds issued under authority granted by Acts of the Louisiana Legislature if such Acts provide that the interest on such bonds shall be exempt from taxation Line 7 Rents and Royalties Print on Line 7 the net income (or loss) as reported on Schedule B Line 8 Net Farm Profit (or Loss) Print the net profit (or loss) from farming Attach schedule explaining determination of profit or loss Line 9 Profit or Loss from the Sale of Capital Assets such as Stocks Bonds Real Estate etc Print the profit from the sale of property including property situated outside of Louisiana as reported on Schedule D of the return List in Schedule K all items of income reported on your Federal return but not on your Louisiana return Louisiana Department of Revenue P O Box 3440 Baton Rouge LA 70821 3440 Mailing Address: No loss shall be recognized in any sale or other disposition of shares of stock or securities where the partnership has acquired or contracted to acquire substantially identical stock or securities within 30 days before or after the date of such sale unless the partnership is a dealer in stock or securities in the ordinary course of business Other methods A taxpayer may use any consistent method that does not result in accumulated allowances at the end of the year greater than the total of the ac cumulated allowances that would have resulted from the use of the declining method This limitation applies only during the first two thirds of the useful life of the property P O Box 201 Baton Rouge LA 70821 0201 Page 1 Page 3 Page 4 Partners allocation(s) Partners filing an individual return should use the information reported on the federal partnership return instead of the amount shown on this schedule Partners Allocations This schedule should show complete information with respect to all the persons who were members of the partnership syndicate group etc during any portion of the taxable year Although the partnership is not subject to income tax the members thereof are liable for income tax in their separate capacities and are taxable upon their distributive shares of the income of the partnership whether distributed or not and each is required to include his share in his return However a partner may not claim on his separate return a distributive share of loss from a partnership to the extent any such loss exceeds the basis of his interest in the partnership The excess of such loss may be claimed for later years to the extent that the basis for the partner s interest is increased above zero Each partner should be advised by the partnership of his share of the income deductions and credits as shown on Schedule J Individuals should use the information reported on the federal partnership return instead of the amounts shown in the partners allocation schedule Corporations should refer to R S 47:287 93(A)(5) Partnerships not required to file a return Partnerships that must file a return Penalties Period to be covered by return R S 47:103(C) also requires that every taxpayer whose Federal Income Tax Return is adjusted must furnish a statement disclosing the nature and amounts of such adjustments within 60 days after the Federal adjustments have been made and are accepted by the taxpayer R S 47:43(D) Records are in care of Returns for a calendar year must be filed with the Department of Revenue Box 3440 Baton Rouge LA 70821 3440 on or before May 15 of the year following the close of the calendar year Returns for fiscal years must be filed on or before the 15th day of the fifth month after the close of the fiscal period Schedule E Gain or loss from sale of property other than capital assets (See instructions for Line 10 ) Schedule F Bad debts (See instructions for Line 19 ) Schedule G Depreciation (See instructions for Line 21 ) Schedule H Other deductions (See instructions for Line 24 ) Schedule I Balance sheets Schedule J Reconciliation of partners capital accounts Schedule K Income reported in federal return and omitted from Louisiana return Signature of partner or member Telephone Signature of preparer other than partner or member Address Signatures Subsequent improvements include expenditures for additions improvements and repairs made to restore the property or prolong its useful life Do not include ordinary repairs interest or taxes in computing gain or loss Sum of the years digit method Under this method annual allowances for depreciation are computed by applying changing fractions to the taxpayer s cost or other basis of property (reduced by estimated salvage value) The deduction for each year is computed by multiplying the cost or other basis of the asset (reduced by estimated salvage value) by the number of years of useful life remaining (including the year for which the deduction is computed) and dividing the product by the sum of all the digits corresponding to the years of the estimated useful life of the assets Tax assistance is available at the Louisiana Department of Revenue Main Office: That portion of an annuity that represents a return of the tax payer s investment (See R S 47:44 ) The Department of Revenue will permit the use of estimated lives allowable for federal income tax purposes The deduction of bonus or first year depreciation is allowable The following are some types of income that are exempt from Louisiana income tax and should not be included in gross income: The penalty for willfully making a false or fraudulent return or for willful failure to make and file the return on time shall not be more than $1 000 or imprisonment for not more than one year or both and shall include the costs of prosecution The return must be filed for a calendar year or for a fiscal year of 12 months ending on the last day of any month other than December or for an annual period of 52/53 weeks if records are kept on this basis You must clearly indicate the beginning and ending dates being covered at the top of the return The accounting period established on the first return must be adhered to for subsequent years under Louisiana Income Tax Law unless permission to make a change is received from the Secretary of Revenue The return must be signed by any one of the partners or members If receivers trustees in bankruptcy or assignees are in control of the property or business of the organization such receivers trustees or assignees shall execute the return The useful life of an asset can be measured in units of production but the ordinary practice is to measure useful life in years Business experience engineering information and other relevant factors provide a reasonable basis for estimating the useful life of property The cost (or other basis) to be recovered should be charged off over the expected useful life of the property There are special rules for new assets acquired after December 31 1953 The cost or other basis of an asset acquired after December 31 1953 may be depreciated under methods proper in the past; or it may be depreciated under any of the following methods provided (1) that the asset is tangible; (2) that it has an estimated useful life of three years or more; and (3) that the original use of the asset commenced with the taxpayer and commenced after December 31 1953 Total $ Total (Print here and on Line 24 Page 1 ) $ Total (Transfer net gain or loss to Line 10 Page 1) $ Totals $ Under the penalties of perjury I declare that I have examined this return including all accompanying documents and to the best of my knowledge and belief it is true correct and complete If prepared by a person other than taxpayer his declaration is based on all information of which he has any knowledge When and where the return must be filed www revenue louisiana gov