The Louisiana partnership return is prepared for calendar and fiscal year partnerships. Using your entries from the federal return and on Louisiana sections the following forms and schedules for the Louisiana return are prepared:
Form R-6463, Application for Extension of Time to File
Form R-6467S, Application for Extension of Time to file Form R-6922
Form IT-565, Louisiana Partnership Return of Income
R-6922ES, Estimated Tax Declaration Voucher for Form R-6922
R-6922, Composite Return - Summary
R-6922, Nonresident Partner Composite Schedule
R-6922, Resident Partner Composite Schedule
Schedule K-1 Equivalent for each partner
Detail Statement of Mineral Interest for each Partner
Summary Statement of Mineral Interest for each Partner
Nonresident Partner Agreement
Form R-7006, Power of Attorney and Declaration of Representative
Federal Input Requirements, Notes and Automatic Features
Application for Extension
The System produces Louisiana Form R-6463, Application for Extension of Time for Filing the Partnership Return OR Form R-6467S, Application for Extension of Time for Filing the Louisiana Composite Partnership Return, for when the return will be filed after its original due date. These forms can be requested in any of the following ways:
Select the "Produce all state first extensions" field on the federal Other category, Extensions worksheet, State Extension Information section. Louisiana must be the home state code on the federal General category, Basic Data worksheet, General section or there must be some input on the Louisiana worksheets.
Enter "LA" in the "State Code" field on the federal State Extension Information section. Again, Louisiana must be the home state code on the federal General section or there must be some input on the Louisiana worksheets.
Use the federal Extension worksheet, Louisiana Extension section, to enter a Louisiana unique extension date.
Use government view to key in data directly on Louisiana Forms R-6463 or R-6467S.
Form R-6467S will be produced instead of Form R-6463 when the Louisiana Composite Partnership Return is requested or entries have been made on the federal Other category, Extensions worksheet, Louisiana Extension section, Total income tax liability, Total estimated tax payments or Extension amount fields.
Penalty and Interest
To compute interest and/or penalty on late composite tax payments, mark the Late interest and/or Late payment penalty fields on the federal Payments/Penalties category > Penalties worksheet > State / City Late Interest and Penalties section (or the Louisiana Payments / Penalties worksheet > Late Interest and Penalties section). The interest and/or penalty is computed using the filing date entered on either the federal General category > Basic Data worksheet > General section, the federal State / City Late Interest and Penalties section or on the Louisiana Late Interest and Penalties section (if after the due date of the Louisiana return).
FS Codes
The Louisiana return uses overrides to, additions to and subtractions from federal ordinary income from entries made on the Louisiana Income/Deductions worksheet. Except as noted for Louisiana Form R-7006, municipal bond interest, mineral interest depletion, the federal Income/Deductions category > Schedule K - Other Income/Deductions worksheet (Schedule K - Other Income, Schedule K - Other Deductions and Schedule K - Section 59(e) Expenses sections) and the federal Other Returns category > 1065-B - Electing Large Partnership Return worksheet (Schedule K - Miscellaneous Itemized Deductions and Schedule K - State and Local Taxes sections, with Return location option code blank), do NOT use FS codes to prepare the Louisiana partnership return .The Louisiana Income/Deductions worksheet is available to override Louisiana Form IT-565, Page 1. All income, expenses and footnotes included on the federal worksheets carry to the Louisiana return.
Entries in the F/S and State code fields on the federal Other category > 2848 - Power of Attorney worksheet > General Information section are used to determine whether to prepare Louisiana Form R-7006, Power of Attorney and Declaration of Representative, from the federal input. Only the first qualifying 2848 - Power of Attorney worksheet is used. Printing of Louisiana Form R-7006 may be suppressed on the Louisiana Other worksheet > Power of Attorney section, Suppress form R-7006 field.
Generally, federal Schedule K amounts "Other Income" and "Other Deductions" do NOT carry to Louisiana Form IT-565, Page 1, with the exception of entries on the federal Income/Deductions category > Schedule K - Other Income/Deductions worksheet (Schedule K - Other Income, Schedule K - Other Deductions and Schedule K - Section 59(e) Expenses sections) and the federal Other Returns category > 1065-B - Electing Large Partnership Return worksheet (Schedule K - Miscellaneous Itemized Deductions and Schedule K - State and Local Taxes sections, with Return location option code blank), for which F/S and state codes may also be used.
To make additional adjustments for other income and deductions on Louisiana Form IT-565, Page 1, use the Louisiana Income/Deductions worksheet > Business Income and Deductions sections > "Other Income" and "Other Deductions" open line entries. Ifthe Louisiana Allocation/Apportionment worksheet has been used for Louisiana Form IT-565B, apportionment, then the Louisiana Income/Deductions worksheet > Business Income and Deductions sections > "Other Income" and "Other Deductions", open line entries will also carry to Form IT-565B, line 7c, other net allocable income. This excludes the other income and deductions from the Louisiana amount subject to apportionment and they are instead directly allocated to the Louisiana Schedule K-1 equivalent ordinary income. In this case, Louisiana Form IT-565B, line 1 includes the Form IT-565, Page 1, line 28 amount, excluding the amounts carried to other income and other deductions from the "Other Income" and "Other Deductions" open line entries.
When apportionment is used and other income and other deductions are to be included for apportionment, use the federal Income/Deductions category, Schedule K- Other Income/Deductions worksheet, instead of using the Louisiana Income/Deductions worksheet > Business Income and Deductions sections > "Other Income" and "Other Deductions" open line entries, for making adjustments for other income and other deductions on Louisiana Form IT-565, Page 1. The federal Income/Deductions category > Schedule K - Other Income/Deductions worksheet allows for F/S and state code entries.
Passthrough Information
Louisiana carries all passthrough items of income and deductions, with the exception of the federal Income/Deductions category > Partnership Passthrough worksheet > Other Income and Other Deductions fields to Louisiana Form IT-565 and the Louisiana Schedule K-1 equivalent. Use the Louisiana Income/Deductions worksheet to enter items not carried or to override items from the federal Passthrough worksheets.
Depreciation
Louisiana allows federal depreciation. State depreciation is calculated from your "Federal Depreciation and Amortization" entries. Your federal "State Depreciation and Amortization" entries are NOT used to calculate Louisiana depreciation.
Bonus Depreciation
Louisiana conforms to federal bonus depreciation. No state entries are required to carry the federal income including the bonus depreciation to the return.
Automatic Features
The following items from the federal return are handled on the Louisiana return and do NOT require additional entries on state worksheets:
Interest on U.S. Obligations
Municipal Bond Interest from States Other than Louisiana
Interest on U.S. Obligations:
Interest on obligations of the United States (entered on the federal Income/Deductions category > Interest and Dividends worksheets) is excluded from the computation of Louisiana income.
Municipal Bond Interest:
Louisiana includes municipal bond interest from sources outside the state in Louisiana income. If you are using the tax return input method, interest on state and local obligations from states other than Louisiana entered on the federal Income/Deductions category > Interest worksheet with a state code other than "LA" or blank carries to Louisiana Form IT-565 as an addition to federal ordinary income.
Be sure to indicate the source of municipal bond interest. Enter the source of interest in the "State" field on the federal Interest worksheet. Interest will be assumed to originate in the state entered on the federal General category > Basic Data worksheet > General section for the state return if the "State" field is blank.
Taxes and Licenses
When using the federal Income/Deductions category > Trade or Business worksheet > Taxes and Licenses section to enter state taxes, the Louisiana taxes can only be excluded as a deduction from the Louisiana Partnership returns when the amount is included in the "State Income Taxes" fields of the Taxes and Licenses section.
Federal Income/Deductions Category, Rent and Royalty Worksheet:
State taxes entered on the Rent and Royalty worksheet > Expenses section > State Income/Franchise Tax Expense field are excluded from the net rental income (loss) calculation in Louisiana. Enter the tax to be included for both federal and Louisiana rental income (loss) on the Taxes field.
Federal Income/Deductions Category, Farm/4835 Worksheet:
State taxes entered on the Farm/4835 worksheet > Expenses section > State Income/Franchise Tax Expense field are excluded from the farm income (loss) calculation in Louisiana. Enter the tax to be included for both federal and Louisiana farm income (loss) on Taxes field.
Final and Amended K-1
The Louisiana Schedule K-1 Equivalent is designated as final or amended if the same partner's federal Schedule K-1 is final or amended. In addition, if the Louisiana return is final or amended, all Schedules K-1 Equivalent are designated as final or amended. You can use the federal Common State category > Generic State Schedule K-1 Information worksheet > Generic Partner Input section to override these defaults, or to designate a particular Schedule K-1 Equivalent separately.
K-1 Suppression
Use the federal Partners category > General Options worksheet > Schedule K-1 Print Options section to suppress all state and city Schedules K-1 (or equivalents). See the instructions for the Schedule K-1 Print Options section under "Suppress Schedules K-1 Print Code".
Use Louisiana General worksheet > Basic Data section > Suppress Schedules K-1 field to override the State Schedules K-1 suppression from the federal Partners category > General Options worksheet > Schedule K-1 Print Options section.
K-1 Statement Suppression
Use the federal Partners category > General Options worksheet > Schedule K-1 Print Options section to suppress supporting statements for the Louisiana Schedule K-1 Equivalent. See the instructions for the federal Schedule K-1 print Options section under "Suppress Schedule K-1 Statements Code".
Schedule K-1 Equivalent
We print a Schedule K-1 Equivalent for each partner, using Louisiana ordinary income as well as other federal items. We follow the federal allocation unless the override on Louisiana Income/Deductions worksheet > Distributive Share of Income section is used.
We print the "Time Devoted to Business", "Percentage of Time Devoted to Business" and the "State Capital Account" entered on federal Common State category > Generic State Schedule K-1 Information worksheet > Generic Partner Input section on the Louisiana Schedule K-1 Equivalent.
Schedule J
We print Schedule J information based on federal numbers entered on federal entries. However, we print the Louisiana ordinary income before allocations in column 4. Columns 3, 4, and 5, other income, ordinary income, and other losses, can be overridden using the Louisiana Income/Deductions worksheet > Distributive Share of Income section > Schedule K-1, Schedule J - Overrides fields or the federal Common State category > Generic State Schedule K-1 Information worksheet > Generic Partner Input section > Capital Account fields. Special allocation codes are available to allocate entries on the Louisiana Distributive Share of Income section. Be sure to enter the appropriate partner number on the federal Generic State Schedule K-1 Information worksheet. Entries on the federal Generic State Schedule K-1 Information worksheet > Generic Partner Input section > Capital Account fields are on a per partner basis.
Nonresident Allocation And Form IT-565, Apportionment
Louisiana passes through the apportioned share of ordinary income (loss), Form IT-565, Schedules N and R, Louisiana source Income (Loss), to nonresident partners when there is income within and without the state. This is allocated by using the federal profit percentage when special allocation code "20104" or "20118" is NOT used. The amount can be overridden on the Louisiana Income/Deductions worksheet > Distributive Share of Income section.
Be sure to indicate the partner's state of residency in the "State of Residency" field on the federal Partners category > Partner Information worksheet > Basic Partner Data section. If this field contains anything other than "LA" or blank, the partner is to be considered a Louisiana nonresident.
Q. Does Louisiana use the federal Common State category > Generic State Schedule K-1 Information and Nonresident Schedule K-1 Information worksheets?
A. Partnership percentages, "Amended and Final K-1", "Time Devoted to Business" and "Percentage of Time Devoted to Business" may be entered on the Generic Schedule K-1 Information worksheet. Multistate information is computed from entries on the Louisiana Allocation/Apportionment worksheet or on the Income/Deductions worksheet, Distributive Share of Income section. The Nonresident Schedule K-1 information worksheet is not used.
Q. I am doing apportionment in Louisiana and would like to exclude the capital gain from apportionment. How can I do that?
A.Enter the capital gain on the Louisiana Allocation/Apportionment worksheet, Nonbusiness Income section, Net Profit from Sales or Exchanges of Property fields, to be excluded from apportionment on Form IT-565.
Q. My entries coded for Louisiana on federal depreciation sections for state if different amounts are not recomputing the depreciation on my Louisiana return. Why not?
A. Louisiana uses federal depreciation amounts. Computation differences entered on federal State Depreciation sections for state if different amounts are ignored when processing a Louisiana return.
Q. If there are mineral interests in Louisiana and other states, how do I keep the mineral interests from the other states from showing up on the Louisiana nonresident K-1s?
A. When Louisiana is the home state entered on the federal General Category, Basic Data worksheet, and the state code onthe federal Depletion worksheets is blank or "LA," or if the home state code is other than "LA" and the state code on the Depletion worksheets is LA, only those properties that are related to that schedule, if requested on the Louisiana General worksheet, Basic Data section, Code to Print Partner Mineral Interest Schedules field will be attached to the resident and non-resident partner's Schedule K-1. The resident and nonresident partner's Schedule K-1 ordinary income (loss) will include total everywhere mineral interest income (loss). Separately shown on the Schedule K-1 for both the resident and the nonresident partners are the Louisiana source mineral income (loss), intangible drilling cost, and depletion.
Q. I have apportioned my income (loss) on Louisiana Form IT-565. How do I specially allocate Form IT-565, Schedule P and S Line 27, "Louisiana net income" to the nonresident partners?
A. Special allocation code 20103 (Distributable income/loss for noncorporate partners) is generally used to allocate the Schedule P line 27 amount to the Louisiana nonresident partner's Schedule K-1, line 1. Special allocation code 20104 (Distributable income/loss for corporate partners) is generally used to allocate the Schedule S line 27 amount to the Louisiana nonresident partner's Schedule K-1, line 1.The printing allocation percentages on the respective Schedule K-1, may be overridden on the federal Common State category, Generic State Schedule K-1 Information worksheet.
Q. On the supporting statement for the nonresident partner's Schedule K-1, how is the "ordinary income (loss) taxable in other states" calculated?
A. On the supporting statement for the nonresident partner's Schedule K-1, it is the total of the "total everywhere amounts" (federal amounts) less the amount allocated to the nonresident partner's Schedule K-1, line 1, "net ordinary income (loss)" from the Form IT-565B, Schedule A, line 8.
Q. What codes should I use to designate the sale of an asset as a capital asset?
A. On federal Income/Deductions category, Gains and Losses worksheet use codes "CAP," "CSINC" or "CSOTH" for capital assets. For installment sales entered on Installment Sales worksheet use codes "STCAP" or "LTCAP."
Q. Where do I make the adjustment related to federal bonus depreciation?
A. Louisiana conforms to federal bonus depreciation. No adjustments are made for differences due to federal bonus depreciation.
Q. Does Louisiana exclude state taxes?
A. State taxes entered on the federal Income/Deductions category, Trade or Business worksheet or financial input as based on income will be excluded from Louisiana. Taxes entered on Rent and Royalty worksheet and Farm/4835 worksheet as state taxes will be excluded from Louisiana.
Q. Does Louisiana use the federal Common State category, Allocation and Apportionment worksheets?
A. Yes. The following codes are used by Louisiana in the respective section of the federal allocation and apportionment worksheet:
Property Factor Codes: Inventories, Land, Buildings, Machinery, Equipment, Furniture and fixtures, Transportation and delivery equipment, Other depreciable assets,Depletable assets, Leasehold improvements, (less Buildings accumulated depreciation, Machinery and equipment accumulated dpr, Furniture and fixtures accumulated depreciation, Transportation and delivery accum depr, Other depreciable assets accum depr, Depletable assets accumulated depletion, Leasehold improvements accum amortization), Supplies Other tangible property, Total property - override
Payroll Factor Codes: Included in cost of goods sold, Included in cost of operations, Included in compensation of partners, Included in salesmen's salaries, Included in salesmen's commissions, Included in general and administrative, Included in repairs, Included in others, Total payroll - override
Sales Factor Codes: Sales - outside to within state, Sales - within to within state (less Returns/allowances - outside to within, Returns/allowances - within to within)Sales of real and tangible properties, Sales of intangibles, Receipts from services
In addition, Federal Allocation and Apportionment - State Specific worksheet, State Information section, Louisiana fields.
Louisiana Composite Refund Message
LDR has implemented enhanced security measures to protect Louisiana taxpayers from identity theft and other types of tax fraud. If returns do not trigger any fraud indicators, taxpayers can expect their tax refunds within 60 days of the filing date if they file electronically, and within 14 weeks if they file paper returns.