CCH Axcess Tax

Kentucky Special Allocations

Use federal Partners Category, Special Allocation Worksheet, Special Allocation Detail Section with Kentucky special allocation codes to allocate Kentucky distributive share items differently than federal special allocation codes, or the regular profit or loss sharing percentages entered on federal Partners Category, Partner Information Worksheet, Basic Partner Data Section. All federal special allocation features (i.e., single entry of ratios, units, tiered allocation, and residual suppression) are available for Kentucky purposes. Use the following Kentucky special allocation codes to specially allocate Kentucky items:

19000	Total property distributions (including cash)
19403	Ordinary income(loss) from trade or business
19405	Net short-term capital gain(loss)
19407	Net long-term capital gain(loss)
19409	Net gain(loss) under Section 1231 - Trade or Business
19411	Interest expense on investment debt
19413	Interest income
19415	Dividend income
19417	Royalty income
19419	Other portfolio income
19421	Deductions related to portfolio income
19423	Guaranteed payments
19425	Investment expenses included in portfolio deductions
19427	Investment income included in portfolio income
19431	Net gain(loss) under Section 1231 - Rental Real Estate
19433	Net gain(loss) under Section 1231 - Other rental activities
19435	Portfolio Deduction - Depreciation
19437	Portfolio Deduction - Amortization
19503	Section 179 expense deduction
19505	Kentucky combination of Schedule K-1 lines, KY Sch K, Line 18
19509	Net income(loss) from rental real estate activity
19511	Income(loss) from other rental activity
19513	Other income
19515	Other deductions
19517	Federal combination of Schedule K-1 lines, KY Sch K, Line 19
19519	Charitable contributions and housing for the homeless deduction
19533	Total expenditures to which a 59(e) election may apply
19534	Dividend U.S. bond interest
19535	Tax-exempt interest income
19537	Nondeductible expenses
19539	Other tax-exempt income
19559	Other Information - Sec. 179 Recapture from Disposition of Property
19561	Other Information
19563	Other Information - Commercial Revitalization Ded. from Rental Activities
19571	Short term gain rolled over on qualified small business stock
19573	Long term gain rolled over on qualified small business stock
19575	Short term gain on qualified small business stock
19577	Long term gain on qualified small business stock
19579	Section 1202 gain from capital gain distributions on qualified
19589	Deductions related to portfolio income subject to 2% floor
19591	Portfolio royalty deductions

Kentucky Credits

19231	Ethanol tax credit
19233	Cellulosic Ethanol tax credit
19429	Qualified Research Facility tax credit
19480	New Markets Development Program tax credit
19481	Inventory (Ad Valorem) tax credit
19482	Upgraded Insulation Costs (5695-K, Line 6)e
19483	Clean coal incentive tax credit
19484	Energy-efficient windows/storm door (5695-K, Line 12)
19486	Energy property credit (5695-K, Line 18)
19488	Single family solar system credit (5695-K, Line 36)
19489	Single family solar system credit(5695-K, Line 36)
19490	Multifamily/Commercial solar system credit (5695-K, Line 51)
19491	Multifamily/Commercial solar photo cr (5695-K, Line 51)
19492	Commercial Energy-Efficient lighting system (5695-K, Line 57)
19493	Energy Efficient Heat\cool\vent\water system (5695-K, Line 63)
19494	Energy Star Home tax credit
19495	Small Business Investment credit
19507	Unemployment tax credit
19531	Recycling and/or Composting tax credit
19578	Endowment Kentucky tax credit
19580	KBI Economic Development tax credit
19581	Investment Fund tax credit
19582	Railroad maintenance and improvement credit
19583	Skills Training Investment Tax Credit
19584	Railroad expansion tax credit
19585	Coal incentive tax credit
19586	KRA Economic Development tax credit
19587	GED Incentive tax credit
19590	Certified rehabilitation tax credit
19592	Voluntary environmental remediation tax credit
19593	Biodiesel credit
19595	KIRA Economic Development tax credit
19596	KJDA Economic Development tax credit
19597	KREDA Economic Development tax credit
19598	Certified rehabilitation tax credit refundable
19599	Film industry tax credit refundable

Passthrough Credits

19251	LLET total sales
19253	LLET Kentucky sales
19255	LLET total property
19257	LLET Kentucky property
19259	LLET total payroll
19261	LLET Kentucky payroll
19263	LLET total gross receipts
19265	LLET Kentucky gross receipts
19267	LLET total gross profits
19269	LLET Kentucky gross profits
19271	LLET nonrefundable credit

Nonresident Withholding

19439	Kentucky distributive share income subject to withholding - override
19441	Deductions allowable under KRS 141.010(10)
19443	Credits - override
19445	Gain/loss on sale of Section 179 property - override
19447	Section 179 recapture - override

Composite Return (Form 740-NP)

19301

Partnership income - override

Section 754 Allocation Codes

Use these Kentucky allocation codes when Section 754 amounts are entered on federal depreciation worksheets. If the Federal and Kentucky amounts are the same, we allocate using the federal allocation method.

19521	Section 754 Rental Real Estate Depreciation
19523	Section 754 Other rental Depreciation
19527	Section 754 Trade or Business Rentals Depreciation
19541	Section 754 Page 1 Depreciation
19543	Section 754 Cost of Goods Sold Depreciation
19545	Section 754 Schedule F/4835 Depreciation
19547	Section 754 Schedule F/4835 Amortization
19549	Section 754 Portfolio Deduction Depreciation
19550	Section 754 Royalty Depreciation
19551	Section 754 Page 1 Amortization
19553	Section 754 Portfolio Deduction Amortization
19555	Section 754 Cost of Goods Sold Amortization
19557	Section 754 Rental Amortization
19558	Section 754 Royalty Amortization

Domestic Production Activity Deduction (DPAD) Codes

Use these Kentucky allocation codes when DPAD amounts are entered on federal Domestic production activity and passthrough Items worksheets. If the Federal and Kentucky amounts are the same, we allocate using the federal allocation method.

19201	DPAD Domestic production gross receipts
19203	DPAD Non-domestic production gross receipts
19205	DPAD Allocable cost of goods sold
19207	DPAD Total cost of goods sold
19209	DPAD Apportionable cost of goods sold
19211	DPAD Directly allocable expenses
19213	DPAD Other non-apportionable expenses
19215	DPAD Other apportionable expenses
19217	DPAD Interest expense
19219	DPAD Form W-2 wages
19221	DPAD Allocable assets - QPAI
19223	DPAD Allocable assets - Non-QPAI
19225	DPAD Qualified production activities income
19227	DPAD Employer's W-2 Wages

For additional information concerning special allocations and, the various special allocation methods, refer to the instructions for federal Partners Category, Special Allocations Worksheet.

Multiple Activity Allocation

When the Kentucky amounts are the same as the federal amounts, including activity information , we allocate the following items, using the federal allocation method, for federal and Kentucky purposes:

Ordinary Income (Loss)
Income (Loss) from Rental Real Estate
Income (Loss) from Other Rental
Interest
Dividends
Royalties
Long Term/Short Term Capital Gain (Loss)
Section 1231 Gain (Loss)
Other Income/Deductions
Charitable Contributions
Section 179 Expense
Guaranteed Payments
Portfolio Income & Deductions
Investment Interest
Investment Income & Expense

Multiple activity statements are NOT produced for the Kentucky return.

If the Kentucky and federal amounts are different, and multiple activity allocation is used for the federal return, the Kentucky return defaults to the regular profit and loss sharing ratio.

To specially allocate multiple activities for the Kentucky return, the Kentucky special allocation codes must be used on Partner's Category, Special Allocations Worksheet as follows:

Ratio Identification with Activity Numbers

If Ratio ID's are used on federal worksheets, along with activity numbers, use the same ratio ID's on federal Partner's Category, Special Allocations Worksheet along with the Kentucky special allocation codes and the amounts of income to allocate for each activity and ratio ID.

Activity Number Allocations

If activity numbers are used for the federal return and, these activities are specially allocated on federal Partners category, Special Allocations Worksheet with partner numbers, activity numbers and the federal special allocation code, then enter the Kentucky special allocation codes on federal Partners category, Special Allocations Worksheet, and re-enter the partner numbers and total of income to allocate to each partner. Leave the activity number blank.