Kentucky Distilled Spirits Tax Credit Recapture

Distilled Spirits Tax Credit Recapture
Schedule DS-R
SCHEDULE DS-R

*1600010225*

41A720DS-R (10-16)

Commonwealth of Kentucky
DEPARTMENT OF REVENUE

Taxable Year Ending

	

__ __ / __ __
Mo.	Yr.

DISTILLED SPIRITS
TAX CREDIT RECAPTURE

➤	 See instructions.

KRS 141.389

➤	 Attach to Form 720, 720S, 725, 740, 740-NP, 741, 765 or 765-GP.
Name of Entity

Location Address of Capital Improvements

Federal Identification
Number

Kentucky Corporation/LLET
Account Number (if applicable)

__ __ __ __ __ __ __ __ __

__ __ __ __ __ __

	 Taxed as:	

Corporation

		

Limited Liability Pass-through Entity

		

General Partnership

		

Individual

		

Other

Section A—Description of Property Sold or Disposed of Before the End of the Recapture Period
Item

Description of Capital Improvements

	A	
	B	
	C
	D
	E	
Section B—Computation of Tax Credit Recapture
 
1.	 Taxable year end date the tax credit was claimed........................................................................................... 	1	

/	 /	

  2.	 Date the capital improvement was sold or disposed of.................................................................................. 	2	

/	 /	

  3.	 Total amount of tax credit associated with the dates referenced above......................................................... 	3	

00

  4.	 Cost of capital improvement sold or disposed of............................................................................................. 	4	

00	

  5.	 Total cost of all capital improvements associated with the credit reported on line 3.................................... 	5	

00

  6.	 Divide line 4 by the amount on line 5 (see instructions).................................................................................. 	6	

.

%

7.	 Multiply line 3 by line 6 and enter here.............................................................................................................. 	7	

00	

8.	 Enter the amount of credit claimed against LLET for the taxable year referenced on line 1......................... 	8	

00

9.	 Enter the amount of credit claimed against income tax for the taxable year referenced on line 1.............. 	9	
	
10.	 LLET credit recapture: If the amount on line 8 is greater than line 7, enter the difference............................ 	10	
	
11.	 Income tax credit recapture: If the amount on line 9 is greater than line 7, enter the difference.................. 	11	

00
00
00

41A720DS-R (10-16) 	
Commonwealth of Kentucky
DEPARTMENT OF REVENUE	

Page 2

INSTRUCTIONS—DISTILLED SPIRITS
TAX CREDIT RECAPTURE

SPECIFIC INSTRUCTIONS
Purpose of Schedule—A taxpayer required to recapture a
distilled spirits tax credit shall attach this schedule to the
applicable tax return for the taxable year. If the taxpayer
is a pass-through entity, the taxpayer shall apply the
recapture of the distilled spirits tax credit to the limited
liability entity tax imposed by KRS 141.0401, and shall
pass the tax credit recapture to its partners, members or
shareholders. A copy of Schedule DS-R shall be attached
to each partner’s, member’s or shareholder’s Kentucky
Schedule K-1. A partner, member or shareholder shall
enter its pro rata share of the information from the
Schedule DS-R when completing the partner’s, member’s
or shareholder’s Schedule DS-R to be attached to the
partner’s, member’s or shareholder’s applicable tax
return.
General Information—KRS 141.389(4)(b) provides that
the distilled spirits credit allowed shall be recaptured
if the capital improvement associated with the credit is
sold or otherwise disposed of prior to the exhaustion
of the useful life of the asset for Kentucky depreciation
purposes. If the distilled spirits credit recapture is for
multiple taxable years, attach a schedule providing the
information on this Schedule for each taxable year.
Section A – Description of Property Sold or Disposed of
Before the End of the Recapture Period
For each item of capital improvements sold, transferred
or disposed of before the end of its useful life, enter a
description of each item of capital improvement on Lines
A, B, C, D and E. If the taxpayer disposed of more than
five items of capital improvements during the tax year,
attach additional Schedules DS-R as needed.
Section B—Computation of the Tax Credit Recapture
Line 1—Enter the year end of the taxable year that the
distilled spirits tax credit was claimed.
Line 2—Enter the date the capital improvement was sold
or disposed of.
Line 3—Enter the amount of the distilled spirits tax credit
claimed on the tax return for the taxable year entered
on Line 1.
Line 4—Enter the cost of the capital improvement sold
or disposed of on the date entered on Line 2.
Line 5—Enter the total cost of all capital improvements
associated with the distilled spirits tax credit on Line
3.

Line 6—Divide the amount on Line 4 by the amount on
Line 5 and convert to a percentage carried out to four
decimal places.
Line 7—Multiply the amount on Line 3 by the percentage
on Line 6.
Line 8—Enter the amount of the distilled spirits tax
credit on Line 3 claimed against LLET for the taxable
year referenced on Line 1.
Line 9—Enter the amount of the distilled spirits tax credit
on Line 3 claimed against income tax for the taxable year
referenced on Line 1.
Line 10—If the amount on Line 8 is greater than Line 7,
enter the difference on this line. This is the amount of
the LLET credit recapture.
Line 11—If the amount on Line 9 is greater than Line 7,
enter the difference on this line. This is the amount of
the income tax credit recapture.