Kentucky Kentucky Housing for Homeless Families Deduction

Kentucky Housing for Homeless Families Deduction
41A720HH
SCHEDULE HH
Form 720
41A720HH
(10-00)

KENTUCKY HOUSING FOR
HOMELESS FAMILIES DEDUCTION

Taxable Year Ending

__ __ / __ __
Mo.

Yr.

➤ Attach this form to Form 720, 720S, 740, 740-NP, 741 or 765.

Revenue Cabinet
Name of Taxpayer

Social Security or Federal Identification Number

Complete a separate Schedule HH for each dwelling unit donated.
A. Organization to which property was donated
B. Date property donated to above organization
C. Type of unit donated:
o single family dwelling
o unit within multiple family facility
D. If multiple family facility, indicate total number of units in the facility
number of units donated
COMPUTATION OF DEDUCTION
Donated
Property

Comparable
Property A

Comparable
Property B

Comparable
Property C

1. City and state ..............
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

Street address .............
Description of property
Rooms ..........................
Square footage ...........
Monthly rent ................
Average monthly rent of Comparable Properties A, B, C .........................................................................................
If property rented within 6 months of date donated, enter last monthly rent received ........................................
Monthly value of interest in property. Enter lesser of line 7 or line 8. (If line 8 is zero, enter line 7.) .................
Number of months in taxable year that donated property was occupied by homeless family ............................
Amount of deduction. Multiply line 9 by line 10. Enter here and on appropriate line of tax return ...................

Purpose of Form—This form is to be used to determine the amount
of deduction allowed by KRS 141.0202 for the value of leasehold
interest in property contributed to a charitable organization to be
used to provide temporary living quarters for a homeless family. A
separate Schedule HH must be submitted for each dwelling unit
donated.
Contributions Qualifying for Deduction—Effective for tax years
beginning after December 31, 1989, contributions of property to a
charitable organization qualify for this deduction if the property is
used to provide temporary living quarters for a homeless family
when:
1.

the homeless family has demonstrated a need for a fixed,
regular and adequate night time residence; and

2.

the homeless family does not occupy the dwelling for a period
in excess of one year.

Information Necessary to Substantiate the Deduction—In addition
to the information requested on this form, the following information
must be attached to this form:
1.

proof that during the taxable year the dwelling meets the
habitability standards prescribed by the state or political
subdivision in which the dwelling is located; and

2.

copy of statement supplied by the charitable organization
reflecting the dates during the year the dwelling was occupied
by each homeless family.

Example:

Family 1—from 1/5/90 to 1/15/90
Family 2—from 1/25/90 to 2/28/90, etc.

41A720HH0013

SPECIFIC INSTRUCTIONS
Line 3—The description of the properties should be very brief and
general such as, 1 b.r. house, eff. apt., 1 b.r. apt., etc.
Line 4—Use abbreviations to list the rooms included in each
dwelling such as, b.r. for bedroom, bth. for bathroom, l.r. for living
room, etc.
Line 5—Enter total square footage of living space.
Lines 6 and 8—The monthly rental amounts to be entered on these
lines must be net of any charge or fees for utilities or other services.
Line 10—KRS 141.0202 allows a deduction in the amount of the
monthly value of the leasehold interest multiplied by the number
of months during which the property is occupied for a substantial
portion of the month by a homeless family. For this purpose,
"substantial" means more than one-half. Therefore, based on the
statement supplied by the charitable organization, determine the
total number of months during the year that the property was
occupied for more than one-half of the month and enter the total
on this line.
Line 11—The amount from line 11 or, if more than one Schedule HH
is required, the total of line 11 from all the Schedules HH filed must
be entered on the appropriate tax returns as follows. Corporations
filing Form 720 include in the amount entered in Part I, line 12.
Individuals filing Form 740 or 740-NP include in charitable
contribution deduction on Schedule A. Fiduciaries filing Form 741
include in line 1, Schedule A, page 2. S corporations and
partnerships enter total on line 7 or line 8, respectively, of Schedule
K, Form 720S or Form 765. Enter each shareholder or partner’s pro
rata share on line 7 or line 8, respectively, of Schedule K-1, Form
720S or 765, and provide each shareholder or partner with a copy of
each Schedule HH.
Important: For Kentucky purposes, this deduction is a special
deduction which may be greater than any ordinary charitable
contribution deduction allowed for the property and is not subject to
the percentage limitation provided by IRC Section 170. However, in
accordance with KRS 141.010(11) and (13)(d), the same item may not
be deducted more than once.