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North Dakota Free Printable Schedule ND-1CS 2021 - Calculation Of Tax On Proceeds From Sale Of Income Tax Credit for 2024 North Dakota Calculation of Tax on Proceeds from Sale of Income Tax Credit

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Calculation of Tax on Proceeds from Sale of Income Tax Credit
Schedule ND-1CS 2021 - Calculation Of Tax On Proceeds From Sale Of Income Tax Credit

CALCULATION OF TAX ON PROCEEDS FROM SALE OF INCOME TAX CREDIT Schedule ND-1CS OFFICE OF STATE TAX COMMISSIONER 2021 SFN 28746 (12-2021) Attach to Form ND-1 Your Name (First, MI, Last Name) Your Social Security Number Before completing this schedule, complete Form ND-1, lines 1 through 18. If using either Schedule ND-1FA or Schedule ND-1NR, see "How to complete this form" in instructions. 1. North Dakota taxable income - Enter the amount from Form ND-1, line 18. However, if using (C1) 1 Schedule ND-1FA, enter the amount from line 3 of that schedule. If less than zero, enter 0. 2. Gross proceeds - Enter the gross proceeds from the sale of the credit (C2) 2 3. Were the gross proceeds (on line 2) included in federal taxable income? (C3) 3 4. If line 3 is Yes, enter the amount from line 1. If line 3 is No, add lines 1 and 2 and enter the result on this line, and then enter -0- on line 7c and go to line 8 (C4) 4 5. Were the gross proceeds (on line 2) reported as a long-term capital gain on the federal return? Yes No (C5) 5 Yes No (C6) 6 Yes No If line 5 is Yes, go to line 6. If line 5 is No, enter -0- on line 7c, and go to line 8. 6. Was a long-term capital gain exclusion claimed on Form ND-1, line 7? If line 6 is Yes, go to line 7a. If line 6 is No, enter -0- on line 7c, and go to line 8. 7. a. Enter the amount from Form ND-1, line 7 b. Multiply line 2 by 40% (.40) 7a 7b (C7) 7c c. Enter smaller of line 7a or 7b 8. Add lines 4 and 7c 9. Subtract line 2 from line 8. If less than zero, enter -0- 8 9 10. Tax on North Dakota taxable income without proceeds If using Schedule ND-1FA, see the instructions. Otherwise, figure the tax on the amount on line 9 using the 2021 Tax (C10) 10 Table in the instructions for Form ND-1 11. Enter larger of line 2 or line 8 11 12. Tax on North Dakota taxable income with proceeds - If using Schedule ND-1FA, see the instructions. Otherwise, figure the tax on the amount on line 11 using the 2021 Tax (C12) 12 Table in the Form ND-1 instructions Full-year resident - If the taxpayer (and taxpayer's spouse, if filing jointly) are full-year residents, skip lines 13 through 18, and go to line 19. Full-year nonresident or part-year resident - If the taxpayer (or taxpayer's spouse, if filing jointly) is filing as a full-year nonresident or part-year resident, go to line 13. 13. a. If Line 3 is Yes, enter amount from Schedule ND-1NR, line 18; otherwise, skip lines 13 and 14, and go to line 15 13a b. Subtract line 2 from line 13a 14. a. Enter amount from Schedule ND-1NR, line 19 (C13) 13b 14a b. Subtract line 2 from line 14a 15. If required to complete lines 13 and 14, divide line 13b by line 14b (round to nearest four decimal places); otherwise, enter the ratio from Schedule ND-1NR, line 20 16. Multiply line 10 by line 15 17. Subtract line 10 from line 12 18. Add lines 16 and 17 19. Tax - If the taxpayer (and taxpayer's spouse, if filing jointly) are full-year residents, enter amount from line 12. If the taxpayer (or taxpayer's spouse, if filing jointly) is a full-year nonresident or part-year resident, enter amount from line 18. Enter the amount from this line on Form ND-1, line 19. (C14) 14b (C15) 15 16 (C17) 17 18 (C19) 19 2021 Schedule ND-1CS SFN 28746 (12-2021), Page 2 Purpose of form If an individual sells an unused research and experimental expenditure tax credit (under N.D.C.C. § 57-38-30.5) to another taxpayer for value, the gross proceeds from the sale are assignable to North Dakota and are subject to North Dakota income tax. No part of the proceeds may be apportioned or allocated outside North Dakota, and the gross proceeds may not be reduced by any loss or deduction allowed for North Dakota income tax purposes. This schedule must be used to calculate the individual's income tax for the tax year. Note: There are conditions and procedures that must be satisfied before the credit may be transferred to another taxpayer. For more information, see Form CTS, Credit Transfer Statement, which can be obtained at www.nd.gov/tax. Who must complete An individual must complete this schedule if either (or both) of the following apply: • The individual sold an unused research and experimental expenditure tax credit to another taxpayer for value. Note: The individual (seller) and the buyer were required to jointly file Form CTS with the Office of State Tax Commissioner at the time of the sale. • The individual held an interest in a passthrough entity that sold a research and experimental expenditure tax credit to another taxpayer for value. A "passthrough entity" means a partnership, S corporation, or a limited liability company treated like a partnership or S corporation. "Partnership" includes all forms of partnerships, such as a limited partnership, limited liability limited partnership, etc. Note: The passthrough entity (seller) and the buyer were required to jointly file Form CTS with the Office of State Tax Commissioner at the time of the sale. In addition, the passthrough entity (seller) was required to provide a specially-prescribed notice to each of its owners showing the owner's share of the total gross proceeds and instructing the owner how to report the proceeds on the owner's North Dakota income tax return. See Form CTS for more information. How to complete this form Before completing this schedule: 1. Complete Form ND-1, lines 1 through line 18. 2. If Schedule ND-1FA (3-year averaging for farm income) is going to be used to calculate the tax for the tax year, complete that schedule first. Information from Schedule ND-1FA will be needed to complete Schedule ND-1CS. Do not enter the tax calculated on Schedule ND-1FA on Form ND-1 or Schedule ND-1NR. 3. If the individual (or the individual's spouse, if filing jointly) was a nonresident of North Dakota for part or all of the tax year, complete Schedule ND-1NR. Information from that schedule will be needed to complete Schedule ND-1CS. Do not enter the tax calculated on Schedule ND-1NR on Form ND-1. Credit transfer statement. If the individual completing Schedule ND-1CS is the taxpayer who sold the credit, have on hand a copy of the Form CTS, Credit Transfer Statement, that was required to be filed with the Office of State Tax Commissioner at the time of the sale. It shows the amount of the gross proceeds received from the buyer. Passthrough entity member notice. If the individual completing Schedule ND-1CS is doing so because the individual owned an interest in a passthrough entity that sold the credit, have on hand a copy of the Passthrough Entity Member Notice that the passthrough entity was required to provide to each of its owners at the time of the sale. It shows the owner's share of the gross proceeds. Specific line instrucitons Line 2 - Gross proceeds Enter the amount of gross proceeds from Form CTS, Credit Transfer Statement, or from the Passthrough Entity Member Notice, whichever is applicable. Line 3 - Inclusion of proceeds in federal taxable income In general, the transfer of a state income tax credit for value is a taxable sale of property and the gross proceeds are includable in gross income for federal income tax purposes - see Tempel, George H., 136 TC No. 15 (2011) and IRS Chief Counsel Advice (CCA) 201147024. Fill in the applicable circle to indicate whether or not the gross proceeds (on line 2) were included in federal taxable income. Line 4 - North Dakota taxable income with proceeds The entire gross proceeds from the sale of the credit are assignable to, and taxable by, North Dakota. If the gross proceeds (on line 2) were included in federal taxable income, enter the North Dakota taxable income amount from line 1 on line 4. If the gross proceeds were not included in federal taxable income, add the gross proceeds (on line 2) to the North Dakota taxable income (on line 1) and enter the result on line 4. Lines 5 through 7 - Long-term capital gain exclusion adjustment The gross proceeds from the sale of the credit may not be reduced by any loss or deduction allowed for North Dakota income tax purposes. If the gross proceeds (on line 2) were reported as a long-term capital gain for federal income tax purposes and a long-term capital gain exclusion was claimed on Form ND-1, line 7, the portion of the exclusion amount attributable to the gross proceeds must be added back into North Dakota taxable income. Complete lines 5 through 7 to calculate the amount of the exclusion that must be added back. If this does not apply, enter zero on line 7c and go to line 8. Line 10 - Tax on North Dakota taxable income without proceeds If Schedule ND-1FA is going to be used to compute the tax for the year, and if the gross proceeds (on Schedule ND-1CS, line 2) were included in federal taxable income, the tax on Schedule ND-1FA must be recomputed by completing a second Schedule ND-1FA. Write "Recomputation of tax for Schedule ND-1CS, line 10" at the top of the second Schedule ND-1FA. Complete the second Schedule ND-1FA using the same figures from the original Schedule ND‑1FA except that the amount on Schedule ND-1CS, line 9, must be entered as the starting figure on line 1 of the second Schedule ND‑1FA. Enter the recomputed tax from line 23 of the second Schedule ND-1FA on Schedule ND‑1CS, line 10. If the gross proceeds (on Schedule ND‑1CS, line 2) were not included in federal taxable income, enter the amount from Schedule ND-1FA, line 23, on this line. Line 12 - Tax on North Dakota taxable income with proceeds If Schedule ND-1FA is going to be used to compute the tax for the year, and if the gross proceeds (on Schedule ND‑1CS, line 2) were included in federal taxable income, enter the amount from Schedule ND‑1FA, line 23, on this line. 2021 Schedule ND-1CS SFN 28746 (12-2021), Page 3 If the gross proceeds (on Schedule ND-1CS, line 2) were not included in federal taxable income, the tax on Schedule ND-1FA must be recomputed by completing a second Schedule ND‑1FA. Write "Recomputation of tax for Schedule ND‑1CS, line 12" at the top of the second Schedule ND-1FA. Complete the second Schedule ND-1FA using the same figures from the original Schedule ND-1FA except that the amount on Schedule ND-1CS, line 11, must be entered as the starting figure on line 1 of the second Schedule ND‑1FA. Enter the recomputed tax from line 23 of the second Schedule ND‑1FA on Schedule ND‑1CS, line 12. If the taxpayer (and the taxpayer's spouse, if filing jointly) are filing as full-year residents, enter the amount from Schedule ND-1CS, line 12, on Schedule ND‑1CS, line 19. Do not complete lines 13 through 18 of Schedule ND-1CS. If the taxpayer (or the taxpayer's spouse, if filing jointly) is filing as a full-year nonresident or a part-year resident, complete lines 13 through 18. Lines 13 and 14 - North Dakota income ratio If the answer to the question on line 3 is Yes, lines 13 and 14 must be completed to recompute the North Dakota income ratio on Schedule ND‑1NR. If the answer to the question on line 3 is No, skip lines 13 and 14, and enter the North Dakota income ratio from Schedule ND-1NR, line 20, on Schedule ND-1CS, line 15.
Extracted from PDF file 2021-north-dakota-schedule-nd-1cs.pdf, last modified May 2021

More about the North Dakota Schedule ND-1CS Individual Income Tax Tax Credit

We last updated the Calculation of Tax on Proceeds from Sale of Income Tax Credit in February 2022, and the latest form we have available is for tax year 2021. This means that we don't yet have the updated form for the current tax year. Please check this page regularly, as we will post the updated form as soon as it is released by the North Dakota Office of State Tax Commissioner. You can print other North Dakota tax forms here.

Related North Dakota Individual Income Tax Forms:

TaxFormFinder has an additional 44 North Dakota income tax forms that you may need, plus all federal income tax forms. These related forms may also be needed with the North Dakota Schedule ND-1CS.

Form Code Form Name
Schedule ND-1NR Nonresident and Part-Year Resident Schedule
Schedule ND-1PSC Nonprofit Private School Tax Credits for Individuals
Schedule ND-1CR Credit for Income Tax Paid to Another State
Schedule ND-1TC Tax Credits
Schedule ND1-PG Planned Gift Tax Credit
Schedule ND-1FA 3-Year Averaging Method for Elected Farm Income
Schedule ND-1FC Family Member Care Credit
Schedule ND-1PG Planned Gift Tax Credit
Schedule ND-1QEC Qualified Endowment Fund Tax Credit
Schedule ND-1S [OBSOLETE] Allocation of Income by Same-Sex Individuals Filing A Joint Federal Return

Download all ND tax forms View all 45 North Dakota Income Tax Forms


Form Sources:

North Dakota usually releases forms for the current tax year between January and April. We last updated North Dakota Schedule ND-1CS from the Office of State Tax Commissioner in February 2022.

Show Sources >

Schedule ND-1CS is a North Dakota Individual Income Tax form. States often have dozens of even hundreds of various tax credits, which, unlike deductions, provide a dollar-for-dollar reduction of tax liability. Some common tax credits apply to many taxpayers, while others only apply to extremely specific situations. In most cases, you will have to provide evidence to show that you are eligible for the tax credit, and calculate the amount of the credit to which you are entitled.

About the Individual Income Tax

The IRS and most states collect a personal income tax, which is paid throughout the year via tax withholding or estimated income tax payments.

Most taxpayers are required to file a yearly income tax return in April to both the Internal Revenue Service and their state's revenue department, which will result in either a tax refund of excess withheld income or a tax payment if the withholding does not cover the taxpayer's entire liability. Every taxpayer's situation is different - please consult a CPA or licensed tax preparer to ensure that you are filing the correct tax forms!

Historical Past-Year Versions of North Dakota Schedule ND-1CS

We have a total of nine past-year versions of Schedule ND-1CS in the TaxFormFinder archives, including for the previous tax year. Download past year versions of this tax form as PDFs here:


2021 Schedule ND-1CS

Schedule ND-1CS 2021 - Calculation Of Tax On Proceeds From Sale Of Income Tax Credit

2020 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit

2019 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit

2018 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds From Sale of Income Tax Credit

2017 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds From Sale of Income Tax Credit

2016 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds From Sale of Income Tax Credit

2015 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds From Sale of Income Tax Credit

Schedule ND-1 CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit 2013 Schedule ND-1CS

Schedule ND-1 CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit

Schedule ND-1CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit 2012 Schedule ND-1CS

Schedule ND-1CS - Calculation of Tax on Proceeds from Sale of Income Tax Credit


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