North Dakota Partner's Share of ND Income, Deductions, Adjustments, Credits

Partner's Share of ND Income, Deductions, Adjustments, Credits
Schedule K-1 (Form 58) (2023)
SCHEDULE K-1 (FORM 58)

OFFICE OF STATE TAX COMMISSIONER

2023

SFN 28722 (12-2023)
Final

Amended

Partnership's tax year:
Calendar year 2023 (Jan. 1 - Dec. 31, 2023)

12. Employer internship program credit

Fiscal year: Beginning _________, 2023, Ending _________, 20____

Partner's Share of North Dakota Income (Loss),
Deductions, Adjustments, Credits, and Other Items
See separate instructions

Part 1

13. Research expense credit
14. a. Endowment fund credit (Schedule QEC)
b. Contribution amount (Schedule QEC)
c. Endowment fund credit (ND Schedule K-1)

Partnership information

d. Contribution amount (ND Schedule K-1)

A Partnership's federal EIN

15. Workforce recruitment credit
B Partnership's name, address, city, state, and ZIP code

16. Wages paid to mobilized employee credit
17. Nonprofit private primary school credit
18. Nonprofit private high school credit

Part 2

19. Nonprofit private college credit

Partner information

20. Angel investor credit (for investments
made after June 30, 2017)

C Partner's SSN or FEIN (from Federal Schedule K-1)

21. Automation credit

D Partner's name, address, city, state, and ZIP code
(from Federal Schedule K-1)

22. Develop. disabled/mentally ill employee credit
23. Maternity home, child placing agency, or
pregnancy help center credit
24. Apprentice tax credit

E What type of entity is this partner? ________________________________
F If partner is an individual, estate, or trust, partner is a:
Full-year resident of North Dakota
Full-year nonresident of North Dakota

Part-year +
resident
of North Dakota

G Is this an eligible nonresident partner who elected
to be included in a composite filing?
H Partner's share of profit and loss:
(from Federal Schedule K-1)

Yes

No

Ending

Profit

%

%

Loss

%

%

All partners: ND adjustments and tax credits

1. Income from non-ND bonds and securities
2. State and local income taxes deducted

25. Partnership's apportionment factor
26. Ordinary income (loss)
27. Net rental real estate income (loss)
28. Other net rental income (loss)

Beginning

I Partner's ownership percentage: ____________%

Part 3

Nonresident individual, estate, or trust
Part 4 partner: North Dakota income

29. Total guaranteed payments
30. Interest income
31. Ordinary dividends
32. Royalties
33. Net short-term capital gain (loss)
34. Net long-term capital gain
35. Net section 1231 gain (loss)

3. Interest from U.S. obligations

36. Other income

4. Renaissance zone income exemption

37. Section 179 deduction

5. New or expanding business income exemption

38. Other deductions

6. Gain from eminent domain sale
7. Renaissance
a. Historic property preservation credit
b. Renaissance fund organization credit
c. Nonparticipating property owner credit
8. Seed capital investment credit
9. Agricultural commodity processing facility
investment credit

39. I.R.C. § 179 property disposition gain (loss)

Part 5

Nonresident partner and tax-exempt
organization partner

40. ND distributive share of income (loss)
41. North Dakota income tax withheld
42. North Dakota composite income tax

Part 6 Partnership or corporation partner
Property

10. Biodiesel/green diesel fuel blending credit

43. ND

11. Biodiesel/green diesel fuel sales equipment credit

44. Total

Payroll

Sales

2023 Schedule K-1 Instructions for Partner
SFN 28722 (12-2023), Page 2

Purpose of form

North Dakota Schedule K-1 (Form 58) is
a supplemental schedule provided by a
partnership to its partners. It provides
information the partners may need to
complete their North Dakota income tax
returns.
Resident individual, estate, and
trust. If you are a North Dakota resident
individual, estate, or trust, your entire
distributive share of income from the
partnership is subject to North Dakota
income tax. You received this schedule
only to show your distributive share of
the partnership’s North Dakota statutory
adjustments and tax credits (see Part 3).
Nonresident individual, estate, or
trust. If you are a nonresident individual,
estate, or trust, you are subject to North
Dakota income tax on your distributive
share of the partnership’s income that is
apportioned and allocated to North Dakota.
You received this schedule to show your
distributive share of North Dakota income,
gains, losses, and deductions (see Part 4);
North Dakota statutory adjustments and
tax credits (see Part 3); and North Dakota
income tax withheld or paid on your North
Dakota distributive share of income (see
Part 5).
Business entity. If you are a business
entity, such as a partnership, corporation,
or limited liability company, see the
instructions to the applicable North
Dakota income tax return for filing and
payment requirements. You received
this schedule to show your distributive
share of the partnership’s North Dakota
statutory adjustments and tax credits
(see Part 3) and your distributive share
of the partnership’s property, payroll, and
sales apportionment factors (see Part 6).
If you are a passthrough entity, such as
a partnership or S corporation, and your
commercial domicile is located outside
North Dakota, the schedule will also show
your North Dakota distributive share of
income and any North Dakota income tax
withheld or paid on it (see Part 5).
Tax-exempt organization. If you are
a tax-exempt organization, you received
this schedule to show your North Dakota
distributive share of income, which is
subject to North Dakota income tax if it is
subject to federal income tax (see Part 5).
It also shows your distributive share of
North Dakota statutory adjustments and
tax credits, which may apply if you have
income subject to North Dakota income tax
(see Part 3).

General instructions

The instructions for Parts 3 through 6 of
this schedule show where to report the
information from Schedule K-1 (Form 58)
on your North Dakota income tax return.
Tax year. References to a North Dakota
form and line number contained in these
instructions are references to the form in
use for the 2023 calendar year. However,
if you file your return on a calendar year
basis, but the partnership files its return
on a fiscal year basis, report the amounts
on your return for the year in which the
partnership’s fiscal year ends. For example,
if the partnership has a fiscal year ending
in February 2024, report the amounts from
the 2023 Schedule K-1 (Form 58) on your
2024 tax return. The partnership’s tax year
is shown at the top of the schedule.
Composite filing election. If you elected
to include your North Dakota distributive
share of income in a composite filing by the
partnership, the information provided on
the schedule is only for your information.
Retain the schedule for your tax records.
The composite income tax paid by the
partnership satisfies your North Dakota
income tax filing and payment obligations
with respect to your North Dakota
distributive share of income from the
partnership. If you later choose to revoke
your composite filing election and file your
own North Dakota income tax return,
follow the instructions to Parts 3 through 6
to transfer the amounts from the schedule
to your return.
Amended Schedule K-1 (Form 58).
If you receive an amended North Dakota
Schedule K-1 from the partnership, you
generally must file an amended North
Dakota income tax return to report the
revised information. Attach a copy of the
amended Schedule K-1 to your amended
North Dakota income tax return. If you
previously elected to be included in a
composite filing, and you are not changing
that election, no action is required and you
should retain the amended Schedule K-1
for your tax records.

Specific instructions
Part 3

All partners–North Dakota
adjustments and tax credits
The following lists show where to enter
an amount from Part 3 of Schedule K-1
(Form 58) on the North Dakota income tax
return. Use the list corresponding to your
return. “Not applicable” in the right-hand
column means that the item does not apply
and must not be entered on your return.

Lines 1-24

Form ND-1 filer:
Include the amount
from this schedule:
	 Lines 1-2	
	 Line 3	
	 Line 4	
	 Line 5	
	 Line 6	
	 Line 7a	
	 Line 7b	
	 Line 7c	
	 Line 8	
	 Line 9	
	 Line 10	
	 Line 11	
	 Line 12	
	 Line 13	
	 Line 14a	
	 Line 14b	
		
	 Line 14c	
	 Line 14d	
		
	 Line 15	
	 Line 16	
	Line 17	
	 Line 18	
	 Line 19	
	 Line 20	
	 Line 21	
	 Line 22	
	 Line 23	
	 Line 24	

On:	

Not applicable
Form ND-1, line 5
Sch. RZ, Part 1, line 18
Form ND-1SA, line 5
Not applicable
Sch. RZ, Part 4, line 7
Sch. RZ, Part 5, line 4
Sch. RZ, Part 6, line 6
Sch. ND-1TC, line 4
Sch. ND-1TC, line 3
Sch. ND-1TC, line 6
Sch. ND-1TC, line 7
Sch. ND-1TC, line 8a
Sch. ND-1TC, line 9a
Sch. ND-1TC, line 15b
See instructions to
Form ND-1, line 2
Sch. ND-1TC, line 15b
See instructions to
Form ND-1, line 2
Sch. ND-1TC, line 11a
Sch. ND-1TC, line 13
Sch. ND-1PSC, line 4
Sch. ND-1PSC, line 13
Sch. ND-1PSC, line 22
Sch. ND-1TC, line 21
Sch. ND-1TC, line 17a
Sch. ND-1TC, line 22
Sch. ND-1TC, line 24
Sch. ND-1TC, line 25a

Form 38 filer:
Include the amount
from this schedule:
	 Lines 1-2	
	 Line 3	
		
	 Line 4	
	 Line 5	
		
	 Line 6	
	 Line 7a	
	 Line 7b	
	 Line 7c	
	 Line 8	
	 Line 9	
	 Line 10	
	 Line 11	
	 Line 12	
	 Line 13	
	 Line 14a	
	 Line 14b	
		
	 Line 14c	
	 Line 14d	
		
	 Line 15	
	 Line 16	
	 Line 17	
	 Line 18	
	 Line 19	
	 Line 20	
	 Line 21	
	 Line 22	
	 Line 23	
	 Line 24	

On:

Not applicable
Form 38, page 2,
Part 1, line 4a
Sch. RZ, Part 1, line 18
Form 38, page 2,
Part 1, line 4d
Not applicable
Sch. RZ, Part 4, line 7
Sch. RZ, Part 5, line 4
Sch. RZ, Part 6, line 6
Sch. 38-TC, line 3
Sch. 38-TC, line 2
Sch. 38-TC, line 4
Sch. 38-TC, line 5
Sch. 38-TC, line 6a
Sch. 38-TC, line 7a
Sch. 38-TC, line 12c
Form 38, page 2,
Part 1, line 2
Sch. 38-TC, line 12c
Form 38, page 2,
Part 1, line 2
Sch. 38-TC, line 9a
Sch. 38-TC, line 11
Sch. 38-TC, line 15
Sch. 38-TC, line 16
Sch. 38-TC, line 17
Not applicable
Sch. 38-TC, line 14a
Sch. 38-TC, line 18
Sch. 38-TC, line 19
Sch. 38-TC, line 20a

2023 Schedule K-1 Instructions for Partner
SFN 28722 (12-2023), Page 3
Form 40 filer:

Form 58 filer:

Include the amount
from this schedule

Include the amount
from this schedule: 	

	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line
Line

1	
2	
3	
4	
5	
6	
7a	
7b	
7c	
8	
9	
10	
11	
12	
13	
14a	
14b	
14c	
14d	
15	
16	
17	
18	
19	
20	
21	
22	
23	
24	

On:

Sch. SA, line 4
Sch. SA, line 3
Sch. SA, line 10
Sch. RZ, Part 1, line 18
Form 40, page 1, line 9
Sch. SA, line 15
Sch. RZ, Part 4, line 7
Sch. RZ, Part 5, line 4
Sch. RZ, Part 6, line 6
Sch. TC, line 11
Sch. TC, line 14
Sch. TC, line 12
Sch. TC, line 13
Sch. TC, line 16
Sch. TC, line 6
Sch. TC, line 15
Sch. SA, line 5
Sch. TC, line 15
Sch. SA, line 5
Sch. TC, line 18
Sch. TC, line 19
Sch. TC, line 3
Sch. TC, line 2
Sch. TC, line 1
Not applicable
Sch. TC, line 22
Sch. TC, line 5
Sch. TC, line 21
Sch. TC, line 24

Form 60 filer:
Include the amount
from this schedule:	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	
	

Lines 1-2	
Line 3	
Line 4	
Line 5	
Line 6	
Line 7a	
Line 7b	
Line 7c	
Line 8	
Line 9	
Line 10	
Line 11	
Line 12	
Line 13	
Line 14a	
Line 14b	
Line 14c	
Line 14d	
Line 15	
Line 16	
Line 17	
Line 18	
Line 19	
Line 20	
Line 21	
Line 22	
Line 23	
Line 24	

On:

Not applicable
Sch. K, line 1
Sch. RZ, Part 1,
Sch. K, line 3
Not applicable
Sch. RZ, Part 4,
Sch. RZ, Part 5,
Sch. RZ, Part 6,
Sch. K, line 5
Sch. K, line 6
Sch. K, line 7
Sch. K, line 8
Sch. K, line 9a
Sch. K, line 10
Sch. K, line 11c
Sch. K, line 11d
Sch. K, line 11c
Sch. K, line 11d
Sch. K, line 12a
Sch. K, line 13
Sch. K, line 14
Sch. K, line 15
Sch. K, line 16
Not applicable
Sch. K, line 18
Sch. K, line 19
Sch. K, line 20
Sch. K, line 21

line 18
line 7
line 4
line 6

	 Lines 1-19	
		
	 Line 20	
	 Lines 21-24	
		

Part 5
On:

Corresponding lines
of Sch. K, lines 1-19
Not applicable
Corresponding lines
of Sch. K, lines 21-24

Part 4

Nonresident individual, estate,
or trust partners only– North
Dakota income (loss)
Line 25

The apportionment factor is used to
determine the North Dakota apportioned
income.

Lines 26-39

If you are a nonresident individual, estate,
or trust, lines 26 through 39 of Part 4
show your share of the partnership’s
North Dakota income, gains, losses, and
deductions that you must report on your
North Dakota income tax return. Transfer
these amounts to your North Dakota
income tax return as instructed below
based on the type of return you are filing.
If the full amount of any item is not
included in your adjusted gross income
on your federal income tax return
because of limitations on the deductibility
of a passive activity loss, capital loss,
section 179 deduction, or for any other
reason, enter on your North Dakota return
only that portion of the item included
in your federal adjusted gross income.
Attach a statement to your North
Dakota income tax return explaining
any difference between an amount
shown on North Dakota Schedule K-1
(Form 58) and the amount reported on
your North Dakota income tax return.

Form ND-1 filer (nonresident only):
Include the	
amount from	
this schedule	

On
Schedule ND‑1NR,
Column B:

	
	
	
	
	
	
	

Line
Line
Line
Line
Line
Line
Line

Lines 26-29	
Lines 30-31	
Line 32	
Lines 33-35	
Line 36	
Lines 37-38	
Line 39	

6
2
6
4
8
6
4

Form 38 filer (nonresident only):
Include the	
amount from	
this schedule	
	 Lines 26-29	
	 Line 30	
	 Line 31	
	 Line 32	
	 Lines 33-34	
	 Line 35	
	 Line 36	
	 Lines 37-38	
	 Line 39	

On Tax Computation
Schedule, Part 2,
Column B:
Line 5
Line 1
Line 2
Line 5
Line 4
Line 4 or 7
Line 8
Line 5
Line 4 or 7

Nonresident partner or taxexempt organization partner
only
Line 40

This is the net amount of your North
Dakota distributive share of income (loss)
from the partnership. Do not enter the
amount from this line anywhere on your
return. It is for your information only.
Tax-exempt organization only. If part
or all of your distributive share of income
from the partnership is taxable under
federal income tax law, the North Dakota
portion of that taxable income is taxable
under North Dakota income tax law. If
this applies, you must file a North Dakota
income tax return (using Form 40) to
report the income and pay any tax due on
it.

Line 41

This is the amount of North Dakota income
tax withheld by the partnership from your
North Dakota distributive share of income.
Enter this amount on your return as
follows:
		If an individual, enter on Form ND-1,
line 26.
		 If a trust, enter on Form 38, page 1,
line 8.
		 If a partnership, enter on Form 58,
page 1, line 4.
		 If an S corporation, enter on Form 60,
page 1, line 5.
Attach a copy of North Dakota
Schedule K-1 (Form 58) to your
return.

Line 42

If you elected to include your North Dakota
distributive share of income (loss) in a
composite filing, this is the amount of
North Dakota composite income tax paid
on your behalf by the partnership. For
more information, see “Composite filing
election” on page 1 of these instructions.
Note: If you later choose to file your own
North Dakota income tax return, you may
claim this amount as a tax payment on
your return. Attach a copy of the North
Dakota Schedule K-1 (Form 58) to your
return to support the amount claimed.

Part 6

Partnership or corporation
partner only
If you are a partnership, corporation, or
other entity treated like a partnership or
corporation, the factor information shown
in Part 6, lines 43 and 44, will affect
the preparation of your North Dakota
income tax return if you are required to
complete Schedule FACT (or Schedule CR,
Part II, in the case of certain corporations
filing Form 40). See the instructions to
Schedule FACT of your return for more
information on where to include the factor
information from this schedule.