K-LOA: FORM K-LOA/ Loan-Out Affidavit/Allocation (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Form K-LOA is a Loan-Out Affidavit/Allocation used to support wages claimed on the Kentucky Entertainment Incentive Detailed Cost Report. It reports production, loan-out company and individual information, wages paid, Kentucky service dates and Kentucky withholding tax r
Who files this form
For 2024, production companies claiming wages paid to personal service or loan-out companies on the Kentucky Entertainment Incentive Detailed Cost Report must file Form K-LOA with their Kentucky income tax return for the credit.
A separate affidavit is required for each personal service or loan-out company included on the Detailed Cost Report.
What you'll need
Gather the following information and records to complete the affidavit:
- Production company name, mailing address, FEIN, production name, and Kentucky production start and end dates. Use the dates certified on Exhibits C and D submitted to the Kentucky Cabinet for Economic Development.
- Loan-out company name, FEIN, business and mailing addresses, Kentucky work dates, and authorized representative's name, title, telephone number, and email.
- Each individual's name, SSN, residential and mailing addresses, and Kentucky work dates. Attach additional sheets if the loan-out company provides more than one individual.
- Total wages paid for the production everywhere, qualified Kentucky wages, Kentucky withholding tax remitted, service dates, and withholding payment dates.
- Invoices for payments made to loan-out companies. Production companies must provide these invoices.
The affidavit requires original signatures from an authorized production company representative, an authorized loan-out company representative, and the individual.
The loan-out company and individual should retain a signed copy for their records and attach it to their Kentucky income tax returns as required.
How to file
Complete a separate affidavit for each loan-out company and file it with the production company's Kentucky income tax return for the credit.
- Complete the general information section.
- Have the loan-out company's authorized representative complete and sign the loan-out company section.
- Have the individual complete and sign the individual section.
- Have the production company complete the payments section. The affidavit must also have an authorized production company representative's original signature.
The form lists these submission contacts:
Mail:
Kentucky Department of Revenue
Tax Credits Section
P.O. Box 181, Station 52
Frankfort, KY 40602-0181
Fax: (502) 564-0058
Email: KRC.WEBResponseEconomicDevelopmentCredits@ky.gov
Common mistakes
- Submitting an incomplete or unsigned affidavit. Failure to complete and submit a fully signed affidavit results in disallowance of the credit related to that loan-out company. Original signatures from all three required parties are necessary for acceptance.
- Leaving the registration boxes unfilled. The form says that if either registration box is not filled in, the company will be required to register with the Kentucky Secretary of State and Department of Revenue.
- Failing to keep a signed copy. The loan-out company and individual should retain copies and attach them to their Kentucky income tax returns as required.
- Omitting payment invoices. Production companies must provide invoices for payments to loan-out companies.
- Issuing Form 1099-NEC to the wrong recipient. The production company does not issue a 1099-NEC to the loan-out company. The loan-out company issues it to the individual working on the production.
Questions people ask
Which production dates should I enter?
For the Kentucky Production Start Date, use the first date production began or pre-production costs were incurred in Kentucky, as certified on Exhibit C. For the end date, use the date the production company finished incurring Kentucky production costs, as certified on Exhibit D.
What is the difference between lines 1 and 2?
Line 1 reports total wages paid to the loan-out company for the production everywhere. Line 2 reports qualified wages paid to that company for the production in Kentucky.
What if the loan-out company provides more than one individual?
Attach additional sheets for the individual information.
Does the individual need to file a Kentucky income tax return?
Yes. The form says the individual must file a Kentucky income tax return using the 1099-NEC issued by the loan-out company.