Schedule L-C: Limited Liability Entity Tax- Continuation Sheet (2024)
Kentucky · Kentucky DOR · Used for tax years 2024
Kentucky Schedule L-C is a continuation sheet for calculating gross receipts and gross profits for the Limited Liability Entity Tax (LLET). It combines the filing entity’s amounts with amounts reported on Kentucky Schedules K-1 from pass-through entities it owns and is attached t
Who files this form
A corporation that is a partner or member of a limited liability pass-through entity or a general partnership must include its proportionate share of sales when calculating its limited liability entity tax (LLET). This rule extends through each level of multiple-tiered pass-through entities.
Schedule L-C reports information for the corporation or limited liability pass-through entity filing the return, along with information from pass-through entities it owns. Submit it with the applicable return: Form 720, 720U, PTE, or 725.
What you'll need
- The applicable tax return: Form 720, 720U, PTE, or 725.
- Kentucky Schedules K-1 received from pass-through entities the taxpayer owns.
- The filing entity’s name, federal identification number (FEIN), and Kentucky Corporation/LLET account number, plus those details for each entity that provided a Kentucky Schedule K-1.
- Kentucky and total gross receipts information, including the adjustments requested on the schedule.
- Schedule COGS if the company computes its LLET based on gross profits. It must be attached to the applicable tax return.
How to file
Attach Schedule L-C to Form 720, 720U, PTE, or 725. The supplied text does not give a mailing address or e-filing directions.
- Use Column A for the corporation or limited liability pass-through entity filing the return.
- Use Column B for information received from owned pass-through entities on Kentucky Schedules K-1.
- Add Columns A and B for Section A, lines 2 and 5, and Section B, lines 1 and 3.
- For Forms 720, PTE, or 725, carry those totals to the matching sections and lines on Schedule L.
- For unitary filers, carry the totals to Form 720U, Schedule U8, Section A, lines 2 and 5, and Section B, lines 1 and 3, in the respective column.
Common mistakes
- Leaving out required attachments. Schedule L-C must accompany the applicable tax return. Schedule COGS must also be attached if the company computes LLET based on gross profits.
- Claiming costs for ineligible activities. The instructions prohibit claiming costs for activities other than manufacturing, producing, reselling, retailing, or wholesaling.
- Using pass-through-only reductions for a corporation. Section A, Column A, lines 1(b) and 3(b), apply only to pass-through entities for amounts allocable to a qualified exempt organization. They do not apply to corporations.
Questions people ask
What counts as gross receipts?
Gross receipts include, but are not limited to, sales, rent, proceeds from sales of real and tangible personal property, interest, and dividends.
Which Kentucky Schedule K-1 amounts go in Column B?
For Section A, use Schedule K-1, Section B, line 1 for Kentucky gross receipts and line 3 for Kentucky gross profits. For Section B, use Schedule K-1, Section B, line 2 for total gross receipts and line 4 for total gross profits.
Where do the Column A cost-of-goods-sold amounts come from?
For Section A, line 3(a), use Schedule COGS, Column A, line 8. For Section B, line 2, use Schedule COGS, Column B, line 8.
How are gross profits calculated in Column A?
In Section A, subtract adjusted cost of goods sold on line 4 from adjusted gross receipts on line 2. In Section B, subtract cost of goods sold on line 2 from adjusted gross receipts on line 1.