R-6950: Schedule AB - Louisiana Corporation Income Tax Add-Back Form (Revision 2022-01)
Louisiana · Louisiana LDR · Used for tax years 2024
Louisiana Schedule AB (Form R-6950) reports interest expenses, intangible expenses, and management fees from transactions with related members, along with amounts exempt from add-back. The completed schedule is attached to Form CIFT-620.
Who files this form
Corporations that incur otherwise deductible interest expenses and costs, intangible expenses and costs, or management fees from direct or indirect transactions with related members must complete Schedule AB.
Use the schedule to report these expenses and any exceptions to the add-back requirement. Attach it to Form CIFT-620 and report the totals on that return as instructed.
What you'll need
Have the following information ready:
- Your LDR Account ID and filing period.
- Each recipient related member’s name and Federal Employer Identification Number (FEIN).
- Interest, intangible, and management fee expense amounts for each related member.
- Amounts qualifying for any claimed exemption.
- For the “subject to tax” exemption, the relevant taxing jurisdictions and income allocation, apportionment, or other sourcing information.
Use additional Schedule AB pages if needed. Attach a separate sheet listing taxing jurisdictions if the space on Line 8a is not enough. The completed schedule must accompany Form CIFT-620.
How to file
- Print or type your information. Report each recipient related member in a separate column, using additional pages as needed.
- Enter expenses on Lines 2 through 4 and total them on Line 5. Complete the applicable exemption lines.
- Add all Line 5 amounts from all pages. Enter the total on Page 1, Line 10, and Form CIFT-620, Schedule F, Line 2b.
- Add all Line 9 amounts from all pages. Enter the total on Page 1, Line 11, and Form CIFT-620, Schedule F, Line 3g.
- Complete the signature block and attach Schedule AB to Form CIFT-620.
To claim the Line 6 exemption, an informed authorized representative must sign the certification that avoiding Louisiana tax was not a principal purpose of the transactions.
The supplied text does not provide a mailing address or e-file instructions.
Common mistakes
- Not rounding amounts: Round all dollar amounts to the nearest dollar.
- Counting an exemption twice: Line 7 must not include amounts already included on Line 6.
- Listing excluded jurisdictions: On Line 8a, do not include consolidated or combined return jurisdictions where intercompany expenses are eliminated or offset.
- Missing totals from additional pages: Lines 10 and 11 on Page 1 must include amounts for all related members from all pages.
- Reporting too large an exemption: Line 11 cannot be greater than Line 10.
- Missing the Line 6 certification: An informed authorized representative must sign to qualify for that exemption.
Questions people ask
What is a recipient related member?
It is a related member with which the taxpayer incurred interest, intangible, or management fee expenses and that has corresponding income from those expenses.
What exceptions to the add-back requirement are available?
The text provides exceptions for qualifying income subject to net income tax, transactions whose principal purpose was not avoiding Louisiana tax, and amounts the related member paid, accrued, or incurred directly or indirectly to an unrelated person during the same taxable year.
Can income be “subject to tax” even if no tax was actually paid?
Yes. Income attributed to a jurisdiction with a net income tax can qualify even if deductions or other reasons mean no actual tax was paid on it. Income not attributed to a taxing jurisdiction through allocation, apportionment, or another sourcing method does not qualify as “subject to tax.”
What if I need more space for related members?
Attach additional pages. Combine the Line 5 and Line 9 amounts from all pages on Page 1, Lines 10 and 11, respectively.