R-6981: Louisiana Statement of Owner's Share of Entity Level Tax Items (2026)
Louisiana · Louisiana LDR · Used for tax years 2026
Louisiana Form R-6981 reports an owner’s share of income, deductions, and other tax items from a pass-through entity that made the pass-through entity tax election. It separates amounts taxed at the entity level from amounts taxable to the owner.
Who files this form
An entity that made the pass-through entity tax election must complete Form R-6981 for each shareholder, member, or partner who is an individual, estate, or trust for the tax year.
The entity must attach each owner's form to Form CIT-620 and give the owner a copy. The owner must attach the copy to Form IT-540, IT-540B, or IT-541.
What you'll need
To complete Form R-6981, the entity needs:
- The owner's federal Schedule K-1.
- Form CIT-620, including Schedule F and the amounts allocated or apportioned to Louisiana and outside Louisiana.
- The entity's legal name, LDR account number, and income taxable period.
- The owner's name and the last four digits of the owner's Social Security number or LDR account number, as requested on the form.
Owners need their copy of Form R-6981 to attach to Form IT-540, IT-540B, or IT-541.
If the Department determines that R-6981 does not accurately show income taxable in Louisiana, it may request a pro forma federal Form 1040 or 1041, or a pro forma IT-540B NPR Worksheet for a nonresident.
How to file
For the entity: Complete a separate R-6981 for each covered owner, attach each form to Form CIT-620, and provide a copy to each owner.
For the owner: Attach your R-6981 to your Form IT-540, IT-540B, or IT-541.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Including Louisiana income tax paid by the entity in the exclusion. The instructions say the pass-through entity exclusion includes only income amounts, not Louisiana income tax paid at the entity level.
- Deducting an amount again after the entity deducted it. The instructions specifically prohibit including the amounts shown in Part II again in the listed owner deductions for depletion, disaster-services compensation, and COVID-19 relief benefits.
- Repeating certain charitable-donation add-backs. For the school tuition organization and qualified foster care charitable organization credits, the IT-541 add-back should not include amounts already added back at the entity level.
- Claiming a COVID-19 relief deduction for an estate or trust. The instructions state that there is no corresponding Louisiana deduction for estates and trusts.
Questions people ask
What does Form R-6981 show?
It shows the owner's share of income and deductions reported on federal Schedule K-1, amounts taxed at the entity level, and income or loss taxable at the owner's level.
Who prepares my copy?
The entity that made the pass-through entity tax election prepares the form and must provide you with a copy.
Are dividends and interest taxed to the owner?
Yes. The instructions state that dividend and interest income are not taxed at the entity level and are taxable to the owner.
What does the total in the owner's taxable-income column mean?
The total in the “Income (Loss) Taxable at the Owner’s Level” column is the amount that does not qualify for the exclusion and is taxable to the owner.