reglab/statecodes huggingface dataset:
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1130 - Computation of Net Allocable Income from Louisiana Sources

Current through Register Vol. 50, No. 6, June 20, 2024
A. Allocation of Items of Income and Loss.
				R.S.
				47:287.93 provides that items of gross
				allocable income or loss shall be allocated directly to the state or states
				within which such items of income are earned or derived. The statute attributes
				every item of gross allocable income to a location and does not allow for any
				unallocated items of income. The principles embodied in the statute and this
				regulation are that items of allocable income from the use of tangible assets
				are allocated to the location of the tangible asset at the time of the use;
				income from the use of intangible assets is allocated to the business situs of
				the intangible asset, or in the absence of a business situs, to the commercial
				domicile of the corporation; and items of allocable income from services are
				allocated to the location at which the service was performed.
1. Rents and Royalties from Immovable or
				Corporeal Movable Property
a. Rents and
				royalties from immovable or corporeal movable property shall be allocated to
				the state where such property is located at the time the income is
				derived.
b. Rents or royalties from
				incorporeal immovables, such as mineral interests, are allocated to the state
				in which the property subject to the interest is located.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1132 - Computation of Net Apportionable Income from Louisiana Sources

Current through Register Vol. 50, No. 6, June 20, 2024
A. General
1. From the total gross apportionable income
				there shall be deducted all expenses, losses and other deductions except
				federal income taxes, allowable under this Chapter, which are directly
				attributable to such income, and there also shall be deducted a ratable portion
				of allowable deductions, except federal income taxes, which are not directly
				attributable to any item or class of gross income. Direct and indirect expenses
				attributed to total allocable income derived from foreign sources, for federal
				purposes, are not deductible in arriving at total net apportionable income.
				Expenses sourced pursuant to federal law and regulations to allocable income
				from foreign sources are presumed to be attributed to such income.
2.R.S.
				47:287.94 provides two methods for computing
				the amount of net apportionable income from Louisiana sources, viz., the
				apportionment method and the separate accounting method. The apportionment
				method must be used unless it produces a manifestly unfair result and the
				conditions prescribed by
				R.S.
				47:287.94 are met. Where the apportionment
				method is utilized, the apportionment percentage must be applied to the total
				apportionable net income without exception. For rules pertaining to the
				determination of the apportionment percentage refer to §1134
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1135 - Sourcing of Sales other than Sales of Tangible Personal Property

Current through Register Vol. 50, No. 6, June 20, 2024
A. General.
				R.S.
				47:287.95(L) provides for
				the inclusion in the numerator of the sales factor of sales other than sales of
				tangible personal property.
B.
				Market-Based Sourcing. Sales other than sales of tangible personal property are
				sourced to Louisiana if and to the extent that the taxpayers market for the
				sales is in Louisiana. In general, the provisions in this section establish
				rules for:
1. determining whether and to what
				extent the market for a sale other than the sale of tangible personal property
				is in Louisiana,
2. reasonably
				approximating the state or states of assignment where the state or states
				cannot be determined,
3. excluding
				certain sales of intangible property from the numerator and denominator of the
				receipts factor pursuant to
				R.S.
				47:287.95(L)(1)(e),
				and
4. excluding sales from the
				numerator and denominator of the sales factor, pursuant to
				R.S.
				47:287.95(M), where the
				state or states of assignment cannot be determined or reasonably approximated,
				or where the taxpayer is not taxable in the state to which the sales are
				assigned.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1136 - Exclusion of Certain Sales of Tangible Personal Property from the Sales Factor

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				General sourcing rule for sales of tangible personal property. Generally, for
				purposes of determining a taxpayers Louisiana Apportionment Percent, sales of
				tangible personal property are sourced to the location where the tangible
				personal property is ultimately received by the purchaser.
B. Exclusion. Pursuant to
				R.S.
				47:287.95(M), sales,
				including sales of tangible personal property, shall be excluded from both the
				numerator and the denominator of the sales factor if either of the following
				conditions apply:
1. the taxpayer is not
				taxable in a state to which a sale is assigned; or
2. the state of assignment cannot be
				determined or reasonably approximated pursuant to
				R.S.
				47:287.95 and the regulations
				thereunder.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1137 - Exceptions to Taxable Year of Inclusion; Taxable Year Deductions Taken

Current through Register Vol. 50, No. 6, June 20, 2024
A. Improperly
				Reported Item of Income.
				R.S.
				47:287.442(A) does not
				relieve a taxpayer of the responsibility of filing a true and correct return
				and immediately correcting any errors which are discovered after the return is
				filed. If an error is discovered, it is the obligation of the taxpayer to file
				promptly an amended return reflecting the correct tax liability. The purpose of
				R.S.
				47:287.442(A), so far as it
				deals with improperly reported items of income, is to preclude a taxpayer's
				being required to pay again on an item of income which has borne tax in full
				previously, even though for a period in which it was not properly reportable.
				An item of income will be deemed to have previously borne tax in full if the
				item, when multiplied by the lowest tax rate applicable to the taxpayer,
				results in a tax not less than the amount of tax actually paid on the return.
				If the item has not previously borne tax in full,
				R.S.
				47:287.442(A) is not
				applicable to that portion of the item which has not previously borne tax. That
				portion, which shall be the difference between the item of income and the
				taxable balance of net income, shall be reported as income during the year it
				was properly reportable.
B.
				Example: The ABC Corporation, by mistake, reported on its 1982 income tax
				return an item of accrued interest in the amount of $5,000 which was properly
				reportable in 1983. It paid the Louisiana income tax shown to be due on the
				return. The company never discovered its error. In 1987, the secretary
				discovers the error. The return for 1982 shows the following.
Accrued interest
$
5,000
Income from operations
20,000
Total income
$
25,000
Less total authorized deductions
$
21,000
Taxable income
$
4,000
Tax per return
$
160
Computation to determine if item has borne tax in
							 full:
Amount improperly reported
$
5,000
Tax at lowest rate of taxpayer
$
200
Tax paid
160
Amount of tax unpaid
$
40
Computation of portion of item to be reported in
							 1983:
Improperly reported item
$
5,000
Taxable balance of net income in 1982
4,000
Portion of item to be reported
$
1,000
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  47:287.442.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1140 - Exemption from Tax on Corporations

Current through Register Vol. 50, No. 6, June 20, 2024
A. Generally, organizations meeting the
				qualifications included under I.R.C. Sections 501 are exempt from federal and
				Louisiana income tax liability.
B.
				However, organizations meeting the qualifications under I.R.C. Sections 501 are
				not exempt from taxation on unrelated business taxable income or income not
				included under I.R.C. Sections 401(a) for federal income tax purposes. Since
				unrelated business taxable income is not exempt from federal income tax, it is
				not exempt from Louisiana income tax. The Department of Revenue will begin
				enforcing this requirement of
				R.S.
				47:287.501 for all taxable periods beginning
				on and after January 1, 2008.
C.
				Exceptions
1. Mutual savings banks, national
				banking corporations, building and loan associations, and savings and loan
				associations are wholly exempt from the tax imposed by this Chapter regardless
				of where they are organized.
2.
				Banking corporations, regardless of where they are organized, which are
				required by other laws of this state to pay a tax for their shareholders, or
				whose shareholders are required to pay a tax on their shares of stock are also
				wholly exempt. Banking corporations, other than those described above, are not
				exempt from the corporation income tax.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1147 - Notice of Regulation, Requiring Records, Statements and Special Returns

Current through Register Vol. 50, No. 6, June 20, 2024
A. Every
				corporation subject to the provisions of Part II.A of Chapter 1 shall, for the
				purpose of enabling the secretary to determine the correct amount of income
				subject to tax, keep such permanent books of account or records, including
				inventories, as are sufficient to establish the amount of gross income and the
				deductions, credits, and other information required to be shown in any return.
				Such books or records required by this Section shall be available at all times
				for inspection by the secretary, and shall be retained so long as the contents
				thereof may be material in the administration of the income tax law. The
				secretary may at any time require the taxpayer to submit statements of net
				worth as of the beginning and end of the taxable year.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.47:287.601.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1148 - Corporation Returns

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				General Rules. Every corporation deriving income from Louisiana sources shall
				file a return on forms secured from the secretary or by electronically filing a
				return, unless expressly exempt from the tax. The first return and the last
				return of a corporation are returns for a full year and not for a fractional
				part of a year. A corporation does not go out of existence by virtue of being
				managed by a receiver or trustee who continues to operate it.
B. Liquidation. Upon liquidation or
				dissolution of a corporation there shall be attached to the final return a
				statement showing:
1. an outline of the plan
				under which the corporation was dissolved;
2. the date the dissolution was formally
				commenced;
3. the date the
				dissolution was completed;
4. the
				name and address of each shareholder at dissolution and the number and par
				value of the shares of stock held by each;
5. a description of assets conveyed to each
				shareholder, creditor, or other person, showing book value, fair market value,
				and location, as well as the name and address of each such person;
6. the consideration paid by each person for
				the assets received; and
7. whether
				the plan is intended to qualify under one of the sections of the Internal
				Revenue Code relating to nonrecognition in whole or in part of gain by a
				shareholder, and, if so, the section involved.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1175 - Definition of Separate Corporation Basis

Current through Register Vol. 50, No. 6, June 20, 2024
A. Louisiana Revised Statute 47:287.733
				provides that corporations that are included with affiliates in a consolidated
				federal income tax return must file their Louisiana corporation income tax on a
				separate corporation basis. For Louisiana income tax purposes, filing a return
				on a separate corporation basis means filing a return as if the affiliate
				either elects not to be part of the consolidated group or is not included in a
				federal consolidated return.
AUTHORITY NOTE:
				  Promulgated in accordance with
				  R.S.
				  47:287.733,
				  R.S.
				  47:287.785, and
				  R.S.
				  47:1511.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1189 - Situs of Stock Canceled or Redeemed in Liquidation

Current through Register Vol. 50, No. 6, June 20, 2024
A. General Rule.
				R.S.
				47:287.747 provides that the situs of stock
				canceled or redeemed in the liquidation of a corporation, whether domestic or
				foreign, shall be in Louisiana in the same ratio that property located in
				Louisiana, and received by a shareholder, bears to the total property received
				in the liquidation.
Property
as used in
				R.S.
				47:287.747 means all the assets of the
				liquidating corporation without regard to liabilities. For the purpose of
				determining the situs of the stock canceled or redeemed in liquidation, the
				fair market value of the property distributed in liquidation shall be used. The
				location of the property of the corporation shall be determined in accordance
				with the provisions of
				R.S.
				47:287.93.
B. Example: X, shareholder, owns 10 percent
				of the shares of ABC, Inc., a foreign corporation. The basis of X's shares is
				$1,000. On July 1, 1986, ABC Inc., liquidates and exchanges the following
				property for its outstanding stock, which it cancels.
Total Assets (Fair Market Value)
Louisiana
Assets (Fair Market
							 Value)
Cash
$
10,000
$
2,000
Accounts receivable
50,000
8,000
Buildings
60,000
30,000
Land
60,000
10,000
Stocks
20,000
0
$
200,000
$
50,000
1. Since 1/4 of
				the assets distributed in liquidation are located in Louisiana, 1/4 of X's
				stock has its situs in Louisiana.
2. Gain is computed as follows.
Fair market value of property received
$
20,000
Basis of property received
1,000
Gain
$
19,000
Louisiana taxable gain (1/4 of $19,000)
$
4,750
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 11 - Corporation Income Tax › Section I-1195 - Health Insurance Credit for Contractors of Public Works

Current through Register Vol. 50, No. 6, June 20, 2024
A. Louisiana
				Revised Statutes 47:287.759 allows for a tax credit against corporation income
				tax to contractors and subcontractors constructing a public work who offer
				health insurance to their employees and their dependents.
1. The amount of the credit is 2 percent of
				the total amount of the contract for the public work less any amounts paid to a
				subcontractor for a portion of the work performed by the
				subcontractor.
2. The total tax
				credit for all taxpayers is limited to $3 million per calendar year.
3. At least 85 percent of the full-time
				employees must be offered health insurance. Contractors and subcontractors must
				pay 75 percent of the total premium for the health insurance of employees who
				choose to participate and at least 50 percent for each participating dependent
				of such employees.
4. Employees do
				not include independent contractors.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1301 - Requirements for Submitting Claims for Offset of Individual Income Tax Refunds against Debts Owed Certain State Agencies

Current through Register Vol. 50, No. 6, June 20, 2024
A. The responsible official for each claimant
				agency will provide to the secretary of revenue and taxation a certified
				listing of all offset claims. The listing of offset claims must be made in
				writing or on magnetic tapes in a format specified by the secretary of revenue
				and taxation which will permit a written listing to be generated.
B. The responsible official must also furnish
				certification in writing that the debts for which the offset claims are made
				are legally collectible, liquidated sums due and owing the claimant agency or
				due and owing a person and collectible by the claimant agency. The
				certification must include the name and address of the claimant agency and the
				manner in which each offset claim arose.
C. For each offset claim, the agency must
				include the following information:
1. the
				name of the individual;
2. the
				amount of offset claimed;
3. the
				Social Security number of the debtor;
4. the most current address available to the
				claimant;
5. any additional
				information requested by the secretary which will facilitate identification and
				processing of the offset claim.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1302 - Nonresident Net Operating Losses

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				Nonresident individuals may carry back or carry over Louisiana net operating
				losses. Louisiana net operating losses may be carried and used in the same
				manner that would be allowed for federal purposes if the nonresident
				individual's federal returns consisted of only the Louisiana items of income
				and loss.
B. Application
1. The years to which Louisiana net operating
				losses may be carried are the same as they are for federal personal income tax
				purposes.
2. Net operating loss
				carrybacks and carryovers are considered an adjustment to Louisiana income and
				must be applied against total Louisiana income before applying any
				deductions.
3. When a net operating
				loss carryback or carryover is used a schedule must be attached to the return
				in which it is used for each carryback or carryover showing:
a. the taxable year in which each loss that
				is being carried back or carried over occurred; and
b . the amount of each loss applied to each
				taxable year to which it was carried over or carried back.
4. A separate schedule showing how each
				Louisiana net operating loss was determined may also be required.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1303 - Application of the Louisiana Individual Income Tax to Native Americans

Current through Register Vol. 50, No. 6, June 20, 2024
A. The income of an
				enrolled member of a federally recognized Indian tribe residing on that tribe'
				reservation that is derived from sources on that reservation shall be exempted
				from Louisiana individual income tax. The determination of the sources of gross
				allocable income shall be consistent with
				R.S.
				47:243.
B. The income of an enrolled member of a
				federally recognized Indian tribe residing on that tribe's reservation that is
				derived from sources outside of that reservation is taxable for Louisiana
				individual income tax purposes. This includes income derived from sources
				outside of the state.
C. The income
				of an enrolled member of a federally recognized Indian tribe residing in
				Louisiana off of that tribe's reservation is taxable for Louisiana individual
				income tax purposes regardless of source.
D. If an enrolled member of a federally
				recognized Indian tribe resides on that tribe's reservation for a portion of
				the year and resides off of that tribe's reservation for a portion of the year
				such enrolled member shall be taxed based upon where such enrolled member
				resided when the income in question was earned.
E Compensation from military sources paid to an enrolled
				  member of a federally recognized Indian tribe shall be exempted from Louisiana
				  individual income tax if:
1. such
				enrolled member was residing on that tribe's reservation at the time of
				entering the armed forces of the United States; and
2. such enrolled member has not elected to
				abandon his or her residence on that tribe's reservation.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1304 - Nonresident Apportionment of Compensation from Personal Services Rendered in Louisiana

Current through Register Vol. 50, No. 6, June 20, 2024
A. For
				purposes of this Section, nonresident means any individual not domiciled,
				residing in, or having a permanent place of abode in Louisiana.
B. Nonresidents are taxed on all income from
				sources within Louisiana. Income from sources within Louisiana includes
				compensation for personal services rendered within Louisiana.
C. The purpose of this rule is to apportion
				to Louisiana, in a fair and equitable manner, a nonresident's total
				compensation for personal services performed in the state. It is presumed that
				application of the provisions of this rule will result in a fair and equitable
				apportionment of that compensation.
1. When
				the department demonstrates that the method provided under this rule does not
				fairly and equitably apportion that compensation, the department may require
				the nonresident service provider to apportion that compensation under an
				alternative method the department prescribes, as long as the prescribed method
				results in a fair and equitable apportionment.
2. If a nonresident service provider
				demonstrates that the method provided under this rule does not fairly and
				equitably apportion compensation, the nonresident may submit a proposal for an
				alternative method to apportion compensation. If approved, the proposed method
				must be fully documented and explained in the nonresident service provider's
				nonresident personal income tax return for the state.
3. Nonresident service providers shall keep
				adequate records to substantiate their determination or to permit a
				determination by the department of the part of their adjusted gross income that
				was derived from or connected with sources in this state.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1305 - Income Tax Schedule Requirement for Certain Nonresident Professional Athletes and Professional Sports Franchises

Current through Register Vol. 50, No. 6, June 20, 2024
A. If the Louisiana income tax of a
				nonresident professional athlete or professional sports franchise is
				attributable to the Sports Facility Assistance Fund, created by
				R.S.
				39:100.1, the following schedule must be
				attached to any income tax return filed, including individual, corporate,
				fiduciary, or trust income tax returns. Each nonresident professional athlete
				and professional sports franchise with Louisiana source income must attach a
				schedule to the required Louisiana income tax return that includes the
				following information:
1. the name of each
				facility, course, stadium, or arena at which they earned income in
				Louisiana;
2. the location of each
				facility, course, stadium, or arena at which they earned income in Louisiana;
				and
3. the number of duty days, as
				defined in LAC 61:I.1304.I, spent at each facility, course, stadium, or arena
				at which they earned income in Louisiana.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1306 - Offset of Individual Income Tax Refunds against Debts Owed Certain Persons

Current through Register Vol. 50, No. 6, June 20, 2024
A. The
				claimant must submit a written offset claim with a certified copy of the
				judgment that makes past-due payments under a child-support award executory.
				The claim must be submitted before participation in the program and by December
				1 each year thereafter. After the first year of participation, a copy of the
				claim and judgment can be submitted if the information requested in Subsection
				B has not changed.
B. For each
				offset claim, the claimant must provide the following information:
1. the name of the debtor;
2. the amount of offset claimed;
3. the Social Security number of the
				debtor;
4. the most current address
				of the debtor available to the claimant; and
5. any additional information requested that
				will facilitate identification of the debtor and processing of the offset
				claim.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1307 - Federal Income Tax Deduction (Repealed)

Current through Register Vol. 50, No. 6, June 20, 2024
AUTHORITY NOTE:
				  Adopted in accordance with 47:293(3),
				  R.S.
				  47:297(B),
				  R.S.
				  47:295, and
				  R.S.
				  47:1511.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1311 - Annual Retirement Income Exemption for Individuals 65 or Older

Current through Register Vol. 50, No. 6, June 20, 2024
A. Louisiana
				Revised Statutes 47:44.1 provides an exemption of up to $6,000 for annual
				retirement income received by an individual who is 65 years of age or older.
				Only the individual who actually received the annual retirement income is
				entitled to the exemption.
Annual Retirement Income
-pension and annuity
				  income which is included in tax table income.
Tax Table Income
-as defined in R. S.
				  47:293.
B. For purposes of determining
				the total annual retirement income exemption that can be claimed on a Louisiana
				individual income tax return, an individual receives annual retirement income
				as follows.
1. Receipt of Benefits Paid from
				a Pension Plan. Except as otherwise provided herein, only the plan participant
				receives annual retirement income from the pension plan, the non-participant
				spouse does not receive annual retirement income from the plan.
2. Receipt of Annuity Income. Only the named
				payee or named annuitant receives annual retirement income from an
				annuity.
3. Receipt of Income from
				an Individual Retirement Account. Only the named payee or distribute receives
				annual retirement income from an individual retirement account.
4. Exceptions
a. If there is a qualified domestic relations
				order, as defined in Internal Revenue Code Section 414(p), payments received by
				the alternate payee will be considered annual retirement benefits received by
				an individual.
b. Survivor benefits
				paid from a pension plan to the plan participant's surviving spouse will be
				considered annual retirement benefits received by an individual.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1312 - Net Capital Gains Deduction

Current through Register Vol. 50, No. 6, June 20, 2024
A. General.
				R.S.
				47:293(9)(a)(xvii) and (10)
				provide a deduction for resident individuals and nonresident individuals
				("taxpayers"), respectively, for net capital gains resulting from the sale or
				exchange of an equity interest in, or from the sale or exchange of
				substantially all of the assets of a non-publicly traded corporation,
				partnership, limited liability company, or other business organization
				("business") commercially domiciled in Louisiana.
B. Definitions
Capital Gains from the Sale or Exchange of the Assets
				  of a Business
-capital gains from sales and exchanges that are reported
				  on Federal Form 4797-Sales of Business Property, the gains from which are
				  reportable on Schedule D of Federal Form 1040.
Commercial Domicile
-the principle place from
				  which the business is directed or managed.
Equity Interest
-an ownership interest in a
				  business entity that is not publicly traded, such as stock in a corporation, a
				  partnership interest in a partnership, or a membership interest in a limited
				  liability company.
Net Capital Gains
-the amount reported as
				  capital gains on the Federal Form 1040.
Related Party
-
a. a taxpayer and all entities which are
				controlled entities with respect to such taxpayer;
b. a taxpayer and any trust in which such
				taxpayer (or his spouse) is a beneficiary, unless such beneficiary's interest
				in the trust is five percent or less of the value of the trust property;
				and
c. except in the case of a sale
				or exchange in satisfaction of a pecuniary bequest, a taxpayer who is an
				executor of an estate and a beneficiary of such estate.
Sale or Exchange of an Equity Interest
-a
				  sale or exchange of an equity interest that is reportable on Schedule D of
				  Federal Form 1040-Capital Gains and Losses.
Sale or Exchange of Substantially All of the Assets
				  of a Business
-a sale or exchange of assets that leaves the entity
				  unable to carry-on its business. A sale or exchange of assets is presumed to be
				  a sale or exchange of substantially all of the assets of the business if the
				  selling business transfers at least 90 percent of the fair market value of the
				  net assets and at least 70 percent of the fair market value of the gross assets
				  that it held immediately before the transfer.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1351 - Suspension, Revocation, and Denial of Hunting and Fishing Licenses

Current through Register Vol. 50, No. 6, June 20, 2024
A. An individual's
				hunting and fishing licenses will be suspended, revoked, or denied if the
				Department of Revenue has a final and nonappealable individual income tax
				assessment or judgment against the individual in excess of $500 exclusive of
				penalty, interest, costs, and other charges.
B. Exceptions
1. If the taxpayer has filed for bankruptcy,
				then the provisions of this regulation will not apply.
2. An assessment or judgment will not be
				considered final and nonappealable for purposes of this regulation if, for the
				applicable tax period:
a. the taxpayer is in
				litigation with the department;
b.
				the taxpayer is being audited by the department; or
c. correspondence is pending.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1355 - Suspension and Denial of Renewal of Drivers' Licenses

Current through Register Vol. 50, No. 6, June 20, 2024
A. An individual's driver's license will be
				suspended and the renewal denied if the Department of Revenue has a final and
				nonappealable individual income tax assessment or judgment against the
				individual in excess of $1,000 exclusive of penalty, interest, costs, and other
				charges.
B. Exceptions
1. If the taxpayer has filed for bankruptcy,
				then the provisions of this regulation will not apply.
2. An assessment or judgment will not be
				considered final and nonappealable for purposes of this regulation if, for the
				applicable tax period:
a. the taxpayer is in
				litigation with the department;
b.
				the taxpayer is being audited by the department; or
c. correspondence is pending.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 13 - Income: Individual › Section I-1357 - Income Exemption for Digital Nomads

Current through Register Vol. 50, No. 6, June 20, 2024
A. General Description
1. The Digital Nomads Exemption provides a
				state individual income tax exemption for digital nomads, as defined by
				R.S.
				47:297.18, equal to 50 percent of their gross
				wages, limited to $150,000, for a period of up to two taxable years during
				taxable years 2022, 2023, 2024, and 2025.
2. The exemption applies only to gross wages
				received for remote work performed as a digital nomad in Louisiana.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 14 - Income: Partnerships › Section I-1401 - Partnership Composite Return Requirement, Composite Payment Requirement, Exceptions

Current through Register Vol. 50, No. 6, June 20, 2024
A.
				Definitions. For the purpose of this rule, the following terms are
				defined.
Corporation
-an entity that is treated as a
				  corporation for state income tax purposes as set forth in
				  R.S.
				  47:287.11(A).
Engaging in Activities in this State
-having
				  payroll, sales, or tangible property in this state, or intangible property with
				  a Louisiana business situs.
Individual Return
-a Louisiana personal
				  income tax return or a Louisiana fiduciary income tax return.
Nonresident
-any person not domiciled,
				  residing in, or having a permanent place of abode in Louisiana.
Partner
-a member or
partner
of an association that is treated as a partnership for state income tax
				  purposes, including but not limited to, a member in a limited liability company
				  or a
partner
in a general partnership, a partnership in
				  commendam, or a registered limited liability partnership. A
partner
is the ultimate owner of a partnership interest;
				  therefore someone holding or managing a partnership interest on behalf of
				  another, such as a broker, is not a
partner
for purposes of
				  this rule.
Partnership
-any association that is treated
				  as a
partnership
for state income tax purposes including, but
				  not limited to, a general
partnership
, partnership in
				  commendam, a registered limited liability
partnership
, or a
				  limited liability company. Because of
				  R.S.
				  47:287.11(A), the above
				  listed business associations that do not elect to be taxed as corporations for
				  federal income tax purposes are treated as
partnerships
for
				  Louisiana income tax purposes.
B.
				Persons to be included in a Composite Return
1. Partnerships engaging in activities in
				this state that have nonresident partners are required to file a composite
				partnership return unless:
a. all nonresident
				partners are corporations, partnerships or tax exempt trusts; or
b. all nonresident partners, other than
				corporations, partnerships and tax exempt trusts, have a valid agreement on
				file with the Department of Revenue in which the partner has agreed to file an
				individual return and pay income tax on all income derived from or attributable
				to sources in this state.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 14 - Income: Partnerships › Section I-1402 - Partnership Filing Requirements

Current through Register Vol. 50, No. 6, June 20, 2024
A. General
				Requirement
1. Unless otherwise provided, all
				partnerships doing business or deriving Louisiana sourced income are required
				to file an informational partnership return of income with the Department of
				Revenue.
2. Partnerships subject to
				the filing requirement are required to file Form IT-565,
Partnership
				Return of Income
, and include all required schedules and
				attachments.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1501 - Income Tax Withholding Tables

Current through Register Vol. 50, No. 6, June 20, 2024
A. Employers required to deduct and withhold taxes pursuant to R.S. 47:112 shall deduct and withhold tax in an amount determined in accordance with the tables provided in Subsection C, the formulas provided in Subsection D, or a formula that produces equivalent amounts.
B. Wage Bracket Tables and Instructions
1. Select the set of tables that corresponds to the payroll period of the employee.
2. With the use of the information obtained from Form R-1300(L-4),
Employee's Withholding Exemption Certificate
, determine which column of the tables to use.
a. If your employee claims neither himself, his spouse, nor any dependency credits, use the first column in the table designated 0 exemptions, 0 dependents.
b. If your employee claims only himself, whether he is married or not, use Column 1. Also, use the appropriate subcolumn for the number of dependency credits he is claiming.
c. If your employee claims himself and his spouse, use Column 2. Also, use the appropriate subcolumn for the number of dependency credits he is claiming.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1505 - Electronic Systems for Withholding Exemption Certificates

Current through Register Vol. 50, No. 6, June 20, 2024
A. Electronic Form
				L-4 or L-4E in general. An employer may establish a system for its employees to
				file withholding exemption certificates electronically.
B. Requirements for Electronic Form L-4 or
				L-4E
1. In General. The electronic system
				must ensure that the information received is the information sent, and must
				document all occasions of employee access that result in the filing of a Form
				L-4 or L-4E. In addition, the design and operation of the electronic system,
				including access procedures, must make it reasonably certain that the person
				accessing the system and filing the Form L-4 or L-4E is the employee identified
				in the form.
2. Same Information as
				Paper Form L-4 or L-4E. The electronic filing must provide the employer with
				exactly the same information as the paper Form L-4 or L-4E.
3. Perjury Statement and Signature
				Requirements. The electronic filing must be signed by the employee under
				penalties of perjury.
a. Perjury Statement.
				The perjury statement must contain the language that appears on the paper Form
				L-4 or L-4E. The electronic program must inform the employee that he or she
				must make the declaration contained in the perjury statement and that the
				declaration is made by signing the Form L-4 or L-4E. The instructions and the
				language of the perjury statement must immediately follow the employee's income
				tax withholding selections and immediately precede the employee' electronic
				signature.
b. Electronic Signature.
				For purposes of this provision, the electronic signature must identify the
				employee filing the electronic Form L-4 or L-4E and authenticate and verify the
				filing. For purposes of this provision, the terms
authenticate
and
verify
have the same meanings as they do under federal
				provisions concerning Form W-4. An electronic signature may be in any form that
				satisfies the foregoing requirements. The electronic signature must be the
				final entry in the employee's Form L-4 or L-4E submission.
4. Copies of Electronic Form L-4 or L-4E.
				Whenever a Form L-4 or L-4E is requested by the Department of Revenue, or
				required to be submitted to the Department of Revenue, the employer must supply
				a hardcopy of the electronic Form L-4 or L-4E and a statement that, to the best
				of the employer's knowledge, the electronic Form L-4 or L-4E was filed by the
				named employee. The hardcopy of the electronic Form L-4 or L-4E must provide
				exactly the same information as, but need not be a facsimile of, the paper Form
				L-4 or L-4E.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1510 - Requirements for Substitute Form W-2, Copy 2, Furnished to Payees

Current through Register Vol. 50, No. 6, June 20, 2024
A. All payers
				(employers) must furnish payees (employees) with at least three copies of the
				Form W-2. This regulation pertains to Copy 2, to be filed with the employee's
				state income tax return. Any privately printed substitute Form W-2, Copy 2,
				must conform to the specifications of this rule in order to be acceptable to
				the Louisiana Department of Revenue and Taxation.
B. Definitions. For the purpose of this rule,
				the following terms are defined.
Copy 2
- the state copy of the employee wage
				  and tax statement or Form L-2.
Substitute Form W-2
- any form not printed
				  and provided by the Internal Revenue Service (IRS).
C. Specific Requirements-Form W-2, Copy 2
1. Form Size and Layout
a. The length should be at least 3 1/2 inches
				but not more than 6 1/2 inches.
b.
				The width should be at least 5 1/2 inches but not more than 8 1/2
				inches.
c. The use of either a
				horizontal or a vertical format is permitted.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1515 - Withholding Tax Statements and Returns-Electronic Filing Requirements

Current through Register Vol. 50, No. 6, June 20, 2024
A. Employers that
				are required to electronically remit withholding tax pursuant to
				R.S.
				47:1519(B) and LAC
				61:I.4910.A, shall file a separate L-1 return electronically on a quarterly
				basis, effective for the periods beginning after December 31, 2011.
B. Employers are required to file a
				transmittal of withholding tax statements, Form L-3, with copies of the
				employee withholding statements, Form W-2s and any information returns such as
				Federal Form 1099.
1. The L-3 transmittal and
				employee withholding statements must be filed on or before the first business
				day following January 31 for the preceding calendar year.
2. If a business terminates during the year,
				the L-3 transmittal and employee withholding statements must be filed within 30
				days after the last month in which the wages were paid.
3. If the due date falls on a weekend or
				holiday, the report is due the next business day and becomes delinquent the
				following day.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1516 - Payment

Current through Register Vol. 50, No. 6, June 20, 2024
A. All employers or
				persons who deduct and withhold any amount from any wage pursuant to
				R.S.
				47:114 shall remit payment on a quarterly
				basis.
B. The due dates for
				quarterly payments are:
1. first quarter -
				April 30;
2. second quarter - July
				31;
3. third quarter - October
				31;
4. fourth quarter - January
				31.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1520 - Withholding by Professional Athletic Teams

Current through Register Vol. 50, No. 6, June 20, 2024
A. Definitions
Nonresident
-any person not domiciled,
				  residing in, or having a permanent place of abode in Louisiana.
Professional Athletic Team
-a member team of
				  a professional sports association or league.
Team Member
-shall include those employees of
				  a professional athletic team who are active players, players on the disabled
				  list, and any other persons required to travel and who travels with and perform
				  services on behalf of a professional athletic team on a regular basis. This
				  definition includes, but is not limited to, coaches, managers, and
				  trainers.
B. Withholding
				Requirement for Nonresident Team Members
1.
				Professional Athletic Teams Not Domiciled in Louisiana
a. Any professional athletic team that is not
				domiciled in Louisiana and that pays compensation to a nonresident individual
				for services rendered to the team within Louisiana shall be deemed to be an
				employer making payment of wages and shall be required to withhold Louisiana
				individual income tax from that portion of the compensation for services
				rendered to the team attributable to duty days spent in Louisiana, as defined
				in LAC 61:I.1304.I, for each game played in Louisiana.
b. This Section does not alter the
				professional athletic team's withholding requirements for team members who are
				residents of Louisiana. The withholding for these team members must be as
				provided for in
				R.S.
				47:111.
Louisiana Administrative Code › Title 61 - REVENUE AND TAXATION › Part I - Taxes Collected and Administered by the Secretary of Revenue › Chapter 15 - Income: Withholding Tax › Section I-1525 - Income Tax Withholding on Gaming Winnings

Current through Register Vol. 50, No. 6, June 20, 2024
A. Withholding Requirement for Gaming
				Winnings
1. Any person that pays gaming
				winnings won in Louisiana is required to withhold individual income taxes at
				the highest rate provided for by
				R.S.
				47:32(A) if income taxes are
				required to be withheld for the Internal Revenue Service under
				26 USC
				3402 on the same winnings.
2. Additionally following current Department
				of Revenue practice, casinos that pay slot machine winnings in excess of $1,200
				shall issue an IRS Form W2-G and withhold at the highest rate provided for by
				R.S.
				47:32(A) of the slot machine
				winnings regardless of the Internal Revenue Code withholding on such slot
				machine winnings.
3. Any person
				that pays sports wagering and fantasy sports contest winnings won in Louisiana
				is required to withhold individual income taxes at the highest rate provided
				for by
				R.S.
				47:32(A) if income taxes are
				required to be withheld for the Internal Revenue Service under
				26 USC
				3402 on the same winnings.