North Carolina Administrative Code › Title 17 - REVENUE › Chapter 06 - INDIVIDUAL INCOME TAX › Subchapter B › Section .3500 - PARTNERSHIPS › Section 06B .3503 - PARTNERSHIP RETURNS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) When Required -- A North Carolina partnership
											  return, Form D-403, shall be filed by every partnership doing business in North Carolina if a federal
											  partnership return was required to be filed. The partnership return shall be filed on or before April 15 if
											  on a calendar year basis, or on or before the 15th day of the fourth month following the end of the fiscal
											  year if on a fiscal year basis. The term "doing business in North Carolina" has the same meaning as in
											  17 NCAC 05C
											  .0102. Income from an intangible source, including gain realized from the sale of
											  intangible property received in the course of "doing business in North Carolina" so as to have a taxable
											  situs here (including income in the distributive share of partnership income, whether distributed or not)
											  shall be included in the numerator of the fraction used in determining the portion of adjusted gross income
											  that is taxable to North Carolina by a nonresident. The return shall include the names and addresses of the
											  persons entitled to share in the net income of the partnership and shall be signed by one of the partners and
											  the individual preparing the return.
(b) Schedule NC K-1 -- A
											  partnership shall provide a completed Schedule NC K-1, or other document containing all of the information
											  that would be reported on Schedule NC K-1, to each person who was a partner in the partnership at any time
											  during the year reflecting that partner's distributive share of the partnership's income, adjustments, tax
											  credits, and tax paid by the manager of the partnership. A partner's distributive share of partnership income
											  includes any guaranteed payments made to the partner. The Schedule NC K-1 shall be provided to each partner
											  on or before the day on which the partnership return is required to be filed. When reporting the distributive
											  share of tax credits, a list of the amount and type of tax credits shall be provided to each
											  partner.
(c) Investment Partnerships -- A partnership whose only
											  activity is as an investment partnership shall not be considered to be doing business in North Carolina. An
											  investment partnership means a partnership that is not a "dealer in securities," as defined in section
											  475(c)(1) of the Internal Revenue Code, and that derives income exclusively from buying, holding, and selling
											  securities for its own account. If any of the partnership's income is from other activities, either within or
											  outside this State, either received directly or flowing through from other pass-through entities, the
											  partnership is not an investment partnership for North Carolina tax purposes. Other activities include
											  providing services or products to customers and holding real property for appreciation and income. An
											  investment partnership shall not be required to file an income tax return in North Carolina or pay income tax
											  to North Carolina on behalf of its nonresident partners.
Authority
													 G.S.
													 105-154(c);
													 105-154(d);
													 105-262;
Eff. February 1, 1976;
Amended
													 Eff. February 1, 2005; August 1, 2003; July 1, 2000; August 1, 1998; May 1, 1994; June 1, 1993; July 1, 1991;
													 June 1, 1990;
Readopted Eff. May 1, 2016;
Amended Eff. May 1,
													 2018.