Form 725 PDF Details

Form 725 is an IRS form that tax-exempt organizations use to report their unrelated business taxable income. The form must be filed annually, and it includes information about the organization's income and expenses related to its unrelated business activities. Unrelated business taxable income is taxed at a rate of 21%, so it's important for tax-exempt organizations to accurately report their income and expenses on Form 725. Failing to do so may result in penalties from the IRS.

QuestionAnswer
Form NameForm 725
Form Length6 pages
Fillable?No
Fillable fields0
Avg. time to fill out1 min 30 sec
Other namesky form, kentucky 725 form revenue, kentucky llet 4, 725 instructions form

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725

Commonwealth of Kentucky

Department of Revenue

KENTUCKY SINGLE MEMBER LLC

INDIVIDUALLY OWNED INCOME

AND LLET RETURN

2020

For calendar year 2020 or tax years beginning (MM-DD-YY) __ __ – __ __ – 20__ __ , and ending (MM-DD-YY) __ __ – __ __ – 20__ __

A LLET

B FEIN/SSN

__ __ – __ __ __ __ __ __ __

C Kentucky Corporation/LLET

__ __ __ __ __ __

Exemption Code

 

Account Number (Required)

 

 

 

 

 

 

 

 

 

 

 

 

Name of LLC

 

Change of Name

Telephone Number

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

D Provider 3-Factor

Number and Street

 

 

Apportionment Code

 

 

 

 

City

State

ZIP Code

ECheck applicable boxes

Initial return

Change of accounting period Qualified investment partnership Final return (Complete Part IV) Short-period return (Complete Part IV) Amended return (Complete Part V)

State of Organization

Principal Business Activity in KY

 

 

Date of Organization

NAICS Code Number in KY

__ __ / __ __ __ __

F

Kentucky Resident Non-Resident If non-resident, LLC must also file Form 740NP-WH

Single Member is a:

PART I—KENTUCKY NET DISTRIBUTABLE INCOME

1Ordinary income (loss)

2Net income (loss) from rental real estate activities

3 Net income (loss) from other rental activities

4 Interest income

5 Dividend income

6 Royalty income

7Net short-term and long-term capital gain (loss). If net loss, do not include more than $3,000.

8IRC §1231 net gain (loss)

9Other income (attach schedule)

10Other deductions (attach schedule)

11Total net distributable income (lines 1 through 9 less line 10)

12Enter 100% or the apportionment fraction from Schedule A.

„1 „2 „3 „4 „5 „6

„7 „8 „9 „10 „11

„12

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

0 0

__ __ __ . __ __ __ __ %

OFFICIAL USE ONLY

P

W

2

0

4

 

V

 

 

A

 

 

L

 

 

#

 

 

 

 

200270 41A725 (10-20)

 

Page 1 of 6

FORM 725 (2020)

Page 2 of 6

PART II—LLET COMPUTATION

1

Schedule L, Section E, line 1 (Page 6)

 

 

 

„1

 

0 0

 

 

 

 

 

„2

 

2

Tax credit recapture

 

 

 

 

0 0

 

 

 

 

 

„3

 

 

 

 

 

 

 

 

3

Total (add lines 1 and 2)

 

 

 

 

0 0

 

 

„4

 

4

Nonrefundable LLET credit from Kentucky Schedule(s) K-1

 

0 0

 

 

„5

 

5

Nonrefundable tax credits (attach Schedule TCS)

 

0 0

6

LLET liability (greater of line 3 less lines 4 and 5 or

„6

 

 

 

 

 

0 0

 

$175 minimum)

 

 

 

 

 

 

 

 

 

„7

 

7

Estimated tax payments

 

 

 

 

0 0

 

 

 

 

 

„8

 

 

 

 

 

 

 

 

8

Certified rehabilitation tax credit

 

 

 

 

0 0

 

 

 

 

 

„9

 

9

Film industry tax credit

 

 

 

 

0 0

 

 

 

 

 

„10

 

10

Extension payment

 

 

 

 

0 0

 

 

 

 

 

„11

 

 

 

 

 

 

 

 

11

Prior year’s tax credit

 

 

 

 

0 0

 

 

 

 

 

 

„12

 

 

 

 

 

 

 

 

 

0 0

12

LLET paid on original return

 

 

 

 

 

 

 

 

„13

 

13

LLET overpayment on original return

 

 

 

 

0 0

 

 

 

 

 

„14

 

 

 

 

 

 

 

 

14

Estimated Tax Penalty (attach Form 2220-K)

 

 

 

 

0 0

15

LLET and Estimated Tax Penalty due (lines 6, 13,

 

 

 

„15

 

 

 

 

 

 

0 0

 

and 14 less lines 7 through 12)

 

OWE

 

 

 

 

 

 

„16

 

 

 

 

16

LLET overpayment (lines 7 through 12 less lines 6,13, and 14)

 

0 0

17

Credited to 2020 interest

 

 

 

„17

 

 

 

 

 

 

 

18

Credited to 2020 penalty

 

 

 

„18

 

 

 

 

 

 

 

19

Credited to 2021 LLET

 

 

 

„19

 

 

 

 

 

0 0

20

Amount to be refunded (line 16 less lines

 

 

 

 

„20

 

 

 

 

 

 

 

 

 

17 through 19)

 

REFUND

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART III—LLET CREDIT FOR MEMBER

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

„1

 

1 LLET liability (Part II, the total of lines 4 and 6)

 

 

 

 

0 0

2

Minimum tax

 

 

 

2

1 7 5 .00

 

 

 

 

„3

 

3 Member’s LLET credit (line 1 less line 2)

 

 

 

 

0 0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200271 41A725 (10-20)

FORM 725 (2020)

Page 3 of 6

PART IV—EXPLANATION OF FINAL RETURN AND/OR SHORT–PERIOD RETURN

Ceased operations in Kentucky Change of ownership Successor to previous business

Change in filing status Merger

Other _________________________________________________

PART V—EXPLANATION OF AMENDED RETURN CHANGES

Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.

 

Signature of Member

 

 

Date

 

 

 

 

 

 

 

 

 

 

Sign

 

 

 

__ __ / __ __ / __

__ __ __

 

 

 

 

 

 

 

 

Here

Name of Member (Please print)

 

 

Title

 

 

 

 

 

 

 

 

 

 

 

 

Signature of Preparer

 

 

Date

 

 

 

 

 

 

 

__ __ / __ __ / __

__ __ __

 

Paid

 

 

 

 

 

 

 

Name of Preparer or Firm (Please print)

 

 

ID Number

 

 

 

Preparer

 

 

 

 

 

 

 

 

 

 

 

 

Use

 

 

 

 

 

 

 

Email and/or Telephone No.

 

 

May the DOR discuss this return with this preparer?

 

 

 

 

 

 

 

YES

NO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All supporting federal forms and schedules, including

Refund

Kentucky Department of Revenue

 

 

 

Enclose

or No

P. O. Box 856905

 

 

 

Federal Schedule(s) C, E, and/or F.

 

 

 

 

Payment

Louisville, KY 40285-6905

 

 

 

 

 

 

 

 

Payment

Check Payable: Kentucky State Treasurer

With

Kentucky Department of Revenue

 

 

 

E-Pay Options: www.revenue.ky.gov

Payment

Frankfort, KY 40620-0021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

200272 41A725 (10-20)

FORM 725 (2020)

Page 4 of 6

SCHEDULE Q—SINGLE MEMBER LIMITED LIABILITY COMPANY QUESTIONNAIRE

IMPORTANT: Questions 1 and 2 must be answered if this is the single member LLC’s initial return or if a return was not filed under the same name and same federal I.D. number for the preceding year. Failure to do so may result in a request for a delinquent return.

1Single member’s (owner) name, address, and Social Security number or federal I.D. number

Name

FEIN __ __ – __ __ __ __ __ __ __

Address

2If a foreign limited liability company, enter the date qualified to do business in Kentucky.

__ __ / __ __ / __ __ __ __

Questions 3—7 must be completed by all single member limited liability companies (LLC).

3The limited liability company’s books are in care of:

Name

Address

4Are disregarded entities included in this return?

Yes No

If yes, attach Schedule DE.

5Was the limited liability company a partner in a pass-through entity doing business in Kentucky

for the tax year being reported? Yes No

If yes, list name and federal I.D. of the pass-through entity(ies).

Name

A

FEIN __ __ – __ __ __ __ __ __ __

Name

B

FEIN __ __ – __ __ __ __ __ __ __

Name

C

FEIN __ __ – __ __ __ __ __ __ __

Name

D

FEIN __ __ – __ __ __ __ __ __ __

Name

E

FEIN __ __ – __ __ __ __ __ __ __

Name

F

FEIN __ __ – __ __ __ __ __ __ __

Name

G

FEIN __ __ – __ __ __ __ __ __ __

6Was the limited liability company doing business in Kentucky other than through its interest held in a

pass-through entity doing business in Kentucky?

Yes No

7Was this return prepared on:

(a)cash basis

(b)accrual basis

(c)other __________________________________

200343 41A725 (10-20)

FORM 725 (2020)

Page 5 of 6

SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION

Check the box and complete Schedule L-C, Limited Liability Entity Tax—Continuation Sheet, if the single member limited liability company filing this tax return is a partner or member of a limited liability pass-through entity or general partnership doing business in Kentucky. Enter the total amounts from Schedule L-C in Section A of this schedule.

SECTION A—Computation of Kentucky Gross Receipts and Gross Profits

1(a)

Gross receipts less returns and allowances

„1(A)

(b)

Kentucky statutory gross receipts reductions

„ (B)

2

Adjusted gross receipts (line 1(a) less line 1(b))

„2

3(a)

Cost of goods sold (attach Schedule COGS)

„3(A)

(b)

Kentucky statutory cost of goods sold reductions

„ (B)

4

Adjusted cost of goods sold (line 3(a) less line 3(b))

„4

5

Gross profits (line 2 less line 4)

„5

 

 

 

 

 

SECTION B—Computation of TOTAL Gross Receipts and Gross Profits

1

Adjusted gross receipts

„1

2

Cost of goods sold (attach Schedule COGS)

„2

3

Gross profits (line 1 less line 2)

„3

If Section B, Line 1 or 3 is $3,000,000 or less, SKIP Sections C and D and enter $175 in Section E, Line 1 and then enter $175 on page 2, Part II, Line 1. Otherwise, continue to

Section C on the next page.

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200276 41A725 (10-20)

FORM 725 (2020)

Page 6 of 6

SCHEDULE L—LIMITED LIABILITY ENTITY TAX COMPUTATION—continued

SECTION C—Computation of Gross Receipts LLET

1If gross receipts from all sources (Section B, line 1) are greater than $3,000,000, but less than $6,000,000, enter the following:

 

(Section A, line 2 x 0.00095) –

[

$2,850 x ($6,000,000 – Section A, line 2)

]

 

 

 

$3,000,000

 

 

but in no case shall the result be less than zero.

 

„1

2

If gross receipts from all sources (Section B, line 1)

 

 

 

are $6,000,000 or greater, enter the following: Section A,

„2

 

line 2 x 0.00095.

 

 

 

3

Enter the amount from line 1 or line 2.

 

„3

SECTION D—Computation of Gross Profits LLET

1 If gross profits from all sources (Section B, line 3) are greater than $3,000,000, but less than $6,000,000, enter the following:

(Section A, line 5 x 0.0075) –

[

$22,500 x ($6,000,000 – Section A, line 5)

]

 

$3,000,000

 

 

 

 

„1

but in no case shall the result be less than zero.

2 If gross profits from all sources (Section B, line 3) are

 

$6,000,000 or greater, enter the following: Section A,

„2

line 5 x 0.0075.

 

 

 

 

3 Enter the amount from line 1 or line 2.

„3

SECTION E—Computation of LLET

 

1 Enter the lesser of Section C, line 3 or Section D, line 3

 

here and on Page 2, Part II, line 1. If less than $175, enter

„1

the minimum of $175 here and on Page 2, Part II, line 1.

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200273 41A725 (10-20)

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1. To begin with, while filling out the llet number 3, start in the page that features the next blank fields:

How to prepare 725 instructions form stage 1

2. Once your current task is complete, take the next step – fill out all of these fields - Net income loss from rental real, Net income loss from other rental, Interest income, Dividend income, Royalty income, Net shortterm and longterm, If net loss do not include more, IRC net gain loss, Other income attach schedule, Other deductions attach schedule, Total net distributable income, and Enter or the apportionment with their corresponding information. Make sure to double check that everything has been entered correctly before continuing!

Part # 2 in submitting 725 instructions form

3. This next part is generally quite easy, PART IILLET COMPUTATION, Schedule L Section E line Page, Tax credit recapture, Total add lines and, Nonrefundable LLET credit from, Nonrefundable tax credits attach, LLET liability greater of line, minimum, Estimated tax payments, Certified rehabilitation tax credit, Film industry tax credit, Extension payment, and Prior years tax credit - every one of these blanks will have to be filled in here.

A way to complete 725 instructions form portion 3

4. To go ahead, your next stage requires filling out a couple of blank fields. Examples include Prior years tax credit, LLET paid on original return, LLET overpayment on original, Estimated Tax Penalty attach Form, LLET and Estimated Tax Penalty, and less lines through, TAX DUE, LLET overpayment lines through, Credited to interest, Credited to penalty, Credited to LLET, Amount to be refunded line less, through, REFUND, and PART IIILLET CREDIT FOR MEMBER, which you'll find vital to moving forward with this process.

The right way to complete 725 instructions form part 4

5. This last notch to conclude this form is essential. You need to fill in the necessary form fields, for example PART IIILLET CREDIT FOR MEMBER, LLET liability Part II the total, Minimum tax, and Members LLET credit line less, before submitting. Otherwise, it may give you an incomplete and potentially invalid paper!

Writing part 5 in 725 instructions form

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