Nonresident and Resident Partners - Composite Return and Agreement

Use the Louisiana Composite Return worksheet to enter composite filing information and to produce the Louisiana Nonresident Composite Schedule, the Louisiana Resident Composite Schedule and the Louisiana Nonresident Partner Agreement for applicable partners. The Composite Tax is computed at 6% of the Louisiana distributable income from the Louisiana Schedule K-1 Equivalent. The partners' distributive share for the composite tax computation is the partner's distributive share of ordinary income (loss) shown on the Louisiana Schedule K-1 adjusted by separately reported items not already included in ordinary income (loss). The formula for the computation is the partners' Louisiana Schedule K-1 Equivalent, ordinary net income (loss) + guaranteed payments + capital gains (loss) - intangible drilling costs - Section 754. To include Section 179 recapture in the computation, use the Louisiana Income/Deductions worksheet, Business Income and Deductions sections, "Other Income" and "Other Deductions" open line entries, so that it will be included in ordinary income (loss).

Use the Louisiana Income/Deductions worksheet, Distributive Share of Income section, to override the Louisiana distributable income. The computed composite tax for each partner will print on the Louisiana partner's Schedule K-1 Equivalent with other required composite information for all partners included in the composite tax computation. The total composite tax and total partner's distributive share of income for all partners included in the composite computation also prints on the bottom of the Louisiana Nonresident and Resident Composite Schedules.

The Louisiana Nonresident Partner Agreement only prints with the Accountant and Client copies of the return. After the Nonresident Partner Agreement is signed, it should be attached to the Government copy for filing with the Louisiana Department of Revenue.

Use the Louisiana Composite Return section, "Suppress Louisiana Schedule K-1 Composite Return Message" field to prevent the computed composite tax and other required composite information from printing at the bottom of the Louisiana Schedule K-1 Equivalent of the partners included in the composite return.