Kentucky 750

Kentucky Form 750 is the tax return filed by Business Development Corporations (BDCs) operating within the state, specifically organized under Chapter 155 of the Kentucky Revised Statutes. This form is used to report a corporation’s gross income, deductions, and taxes owed to the state of Kentucky. BDCs must file this return annually by June 1, following the close of their taxable year. The tax calculated on this return is accepted in lieu of the state income tax imposed by KRS 141.040 and the taxes under KRS 141.0401. The taxable net income for a BDC is essentially the same as “book income,” meaning it reflects the corporation’s financial records without adjustments for income tax purposes, except for those items exempt under the Kentucky Constitution or U.S. federal law.

How to File Kentucky Form 750

To file Kentucky Form 750, gather the necessary financial information from your business’s books and records, as the taxable income is based on “book income.” Complete the form by reporting the corporation’s gross income and deductions. Then, calculate the tax owed based on the corporation’s taxable income. The return, along with payment, must be submitted to the Kentucky Department of Revenue by June 1 of the following year. Payments should be made to the Kentucky State Treasurer. You can submit the form by mail or electronically through the Kentucky Department of Revenue’s e-filing system.

How to Complete Kentucky Form 750

Basic Information

• Name of Corporation: Enter the legal name of your business development corporation.
• Federal Identification Number: Provide the corporation’s Federal Employer Identification Number (FEIN).
• KY Corporation/LLET Account No.: Enter the Kentucky Corporation/LLET account number. This is a 9-digit number assigned by the Kentucky Department of Revenue.
• Date of Incorporation: Enter the date the corporation was incorporated (MM-DD-YYYY format).
• Number and Street, City, State, ZIP Code: Provide the corporation’s address details.

Gross Income

1. Line 1 – Gross Receipts or Sales: Enter the total gross receipts or sales made by the business during the taxable year.
2. Line 2 – Less: Returns and Allowances: Subtract the total value of returns and allowances given by the corporation.
3. Line 3 – Gross Profit: Subtract line 2 from line 1 to calculate the gross profit.
4. Line 4 – Dividends (From Schedule C): Enter any dividends earned, as reported on Schedule C.
5. Line 5 – Interest on Loans, Notes, Mortgages, Bonds, Bank Deposits, etc.: Enter all interest income earned from loans, notes, mortgages, and bank deposits.
6. Line 6 – Interest on Corporation Bonds, etc.: Enter income from interest on corporate bonds.
7. Line 7 – Interest on Governmental Obligations Subject to Tax: Report any interest income from government obligations that are taxable in Kentucky.
8. Line 8 – Rents: Report the income earned from renting property.
9. Line 9 – Royalties: Enter income earned from royalties.
10. Line 10 – Gains and Losses (From Federal Schedule D):

• 10(a) – Net Short-Term Capital Gain Reduced by Any Net Long-Term Capital Loss: Report the net short-term capital gain after deducting any long-term capital loss.
• 10(b) – Net Long-Term Capital Gain Reduced by Any Net Short-Term Capital Loss: Report the net long-term capital gain after deducting any short-term capital loss.
• 10(c) – Net Gain (or Loss) from Sale or Exchange of Property Other Than Capital Assets: Report the gain or loss from the sale or exchange of non-capital assets.

11. Line 11 – Other Income: Enter any other income not listed above, such as federal income tax refunds (attach a schedule if necessary).
12. Line 12 – Total Income: Add lines 3 and 4 through 11 to calculate the total income.

Deductions

13. Line 13 – Compensation of Officers (From Schedule E): Enter the compensation of officers, as calculated and reported on Schedule E.
14. Line 14 – Salaries and Wages: Report the total salaries and wages paid that were not deducted elsewhere.
15. Line 15 – Rent: Deduct rent expenses for the year.
16. Line 16 – Repairs (Do Not Include Capital Expenditures): Deduct repair expenses, excluding capital improvements.
17. Line 17 – Bad Debts (From Schedule F): Deduct any bad debts, as reported on Schedule F.
18. Line 18 – Interest: Deduct any interest expenses.
19. Line 19 – Taxes (From Schedule G): Deduct taxes, as detailed in Schedule G.
20. Line 20 – Contributions or Gifts Paid (From Schedule H): Deduct any charitable contributions made during the year, as reported on Schedule H.
21. Line 21 – Losses by Fire, Storm, Shipwreck, or Other Casualty, or Theft: Deduct losses from disasters or theft, as supported by a submitted schedule.
22. Line 22 – Depreciation and Amortization (From Schedule I): Deduct depreciation and amortization as reported on Schedule I.
23. Line 23 – Depletion of Mines, Oil and Gas Wells, Timber, etc.: Deduct depletion costs from natural resources, supported by a submitted schedule.
24. Line 24 – Advertising: Deduct advertising expenses.
25. Line 25 – Amounts Contributed Under Employee Benefit Plans:

• 25(a) – Pension, Annuity, Stock Bonus, or Profit-Sharing Plans: Deduct contributions made to pension or other employee benefit plans.
• 25(b) – Other Employee Benefit Plans: Deduct contributions to other employee benefit plans.

26. Line 26 – Other Deductions Authorized by Law (From Schedule J): Deduct any other allowable business expenses, as reported on Schedule J.
27. Line 27 – Total Deductions: Add lines 13 through 26 to calculate the total deductions.
28. Line 28 – Net Income: Subtract total deductions (line 27) from total income (line 12).
29. Line 29 – Federal Income Tax: Deduct the federal income tax paid.
30. Line 30 – Taxable Net Income: Subtract the federal income tax (line 29) from the net income (line 28) to get the taxable net income.

Tax Calculation

31. Line 31 – Tax Rate: The tax rate for Business Development Corporations is 4.5%.
32. Line 32 – Total Tax: Multiply the taxable net income (line 30) by the tax rate (line 31) to calculate the total tax. If the total tax is less than $10, enter $10 as the minimum tax owed.