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schedules to the return. If any form or schedule contains activity

Line 7—Enter the total estimated LLET payments made for

of both the single member LLC and the individual, estate, trust

the taxable year. Do not include the amount credited from the

or general partnership, prepare a pro forma form or schedule

prior year.

which contains only the activity of the single member LLC.

Line 8—Enter the refundable Certified Rehabilitation Tax Credit

(attach the Kentucky Heritage Council certification(s) or Kentucky

Line 8—Enter the Section 1231 gain (loss) adjusted to reflect the

Schedule(s) K-1 (Form 765-GP)).

differences in federal and Kentucky tax laws from the following

schedules or forms: (i) Form 1040 for an individual; (ii) Form 1041

Line 9—Enter the refundable Film Industry Tax Credit (attach

for an estate or trust; (iii) Form 1065 for a general partnership;

the Kentucky Film Office certification(s) or Kentucky Schedule(s)

and (iv) Schedule(s) K-1. Attach Schedule 4797, Schedule(s) K-1

K-1 (Form 765-GP)).

or other applicable forms or schedules to the return. If any form

or schedule contains activity of both the single member LLC

Line 10—Enter the amount of LLET paid with Form 41A720SL,

and the individual, estate, trust or general partnership, prepare

Application for Six–Month Extension of Time to File Kentucky

Corporation or Limited Liability Pass–Through Entity Return.

a pro forma form or schedule which contains only the activity

of the single member LLC.

Line 11—Enter the amount credited to 2013 from Form 725, Part

II, Line 14 of the 2012 tax return.

Line 9—Enter the total of any other income (attach schedule).

Line 12—If Line 6 is greater than the total of Lines 7 through 11,

Line 10—Enter the total of deductions not included on Lines 1

enter the difference on this line and enter the amount in the Tax

through 9, if any (attach schedule).

Payment Summary.

Line 11—Enter the total of Lines 1 through 9 less Line 10.

Line 13—If Line 6 is less than the total of Lines 7 through 11,

Line 12—Enter 100 percent if the single member limited liability

enter the difference on this line.

company is doing business only in Kentucky or the percentage

Line 14—Enter the portion of Line 13 to be credited to 2014

from Schedule A (Form 41A720A), Section I, Line 12 if the single

LLET.

member limited liability company is doing business within and

without Kentucky. Attach Schedule A to Form 725 filed with the

Line 15—Enter the portion of Line 13 to be refunded (Line 13

department.

less Line 14).

For purposes of determining the income to enter on Line 2 of the

Kentucky Limited Liability Entity Tax Credit Worksheet included

PART III—LLET CREDIT FOR MEMBER

in the instructions for Forms 740, 740–NP or 741, multiply Line

Line 1—Enter the LLET paid from Part II, the total of Lines 4

11 by the percentage on Line 12.

and 6.

Note: If Form 8582–K is required, adjust the amount entered

Line 2—Minimum tax $175.

on Line 11 to exclude any income, loss, deduction or expense

related to a passive activity. If the amount on Line 7 (Net

Line 3—Enter Line 1 less Line 2.

short–term and long–term capital loss) is subject to a capital

loss limitation, adjust the amount entered on Line 11 to exclude

Tax Payment Summary—The payment due with Form 725 must

the loss not allowed.

be itemized. Enter the amount of the tax payment due from Part

II, Line 12, on the LLET due line, the amount of penalty due on

PART II—LLET COMPUTATION

the Penalty line, the amount of interest due on the Interest line,

and the total payment due on the Total Payment line.

Line 1—Enter the amount from Schedule LLET, Section D, Line

1. A single member LLC must use Schedule LLET(K), Limited

SCHEDULE CP—SPECIFIC INSTRUCTIONS

Liability Entity Tax (For a Limited Liability Pass–through Entity

with Economic Development Project(s)), if the single member

Schedule(s) CP must be attached to a Form 725 that has been

LLC has one or more projects under the Kentucky Rural Economic

signed by the owner (member). Failure to attach Schedule(s)

Development Act (KREDA), Kentucky Industrial Development

CP to a signed Form 725 will delay processing and may result

Act (KIDA), Kentucky Economic Opportunity Zone Act (KEOZ),

in the assessment of penalties.

Kentucky Jobs Retention Agreement (KJRA), Kentucky Industrial

Revitalization Act (KIRA), Kentucky Jobs Development Act

The Kentucky Single Member LLC Individually Owned Composite

(KJDA), Kentucky Business Investment Program (KBI), Kentucky

Return Schedule (Schedule CP) is designed for a single member

Reinvestment Act (KRA), Incentives for Energy Independence

individual that owns multiple single member limited liability

Act (IEIA) or Farming Operation Networking Project (FON).

companies. Schedule CP can be used in lieu of filing multiple

Kentucky Single Member LLC Individually Owned LLET Return(s)

Line 2—Enter the recycling/composting equipment LLET

(Form 725). Schedule CP (and if needed, additional Schedule(s)

credit recapture amount from Schedule RC–R, Line 12. Attach

CP) should be attached to Form 725. If Schedule CP is being filed,

Schedule RC–R, Recycling or Composting Equipment Tax Credit

complete only the following items on Form 725:

Recapture.

Item C—Enter the single member individual’s Social Security

Line 3—Enter the total of Lines 1 and 2.

number, name, address and telephone number in applicable

box.

Line 4—Enter nonrefundable LLET credit from Schedule(s)

Kentucky K–1. Copies of Kentucky Schedule(s) K–1 must be

Item E—Check the box to indicate that a composite return

attached to the tax return in order to claim the credit.

(Schedule CP) is being filed.

Line 5—Enter the total tax credits from Schedule TCS, Part III,

After completing Items C and E and Schedule(s) CP, the

Column E, Line 1.

signature block on the bottom of Form 725, page 2 must be

Line 6—Enter the greater of Line 3 less Lines 4 and 5, or $175.

completed and signed by the member (owner).

Instructions For Form 725 - Kentucky Single Member Llc Individually Owned Llet Return - 2013 Page 8

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