RS 47:300.6

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RS 47:300.6

§300.6. Louisiana taxable income of resident estate or trust

A. Definition. "Louisiana taxable income" of a resident estate or trust means the taxable income of the estate or trust determined in accordance with federal law for the same taxable year, as specifically modified by the provisions contained in Subsection B of this Section.

B. Modification. For purposes of this Section, federal taxable income shall be modified by adding or subtracting the items set forth below:

(1)There shall be added to federal taxable income, unless already included therein:

(a)Interest on obligations of a state or political or municipal subdivision thereof, other than Louisiana and its municipalities, title to which obligations vested with the resident estate, trust, or fiduciary on or subsequent to January 1, 1980.

(b)Net income taxes paid to any state or political or municipal subdivision thereof within the taxable year.

(c)Repealed by Acts 1998, No. 61, §2.

(2)There shall be subtracted from federal taxable income, unless already excluded therefrom:

(a)Any income that is exempt from taxation under the laws of Louisiana or that Louisiana is prohibited from taxing by the constitution or laws of the United States.

(b)Deductions from gross income or depletion.

(i)In computing net income in the case of oil and gas wells, there shall be allowed as a deduction cost depletion as defined under federal law or percentage depletion as provided for in Item

(ii)whichever is greater.

(ii)In the case of oil and gas wells, the percentage depletion provided for in Item

(i)shall be twenty-two percent of gross income from the property during the taxable year, excluding from such gross income an amount equal to any rents or royalties paid or incurred by the taxpayer in respect of the property. Such allowance shall not exceed fifty percent of the net income of the taxpayer, computed without allowance for depletion from the property. In determining net income from the property, federal income taxes shall be considered an expense.

(c)An exemption amount, that when combined with the federal exemption amounts allowed under 26 U.S.C. 642(b) used to calculate federal taxable income, would total two thousand five hundred dollars.

(d)The amount of the exclusion provided for in R.S. 47:297.3 for S Bank shareholders.

(e)(i) Net income or losses received from an entity of which the estate or trust is a shareholder, partner, or member if the entity properly filed a Louisiana corporation income tax return pursuant to R.S. 47:287.732.2 which included the net income or loss. However, no such exclusion shall be allowed for any amount attributable to income that, for any reason, will not bear the tax due pursuant to R.S. 47:287.732.2.

(ii)(aa) An estate or trust whose federal income tax return is adjusted due to S corporation or partnership income or losses for which the estate or trust used the exclusion provided in Item

(i)of this Subparagraph shall furnish a statement to the secretary disclosing the nature and amounts of such adjustments within sixty days after the federal adjustments have been made and accepted by the estate or trust. However, if the estate or trust does not receive a statement of the federal adjustments until after it accepts the adjustments, it shall have sixty days from the receipt of such statement within which to furnish the required statement to the secretary.

(bb)For purposes of Subitem

(aa)of this Item, paying the federal tax shown due or signing a consent to immediate assessment shall constitute an acceptance of the federal adjustments.

(3)For taxable years beginning on or after January 1, 2025, a deduction shall be allowed from federal taxable income for the cost of qualified property, qualified improvement property, and research and experimental expenditures as provided for in R.S. 47:297.25.

Acts 1996, No. 41, §1, eff. for taxable periods beginning after Dec. 31, 1996; Acts 1998, No. 61, §§1, 2, eff. for taxable periods beginning after Dec. 31, 1997; Acts 2000, No. 40, §1, eff. for taxable periods beginning after Dec. 31, 2000; Acts 2002, No. 30, §1, eff. for taxable periods beginning on or after Jan. 1, 2003; Acts 2016, 1 st Ex. Sess., No. 30, §1; Acts 2021, No. 395, §1, eff. Jan. 1, 2022; Acts 2023, No. 450, §1; Acts 2024, 3rd Ex. Sess., No. 11, §2, eff. Dec. 4, 2024.

NOTE: FOR TAXABLE PERIODS BEGINNING PRIOR TO JAN. 1, 1998, THE TAX SHALL BE AS REQUIRED BY LAW PRIOR TO JAN. 1, 1997.