§300.7. Louisiana taxable income of nonresident estate or trust
A. Definition. "Louisiana taxable income" of a nonresident estate or trust means such portion of the taxable income of the nonresident estate or trust determined in accordance with federal law for the same taxable year, as specifically modified by the provisions contained in Subsection C of this Section, that was earned within or derived from sources within this state.
B. Computation. Louisiana taxable income of a nonresident estate or trust for a taxable year is computed by applying the allocation and apportionment provisions of R.S. 47:241 through 247 to the estate's or trust's federal taxable income for the same taxable year as specifically modified by Subsection C of this Section. In the application of the provisions of R.S. 47:241 through 247, the taxpayer may be required to allocate or apportion between states its federal taxable income, items of modification, and deductions allowed by this Part. The secretary may promulgate regulations for the fair and equitable administration of this Section.
C. 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, net income taxes paid to any state or political or municipal subdivision thereof within the taxable year.
(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) of this Subparagraph, whichever is greater.
(ii) In the case of oil and gas wells, the percentage depletion provided for in Item (i) of this Subparagraph 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) The amount of the exclusion provided for in R.S. 47:297.3 for S Bank shareholders.
(d)(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.
Acts 1996, No. 41, §1, eff. for taxable periods beginning after Dec. 31, 1996; Acts 1998, No. 61, §1, eff. for taxable years beginning after Dec. 31, 1997; Acts 2002, No. 30, §1, eff. for taxable periods beginning on or after Jan. 1, 2003; Acts 2016,1st Ex. Sess., No. 30, §1; Acts 2021, No. 395, §1, eff. Jan. 1, 2022; Acts 2023, No. 450, §1.
NOTE: FOR TAXABLE PERIODS BEGINNING PRIOR TO JAN. 1, 1998, THE TAX SHALL BE AS REQUIRED BY LAW PRIOR TO JAN. 1, 1997.