Are the owners of a passthrough entity, such as a partnership, allowed to claim an income tax credit for the property taxes paid by the passthrough entity?
Yes, but only for commercial property located in North Dakota. The entitys owners, if eligible, may claim an income tax credit based on their respective shares of the entitys total property taxes on North Dakota commercial property. A passthrough entity for this purpose means a partnership, subchapter S corporation, or limited liability company treated like a passthrough entity for income tax purposes. An eligible owner means an individual or C corporation that held an interest in the entity on the due date of the entitys property taxes. (In the case of an owner that is another passthrough entity, the owners share of the property taxes is, in turn, taken into account by that entitys owners.) The eligible owners share of the entitys total property taxes on its North Dakota commercial property is determined by the owners percentage of ownership in the entity on the due date of those property taxes. An eligible owner takes the entitys property taxes on its North Dakota commercial property
Related Questions
- Are the owners of a passthrough entity, such as a partnership, allowed to claim an income tax credit for the property taxes paid by the passthrough entity?
- Apart from input credit on raw material would dealers be allowed to claim credit on other costs like labor, overheads ?
- Can a pass-through entity, such as a partnership or S-corporation, use the credit?
