Nebraska Administrative Code
Topic - REVENUE, DEPARTMENT OF
Title 316 - NEBRASKA DEPARTMENT OF REVENUE
Chapter 25 - PARTNERSHIP INCOME TAX REGULATIONS
Section 316-25-002 - PARTNERS, NOT THE PARTNERSHIP, SUBJECT TO TAX

Universal Citation: 316 NE Admin Rules and Regs ch 25 ยง 002

Current through September 17, 2024

002.01 Taxation of partnerships. A partnership is not subject to income tax in Nebraska unless it is taxed as a corporation for federal income tax purposes. Persons who carry on business as partners must include in their incomes their proportionate share of the partnership income taxable in Nebraska.

002.02 Partnerships required to file Form 1065N. Every partnership having either a resident partner or income derived from sources within Nebraska, regardless of whether the partners are residents or nonresidents, shall file a Form 1065N, Nebraska Partnership Return of Income, for the taxable year. This return should set forth all items of income, gain, loss, deduction, and credit, and the names, addresses, and social security numbers of nonresident partners who are entitled to share in the income and deductions of the partnership. For Nebraska individual income tax purposes the credits include the partner's share of the nonhighway use motor fuel credit for tax years ending before January 1, 2005, the Community Development Assistance Act credit, the Nebraska Employment and Investment Expansion Act credit, the Nebraska Employment and Investment Growth Act credit, the Beginning Farmer Tax credit, the Nebraska Advantage Rural Development Act credit, the Nebraska Advantage Microenterprise Tax credit, the Nebraska Advantage Research and Development Act credit, and the Nebraska Advantage Act credit .

002.02A A limited partnership conducting business entirely outside this state which has Nebraska resident partners, none of whom are general partners charged with the management responsibility of the partnership, is not required to file Form 1065N.

002.03 Taxation of partners; in general. A partnership having income from Nebraska sources or having a resident partner must provide both resident and nonresident partners with a schedule listing the amounts and character of the income, deductions, and credits that are to be included in each partner's Nebraska income tax return. A resident partner must include his or her entire share of the partnership income, computed under the provisions of the Internal Revenue Code, in his or her adjusted gross income. A nonresident partner is subject to the Nebraska income tax on his or her share of the partnership income derived from or connected with Nebraska sources.

002.04 Character of income, gain, loss, or deduction. Each item of partnership income, gain, loss, or deduction shall have the same character for the partner individually, for the purposes of the Nebraska income tax, as it has for the federal income tax. Unless characterized otherwise by federal law, all items shall have the same character for the partner individually as if he or she realized it directly from the source from which it was realized by the partnership.

002.05 Time and manner of filing.

002.05A The Nebraska partnership return must be filed on or before the fifteenth day of the fourth month following the close of the taxable year of the partnership. Only one return is required to be filed for each partnership. A copy of the federal partnership return must accompany the filing of the Nebraska partnership return.

002.05B The Tax Commissioner may grant the partnership a reasonable extension of time, not to exceed seven (7) months, for the filing of the partnership return. Such an extension must be requested by the partnership prior to the prescribed due date for the filing of the return to avoid levy of penalty. Application should be made on Form 2688N and must give the reasons for the extension request.

002.05C Form 2688N should not be filed if the Internal Revenue Service has already granted the partnership an extension of time for filing the return. In this instance the due date for filing the comparable Nebraska return is automatically extended for the same period as the federal extension. However, a copy of the federal extension of time must be attached to the Nebraska return when it is filed.

Disclaimer: These regulations may not be the most recent version. Nebraska may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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