2016 Kentucky Revised Statutes CHAPTER 141 - INCOME TAXES .0202 Deduction of leasehold interest of property contributed as living quarters for homeless persons.
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141.0202 Deduction of leasehold interest of property contributed as living quarters
for homeless persons.
(1)
(2)
(3)
(4)
In computing net income under the provisions of KRS 141.010(11) or 141.010(13),
there shall be allowed as a deduction the value of leasehold interest of property
contributed to a charitable organization if the leased property is to be used by the
charitable organization to provide temporary living quarters for a homeless family,
if:
(a) The homeless family has demonstrated a need for a fixed, regular and
adequate night time residence; and
(b) The contribution of a leasehold interest in a dwelling for any term to be used
by the donee to provide living quarters does not exceed one (1) year for a
homeless family selected by the donee.
The leasehold interest of property contributed as described in subsection (1) of this
section shall be allowed as a deduction for each taxable year of the donor during
which the donee holds the interest. The deduction allowed shall be the value of the
interest computed on a monthly basis, multiplied by the number of months in the
taxable year during which the dwelling:
(a) Meets all habitability standards prescribed by the state or political subdivision
thereof in which the dwelling is located; and
(b) Is occupied for a substantial portion of the month by a homeless family
selected by the donee.
The value of a leasehold interest of property contributed as described in subsection
(2) of this section shall be the lesser of:
(a) The established rental value of the subject property if the property has been
leased during one (1) or more of six (6) months immediately preceding the
date of the contribution, or;
(b) The fair market rental value of other property of similar size and condition in
the same general location as the subject property.
The provisions of this section shall be effective for tax years beginning on or after
January 1, 1990.
Effective: July 1, 1990
History: Created 1990 Ky. Acts ch. 303, sec. 2, effective July 1, 1990.
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