Fillable Form Ia 6251 - Iowa Minimum Tax Computation

2013 IA 6251 Instructions

WHO MUST FILE IA 6251

Line 27.

All individuals, estates, and trusts that had one or more of the

Enter the amount from IA 1040, line 39, less line 46; or enter

adjustments or preferences in Part I must complete form IA

the amount from IA 1041, line 23, less line 27. If less than

6251 to see if they owe Iowa minimum tax. Taxpayers may

zero, enter zero.

have an Iowa minimum tax liability even if they owed no

NONRESIDENTS AND PART-YEAR RESIDENTS

federal minimum tax. Nonresidents who have a liability for

Nonresidents and part-year residents of Iowa are required to

Iowa minimum tax are required to file an Iowa return even if

pay Iowa minimum tax only on the percentage of adjustments

they have no regular Iowa income tax liability.

and tax preferences which are Iowa source. Lines 29-32 in Part

Married filing separate filers: Each spouse needs to complete

IV must be completed to calculate the Iowa minimum tax

an IA 6251.

liability for nonresidents and part-year residents only if one has

PART I: ADJUSTMENTS AND PREFERENCES

Iowa source adjustments or preferences.

If you did not itemize on the federal level, lines 1, 2, and 4 of

Line 29.

the IA 6251 will refer to the Iowa Schedule A as follows:

Add Iowa net income from line 26, IA 126, plus the total of

Line 1 of the IA 6251 refers to line 3 of the IA Schedule A.

those adjustments and tax preferences on line 13 of the IA 6251

that are from Iowa sources.

Line 2 of the IA 6251 refers to line 8 of the IA Schedule A.

Line 30.

Line 4 of the IA 6251 refers to line 24 of the IA Schedule A.

Add total net income from line 27, IA 126, plus the total of

Enter the appropriate amounts from federal form 6251 for

all adjustments and tax preferences on line 13 of the IA 6251.

individual income tax or from federal form 1041, Schedule I,

for fiduciary tax. Lines 1 and 6 are applicable only for individual

Line 31.

income tax, and lines 12(j) and 12(k) are applicable only for

Divide line 29 by line 30 and enter the result to three decimal

fiduciary tax.

places (Example: .786).

Note: The federal tax preferences for percentage depletion of

Line 32.

an oil, gas, or geothermal well and intangible drilling costs

Multiply line 28 by line 31. The result is the Iowa minimum

from lines 9 and 26 of federal form 6251 or lines 6 and 22 of

tax and is to be entered on line 41, IA 1040, or on line 25, IA

federal form 1041, Schedule I are not tax preferences but are

1041. See the instructions below relating to minimum tax

additions to income on line 14 of IA 1040, or line 8 of IA 1041.

limited to net worth.

RELATED ADJUSTMENTS

MINIMUM TAX LIMITED TO NET WORTH

Line 12(i.)

Taxpayers who meet all qualifications for a distressed sale, but

Include related adjustments from line 27 of the federal 6251 or

have a debt to asset ratio of 75% or less, are not subject to the

line 23 of federal form 1041, Schedule I only to the extent the

minimum tax in an amount greater than the taxpayer’s net

adjustments are ones that affect the computation of net income.

worth. In situations where a taxpayer has multiple transactions

An adjustment related to tax-exempt interest from private activity

(forfeitures, transfers, sales, or exchanges), minimum tax is

bonds would not be included, since this is not an Iowa tax

limited to net worth prior to the last transaction in the tax year.

preference or adjustment.

For additional information on what constitutes a “distressed

sale,” contact the Taxpayer Services Section. If calling from

INCOME DISTRIBUTION DEDUCTION & ESTATE TAX

DEDUCTION (estates and trusts only)

the Des Moines area or from out of state, call (515) 281-3114.

Elsewhere in Iowa or from the Rock Island, Moline, or Omaha

Lines 12(j.) & 12(k.)

areas, call 1-800-367-3388 (toll free). E-mail:idr@iowa.gov

The amounts entered on these two lines are negative and will

MINIMUM TAX CREDIT

be subtracted from the sum of lines 12(a.) through 12(i.) when

calculating the total to enter on line 12.

A minimum tax credit is available that may reduce the regular

tax of an individual for minimum tax paid in a prior year. The

NET OPERATING LOSS DEDUCTION

Iowa credit is computed similarly to the federal credit but on

Line 18.

form IA 8801. The IA 8801 and the IA 148 Tax Credits

A net operating loss can be carried back or carried forward to

Schedule must be included with the IA 1040 if this credit is

reduce a taxpayer’s alternative minimum taxable income.

claimed.

However, before the net operating loss can be deducted, it must

be reduced by any adjustments and tax preferences used in

computing the net operating loss. A net operating loss that is

carried to the current tax year on line 18 cannot exceed 90% of

the amount on line 17. Any portion of the net operating loss

which cannot be used can be carried over to the next tax year.

41-131b (10/30/13)

Form Ia 6251 - Iowa Minimum Tax Computation - 2013 Page 2

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