Looking for a Iowa Income Tax Forms And Templates? Download it for free!

Bonus Depreciation:

Instructions for IA 1065 Schedule K-1: Partner’s Share

For any assets placed in service after September 10, 2001, but before

of Income, Deductions, & Modifications

May 6, 2003, Iowa continues to disallow the 30% bonus depreciation

Form IA K-1 shows each partner’s share of modifications, all-source income,

provisions of the federal Job Creation and Worker Assistance Act of 2002.

Iowa apportioned income, and Iowa tax credits. You must provide complete

In addition, Iowa does not allow the 50% or 100% bonus depreciation

information for each partner in an acceptable format. For your convenience,

provisions for assets acquired after December 31, 2007, and before

forms IA 1065 and IA Schedule K-1 are provided on our Web site. Individual

January 1, 2014. Form IA 4562A must be filed to account for these

partners: When completing your individual IA 1040, report the column (a)

differences between Iowa and federal. The section 179 expensing limitation

items. In addition, individual nonresident partners report totals from column

is $500,000 for tax years beginning in 2013.

Line 4 - Total of lines 2 and 3.

PART I: GENERAL INFORMATION

Line 5 - Enter the total interest received from federal securities such as

Partnership/LLC information

U.S. Treasury bonds, notes, bills, and savings bonds included in taxable

Enter name and FEIN of partnership on each IA K-1 form.

income for federal income tax purposes. Include any loss on the sale or

Partner information

exchange of a share from a regulated investment company held for six



Enter name, Social Security Number or FEIN, and address of partner.

months or less to the extent the loss was disallowed under section



Check the amended box if the K-1 is part of an amended 1065 return.

852(b)(4)(B) of the Internal Revenue Code.



Check the appropriate box for the partner’s entity type.

Line 6 - If a partnership is a member of another partnership or the

beneficiary of an estate or trust, enter on this line the partnership’s



Check either the resident partner or nonresident partner box, based on

distributive share of REDUCTIONS furnished you by the other partnership

the partner’s current address.

or estate or trust.



Enter partner’s percentage of ownership in the partnership.

Federal Work Opportunity Tax Credit, Employer Social Security Credit for



Enter the partnership’s Iowa receipts, as reported on page 1, Part IV, line

Tips, and Alcohol and Cellulosic Biofuel Credit. Enter the amount of credits

12, column A, of the IA 1065*.

allowable for the tax year to the extent that the credit increased federal



Enter the partnership’s total receipts, as reported on page 1, Part IV, line

partnership income.

12, column B, of the IA 1065*.

Additional Deduction for Wages Paid to Certain Individuals. Qualifying

* If BAR is 100%, enter the Gross Receipts from line 1a, page 1 of the

businesses may also take an additional deduction of wages paid to new

federal 1065.

employees who qualify as persons with disabilities or as ex-offenders.



Corporate partners: Include your share of the partnership’s Iowa receipts

Line 7 - Add lines 5 and 6.

and total receipts in the business activity ratio (BAR) on the IA 1120.

Line 8 - Subtract line 7 from line 4. This could result in either a positive



Enter the partnership’s BAR from page 1, Part IV, line 13, of the IA 1065.

or negative number.

PART II: PARTNER’S PRO RATA SHARE ITEMS:

Line 9 - Add lines 1 and 8. This is the adjusted all-source income of the

partnership.

Column (a), lines 1 through 15(f):

Enter the same amounts as shown on the federal K-1. These figures are

PART IV – Business Activity Ratio (BAR)

reportable as part of income/loss on your IA 1040.

If the partnership is doing business wholly within Iowa: Skip lines 1 -

12 and enter 100.00 on line 13.

Leave columns (b) and (c) blank for resident partners.

If the partnership is doing business both within and without Iowa:

Column (b), lines 1 through 15(f):

Complete all applicable lines. Dividends are net of special deductions.

For nonresident partners only, enter the partnership’s single factor Iowa

Business income means income which arises from the partnership’s unitary

BAR. The BAR in column (b) must be applied equally to each line item

trade or business, a part of which is conducted within Iowa. Business

in column (a); no method of “separate accounting” is allowed. Please

income must be apportioned to Iowa by means of the business activity ratio.

see our Web site ( ) for more

Investment income may at the taxpayer’s election be included in the

information on the BAR for investment partnerships.

computation of the business activity ratio. The taxpayer will have elected

Column (c), lines 1 through 15(f):

whether to include investment income in the computation of the business

For nonresident partners only, multiply the amounts in column (a) by the

activity ratio for that and all subsequent years. Consequently, that year and

percentage in column (b) and enter the product in column (c) for each line

for subsequent years total investment income which is determined to be

item. This is the amount apportionable to Iowa. Nonresidents: These figures

business income will be included in the numerator as follows:

may be reportable on your IA 126 nonresident schedule.

(1) Accounts receivable interest is to be included in the numerator to the

Line 15(f) schedule: Show name and amount for each item reported on

extent allocable to Iowa.

line 15(f).

(2) Other interest, net dividends, capital and ordinary gains, and royalties

Line 16(a): Enter the partner’s all-source modifications. This figure is equal

from intangibles must be included in the numerator if the commercial

to the partnership’s all-source modifications multiplied by the partner’s

domicile is in Iowa.

ownership percentage. Individual partners: If this figure is a positive

(3) All investment income that is business income, including capital gains

amount, report it on line 14 of your IA 1040. If this figure is a negative

or losses, must be included in the computation of the business activity

amount, report it on line 24 of your IA 1040.

ratio if the investment income is derived from intangible property that

Line 16(b): For nonresident partners only, enter the Iowa BAR.

has become an integral part of some business activity occurring

Line 16(c): For nonresident partners only, multiply line 16(a) by the

regularly in or outside of Iowa. See Iowa Rule 54.2(3) for clarification.

percentage on line 16(b) and enter here. Nonresident Partners: If this entry

(4) Capital and ordinary gains or losses, or rent and royalties from real

is a positive amount, also enter it on line 14 of your IA 126 form. If this

property must be included in the numerator for property located in Iowa.

entry is a negative amount, enter it on line 24 of your IA 126 form.

PART V

Part III: Partner’s Portion of IA Credits/Withholding: If the partnership

Enter the partnership’s Iowa net income for three preceding years.

submitted Iowa withholding for the partner, enter it in the current-year

amount column on the first line of the schedule. If none, enter zero.

SIGNATURE:

The return must be signed and dated by a partner or member. The return

For all other credits, enter the tax credit name in the first column. For

will not be considered valid unless this requirement is met. Also include

awarded credits, enter your certificate number in the second column. Enter

the signer’s title and daytime phone number.

the partner’s share of the current-year amount in the third column.

PREPARER’S INFORMATION AND SIGNATURE:

Preparer’s signature and date signed. Preparer’s address and ID number.

41-017b (07/03/13)

Instructions For Form Ia 1065 - Partnership Return Of Income File Electronically - 2013 Page 2

Related Articles

Related forms

Related Categories