Iowa Corporation Income Tax Instructions - 2014 Page 5
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7Line 30: Credit to Next Period’s Estimated
not allowed as an Iowa deduction that was not
Tax Enter the amount of overpayment to be
taken at the federal level.
credited to the next tax period. This credit can
Line 4: Enter any net contributions previously
only be changed after the due date if the
not allowed as an Iowa deduction that was not
change is requested by the last day of the
taken at the federal level.
subsequent year.
Lines 5-7: Enter income amounts related to
sale-leaseback safe harbor leases for property.
Schedule A - Other Additions:
This includes rent income for the lessor and
Line 1: Enter the amount of IRC section 613
interest income and depreciation expense for
percentage depletion of an oil, gas, or
the lessee.
geothermal well that exceeds the cost depletion
Line 8: Depreciation Adjustment - Include
amount determined under IRC section 611 as
forms IA 4562A and IA 4562B.
claimed on the federal return.
Line 10: Enter the amount of Iowa tax refund
Line 3: Enter any net capital loss included in
included in federal income. Do not include Iowa
the computation of line 1 of the Iowa return.
tax refunds from Iowa refundable tax credits.
Line 4: Enter any net contributions deducted in
Line 11: Enter the amount of wages not
excess of the federal limitation.
subtracted from federal taxable income due to
Lines 5-7: Enter deductions relating to sale-
the Work Opportunity Credit, federal form
leaseback safe harbor leases for property
5884.
placed into service prior to January 1, 1986.
Line 12: Enter the amount added to federal
This
includes
interest
expense
and
taxable income due to the Alcohol and
depreciation expense for the lessor and rent
Cellulosic Biofuel Tax Credit, federal form
expense for the lessee.
6478.
Line 8: Depreciation Adjustment - Include
Line 13: Foreign dividend income exclusion:
forms IA 4562A and IA 4562B.
Complete Schedule B.
Line 9: Enter the amount of interest and
The
foreign
dividend
exclusion,
including
dividends exempt from federal tax. Exclude
subpart F income, follows the same criteria as
interest received from certain Iowa bonds,
IRC section 243 does for domestic dividends.
which are listed in Iowa Rule 40.3. If municipal
interest taxable for Iowa differs from total
If the percentage of ownership is less than
municipal interest reported on the federal
20%, then 70% of the dividend income is
return, a schedule must be included.
excluded. If the percentage of ownership is
equal to or greater than 20%, but less than
Line 10: Enter the amount of Iowa tax
80%, then 80% of the foreign dividend income
expensed on the federal return. Provide a
is excluded. If the percentage of ownership is
breakdown of line 17, taxes and licenses,
80% or greater, then 100% of the foreign
shown on the federal return.
dividend income is excluded. Foreign dividend
Line 15: Enter any amounts not specifically
gross-up is excluded at 100%. These amounts
identified above. A detailed schedule must be
are shown on federal form 1120 Schedule C,
included or these amounts may not be allowed.
lines 13 - 15.
If adjusting an amount from a partnership or
Line 14: Enter the amount of interest and
LLC, include a reconciliation of federal income
dividends from federal securities included in
to income reported on the Iowa partnership
federal income. Do not include interest on
return. The difference must be specifically
federal refunds. Include a schedule showing a
identified to indicate the Iowa adjustment being
breakdown of federal security interest by payer.
made.
Line 15: Enter any amounts not specifically
Schedule A - Other Reductions:
identified above. A detailed schedule must be
Line 2: Enter the amount of Social Security
included or these amounts may not be allowed.
taxes for tips not subtracted from federal
If adjusting an amount from a partnership or
taxable income due to the tip credit, federal
LLC, include a reconciliation of federal income
form 8846.
to income reported on the Iowa partnership
Line 3: Enter any net capital loss previously
return. The difference must be specifically
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42-002 (09/08/14)
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