Iowa Corporation Income Tax Instructions - 2014 Page 6
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1
2
3
4
5
6
7identified to indicate the Iowa adjustment being
Column A Gross Income: Enter the amount
made.
of income on the appropriate line. If an entry is
made on line 6 or 14, please include federal
Schedule B - Foreign Dividend
Schedule D. If an entry is made on line 1, do
Exclusion
not include any amounts previously deducted
See instructions for line 13, Schedule A.
on line 13 of Iowa Schedule A relating to
foreign dividends.
Schedule C1 - Credits
Column B Related Expense: Enter directly-
Enter all applicable amounts on the lines
related expenses and indirectly-related interest
specified. Include fuel credit, nonrefundable
expenses on the appropriate line. Include
credits, and other refundable credits. Include
detailed schedules showing the computation of
schedule IA 4136 and schedule IA 148.
the related expense.
Schedule C2 - Payments
Column C Subtotal: Subtract column B from
Enter all applicable amounts on the lines
column A and enter the difference.
specified. For line 1, Schedule C2, enter the
Column D 50% of Applicable Federal
dates estimated tax payments were paid.
Income Tax: Enter 50% of the applicable
Note: Ensure to correctly distinguish between
federal income tax.
Do not enter negative
credits and payments. For example, credit from
amounts. The effective tax rate equals line 5,
prior period overpayment must be listed as a
page 1, divided by line 1, page 1, of form IA
payment on Schedule C2.
1120. Multiply column C by this tax rate to
determine the entry for column D. The total
Additional Information
amount is limited to the federal tax deduction
Complete
all
applicable
statements
and
shown on line 5, page 1.
questions.
Column E Net Income: Subtract column D
Enter the FEIN or PTIN for the preparer’s
from column C and enter the difference.
identification.
Schedule E - Business Activity
Schedule
D
-
Nonbusiness
Ratio
Income
If all corporate business is conducted within
If all corporate business is conducted within
Iowa, do not complete Schedule E.
Iowa, do not complete Schedule D.
Complete all applicable lines. All figures are
The classification of income by the labels
net of amounts used in Iowa Schedule D.
customarily given them, such as interest,
Dividends are net of special deductions and
dividends, rents, and royalties, is of no aid in
the Iowa foreign dividend exclusion.
determining whether that income is business or
nonbusiness income.
Business income means income which arises
from
the
corporation’s
unitary
trade
or
Please provide all documentation to the
business, a part of which is conducted within
substantial authority showing why the income
Iowa. Business income must be apportioned to
must be allocated as nonbusiness income.
Iowa by means of the business activity ratio.
Instructions
Investment income may, at the taxpayer’s
When referring to the columns designated
election, be included in the computation of the
below, enter the amounts on lines 1 through 8
business activity ratio. On the return, the
if the corporation’s commercial domicile is
taxpayer elects whether to include investment
Iowa. Enter amounts on lines 9 through 16 if
income which was determined to be business
the
corporation’s
commercial
domicile
is
income in the computation of its business
outside Iowa. However, rent, royalty, and
activity ratio for that and all subsequent years.
capital or ordinary gain income from real or
Consequently, the subsequent year’s total
tangible personal property is allocated to the
investment income which is determined to be
situs of the property producing the income.
business income is included in the numerator
Also, see Iowa rule 701—54.2(3) for attribution
as follows:
of income from intangibles.
(1) Accounts receivable interest is to be
included in the numerator to the extent
6
42-002 (09/08/14)
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