Instructions For Form Ia 1065 - Partnership Return Of Income - 2014 Page 3
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5Line 2: Interest- Enter the total interest and
Additional Deduction for Wages Paid to
dividends from foreign securities, from securities
Certain Individuals: Qualifying businesses may
of state and other political subdivisions, and
also take an additional deduction of wages paid
from regulated investment companies exempt
to new employees who qualify as persons with
from federal income tax and not exempt from
disabilities or as ex-offenders.
Iowa income taxes.
Line 8: Net modifications- Subtract line 7 from
Line 3: Other additions- If a partnership is a
line 4. This could result in either a positive or
member
of
another
partnership
or
the
negative number.
beneficiary of an estate or trust, enter the
Part IV – Business Activity Ratio (BAR)
partnership’s distributive share of additions
If the partnership is doing business wholly
furnished by the other partnership, estate, or
within Iowa, skip lines 1 - 12 and enter 100.00
trust.
on line 13. If the partnership is doing business
Bonus Depreciation:
both within and without Iowa, complete all
For
any
assets
placed
in
service
after
applicable lines. Dividends are net of special
September 10, 2001, but before May 6, 2003,
deductions. Business income means income
Iowa continues to disallow the 30% bonus
which arises from the partnership’s unitary trade
depreciation provisions of the federal Job
or business, a part of which is conducted within
Iowa. Business income must be apportioned to
Creation and Worker Assistance Act of 2002. In
Iowa by means of the BAR. Investment income
addition, Iowa does not allow the 50% or 100%
may at the taxpayer’ s election be included in
bonus
depreciation
provisions
for
assets
the computation of the BAR. The taxpayer will
acquired after December 31, 2007, and before
have elected whether to include investment
January 1, 2014. Form IA 4562A must be filed
income in the computation of the BAR for that
to account for these differences between Iowa
and all subsequent years. Consequently, that
and federal. The section 179 expensing limitation
year and for subsequent years total investment
is $25,000 for tax years beginning in 2014.
income which is determined to be business
Line 5: Federal securities interest- Enter the
income will be included in the numerator as
total interest received from federal securities
follows:
such as U.S. Treasury bonds, notes, bills, and
Accounts receivable interest is to be
savings bonds included in taxable income for
included in the numerator to the extent
federal income tax purposes. Include any loss
allocable to Iowa.
on the sale or exchange of a share from a
Other interest, net dividends, capital and
regulated investment company held for six
ordinary
gains,
and
royalties
from
months or less to the extent the loss was
intangibles must be included in the
disallowed under section 852(b)(4)(B) of the
numerator if the commercial domicile is in
Internal Revenue Code.
Iowa.
All investment income that is business
Line 6: Other reductions- If a partnership is a
income, including capital gains or losses,
member
of
another
partnership
or
the
must be included in the computation of
beneficiary of an estate or trust, enter on this
the BAR if the investment income is
line the partnership’s distributive share of
derived from intangible property that has
reductions furnished by the other partnership or
become an integral part of some business
estate or trust.
activity occurring regularly in or outside of
Federal
Work
Opportunity
Tax
Credit,
Iowa.
See
Iowa
Rule
54.2(3)
for
Employer Social Security Credit for Tips, and
clarification.
Alcohol and Cellulosic Biofuel Credit: Enter
Capital and ordinary gains or losses, or
the amount of credits allowable for the tax year
rent and royalties from real property must
to the extent that the credit increased federal
be included in the numerator for property
partnership income.
located in Iowa.
41-017c (08/06/14)
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