Schedule M1m - Minnesota Income Additions And Subtractions - 2014 Page 4
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8Line 5
Worksheet for Line 2
Federal Bonus Depreciation Addition
1 Multiply the number in box 6d of federal Form 1040 or 1040A by $3,950 . . . . . .
2 Enter your federal adjusted gross income (from line 37 of federal Form
If you chose the special depreciation al-
1040 or line 21 of Form 1040A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
lowance for qualifi ed property on federal
3 Enter the amount provided for your fi ling status:
Form 1040, you must add back 80 percent
• Single: $181,150
of the bonus depreciation to your taxable
• Married fi ling jointly or qualifying widow(er): $271,750
income. See Worksheet for Line 5 on this
• Married fi ling separately: $135,875
page.
• Head of household: $226,450 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Line 6
4 Subtract step 3 from step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Is step 4 equal to or less than $122,500 ($61,250 if married fi ling separately)?
Federal Section 179 Expensing
No. Enter amount from step 1 on step 7 and continue to step 8.
If, during the year, your total invest-
Yes. Continue with step 5. If the result is negative, skip steps 5 through 9
ment in qualifying property was more
and enter $0 on step 10.
than $200,000, or if you elected more
5 Divide step 4 by $2,500 ($1,250 if married fi ling separately).
than $25,000 in section 179 expensing,
If the result is not a whole number, increase it to the next
you must add back on your state return
higher whole number (Example: Increase 0.0004 to 1) . . . . . . . . . . . . . . . . . . . . . .
80 percent of the diff erence between the
6 Multiply step 5 by 2% (.02). Enter the result as a decimal . . . . . . . . . . . . . . . . . . . .
expensing allowed for federal and for
.
7 Multiply step 1 by step 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
state tax purposes. You may subtract the
8 Subtract step 7 from step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
amount of the addition in equal parts
9 Enter your federal exemption amount (from line 42 of Form 1040
over the next fi ve years.
or 26 of Form 1040A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 Subtract step 8 from step 9. Enter the result here and on
If you completed federal Form 4562
line 2 of Schedule M1M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
to claim the section 179 expensing for
federal tax purposes, you must complete
Worksheet for Line 5
lines 1 through 12 on a separate federal
1 Add line 14 and line 25 of your federal Form 4562* . . . . . . . . . . . . . . . . . . . . . . . . .
Form 4562, (referred to as Minnesota
2 Total of bonus depreciation amounts passed through to you as a partner
Form 4562 on the worksheet for line 6)
(line 5 of Schedule KPI) or as a shareholder (line 5 of Schedule KS) . . . . . . . . . . . .
to determine the amount you need to add
3 Add steps 1 and 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
back for Minnesota purposes. See Work-
sheet for Line 6 on this page.
4 Multiply step 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Line 7
5 Total of the 80% federal bonus depreciation addition passed through
to you as a benefi ciary (from line 5 of Schedule KF) . . . . . . . . . . . . . . . . . . . . . . . . .
State Income Taxes Passed Through
6 Add steps 4 and 5. Enter here and on Schedule M1M, line 5 . . . . . . . . . . . . . . . . .
to You as a Partner of a Partnership, a
Shareholder of an S Corporation or a
* If bonus depreciation included in step 1 or 2 generated a loss in an activity that cannot be de-
Benefi ciary of a Trust
ducted in 2014 (e.g., a passive activity loss or a loss in excess of basis), you may reduce step 1 or 2 by
the amount of loss not allowed from the activity for 2014, up to the bonus depreciation claimed by
Include your pro rata share of income
the activity. In a future year when the 2014 suspended loss is allowed, you must include the bonus
taxes paid by the partnership, S corpora-
depreciation as an addition. Th e bonus depreciation is treated as the last suspended loss allowed.
tion, estate or trust that were deducted in
arriving at the entity’s ordinary income
Worksheet for Line 6
or net rental income. Th is amount, if any,
Recalculate line 12 of your Minnesota Form 4562 using the same information from your
will be provided on the Schedule KPI, KS
federal Form 4562 and the following modifi cations:
or KF you received from the entity. Do
• Subtract $475,000 from line 1 of federal Form 4562, and enter the result on line 1 of your Min-
not include this amount on line 2 of Form
nesota Form 4562.
M1.
• Enter the amount from line 2 of federal Form 4562 on line 2 of the Minnesota Form 4562.
• Subtract $1,800,000 from line 3 of federal Form 4562, and enter the result on line 3 of your
Line 9
Minnesota Form 4562.
Expenses Relating to Income Not
• Enter the information from lines 6 and 7 of federal Form 4562 on lines 6 and 7 of your Min-
Taxed by Minnesota, Other Than From
nesota Form 4562. However, if you have section 179 expensing from a fl ow through entity,
U.S. Bond Obligations
use the respective amounts from line 4 of Schedule KPI or line 4 of Schedule KS instead of
If you deducted expenses on your federal
amounts from your federal Schedule K-1.
• Enter line 10 of federal Form 4562 on line 10 of your Minnesota Form 4562.
return that are connected with income
• Recalculate lines 4, 5, 8, 9, 11 and 12 of your Minnesota Form 4562. Th e result on line 12 of
not taxed by Minnesota (such as income
Minnesota Form 4562 cannot be more than line 1 of that form.
reported on lines 22 through 27 of Sched-
Determine line 6 of Schedule M1M by completing the following steps:
ule M1M), you must add those expenses
1 Amount from line 12 from your federal Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . .
to your taxable income.
2 Line 12 of your Minnesota Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Do not include expenses that are connect-
3 Subtract step 2 from step 1(if zero or less, enter 0) . . . . . . . . . . . . . . . . . . . . . . . . . .
ed with interest or mutual fund dividends
from U.S. bonds. For information on how
4 Multiply step 3 by 80% (.80). Enter here and on Schedule M1M, line 6 . . . . . . . .
to report these expenses, see line 16.
Continued
M1M-2
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