Form It-40 - Indiana Full-Year Resident Individual Income Tax Booklet - 2013 Page 16
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60The amount of discharge of indebtedness of your principal residence
•
If you choose Option 1, file an amended 2012 state tax return,
to be added back can be found on:
deducting the amount previously added back.
•
federal Form 1099-C (or its equivalent), Box 2, and/or
•
If you choose Option 2, do not file an amended 2012 state tax
federal Form 982, Reduction of Tax Attributes Due to Discharge of
return. Instead, enter code 307 on the 2013 Schedule 1 (under
•
Indebtedness (and Section 1082 Basis Adjustment). If Part 1 Line 1e
line 7) and enter the amount that was originally added back in the
is checked on Form 982, then the amount on Part 1 Line 2 from
prior year as a negative amount.
the discharge of qualified principal residence indebtedness must
be added back if you were an Indiana resident on the date the debt
Example. Tony added back depreciation expense related to a motor-
was discharged (1099C, Box 1).
sports entertainment complex on his 2012 state return. Instead of
opting to amend his 2012 state return (Option 1), Tony has chosen
Note. No add back is required if the discharge of indebtedness of your
Option 2, which is to report it on his 2013 state return on Schedule 1.
principal residence was included in a bankruptcy.
He will list it under line 7 using the unique 3-digit code number 307,
and will report it as a negative amount.
Maintain with your records both federal Form 1099C and Form 982 as
the department can require you to provide this information at a later
See Certain discontinued add-backs: How and when to report a differ-
ence on page 14 for more information.
date.
Enter code 117 on Schedule 1 under line 7 if reporting this add-back.
Oil and gas well depletion deduction add-back 134
This add-back is no longer required. See Certain discontinued add-
IRA charitable distribution add-back
backs: How and when to report a difference on page 14 for an example
This add-back is no longer required. Therefore, do not add an amount
of how to figure a final catch-up amount (enter code 134 on Schedule
equal to any income not included in your adjusted gross income be-
1 under line 7 if reporting a catch-up amount).
cause of a charitable distribution from an IRA.
OOS municipal obligation interest add-back
137
Important. Current-year legislation removed this from being a re-
Interest earned from a direct obligation of a state or political subdivi-
quired add back beginning with the 2012 tax year. Therefore, if you re-
sion other than Indiana (out of state, or OOS) is taxable by Indiana if
ported this add-back on your 2012 state tax return, you may be eligible
the obligation is acquired after Dec. 31, 2011. Interest earned from ob-
for a refund or a reduction of any tax otherwise owed. See Option 1
ligations held or acquired before Jan. 1, 2012, is not subject to Indiana
and Option 2 on page 14 to find which option works best for you.
income tax and should not be reported as an add back.
If you choose Option 1, file an amended 2012 state tax return,
•
Note. Interest earned from obligations of Puerto Rico, Guam, Virgin
deducting the amount originally reported as an IRA charitable
Islands, American Samoa, or Northern Mariana is not included in
distribution add-back.
federal gross income and is exempt under federal law. There is no add-
If you choose Option 2, do not file an amended 2012 state tax
•
back for interest earned on these obligations.
return. Instead, enter code 302 on the 2013 Schedule 1 (under
line 7) and enter the amount that was originally added back in the
For more information about this add-back, see Income Tax Informa-
prior year as a negative amount.
tion Bulletin #19 at
Example. Roberta reported a $1,900 IRA charitable distribution add-
Enter code 137 on Schedule 1 under line 7 if reporting this add-back.
back on her 2012 state return. Instead of opting to amend her 2012
state return (Option 1), she has chosen Option 2, which is to report
Other (current year conformity) add-back
120
it on her 2013 state return on Schedule 1. She will list it under line 7
Before this publication was finalized Indiana had not conformed to
using the unique 3-digit code number 302, and will report it as a nega-
any changes to the Internal Revenue Code (IRC) that may have be-
tive $1,900 (-$1,900).
come law after Jan. 1, 2013. Therefore, the IRC used to figure Indiana
income may not be the same as the IRC used to figure federal income.
Motorsports entertainment complex add-back
This add-back is no longer required. Therefore, do not add back any
This add-back is specific to these annual current year conformity is-
depreciation expense related to a motorsports entertainment complex.
sues. If uncertainty exists as to whether or not Indiana will adopt some
or all of the federal legislation passed during 2013 that acts to modify
Important. Current-year legislation removed this from being a re-
federal AGI, you may add-back those items as an “other” add-back. In
quired add back beginning with the 2012 tax year for assets placed in
the event those items are adopted, an amended return should be filed
service during 2012. Therefore, if you reported this add-back on your
to recoup the add-back(s).
2012 state tax return, you may be eligible for a refund or a reduction
of any tax otherwise owed. See Option 1 and Option 2 on page 14 to
All entries marked as “other” must be reported as a positive amount
find which option works best for you.
on the original tax return. Negative entries will not be allowed.
Page 16
IT-40 Booklet 2013
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