Fillable Schedule M1nc - Federal Adjustments

Itemized Deductions - Schedule

life, recalculate your Minnesota depreciation

Minnesota does not follow this provision.

M1SA

using a 39 year class life. Enter the difference

Recalculate your basis in the corporation if

on line 11.

you are a shareholder of an S corporation

You will need to file M1SA if you filed a

that donated appreciated property to a char-

Federal Schedule A and one or more of the

If you are required to prepare a recomputed

ity in 2013. Reduce your basis by your share

following conditions apply to you:

federal form, increase your business income

of the fair market value of the property. You

(or decrease net business loss) by this

• Your Minnesota AGI is more than

may have an adjustment on line 14.

amount on your recomputed Schedule C or

$178,150 ($89,075 if your filing status is

Schedule E.

married filing separately)

If you sold an interest in the corporation,

enter on line 14 the difference between your

Line 12

• You entered a value on line 6 of Schedule

federal and state basis. If your loss was

M1NC

Motor Sports Facility Depreciation

limited, or would have been limited by your

If you utilize the special 7-year cost recovery

• You claimed a federal deduction for mort-

Minnesota basis, enter on line 14 the differ-

period for property used for land improve-

gage insurance premiums

ence between the loss claimed federally and

ments and support facilities for motor sports

• You claimed a federal deduction for the

the allowable loss for Minnesota purposes.

entertainment facilities you must recalculate

donation of food inventory

the depreciation using a 15 or 39 year life (as

Other Adjustments to 1040 Due

• You claimed a deduction of qualified

appropriate). Enter the difference between

conservation property that was more than

to Recomputed Amounts

the special 7-year depreciation and your

30% of your Minnesota AGI, or

recomputed depreciation on line 12.

Before you complete line 15

• Your Minnesota AGI is different than your

If you report an item of income, loss or

If you are required to prepare a recomputed

Federal AGI and you claimed a deduction

deduction that requires a computation using

federal form, increase your business income

for:

adjusted gross income (AGI) or modified

(or decrease net business loss) by this

• medical and dental expenses,

adjusted gross income (MAGI), skip lines

amount on your recomputed Schedule C or

• charitable contributions,

15 and 16. You must prepare a recomputed

Schedule E.

federal form.

• casualty or theft losses, and

Line 13

Common examples of this type of income,

• job and miscellaneous deductions.

Qualified Advanced Mine Safety Equip-

loss or deduction include Social Security

ment

Other Federal Forms and

Income, Rental Real Estate Losses and IRA

If you expensed up to the first 50% of the

Schedules You May Need to

deductions. You will need to use Minnesota

cost of qualified mine safety equipment, cal-

AGI and Minnesota MAGI in your computa-

Recompute

culate the depreciation on the portion of the

tions.

equipment you expensed. Enter the differ-

Because some supporting federal forms

ence between the amount you expensed and

and schedules use amounts that may have

Include the adjustments you made on lines

been recomputed, complete a separate

the depreciation on that amount on line 13.

1 through 14 on the appropriate lines on

federal form or schedule if you filed any of

your recomputed federal form (example: If

If you are required to prepare a recomputed

the following using the amounts from your

you included an adjustment on line 1 of this

federal form, increase your business income

recomputed federal form:

schedule, you will add that value to line 7 of

(or decrease net business loss) by this

• Earned income credit worksheet: complete

amount on your recomputed Schedule C or

your original 1040 to determine the correct

line 1 of Worksheet A (1040), lines 1-6 of

Schedule E.

amount to include on line 7 of your recom-

EIC Worksheet B (1040), or line 1 of the

puted 1040).

Line 14

EIC worksheet for 1040A or 1040EZ,

When you compute your Minnesota taxable

Shareholders of an S corporation

• Alternative minimum tax, federal Form

For federal purposes, shareholders of an S

income, you must use the same elections

6251: complete lines 1–28, and

you used to calculate your federal taxable

corporation, that donated appreciated prop-

• Passive activity loss limitations, federal

income, including the election to itemize.

erty to a charity, may reduce their basis in the

form 8582: complete lines 1-16.

corporation by their share of the corpora-

tion’s adjusted basis of the property, instead

of the property’s fair market value.

Schedule M1nc - Federal Adjustments - 2013 Page 4

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