Fillable Schedule Jobz - Jobz Tax Benefits

C corporations: Enter the amount from Form

within and outside the zone, you must pro-

outside Minnesota) . . . . . . . . . .

rate the rent received based on the number

M4T, line 5.

3 From your 2012 Schedule JOBZ,

of days the property was used in the zone.

divide line 6, column A, by

Partnerships: Multiply Form M3A, line 6, by

your 2012 total payroll (within

Line 27—Net Gains From Sale of Real

Schedule K (1065), line 1.

and outside Minnesota) . . . . . . .

Property

S corporations: Multiply Form M8A, line 6,

4 Add steps 2 and 3 . . . . . . . . . . . .

If you sold or exchanged real property used

by Schedule K (1120S), line 1.

by a qualified business located in the zone,

5 Divide step 4 by two (carry to

enter the net gains received on line 27.

Sole proprietors, estates and trusts: If you are

five decimal places) . . . . . . . . . .

However, if you owned the property prior to

a full-year Minnesota resident, enter the

6 Multiply step 1 by step 5. Enter

the designation of the zone, follow the steps

adjusted amount of Schedule C (1040), line

the result here and on line 29 . .

below to determine line 27:

31, or Schedule C-EZ (1040), line 3.

Line 30—JOBZ Investment Income

1 Net gain from the sale or exchange

If you’re a part-year resident or nonresident,

Partnerships: Include the partner’s distribu-

of real property located in the

enter the amount from Schedule M1NR,

tive share on Schedule KPI, line 10, or on

zone . . . . . . . . . . . . . . . . . . . . . . .

line 3, column B.

Schedule KPC, line 4.

2 Number of days you held the

S corporations: Include the shareholder’s pro

Line 11—Adjusted Relocated Zone

property during the period of

rata share on Schedule KS, line 10.

Payroll

zone designation . . . . . . . . . . . . .

To determine line 11, follow the steps

Estates and trusts: Include the result on

3 Total number of days you held

below:

Form M2, line 38, and include the benefi-

the property . . . . . . . . . . . . . . . . .

ciary’s share on Schedule KF, line 15.

1 2013 zone payroll (from line 6,

4 Divide step 2 by step 3 . . . . . . . .

column A) . . . . . . . . . . . . . . . . . .

Individuals and sole proprietors: Include the

5 Multiply step 1 by step 4. Enter

2 Payroll from relocated opera-

result on Schedule M1M, line 31.

the result here and on line 27 . .

tion for last full year prior to

Line 28—Net Gains From Sale of

Lines 31–43

relocation . . . . . . . . . . . . . . . . . . .

Tangible Personal Property

3 Subtract step 2 from step 1 . . . .

JOBZ Jobs Credit

If you sold or exchanged tangible personal

A refundable jobs credit based on higher

Enter the result from step 3 on line 11.

property that was used by a qualified busi-

paying jobs is available to qualified busi-

ness in the zone, enter the net gains received

Line 17—Zone Exemption

nesses located in a JOBZ zone. To qualify,

on line 28. However, if the tangible property

Enter the amount from line 10 or line 16,

the average wage per employee in the zone

was used both within and outside the zone

must be $37,450 or more.

whichever is less. However, if the qualified

or you owned the property before the zone

business relocated after August 31, 2005,

was designated, follow the steps below to

Line 31—Zone Payroll

enter the amount from line 13 or line 16,

determine line 28:

Enter line 6, column A. For employees

whichever is less.

whose wages are over $124,840 exclude the

1 Net gain from the sale or exchange of

amount over $124,840.

C corporations: Include the result on Form

tangible personal property used by

M4T, line 9.

a qualified business in the zone .

Line 32—2003 Zone Payroll

Enter the amount of payroll in the zone

Partnerships: Include the partner’s distribu-

2 Number of days the tangible

for 2003. For employees whose wages are

tive share on Schedule KPI, line 10, or on

personal property was used in

over $124,840, exclude the amount over

Schedule KPC, line 3.

the zone . . . . . . . . . . . . . . . . . . . .

$124,840.

3 Total number of days

The zone exemption may not flow through

you held the property . . . . . . . .

to C corporation partners.

Line 43—JOBZ Jobs Credit

Partnerships, S corporations, estates and

4 Divide step 2 by step 3 . . . . . . . .

S corporations: Include the shareholder’s pro

trusts: Any remaining credit may be passed

5 Multiply step 1 by step 4. Enter

rata share on Schedule KS, line 10.

through to partners, shareholders and

the result here and on line 28 . .

beneficiaries on the appropriate line on

Estates and trusts: Include the result on

Schedule KPI, KPC, KS or KF.

Line 29—Gain From the Sale of an Own-

Form M2, line 38, and include the benefi-

ciary’s share on Schedule KF, line 15.

ership interest in a Qualified Business

If you sold a qualified business (a corporate

Definition

Sole proprietors: Include the result on

stock, S corporate stock or partnership

Schedule M1M, line 31. Also, any child

interest) in 2013 and the 2013 zone ratio of

Full-time Equivalent Employee is the

and dependent care and/or working family

the business is at least 25 percent, you may

credit you may claim must be prorated to

equivalent to 2,080 expected hours of

qualify for a subtraction. (Use the steps be-

exclude your exempt earned income from

work time. To determine, follow the

low using 2013 figures to determine if your

operating a qualified business in the zone.

steps below:

2013 zone ratio is at least 25 percent. If step

6 using 2013 figures is less than 25 percent,

1 Number of full-time employees

Line 19

you do not qualify for this subtraction.)

who worked the entire year .

If the qualified business relocated under a

fully executed business subsidy agreement

2 Total hours worked by all em-

Follow the steps below to determine line 29:

after August 31, 2005, multiply line 18 by

ployees not included in step 1

1 Net gain from the sale of an

line 8, and then multiply by line 12. Enter

3 Divide step 2 by 2,080 . . . . .

ownership interest in a qualified

the result on line 19.

business . . . . . . . . . . . . . . . . . . . .

4 Add step 1 and step 3, and

Lines 23–26—Rent Subtraction

carry result to two

2 From your 2012 Schedule JOBZ,

Enter the net rents you received from a

decimal places . . . . . . . . . . . .

divide line 5, column A, by your

qualified business for the rental of real or

2012 total property (within and

tangible personal property located in the

zone. If the personal property was used both

Schedule Jobz - Jobz Tax Benefits - 2013 Page 4

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