Fillable Form Ia 6251 - Iowa Minimum Tax Computation

2012 IA 6251 Instructions

WHO MUST FILE IA 6251

NONRESIDENTS AND PART-YEAR RESIDENTS

All individuals, estates, and trusts that had one or more of the

Nonresidents and part-year residents of Iowa are required to

adjustments or preferences in Part I must complete form IA

pay Iowa minimum tax only on the percentage of adjustments

6251 to see if they owe Iowa minimum tax. Taxpayers may

and tax preferences which are Iowa source. Lines 29-32 in Part

have an Iowa minimum tax liability even if they owed no

IV must be completed to calculate the Iowa minimum tax

federal minimum tax. Nonresidents who have a liability for

liability for nonresidents and part-year residents only if one has

Iowa minimum tax are required to file an Iowa return even if

Iowa source adjustments or preferences.

they have no regular Iowa income tax liability.

Line 29.

Married filing separate filers: Each spouse needs to complete

Add Iowa net income from line 26, IA 126, plus the total of

an IA 6251.

those adjustments and tax preferences on line 13 of the IA 6251

that are from Iowa sources.

PART I: ADJUSTMENTS AND PREFERENCES

Line 30.

If you did not itemize on the federal level, lines 1, 2, and 4 of

the IA 6251 will refer to the Iowa Schedule A as follows:

Add total net income from line 27, IA 126, plus the total of

all adjustments and tax preferences on line 13 of the IA 6251.

Line 1 of the IA 6251 refers to line 3 of the IA Schedule A.

Line 31.

Line 2 of the IA 6251 refers to line 8 of the IA Schedule A.

Divide line 29 by line 30 and enter the result to three decimal

Line 4 of the IA 6251 refers to line 24 of the IA Schedule A.

places (Example: .786).

Note: The federal tax preferences for percentage depletion of

Line 32.

an oil, gas, or geothermal well and intangible drilling costs

from lines 9 and 26 of federal form 6251 are not tax

Multiply line 28 by line 31. The result is the Iowa minimum

preferences but are additions to income on line 14 of IA 1040.

tax and is to be entered on line 45, IA 1040, or on line 25, IA

1041. See the instructions below relating to minimum tax

RELATED ADJUSTMENTS

limited to net worth.

Line 12-m.

MINIMUM TAX LIMITED TO NET WORTH

Include related adjustments from line 27 of the federal 6251

Taxpayers who meet all qualifications for a distressed sale, but

only to the extent the adjustments are ones that affect the

have a debt to asset ratio of 75% or less, are not subject to the

computation of net income. An adjustment related to tax-

minimum tax in an amount greater than the taxpayer’s net

exempt interest from private activity bonds would not be

worth. In situations where a taxpayer has multiple transactions

included, since this is not an Iowa tax preference or adjustment.

(forfeitures, transfers, sales, or exchanges), minimum tax is

ALTERNATIVE NET OPERATING LOSS DEDUCTION

limited to net worth prior to the last transaction in the tax year.

Line 18.

For additional information on what constitutes a “distressed

A net operating loss can be carried back or carried forward to

sale,” contact the Taxpayer Services Section. If calling from

reduce a taxpayer’s alternative minimum taxable income.

the Des Moines area or from out of state, call (515) 281-3114.

However, before the net operating loss can be deducted, it must

Elsewhere in Iowa or from the Rock Island, Moline, or Omaha

be reduced by any adjustments and tax preferences used in

areas, call 1-800-367-3388 (toll free). E-mail:idr@iowa.gov

computing the net operating loss. A net operating loss that is

ALTERNATIVE MINIMUM TAX CARRYFORWARD

carried to the current tax year on line 18 cannot exceed 90%

CREDIT

of the amount on line 17. Any portion of the net operating loss

An alternative minimum tax credit is available that may reduce

which cannot be used can be carried over to the next tax year.

the regular tax of an individual for minimum tax paid in a prior

Line 27.

year on deferral items of tax preference. The Iowa credit is

Enter the amount from IA 1040, line 43, less line 49; or enter

computed similarly to the federal credit but on form IA 8801.

the amount from IA 1041, line 23, less line 27. If less than zero,

The IA 8801 and the IA 148 Tax Credits Schedule must be

enter zero.

attached to the IA 1040 if this credit is claimed.

41-131b (08/30/12)

Form Ia 6251 - Iowa Minimum Tax Computation - 2012 Page 2

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