Form It-40 - Indiana Full-Year Resident Individual Income Tax Instruction Booklet - 2011 Page 13
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60Where to mail your tax return – use labels
Line 2 – Net operating loss add-back
Any net operating loss (NOL) deduction taken on line 21 of your
for envelope
federal Form 1040 must be added back on this line. Write the amount
You’ll find mailing labels with the envelope enclosed in this booklet.
of the net operating loss as a positive figure. (You will claim an Indiana
Returns with payments enclosed have a different post office box
net operating loss deduction on Schedule 2, under line 11.)
number for mailing purposes.
Note. If your federal adjusted gross income this year is a loss, and you
If you are enclosing a payment, please mail your tax return with all
have not included a net operating loss as a deduction on line 21 of your
enclosures to:
2011 federal Form 1040, then leave this line blank.
Indiana Department of Revenue
P.O. Box 7224
Line 3 – Lump sum distribution
Indianapolis, IN 46207-7224
If you completed federal Form 4972, add any capital gains reported on
Part II and any ordinary income reported on Part III of federal Form
For all other filings, please mail your tax return with all enclosures to:
4972. Enter the total here as a positive amount.
Indiana Department of Revenue
P.O. Box 40
Line 4 – Domestic production activities add-back
Indianapolis, IN 46206-0040
If you claimed a domestic production activities deduction on your
federal Form 1040, line 35, enter that amount here.
Envelope – Don’t forget the stamp!
Make sure to put a stamp(s) on the envelope. The U.S. Post Office will
Line 5 – Bonus depreciation add-back
not deliver your tax return without the proper postage.
You must make an exception for any bonus depreciation deduction
used for property placed in service after Sept. 11, 2001. Bonus
depreciation is the additional first-year special depreciation deduction
Schedule 1: Add-Backs
allowed under Section 168(k) of the Internal Revenue Code (IRC).
Some amounts reported on your federal tax return may require
Figure the net income (or loss) which would have been included in
different treatment for Indiana income tax purposes. Listed in this
federal adjusted gross income had the bonus depreciation method
area are those items that may need to be added back on your Indiana
not been used. Then, enter the difference, which may be a positive or
tax return. Please review the list carefully. When reporting these add-
negative amount, on line 5.
backs, maintain with your records the corresponding federal tax forms
and schedules as the Department can require you to provide them at a
Example. Mack used the bonus depreciation method for federal income
later date.
tax purposes. After refiguring the depreciation without using the bonus
method, he has to add back $1,500 on his Indiana tax return.
Line 1 – Tax add-back
If you did not complete Federal Schedules C, C-EZ, E, or F, which
Note. After making an initial adjustment for bonus depreciation you’ll
include sole proprietorship income, farm income, rental, partnership,
need to refigure the amount of depreciation available for state tax
S corporation, and trust and estate income (or loss), then do not
purposes for subsequent years.
complete this line.
Example. Ann made an initial adjustment for bonus depreciation on
On those schedules you are allowed to claim a deduction for taxes paid
last year’s Indiana tax return. This year she figures she is entitled to a
which are:
$150 additional depreciation amount for state tax purposes. She should
•
based on, or
enter that amount as a negative entry, or (150), on line 5.
•
measured by income, and
•
levied at a state level by any state in the United States.
For additional information see Commissioner’s Directive #19 at
If you claimed this kind of deduction on any of these schedules, then
you must add it back to your Indiana income.
Line 6 – Section 179 expense add-back
You may have figured an IRC Section 179 expense using a ceiling
Do not add back property taxes on this line.
of more than $25,000 for federal tax purposes. Indiana allows you
to figure IRC Section 179 expense using a ceiling of no more than
Note. Income, losses and/or expenses from other schedules and
$25,000. If you figured IRC Section 179 expense using a ceiling amount
forms may flow through to federal Schedules C, E and F. For example,
of more than $25,000, you’ll need to add back the difference between it
partnership income from federal Schedule K-1 (Form 1065) may be
and $25,000 on line 6.
included on federal Schedule E, while expenses from federal Form
8829 may be included on federal Schedule C. Make sure to check these
schedules and forms for any deduction that needs to be added back.
Page 13
IT-40 Booklet 2011
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