Looking for a Minnesota Tax Forms And Templates? Download it for free!

M2, Lines 26–36

• If less than 95 percent of all federally

Line 29

Line 32

tax-exempt interest dividends from a

Federal Bonus Depreciation Addition

Net Operating Loss (NOL) Carryover

mutual fund came from bonds issued by

If you chose on your federal return the

Adjustment

Minnesota, all of the federally tax-exempt

special depreciation allowance for certain

The Minnesota Legislature did not adopt

interest dividend from that fund must be

qualified property, you must add back 80

the provisions of the Worker, Homeowner-

included.

percent of the bonus depreciation to Min-

ship, and Business Assistance Act of 2009

Nonresident estates and trusts: Non-Min-

nesota.

(WHBA). Under this Act, taxpayers are

nesota interest or dividends received from

allowed to carryback 3, 4, or 5 years an

Follow the steps below to determine line 29:

bonds or a bond mutual fund do not have to

NOL generated in 2008 or 2009. For federal

1 Add line 14 and line 25 of

be added back to Minnesota income. [M.S.

purposes, any remaining NOL that was not

your federal Form 4562* . . . . .

290.01, subd. 19a(1)]

fully absorbed in the carryback years can be

2 Total of bonus depreciation

carried forward for up to 20 years, begin-

Line 26

passed through to you as a

ning in 2010. If you claimed the deduction

State Income Tax

shareholder of an S corporation

in 2016, you must add back the federal NOL

Enter the amount of state income tax de-

(from line 5 of Schedule KS), or

amount as a positive number on line 32.

ducted on the federal return. State income

as a partner of a partnership

tax deductions are not allowed on the Min-

Line 33

(from line 5 of Schedule KPI) .

nesota return. [M.S. 290.01, subd. 19a(2)]

Domestic Production Activities Deduc-

3 Add steps 1 and 2 . . . . . . . . . . .

tion

Line 27

4 Multiply step 3 by 80% (.80) . .

If you are claiming a portion of the domes-

Expenses Related to Income Not Taxed

tic production activities deduction on the

5 Total of any 80% federal bonus

by Minnesota, Other Than From U.S.

estate’s or trust’s federal return, add back

depreciation addition you

Bond Obligations

this amount on line 33.

received as a beneficiary of

Expenses deducted on your federal return

another estate or trust (from

that relate to income not taxed by Minnesota

Line 35

line 5 of Schedule KF). . . . . . . .

must be added to your taxable net income.

Net Interest from U.S. Bonds

[M.S. 290.01, subd. 19a(5)]

6 Add steps 4 and 5. Enter here

Interest earned on certain direct federal

and on line 29 . . . . . . . . . . . . . .

If you had expenses attributable to interest

obligations is taxable on the federal return,

or mutual fund dividends from U.S. bonds,

but is not taxable on the state return. You

* If bonus depreciation included in step 1 or

see line 35.

may reduce your taxable income if you

2 generated a loss in an activity that cannot

reported interest on your federal return that

be deducted in 2016 (e.g., a passive activity

Line 28

is exempt from state income tax.

loss or a loss in excess of basis), you may

Suspended Loss of Bonus Depreciation

reduce step 1 or 2 by the amount of loss not

Include the interest you received from

If you’re claiming a suspended loss from

allowed from the activity for 2016, up to the

certain U.S. bonds, bills, notes and other

2001-2005 or 2008-2015 on your federal

bonus depreciation claimed by the activity.

debt instruments, reduced by any related

return that was generated by bonus deprecia-

investment interest and other expenses you

tion, and you did not add back 80 percent

In a future year when the 2016 suspended

deducted on your federal return that relate

of the bonus depreciation in those years,

loss is allowed, you must include the bonus

to this income.

complete the following steps:

depreciation as an addition. The bonus

depreciation is treated as the last suspended

1 Bonus depreciation from 2001–

You may also include the portion of divi-

loss allowed.

2005 or 2008-2015 not

dends from mutual funds that are attribut-

added back on Form M2 . . . . .

able to such bonds, bill or notes, reduced by

Line 30

any related expenses you deducted on your

2 Total suspended loss from

Fines, Fees and Penalties Deducted on

federal return.

activity remaining after 2016 . .

your Federal Return

You must add fines, fees and penalties that

3 Subtract step 2 from step 1 (if a

Enclose a statement from the fund indicat-

were deducted as business expenses paid

negative amount, enter zero) .

ing the proportionate interest earned on the

to a government entity or nongovernment

4 Multiply step 3 by 80 percent

above securities. [M.S. 290.01, subd. 19b(1)]

regulatory body as a result of a violation

(.80) . . . . . . . . . . . . . . . . . . . . . .

Line 36

of law, or the investigation of any poten-

5 Total of the 80 percent bonus

State Income Tax Refunds

tial violation of law. This does not include

depreciation addition passed

Income tax refunded by Minnesota or any

amounts identified in a court order or

through to you as a beneficiary

other taxing jurisdiction that was included

settlement agreement as restitution or as an

of another estate or trust (from

as income on the federal return is not taxed

amount paid to come into compliance with

line 4 of Schedule KF) . . . . . . . .

by Minnesota. [M.S. 290.01, subd. 19b(2)]

the law.

6 Add steps 4 and 5. Enter here

and on line 28 . . . . . . . . . . . . . . .

Continued

Instructions For Form M2 - Minnesota Income Tax For Estates And Trusts (Fiduciary) - 2016 Page 7

Related Articles

Related forms

Related Categories