Fillable Schedule M1m - Income Additions And Subtractions

Worksheet for Line 2

Line 5

1 Multiply the number in box 6d of federal Form 1040 or 1040A by $4,050 . . . .

Federal Bonus Depreciation Addition

2 Enter your federal adjusted gross income (from line 37 of federal Form

If you chose the special depreciation

1040 or line 21 of Form 1040A). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

allowance for qualified property on

3 Enter the amount provided for your filing status:

federal Form 1040, complete the

• Single: $186,350

Worksheet for Line 5.

• Married filing jointly or qualifying widow(er): $279,500

• Married filing separate: $139,750

Line 6

• Head of household: $232,900 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Federal Section 179 Expensing

4 Subtract step 3 from step 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If, during the year, your total invest-

Is step 4 equal to or less than $122,500 ($61,250 if married filing separate)?

ment in qualifying property was more

No. Enter amount from step 1 on step 7 and continue to step 8.

than $200,000, or if you elected more

Yes. Continue with step 5. If the result is negative, skip steps 5 through 9

than $25,000 in section 179 expensing,

and enter $0 on step 10.

you must add back on your state return

5 Divide step 4 by $2,500 ($1,250 if married filing separate).

80 percent of the difference between the

If the result is not a whole number, increase it to the next

expensing allowed for federal and for

higher whole number (Example: Increase 0.0004 to 1) . . . . . . . . . . . . . . . . . . .

state tax purposes. You may subtract the

6 Multiply step 5 by 2% (.02). Enter the result as a decimal . . . . . . . . . . . . . . . .

amount of the addition in equal parts over

7 Multiply step 1 by step 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

the next five years.

8 Subtract step 7 from step 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

If you completed federal Form 4562

9 Enter your federal exemption amount (from line 42 of Form 1040

to claim the section 179 expensing for

or 26 of Form 1040A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Subtract step 8 from step 9. Enter the result here and on

federal tax purposes, you must complete

line 2 of Schedule M1M . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

lines 1 through 12 on a separate federal

Form 4562, (referred to as Minnesota

Worksheet for Line 5

Form 4562 on the worksheet for line

Complete Schedule M1NC, line 1 prior to completing this worksheet if you claimed bonus

6). Complete the worksheet for line 6 to

depreciation in excess of 50% of your basis in an asset.

determine the amount for line 6.

1 Add line 14 and line 25 of your federal Form 4562* . . . . . . . . . . . . . . . . . . . . .

2 Total of bonus depreciation amounts passed through to you as a partner

Line 7

(line 5 of Schedule KPI) or as a shareholder (line 5 of Schedule KS) . . . . . . . . .

State Income Taxes Passed Through

3 Add steps 1 and 2. Reduce the result by the amount on Schedule M1NC, line 1

to You as a Partner of a Partnership, a

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

Shareholder of an S Corporation, or a

Beneficiary of a Trust

5 Total of the 80% federal bonus depreciation addition passed through

to you as a beneficiary (from line 5 of Schedule KF) . . . . . . . . . . . . . . . . . . . . .

Enter the total of the amounts reported on

line 2 of Schedules KS, KPI, and KF.

6 Add steps 4 and 5. Enter here and on Schedule M1M, line 5 . . . . . . . . . . . . . . .

* If bonus depreciation included in step 1 or 2 generated a loss in an activity that cannot be

Do not include this amount on line 2 of

deducted in 2017 (e.g., a passive activity loss or a loss in excess of basis), you may reduce step

Form M1.

1 or 2 by the amount of loss not allowed from the activity for 2017, up to the bonus deprecia-

tion claimed by the activity. In a future year when the 2017 suspended loss is allowed, you must

Line 9

include the bonus depreciation as an addition. The bonus depreciation is treated as the last

Expenses Relating to Income Not Taxed

suspended loss allowed.

by Minnesota, Other Than From U.S.

Worksheet for Line 6

Bond Obligations

Recalculate line 12 of your Minnesota Form 4562 using the same information from your

If you deducted expenses on your federal

federal Form 4562 and the following modifications:

return connected with income not taxed

• Subtract $485,000 from line 1 of federal Form 4562, and enter the result on line 1 of your

by Minnesota (such as income reported

Minnesota Form 4562. Do not enter less than $25,000.

on lines 22 through 27 of Schedule

• Enter the amount from line 2 of federal Form 4562 on line 2 of the Minnesota Form 4562.

M1M), add those expenses to your tax-

• Subtract $1,830,000 from line 3 of federal Form 4562, and enter the result on line 3 of your

able income.

Minnesota Form 4562.

• Enter the information from lines 6 and 7 of federal Form 4562 on lines 6 and 7 of your Min-

Do not include expenses that are connect-

nesota Form 4562. However, if you have section 179 expensing from a flow through entity,

ed with interest or mutual fund dividends

use the respective amounts from line 4 of Schedule KPI or line 4 of Schedule KS instead of

from U.S. bonds. For information on how

amounts from your federal Schedule K-1.

to report these expenses, see line 16.

• Enter line 10 of federal Form 4562 on line 10 of your Minnesota Form 4562.

• Recalculate lines 4, 5, 8, 9, 11, and 12 of your Minnesota Form 4562. The result on line 12 of

Line 10

Minnesota Form 4562 cannot be more than line 1 of that form.

Fines, Fees and Penalties Deducted on

Determine line 6 of Schedule M1M by completing the following steps:

Your Federal Return

1 Amount from line 12 from your federal Form 4562 . . . . . . . . . . . . . . . . . . . . . .

Add fines, fees and penalties that were

2 Line 12 of your Minnesota Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

deducted as business expenses paid to

3 Subtract step 2 from step 1(if zero or less, enter 0) . . . . . . . . . . . . . . . . . . . . . .

a government entity or nongovernment

regulatory body as a result of a viola-

4 Multiply step 3 by 80% (.80). Enter here and on Schedule M1M, line 6 . . . . . .

tion of law, or the investigation of any

Continued

M1M-2

Schedule M1m - Income Additions And Subtractions - 2017 Page 4

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