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House Journal: Page 560: Monday, February 27, 1995

Page   5
 1   unnumbered paragraph:
 2     NEW UNNUMBERED PARAGRAPH.  The tax imposed upon the
 3   taxable income of a resident shareholder in a
 4   corporation which has in effect for the tax year an
 5   election under subchapter S of the Internal Revenue
 6   Code and carries on business within and without the
 7   state shall be computed by reducing the amount
 8   determined pursuant to paragraphs "a" through "i" by
 9   the amounts of nonrefundable credits under this
10   division and by multiplying this resulting amount by a
11   fraction of which the resident's net income allocated
12   to Iowa, as determined in section 422.8, subsection 2,
13   paragraph "b", is the numerator and the resident's
14   total net income computed under section 422.7 is the
15   denominator.  This paragraph also applies to
16   individuals who are residents of Iowa for less than
17   the entire tax year.
18     Sec. 11.  Section 422.5, subsection 1, paragraph k,
19   unnumbered paragraph 4, Code 1995, is amended to read
20   as follows:
21     In the case of a resident, including a resident
22   estate or trust, the state's apportioned share of the
23   state alternative minimum tax is one hundred percent
24   of the state alternative minimum tax computed in this
25   subsection.  In the case of a resident or part year
26   resident shareholder in a corporation which has in
27   effect for the tax year an election under subchapter S
28   of the Internal Revenue Code and carries on business
29   within and without the state, a nonresident, including
30   a nonresident estate or trust, or an individual,
31   estate, or trust that is domiciled in the state for
32   less than the entire tax year, the state's apportioned
33   share of the state alternative minimum tax is the
34   amount of tax computed under this subsection, reduced
35   by the applicable credits in sections 422.10 through
36   422.12 and this result multiplied by a fraction with a
37   numerator of the sum of state net income allocated to
38   Iowa as determined in section 422.8, subsection 2,
39   paragraph "a" or "b" as applicable, plus tax
40   preference items, adjustments, and losses under
41   subparagraph (1) attributable to Iowa and with a
42   denominator of the sum of total net income computed
43   under section 422.7 plus all tax preference items,
44   adjustments, and losses under subparagraph (1).  In
45   computing this fraction, those items excludable under
46   subparagraph (1) shall not be used in computing the
47   tax preference items.  Married taxpayers electing to
48   file separate returns or separately on a combined
49   return must allocate the minimum tax computed in this
50   subsection in the proportion that each spouse's
Page   6
 1   respective preference items, adjustments, and losses
 2   under subparagraph (1) bear to the combined preference

Iowa General Assembly

Index: House Journal (76th General Assembly: Session 1)

© 1995 Cornell College and League of Women Voters of Iowa

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Last update: Sun Jan 14 21:05:02 CST 1996
URL: /DOCS/GA/76GA/Session.1/HJournal/00500/00560.html
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