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House Journal: Page 914: Wednesday, March 22, 1995

20   share of the state alternative minimum tax is the
21   amount of tax computed under this subsection, reduced
22   by the applicable credits in sections 422.10 through
23   422.12 and this result multiplied by a fraction with a
24   numerator of the sum of state net income allocated to
25   Iowa as determined in section 422.8, subsection 2,
26   paragraph "a" or "b" as applicable, plus tax
27   preference items, adjustments, and losses under
28   subparagraph (1) attributable to Iowa and with a
29   denominator of the sum of total net income computed
30   under section 422.7 plus all tax preference items,
31   adjustments, and losses under subparagraph (1).  In
32   computing this fraction, those items excludable under
33   subparagraph (1) shall not be used in computing the
34   tax preference items.  Married taxpayers electing to
35   file separate returns or separately on a combined
36   return must allocate the minimum tax computed in this
37   subsection in the proportion that each spouse's
38   respective preference items, adjustments, and losses
39   under subparagraph (1) bear to the combined preference
40   items, adjustments, and losses under subparagraph (1)
41   of both spouses.
42     Sec. ___.  Section 422.8, subsection 2, Code 1995,
43   is amended to read as follows:
44     2.  a.  Nonresident's net income allocated to Iowa
45   is the net income, or portion thereof, which is
46   derived from a business, trade, profession, or
47   occupation carried on within this state or income from
48   any property, trust, estate, or other source within
49   Iowa.  However, income derived from a business, trade,
50   profession, or occupation carried on within this state

Page   3

 1   and income from any property, trust, estate, or other
 2   source within Iowa shall not include distributions
 3   from pensions, including defined benefit or defined
 4   contribution plans, annuities, individual retirement
 5   accounts, and deferred compensation plans or any
 6   earnings attributable thereto so long as the
 7   distribution is directly related to an individual's
 8   documented retirement and received while the
 9   individual is a nonresident of this state.  If a
10   business, trade, profession, or occupation is carried
11   on partly within and partly without the state, only
12   the portion of the net income which is fairly and
13   equitably attributable to that part of the business,
14   trade, profession, or occupation carried on within the
15   state is allocated to Iowa for purposes of section
16   422.5, subsection 1, paragraph "j", and section 422.13
17   and income from any property, trust, estate, or other
18   source partly within and partly without the state is
19   allocated to Iowa in the same manner, except that
20   annuities, interest on bank deposits and interest-

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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