Text: HSB00549 Text: HSB00551 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Section 1. Section 422.8, subsection 2, paragraph b, 1 2 subparagraph (2), Code 1999, is amended to read as follows: 1 3 (2) Any cash or the value of property distributions which 1 4 are made only to the extent that they are paid from income 1 5 upon which Iowa income tax has not been paid, as determined 1 6 under rules of the director, reduced byfifty percent ofthe 1 7 amount of any of these distributions that are made to enable 1 8 the shareholder to pay federal income tax on items of income, 1 9 loss, and expenses from the corporation. 1 10 Sec. 2. This Act applies retroactively to January 1, 2000, 1 11 for tax years beginning on or after that date. 1 12 EXPLANATION 1 13 Under the state individual income tax, resident 1 14 shareholders of S corporations doing business within and 1 15 without the state are allowed to allocate income between Iowa 1 16 and other states in determining their state income tax. As 1 17 part of the allocation procedure, under present law 50 percent 1 18 of the amount of an S corporation distribution received by a 1 19 shareholder, which is used to pay federal income tax, are not 1 20 allocated to Iowa. The bill increases this percentage to 100 1 21 percent. 1 22 The bill applies retroactively to January 1, 2000, for tax 1 23 years beginning on or after that date. 1 24 LSB 5821HC 78 1 25 mg/cf/24
Text: HSB00549 Text: HSB00551 Text: HSB00500 - HSB00599 Text: HSB Index Bills and Amendments: General Index Bill History: General Index
© 2000 Cornell College and League of Women Voters of Iowa
Comments about this site or page?
webmaster@legis.iowa.gov.
Please remember that the person listed above does not vote on bills. Direct all comments concerning legislation to State Legislators.
Last update: Thu Jan 27 03:35:31 CST 2000
URL: /DOCS/GA/78GA/Legislation/HSB/00500/HSB00550/000126.html
jhf