Text: H01793 Text: H01795 Text: H01700 - H01799 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN
1 1 Amend Senate File 516, as amended, passed, and
1 2 reprinted by the Senate, as follows:
1 3 #1. Page 1, by striking lines 1 and 2, and
1 4 inserting the following:
1 5 "Section 1. Section 422.5, subsection 1, paragraph
1 6 j, subparagraph (2), unnumbered paragraph 1, Code
1 7 2001, is amended to read as follows:
1 8 (2) The tax imposed upon the taxable income of a
1 9 resident shareholder in an S corporation which has in
1 10 effect for the tax year an election under subchapter S
1 11 of the Internal Revenue Code and carries on business
1 12 within and without the state or of a resident member
1 13 of a limited liability company which carries on
1 14 business within and without the state may be computed
1 15 by reducing the amount determined pursuant to
1 16 paragraphs "a" through "i" by the amounts of
1 17 nonrefundable credits under this division and by
1 18 multiplying this resulting amount by a fraction of
1 19 which the resident's net income allocated to Iowa, as
1 20 determined in section 422.8, subsection 2, paragraph
1 21 "b", is the numerator and the resident's total net
1 22 income computed under section 422.7 is the
1 23 denominator. If a resident shareholder or resident
1 24 member has elected to take advantage of this
1 25 subparagraph, and for the next tax year elects not to
1 26 take advantage of this subparagraph, the resident
1 27 shareholder or resident member shall not reelect to
1 28 take advantage of this subparagraph for the three tax
1 29 years immediately following the first tax year for
1 30 which the shareholder or member elected not to take
1 31 advantage of this subparagraph, unless the director
1 32 consents to the reelection. This subparagraph also
1 33 applies to individuals who are residents of Iowa for
1 34 less than the entire tax year.
1 35 Sec. 2. Section 422.5, subsection 1, paragraph k,
1 36 unnumbered paragraph 4, Code 2001, is amended to read
1 37 as follows:
1 38 In the case of a resident, including a resident
1 39 estate or trust, the state's apportioned share of the
1 40 state alternative minimum tax is one hundred percent
1 41 of the state alternative minimum tax computed in this
1 42 subsection. In the case of a resident or part-year
1 43 resident shareholder in an S corporation which has in
1 44 effect for the tax year an election under subchapter S
1 45 of the Internal Revenue Code and carries on business
1 46 within and without the state, a resident or part-year
1 47 resident member of a limited liability company which
1 48 carries on business within or without the state a
1 49 nonresident, including a nonresident estate or trust,
1 50 or an individual, estate, or trust that is domiciled
2 1 in the state for less than the entire tax year, the
2 2 state's apportioned share of the state alternative
2 3 minimum tax is the amount of tax computed under this
2 4 subsection, reduced by the applicable credits in
2 5 sections 422.10 through 422.12 and this result
2 6 multiplied by a fraction with a numerator of the sum
2 7 of state net income allocated to Iowa as determined in
2 8 section 422.8, subsection 2, paragraph "a" or "b" as
2 9 applicable, plus tax preference items, adjustments,
2 10 and losses under subparagraph (1) attributable to Iowa
2 11 and with a denominator of the sum of total net income
2 12 computed under section 422.7 plus all tax preference
2 13 items, adjustments, and losses under subparagraph (1).
2 14 In computing this fraction, those items excludable
2 15 under subparagraph (1) shall not be used in computing
2 16 the tax preference items. Married taxpayers electing
2 17 to file separate returns or separately on a combined
2 18 return must allocate the minimum tax computed in this
2 19 subsection in the proportion that each spouse's
2 20 respective preference items, adjustments, and losses
2 21 under subparagraph (1) bear to the combined preference
2 22 items, adjustments, and losses under subparagraph (1)
2 23 of both spouses.
2 24 Sec. 3. Section 422.8, subsection 2, paragraph b,
2 25 Code 2001, is amended to read as follows:
2 26 b. A resident's income allocable to Iowa is the
2 27 income determined under section 422.7 reduced by items
2 28 of income and expenses from an S corporation or a
2 29 limited liability company that carries on business
2 30 within and without the state when those items of
2 31 income and expenses pass directly to the shareholders
2 32 or members under provisions of the Internal Revenue
2 33 Code. These items of income and expenses are
2 34 increased by the greater of the following:
2 35 (1) The net income or loss of the corporation or
2 36 limited liability company, as applicable, which is
2 37 fairly and equitably attributable to this state under
2 38 section 422.33, subsections 2 and 3."
2 39 #2. Page 1, line 8, by inserting after the word
2 40 "shareholder" the following: "or member".
2 41 #3. Page 1, line 9, by inserting after the word
2 42 "corporation" the following: "or limited liability
2 43 company, as applicable".
2 44 #4. Page 1, by inserting after line 9, the
2 45 following:
2 46 "Sec. 4. Section 422.8, subsection 6, Code 2001,
2 47 is amended to read as follows:
2 48 6. If the resident or part-year resident is a
2 49 shareholder of an S corporation which has in effect an
2 50 election under subchapter S of the Internal Revenue
3 1 Code or is a member of a limited liability company,
3 2 subsections 1 and 3 do not apply to any income taxes
3 3 paid to another state or foreign country on the income
3 4 from the corporation which has in effect an election
3 5 under subchapter S of the Internal Revenue Code or the
3 6 limited liability company, as applicable."
3 7 #5. Title page, line 3, by inserting after the
3 8 word "corporation" the following: "or limited
3 9 liability company".
3 10
3 11
3 12
3 13 GRUNDBERG of Polk
3 14 SF 516.302 79
3 15 mg/cf
Text: H01793 Text: H01795 Text: H01700 - H01799 Text: H Index Bills and Amendments: General Index Bill History: General Index
© 2001 Cornell College and League of Women Voters of Iowa
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