Text: H08006 Text: H08008 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend House File 2081 as follows: 1 2 #1. Page 1, by striking lines 1 through 9 and 1 3 inserting the following: 1 4 "Section 1. Section 422.5, subsection 1, paragraph 1 5 j, subparagraph (2), unnumbered paragraph 1, Code 1 6 2001, is amended to read as follows: 1 7 The tax imposed upon the taxable income of a 1 8 resident shareholder in an S corporation which has in 1 9 effect for the tax year an election under subchapter S 1 10 of the Internal Revenue Code or of a resident member 1 11 of a limited liability company which has elected to 1 12 have its income taxed directly to the member and 1 13 carries on business within and without the state may 1 14 be computed by reducing the amount determined pursuant 1 15 to paragraphs "a" through "i" by the amounts of 1 16 nonrefundable credits under this division and by 1 17 multiplying this resulting amount by a fraction of 1 18 which the resident's net income allocated to Iowa, as 1 19 determined in section 422.8, subsection 2, paragraph 1 20 "b", is the numerator and the resident's total net 1 21 income computed under section 422.7 is the 1 22 denominator. If a resident shareholder or resident 1 23 member has elected to take advantage of this 1 24 subparagraph, and for the next tax year elects not to 1 25 take advantage of this subparagraph, the resident 1 26 shareholder or resident member shall not reelect to 1 27 take advantage of this subparagraph for the three tax 1 28 years immediately following the first tax year for 1 29 which the shareholder or member elected not to take 1 30 advantage of this subparagraph, unless the director 1 31 consents to the reelection. This subparagraph also 1 32 applies to individuals who are residents of Iowa for 1 33 less than the entire tax year. 1 34 Sec. 2. Section 422.5, subsection 1, paragraph k, 1 35 unnumbered paragraph 4, Code 2001, is amended to read 1 36 as follows: 1 37 In the case of a resident, including a resident 1 38 estate or trust, the state's apportioned share of the 1 39 state alternative minimum tax is one hundred percent 1 40 of the state alternative minimum tax computed in this 1 41 subsection. In the case of a resident or part-year 1 42 resident shareholder in an S corporation which has in 1 43 effect for the tax year an election under subchapter S 1 44 of the Internal Revenue Code or of a resident or part- 1 45 year resident member of a limited liability company 1 46 which has elected to have its income taxed directly to 1 47 the member and carries on business within and without 1 48 the state, a nonresident, including a nonresident 1 49 estate or trust, or an individual, estate, or trust 1 50 that is domiciled in the state for less than the 2 1 entire tax year, the state's apportioned share of the 2 2 state alternative minimum tax is the amount of tax 2 3 computed under this subsection, reduced by the 2 4 applicable credits in sections 422.10 through 422.12 2 5 and this result multiplied by a fraction with a 2 6 numerator of the sum of state net income allocated to 2 7 Iowa as determined in section 422.8, subsection 2, 2 8 paragraph "a" or "b" as applicable, plus tax 2 9 preference items, adjustments, and losses under 2 10 subparagraph (1) attributable to Iowa and with a 2 11 denominator of the sum of total net income computed 2 12 under section 422.7 plus all tax preference items, 2 13 adjustments, and losses under subparagraph (1). In 2 14 computing this fraction, those items excludable under 2 15 subparagraph (1) shall not be used in computing the 2 16 tax preference items. Married taxpayers electing to 2 17 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 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 S corporation or 2 36 limited liability company which is fairly and 2 37 equitably attributable to this state under section 2 38 422.33, subsections 2 and 3. 2 39 (2) Any cash or the value of property 2 40 distributions which are made only to the extent that 2 41 they are paid from income upon which Iowa income tax 2 42 has not been paid, as determined under rules of the 2 43 director, reduced byfifty percent ofthe amount of 2 44 any of these distributions that are made to enable the 2 45 shareholder or member to pay federal income tax on 2 46 items of income, loss, and expenses from the S 2 47 corporation or limited liability company. 2 48 Sec. 4. Section 422.8, subsection 6, Code 2001, is 2 49 amended to read as follows: 2 50 6. If the resident or part-year resident is a 3 1 shareholder of an S corporation which has in effect an 3 2 election under subchapter S of the Internal Revenue 3 3 Code or is a member of a limited liability company 3 4 which has elected to have its income taxed directly to 3 5 its members, subsections 1 and 3 do not apply to any 3 6 income taxes paid to another state or foreign country 3 7 on the income from the S corporation which has in 3 8 effect an election under subchapter S of the Internal 3 9 Revenue Code or from the limited liability company 3 10 which has elected to have its income taxed directly to 3 11 its members." 3 12 #2. Title page, line 3, by inserting after the 3 13 word "corporation" the following: "or a limited 3 14 liability company". 3 15 3 16 3 17 3 18 3 19 3 20 GRUNDBERG of Polk 3 21 HF 2081.202 79 3 22 mg/sh/8
Text: H08006 Text: H08008 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
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