Text: H08013 Text: H08015 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
PAG LIN 1 1 Amend the Senate amendment, H-8012, to House File 1 2 2078, as amended, passed, and reprinted by the House, 1 3 as follows: 1 4 #1. Page 1, by striking lines 11 through 24 and 1 5 inserting the following: 1 6 ""Sec. 401. Section 422.5, subsection 1, paragraph 1 7 j, subparagraph (2), unnumbered paragraph 1, Code 1 8 2001, is amended to read as follows: 1 9 The tax imposed upon the taxable income of a 1 10 resident shareholder in an S corporation which has in 1 11 effect for the tax year an election under subchapter S 1 12 of the Internal Revenue Code or of a resident member 1 13 of a limited liability company which has elected to 1 14 have its income taxed directly to the member and 1 15 carries on business within and without the state may 1 16 be computed by reducing the amount determined pursuant 1 17 to paragraphs "a" through "i" by the amounts of 1 18 nonrefundable credits under this division and by 1 19 multiplying this resulting amount by a fraction of 1 20 which the resident's net income allocated to Iowa, as 1 21 determined in section 422.8, subsection 2, paragraph 1 22 "b", is the numerator and the resident's total net 1 23 income computed under section 422.7 is the 1 24 denominator. If a resident shareholder or resident 1 25 member has elected to take advantage of this 1 26 subparagraph, and for the next tax year elects not to 1 27 take advantage of this subparagraph, the resident 1 28 shareholder or resident member shall not reelect to 1 29 take advantage of this subparagraph for the three tax 1 30 years immediately following the first tax year for 1 31 which the shareholder or member elected not to take 1 32 advantage of this subparagraph, unless the director 1 33 consents to the reelection. This subparagraph also 1 34 applies to individuals who are residents of Iowa for 1 35 less than the entire tax year. 1 36 Sec. 402. Section 422.5, subsection 1, paragraph 1 37 k, unnumbered paragraph 4, Code 2001, is amended to 1 38 read as follows: 1 39 In the case of a resident, including a resident 1 40 estate or trust, the state's apportioned share of the 1 41 state alternative minimum tax is one hundred percent 1 42 of the state alternative minimum tax computed in this 1 43 subsection. In the case of a resident or part-year 1 44 resident shareholder in an S corporation which has in 1 45 effect for the tax year an election under subchapter S 1 46 of the Internal Revenue Code or of a resident or part- 1 47 year resident member of a limited liability company 1 48 which has elected to have its income taxed directly to 1 49 the member and carries on business within and without 1 50 the state, a nonresident, including a nonresident 2 1 estate or trust, or an individual, estate, or trust 2 2 that is domiciled in the state for less than the 2 3 entire tax year, the state's apportioned share of the 2 4 state alternative minimum tax is the amount of tax 2 5 computed under this subsection, reduced by the 2 6 applicable credits in sections 422.10 through 422.12 2 7 and this result multiplied by a fraction with a 2 8 numerator of the sum of state net income allocated to 2 9 Iowa as determined in section 422.8, subsection 2, 2 10 paragraph "a" or "b" as applicable, plus tax 2 11 preference items, adjustments, and losses under 2 12 subparagraph (1) attributable to Iowa and with a 2 13 denominator of the sum of total net income computed 2 14 under section 422.7 plus all tax preference items, 2 15 adjustments, and losses under subparagraph (1). In 2 16 computing this fraction, those items excludable under 2 17 subparagraph (1) shall not be used in computing the 2 18 tax preference items. Married taxpayers electing to 2 19 file separate returns or separately on a combined 2 20 return must allocate the minimum tax computed in this 2 21 subsection in the proportion that each spouse's 2 22 respective preference items, adjustments, and losses 2 23 under subparagraph (1) bear to the combined preference 2 24 items, adjustments, and losses under subparagraph (1) 2 25 of both spouses. 2 26 Sec. 403. Section 422.8, subsection 2, paragraph 2 27 b, Code 2001, is amended to read as follows: 2 28 b. A resident's income allocable to Iowa is the 2 29 income determined under section 422.7 reduced by items 2 30 of income and expenses from an S corporation or 2 31 limited liability company that carries on business 2 32 within and without the state when those items of 2 33 income and expenses pass directly to the shareholders 2 34 or members under provisions of the Internal Revenue 2 35 Code. These items of income and expenses are 2 36 increased by the greater of the following: 2 37 (1) The net income or loss of the S corporation or 2 38 limited liability company which is fairly and 2 39 equitably attributable to this state under section 2 40 422.33, subsections 2 and 3. 2 41 (2) Any cash or the value of property 2 42 distributions which are made only to the extent that 2 43 they are paid from income upon which Iowa income tax 2 44 has not been paid, as determined under rules of the 2 45 director, reduced byfifty percent ofthe amount of 2 46 any of these distributions that are made to enable the 2 47 shareholder or member to pay federal income tax on 2 48 items of income, loss, and expenses from the S 2 49 corporation or limited liability company. 2 50 Sec. 404. Section 422.8, subsection 6, Code 2001, 3 1 is amended to read as follows: 3 2 6. If the resident or part-year resident is a 3 3 shareholder of an S corporation which has in effect an 3 4 election under subchapter S of the Internal Revenue 3 5 Code or is a member of a limited liability company 3 6 which has elected to have its income taxed directly to 3 7 its members, subsections 1 and 3 do not apply to any 3 8 income taxes paid to another state or foreign country 3 9 on the income from the S corporation which has in 3 10 effect an election under subchapter S of the Internal 3 11 Revenue Code or from the limited liability company 3 12 which has elected to have its income taxed directly to 3 13 its members. 3 14 Sec. 405. APPLICABILITY PROVISION. Sections 401 3 15 through 404 of this Act apply retroactively to January 3 16 1, 2002, for tax years beginning on or after that 3 17 date."" 3 18 #2. Page 1, line 31, by inserting after the word 3 19 "by" the following: "a limited liability company or". 3 20 3 21 3 22 3 23 GRUNDBERG of Polk 3 24 HF 2078.304 79 3 25 mg/cf
Text: H08013 Text: H08015 Text: H08000 - H08099 Text: H Index Bills and Amendments: General Index Bill History: General Index
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