Text: HF00707 Text: HF00709 Text: HF00700 - HF00799 Text: HF 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 2001, 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. APPLICABILITY PROVISION. This Act applies 1 11 retroactively to January 1, 2001, for tax years beginning on 1 12 or after that date. 1 13 EXPLANATION 1 14 Under the state individual income tax, resident 1 15 shareholders of S corporations doing business within and 1 16 without the state are allowed to allocate income between Iowa 1 17 and other states in determining their state income tax. As 1 18 part of the allocation procedure, under current law, 50 1 19 percent of the amount of an S corporation distribution 1 20 received by a shareholder, which is used to pay federal income 1 21 tax, is not allocated to Iowa. The bill increases this 1 22 percentage to 100 percent. 1 23 The bill applies retroactively to January 1, 2001, for tax 1 24 years beginning on or after that date. 1 25 LSB 3149HV 79 1 26 mg/cls/14
Text: HF00707 Text: HF00709 Text: HF00700 - HF00799 Text: HF Index Bills and Amendments: General Index Bill History: General Index
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