14. OTHER INCOME.
Enter taxable income not reported on lines
1-13. Attach an explanation of the type of income. Examples of income to
be reported on line 14 include:
income not reported on Federal Schedule C or C-EZ.
b. Bonus Depreciation
adjustment from the IA 4562A; attach the IA 4562A to your return.
c. Capital gains
from installment sales in 2003: Accrual-method taxpayers may
now use the installment method for reporting capital gains on their Iowa
d. Cow-Calf refunds
received in 2003 (unless reported on Federal Schedule F).
Intangible drilling costs that were reported on Federal form 6251 less
any amounts amortized in the tax year.
Gambling winnings: You must report the full amount of gambling
winnings. Report any tax withheld on line
61 of the IA1040. Gambling losses may be reported as an itemized deduction
on Schedule A, but you cannot deduct more than the winnings you report.
Educational Savings Plan Trust: Income received from the
cancellation of a participation agreement to the extent the amount was previously
deducted on line 24
of the IA 1040.
j. Partnership income
and/or S Corporation income: Modifications that increased the
State income tax refunds other than Iowa to the extent that the tax
refunded in 2003 was deducted on a prior Iowa return.
Percentage depletion from an oil, gas or geothermal well that was reported
on Federal form 6251.
m. Other income
as reported on line 21 of the Federal 1040.
Distribution from a Coverdell education savings account is reported
on line 14 to the extent of the taxable amount reported on line 21 of
the Federal 1040.
|MARRIED SEPARATE FILERS: The
spouse to whom the income was paid must report that income. Modifications
to partnership and/or S Corporation income are allocated between spouses
in the same manner as that income was divided on
line 10, IA1040.
did not couple with the following provisions of the
Federal Job Creation and Worker Assistance Act:
a. Bonus Depreciation (updated
Iowa did not adopt the 30% bonus
provisions for assets placed in service after September 10, 2001 but before
May 6, 2003. An adjustment will have to be made on form
IA 4562A to account for the difference between the Federal depreciation
and the Iowa depreciation. The total adjustment for decoupling as calculated
on line 5 of Part III of the IA 4562A should be entered on line
14 of the IA 1040 as other income. This amount may need to be added
back on several lines or schedules. Attach the IA 4562A to your income
When figuring your gross income on the
IA 1040, you will enter the same figures as on the equivalent lines from
the Federal 1040. However, the bonus deprecation adjustment will then be
entered on line 14 of the IA 1040 to reflect the effect of decoupling on
this issue. Lines 5,
10, and 11
of the IA 1040, which may be impacted by the bonus depreciation issue, will
still be the same as the equivalent Federal 1040 entries.
Finally, the bonus depreciation adjustment
on line 14 of the IA 1040 may need to be added back on several other schedules
or line entries.
b. Net Operating
Iowa did not adopt the provisions for
the 5-year carryback for net operating losses incurred in 2001, 2002 and
2003. Therefore, Iowa net operating losses will still be carried back two
years, except for losses incurred in presidentially declared disaster areas
(3-year carryback) and losses incurred by farm corporations (5-year carryback).
c. Bonus Depreciation
and IRC Section 179 (updated 09/08/04)
In a special session held in September 2004, the Iowa legislature passed
legislation to couple with the additional 50% first-year depreciation
allowance (bonus depreciation) for assets placed in service after May
5, 2003, but before January 1, 2005. In addition, this law also coupled
with the increase in Section 179 expensing allowance from $25,000 to
$100,000 for tax years beginning on or after January 1, 2003. These provisions
were provided in the federal Jobs and Growth Tax Relief Reconciliation
Act of 2003.
Previously, the Iowa
legislature had decided not to adopt these provisions in Iowa law.
For taxpayers who have filed a tax return which reflected
either the disallowance of 50% bonus depreciation or the disallowance
of the increased Section 179 expensing, amended returns must be filed
to reflect this
Iowa continues to decouple with the 30% bonus depreciation provision
set forth in the federal Job Creation and Worker Assistance Act of 2002.
Form IA4562A will still need to be filed for any assets placed in service
after September 10, 2001 but before May 6, 2003 to account for the difference
been updated to reflect this change.
In 2003, the Iowa Legislature did adopt provisions allowing deductions
up to $1,500 for overnight travel expenses of National Guard and Reserve
members, as well as the exclusion from Iowa taxable income of military
death gratuity payments and military student loan repayments. These provisions
were similar to those set forth in the Military Family Tax Relief Act
of 2003. However, other provisions of the Military Family Tax Relief
Act of 2003 were not adopted for Iowa tax purposes.
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