Looking for a Minnesota Income Tax Forms And Templates? Download it for free!

Completing Schedule KF

(continued)

Composite Income Tax

of the credit that is passed through to the

To determine the amount of composite

benefi ciary. Attach the appropriate schedule

income tax to pay on behalf of each electing

KF, Line 28

when you fi le your return.

benefi ciary, follow the steps below:

When determining the benefi ciary’s share

KF, Line 22

1 Multiply line 28 of Schedule

of the Minnesota source distributive income

KF by 9.85% (.0985) . . . . . . . . .

If you are a partner of a partnership or

from this fi duciary, you must make adjust-

a shareholder of an S corporation that

ments for any items you passed through to

2 Add the credits on lines 18 —

qualifi ed for credit for historic structure

the benefi ciary on lines 1 through 22 of the

22 of Schedule KF . . . . . . . . . . .

rehabilitation, from line 13 of Schedule KPI

benefi ciary’s Schedule KF.

3 Subtract step 2 from step 1 . . .

and Schedule KS, enter the benefi ciary’s

Follow the steps below to determine line 28:

Th e result in step 3 is the amount you are

distributive share of the credit that is passed

required to pay on behalf of the electing

through to the benefi ciary. Attach the

1 80 percent of federal bonus

benefi ciary. Enter this amount on line 29 of

appropriate certifi cate when you fi le your

depreciation from line 5 of the

the benefi ciary’s Schedule KF and check the

return and enter the NPS project number in

benefi ciary’s Schedule KF . . . .

box to indicate the benefi ciary’s election to

the space provided.

2 Combine lines 23–26 of the

be included.

Nonresident Beneﬁ ciaries

benefi ciary’s Schedule KF . . . .

If the benefi ciary elects to be included in

3 Add steps 1 and 2 . . . . . . . . . . .

KF, Lines 23–27

composite income tax but has zero tax

4 JOBZ income exemptions from

From the nonresident benefi ciary’s federal

due, be sure to enter zero on line 29. Even

line 15 of the benefi ciary’s

Schedule K-1 (1041), enter the Minnesota

though the amount may be zero, be sure to

Schedule KF . . . . . . . . . . . . . . .

portion of amounts on lines 23–27.

check the box to indicate the election.

5 To the extent allowed by law, enter

On line 26, only include other income as-

Once you have completed all the KF sched-

one-fi ft h of the benefi ciary’s

signable to Minnesota. For example, include

ules for your electing nonresident benefi cia-

share of the federal bonus depre-

other income from services performed in

ries, add the amounts on line 29 of all the

ciation that was added back in a

Minnesota, but do not include interest, divi-

schedules and enter the total on line 13 of

year the benefi ciary elected to be

dends or distribution from a pension plan.

Form M2. Th is is the amount of compos-

included in composite income

ite income tax you are required to pay on

Interest or dividend income derived from a

tax . . . . . . . . . . . . . . . . . . . . . . . .

behalf of your electing benefi ciaries.

trade or business (S corporations and part-

6 Add steps 4 and 5 . . . . . . . . . . .

nerships) that is apportioned to Minnesota

7 Subtract step 6 from step 3 . . .

should be included on line 25.

Enter the result from step 7 on line 28 of

KF, Line 27

the benefi ciary’s Schedule KF. Th e result in

Th e Minnesota source gross income is

step 7 is the benefi ciary’s adjusted Min-

used to determine whether a nonresident

nesota source distributive income from this

benefi ciary is required to fi le a Minnesota

fi duciary.

income tax return or has the option to elect

KF, Line 29

composite income tax.

Composite Income Tax

Enter the benefi ciary’s share of the fi du-

Nonresident benefi ciaries must pay tax if

ciary’s Minnesota source gross income.

their Minnesota gross income is more than

Minnesota source gross income is the

the minimum fi ling requirement for the

benefi ciary’s share of total Minnesota source

year ($10,150 for 2014).

income before any deductions.

Skip this line if the nonresident benefi ciary

did not elect the fi duciary to pay composite

income tax on his or her behalf.

2014 Minnesota Income Tax For Estates And Trusts (Fiduciary) Form M2 Instructions - Department Of Revenue Page 10

Related Articles

Related forms

Related Categories