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New Member
posted Jun 4, 2019 4:45:43 PM

I live in MN, but receive a Schedule K-1, Form 1120S, from an S-Corp located in IA (family farm). Should box 11, Section 179 deduction, be allocated to MN or IA? +details

I do file an Iowa return in addition to Minnesota, because of rental income on a different farm that I own.

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1 Best answer
New Member
Jun 4, 2019 4:45:45 PM

If the section 179 is related to IA, then it should be allocated with the related income. However, your resident state for MN will tax all of your return activity, but you'll get credit for taxes paid to another state so that you are not double taxed. In TurboTax, first, complete entering all federal income and then be sure to update your IA return first and then MN. 

Additionally, states have their own rules when it comes to special depreciation, which is why the software will ask about it in the federal side. However, you should have a statement attached with your schedule K-1 if different state limitations apply (because otherwise you won't have the necessary. For your states:

1 Replies
New Member
Jun 4, 2019 4:45:45 PM

If the section 179 is related to IA, then it should be allocated with the related income. However, your resident state for MN will tax all of your return activity, but you'll get credit for taxes paid to another state so that you are not double taxed. In TurboTax, first, complete entering all federal income and then be sure to update your IA return first and then MN. 

Additionally, states have their own rules when it comes to special depreciation, which is why the software will ask about it in the federal side. However, you should have a statement attached with your schedule K-1 if different state limitations apply (because otherwise you won't have the necessary. For your states: