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Screen MEAdjS - Maine Adjustments (1120)

Additions

Tax-exempt interest and expenses attributable to tax-exempt interest transfer to this statement from the federal return. To include tax exempt interest and expenses on the Schedule K Summary Worksheet, enter adjustments in the State Amount column of the statement.
Amounts are transferred from the Taxes and licenses statement in the federal Inc screen, as well as from taxes entered in the federal Farm, Rent, and 4835 screens. To include state and local taxes on the Schedule K Summary Worksheet, enter adjustments in the State Amount column of the statement.

Subtractions

Enter income not taxable under the constitution of Maine or laws of the United States. The amount must be decreased by any expenses incurred in the production of that income to the extent that these expenses are deductible for federal income purposes.
Amounts are transferred from the State tax refunds statement in the federal Inc screen. These amounts are assumed not deductible in Maine. Enter adjustments to state tax refunds in the State Amount column of the statement.

Sale or Exchange of Section 179 Property

Per the Form 4797 instructions, S Corporations are required to separately report to shareholders the sale, exchange, or other disposition of assets where a Section 179 expense deduction was claimed in a prior year. These asset dispositions are no longer reported on federal Forms 4797, 4684, 6252 or 8824, but instead are separately reported in federal Schedule K, line 17d and in the Schedule K-1 statements. The gain or loss on the disposition of Section 179 assets is calculated from information entered in the federal SalePT and 8824PT screens in the Income and activities folders, and K1Sale and 8824 screens in the K1 1065, 1041 folder.
The basis of the asset is reduced by the amount of the Section 179 deduction when calculating the gain or loss. This amount is included on Form 1040ME, the Maine Shareholder’s Share of Income, Modifications and Credits Worksheet, and the Schedule K Summary Worksheet.
A Not Required statement prints detailing this amount. Use the
Force
 field to override the calculated amount. If
0
 (zero) is entered, no adjustment is made.
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