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Screen MTAdj - Montana Adjustments (1120)

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Adjustments

Taxes based on income
The application transfers amounts from the
Taxes and licenses
 statement in the federal Inc and H Screen to this statement. To include taxes on Form CIT, Page 3 or Form PTE, Page 1, enter a code to specify the type of tax.
Code
Description
Destination
I
Income Taxes
Form CIT, Page 3 or Form PTE, Page 1
O
Other Taxes
Other Taxes
 column of the statement (only used to report detail of taxes deducted on federal return)
Federal tax exempt interest
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 in the return, enter adjustments in the
State Amount
column of the statement.
Interest on US obligations (S Corp)
The application transfers amounts from the US Obligation interest fields in the federal K and K1 Screens to the statement. To exclude an item from the state return, delete the amount or the entire line item from a statement. The application displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.
Other reductions
State tax refunds, U.S. obligation interest, and federal credit deductions transfer from the federal return to the statement. To exclude an item from the state return, delete the amount or the entire line item from a statement. The application displays the modified column in black and will not overwrite the new data with subsequent federal-to-state data transfers.
State tax refunds
The application transfers amounts from the
State tax refunds
 statement in the federal Inc and H Screens. The application assumes these amounts are not deductible in Montana. Enter adjustments to state tax refunds in the
State Amount
 column of the statement.
Charitable contributions (C Corp / Force)
If an amount is entered in this field, it transfers to Other reductions on Form CIT, Page 3. If no amount is entered in this field, the application calculates the contribution deduction and transfers it to Other reductions on Form CIT, Page 3. The application automatically makes necessary adjustments in the contribution deduction by adding back the federal contribution deduction in order to calculate the Montana contribution deduction based on the 10 percent of Montana income limitation.

Sale or Exchange of Section 179 Property (S Corp)

Gain (loss) reported separately from federal Schedule K, Line 17d (Force)
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 the K1Sale and 8824 Screens in the K1 1065, 1041 folder.
The application reduces the basis of the asset by the amount of the Section 179 deduction when calculating the gain or loss. This amount is included on the Form PTE.
Use the
Force
 field to override the calculated amount. If
0
 (zero) is entered, no adjustment is made.

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