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Maine Additions

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Maine Additions

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  • Line 1a. Enter the income from municipal and state bonds, other than Maine, that is not included in your federal adjusted gross income (i.e., enter bond interest from City of New York but not Portland, Maine).

  • Line 1b. Net Operating Loss Recovery Adjustment. Enter on this line any amount of federal net operating loss carry forward that has been previously used to off set Maine addition modifi cations. For more information, go to www.maine.gov/revenue/forms (select Income Tax Guidance Documents).

  • Line 1c. Enter 2019 Maine Public Employees Retirement System contributions. See your Maine state or municipal W-2 form.

  • Lines 1d and 1e. BONUS DEPRECIATION ADD-BACK. Lines 1d and 1e relate to Maine’s decoupling from the federal special depreciation deduction through IRC § 168(k), commonly known as bonus depreciation. To calculate the amount to enter on these lines, complete a pro forma federal Form 4562 as if no bonus depreciation was claimed on the property placed in service in tax year 2019. The total addition modifi cation is the diff erence between the federal depreciation claimed on Form 4562 and the depreciation calculated on the pro forma Form 4562. If any of the property placed in service in tax year 2019 is located in Maine and the Maine capital investment credit is claimed, the total addition modifi cation must be divided between lines 1d and 1e. Otherwise, the entire addition must be entered on line 1d. Enclose copies of the original and pro forma federal Forms 4562, along with the add-back calculation, with the return. For more information, go to www.maine.gov/revenue/forms (select Income Tax Guidance Documents). Also, refer to the instructions for line 2h below.

  • Line 1d. BONUS DEPRECIATION ADD-BACK: Enter on this line the total bonus depreciation add-back calculated above less the amount of Maine capital investment credit add-back from line 1e. Amounts entered on this line are eligible for the recapture subtraction modifi cation on line 2h in future years

  • Line 1e. MAINE CAPITAL INVESTMENT CREDIT BONUS DEPRECIATION ADD-BACK: The Maine capital investment credit is available to businesses that place depreciable property in service in Maine during the taxable year beginning in 2019. Enter on this line the portion of the bonus depreciation add-back calculated above relating to property for which the Maine capital investment credit is claimed, based on original basis of property placed in service in tax year 2019. For example, if you purchased $400,000 of eligible property and $100,000 of that property is located in Maine and included in the credit base, the portion of the add-back to include on this line is $100,000/$400,000 or 25% of the total bonus depreciation add-back calculated above. Property that is transferred out of state or disposed of within 12 months after being placed in service in Maine is not eligible for the Maine capital investment credit. Amounts claimed on this line are not eligible for the recapture subtraction modifi cation on line 2h.

  • Line 1f. Enter your share of a fiduciary adjustment (addition modifi cations) relating to income from an estate or trust (36 M.R.S. § 5122(3)). Attach a copy of your federal Schedule K-1.

  • Line 1g. Election to recognize total gain from the sale of Maine real or tangible property – nonresidents only. Nonresident individuals may elect to recognize the entire gain from an installment sale during the taxable year of real or tangible property located in Maine. The election may only be made on a timely fi led original return and, once made, is irrevocable. Enter on this line the total gain from the sale of the Maine property that would have been included in your federal adjusted gross income if you had not reported the gain on the installment sale basis, less the amount of the gain from the sale already included in your federal adjusted gross income reported on Form 1040ME, line 14. An entry on this line constitutes an election under this paragraph.

     


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Views: 1726 Created on: Jun 15, 2013
Date updated: Jan 06, 2020
Posted in: States, Maine

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