Iowa Franchise Tax Credit

Article ID: 34906  

Question
Iowa Franchise Tax Credit

Answer

If a financial institution as defined in Section 581 of the Internal Revenue Code elects to file as an S corporation for Federal income tax purposes and therefore have its income taxed directly to the shareholders, those shareholders qualify for a Franchise Tax Credit.

The credit cannot exceed the shareholder’s pro rata share of the Iowa franchise tax paid by the financial institution.

 

 


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Views: 988 Created on: Jun 15, 2013