Fill - Free fillable 2019 KS, Shareholders Share of Income, Credits and (Minnesota Department of Revenue) PDF form

Shareholder’s Federal ID or Social Security Number S Corporaon’s Federal ID Number S Corporaon’s Minnesota Tax ID

Shareholder’s Name S Corporaon’s Name

Mailing Address Mailing Address

City State ZIP Code City State ZIP Code

Enty of Shareholder Shareholder’s percentage of

(place an X in one box):

stock ownership for tax year:

Calculate lines 1–25 the same for all resident and nonresident shareholders. Calculate lines 26–40 for nonresident shareholders only. Round amounts to the nearest

whole dollar.

Modicaons to Federal Taxable Income

1 Interest income from non-Minnesota state and municipal bonds ...........1 M1M, line 1

State income tax deducted in arriving at ordinary or net rental income .......

2 M1M, line 5

3 ExpensesdeductedthatareaributabletoincomenottaxedbyMinne-

sota (other than interest or mutual fund dividends from U.S. bonds) ........3

M1M, line 6

4 IftheScorporaonelectedsecon179expensing,entertheshare-

 holder’sow-throughsecon179expensingfor Minnesota purposes

.......4

M1M, see line 4 inst.

5 100%ofshareholder’sproratashareoffederalbonusdepreciaon ........5

M1M, see line 3 inst.

6 Foreign-derivedintangibleincome(FDII)deducon ......................6 M1M,line7

7 Specialdeduconundersecon965 ...................................7 Seeline7inst.

8a Shareholder’sProratagrossprotfrominstallmentsalesofpass-through

businesses (see instrucons). ........................................8a M1AR, line 1

8b Shareholder’s pro rata installment sale income from pass-through

businesses (see instrucons)........................................ 8b M1AR, line 3

9 AddionduetofederalchangesnotadoptedbyMinnesota ...............9 M1NC, line 3

10 IRCSecon461netnonbusinessincome/loss ..........................10 See line 10 inst.

11 Businessinterestexpenselimitaon ..................................11 M1NC, line 8

 InterestfromU.S.governmentbondobligaons,minusanyexpenses

deductedonthefederalreturnthatareaributabletothisincome........12 M1M, line 18

13 Deferredforeignincome(secon965) ................................13 M1M, line 43

14 Globalintangiblelow-taxedincome(GILTI) .............................14 M1M, line 44

Individual

Estate

Trust

Exempt Organizaon

2019 KS, Shareholder’s Share of Income,

Credits and Modicaons

S corporaon: Complete and provide Schedule KS to each nonresident shareholder and Minnesota shareholder who has

adjustments to income.

Tax year beginning , 2019 and ending

Connued next page

Amended KS:

9995

Form M1 lers,

include on:

*197411*

Shareholder’s Name Shareholder’s Federal ID or Social Security Number

S Corporaon’s Name S Corporaon’s Federal ID Number S Corporaon’s Minnesota ID Number

2019 KS, page 2

Lines22-25areusedto

computeM1MT,lines

6and7.SeeM1MT

instruconsfordetails.

9995

15 Disallowedsecon280Eexpensesofmedicalcannabismanufacturers......15 M1M, line 31

16 SubtraconduetofederalchangesnotadoptedbyMinnesota ...............16 M1NC, line 3

17 Creditforincreasingresearchacvies ...............................17 M1C,line9

18 TaxCreditforOwnersofAgriculturalAssets ............................18 M1C, line 8

Enterthecercatenumberfromthecercatereceivedfromthe

RuralFinanceAuthority:AO___-___________

19 Creditforhistoricstructurerehabilitaon. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19 M1REF, line 6

EnterNaonalParkService(NPS)number

20 EmployerTransitPassCredit ........................................20 M1C,line2

21 Enterprise Zone Credit .............................................21 M1REF,line7

Relang to Alternave Minimum Tax

Intangible drilling costs .............................................22

23 Grossincomefromoil,gasandgeothermalproperes ..................23

24 Deduconsallocabletooil,gasandgeothermalproperes...............24

25 Depleon........................................................25

Minnesota Poron of Amounts From Federal Schedule K-1 (1120S)

Minnesota source gross income .....................................26 informaon

 OrdinaryMinnesotasourceincome(loss)

  fromtradeorbusinessacvies .....................................27 M1NR, line 6, col B

28 Income (loss) from Minnesota rental real estate

andotherMinnesotarentalacvies.................................28 M1NR, line 6, col B

29 Interest income ...................................................29 M1NR,line2,colB

30 Ordinarydividends ................................................30 M1NR,line2,colB

31 Royales ........................................................31 M1NR, line 6, col B

32 Net Minnesota short-term capital gain (loss) ...........................32 M1NR, line 4, col B

33 Net Minnesota long-term capital gain (loss) ...........................33 M1NR, line 4, col B

34 Secon1231Minnesotanetgain(loss) ...............................34

M1NR, line 4 or 8, col B

35 OtherMinnesotaincome(loss).(Describe type of income

or include separate sheet: ) .............35 M1NR, line 8, col B

(see schedule

KS inst.)

Connued next page

*197421*

Shareholder’s Name Shareholder’s Federal ID or Social Security Number

S Corporaon’s Name S Corporaon’s Federal ID Number S Corporaon’s Minnesota ID Number

2019 KS, page 3

*197431*

Secon179expensededuconapporonabletoMinnesota

..............36 M1NR inst, line 6, col B

 Scorporaon’sMinnesotaapporonmentfactor

(line 5, column C of M8A) ...........................................37 informaon only

Composite Income Tax or Nonresident Withholding

38 Minnesota source distribuveincome (see instrucons) .................38 see schedule KS inst.

39 MinnesotacompositeincometaxpaidbyScorporaon.Ifthe

shareholderelectedcompositeincometax,markanXinthisbox:

....39

composite income tax

40 Minnesotaincometaxwithheldfornonresidentshareholder

notelecngtolecompositeincometax.Iftheshareholder

completedandsignedaFormAWC,markanXinthisbox:........ ....40 M1W,line7,colC

S corporaons: IncludethisscheduleandcopiesoffederalSchedulesKandK-1whenyouleyourFormM8.

Shareholders: IncludethisschedulewhenyouleyourMinnesotaFormM1.

9995

Shareholder’suseofinformaonprovidedonScheduleKS

Purpose of Schedule KS

Schedule KS is a supplemental schedule provided by the S corporation to its shareholders.The shareholders need this information to com-

plete:

• Form M1, Minnesota Individual Income Tax Return

• Form M2, Minnesota Income Tax Return for Estates and Trusts

• Form M2SB, Minnesota Income Tax Computation for S Portion of ESBT

A shareholder who is a Minnesota resident will be taxed by Minnesota on all of his or her distributive income from the S corporation even if

the income is apportioned between Minnesota and other states. A nonresident shareholder will be taxed on the Minnesota distributive income

from the S corporation.

These instructions are intended to help you report your share of the S corporation’s income, credits and modications on your Minnesota

return.

You must include Schedule KS when you le your Form M1. If you do not include the schedule with your return as required, the department

will disallow any credits and assess the tax or reduce your refund.

If you received an amended Schedule KS from the S corporation and your income or deductions have changed, you must le an amended

Minnesota return. To amend your return, use Form M1X, Amended Minnesota Income Tax Return or Form M2X, Amended Income Tax Re-

turn for Estates and Trusts.

Line Instrucons

Include amounts on the appropriate lines as shown on Schedule KS. Be sure to read the following line instructions for additional information.

Individuals: Include amounts as shown on Schedule KS. For additional information, read the appropriate line instructions.

Estates, trusts, and electing small business trusts (ESBTs): Include the amounts from:

Schedule KS: on Form M2SB for ESBTs: on Form M2 for all other estates and trusts:

line 1 line 12 line 25

line 2 line 13 line 26

line 3 line 14 line 27

line 4 does not apply does not apply

line 5 line 16 line 29

line 6 line 20 line 33

line 7 line 21 line 34

line 8 does not apply does not apply

line 9 line 18 line 31

line 10 see inst. see inst.

line 11 line 23 line 36

line 12 line 25 line 38

line 13 line 32 line 45

line 14 line 33 line 46

line 15 line 34 line 47

line 16 line 28 line 41

line 17 line 15f

line 18 line 15d

line 19 line 15c

line 20 line 15f

line 21 line 15c

lines 22 – 25 Form M2MT

lines 26 – 36 see inst. on page 2

line 37 information

lines 38 – 39 do not apply

line 40 line 15b

Line 4 — Secon 179 Expensing

See Schedule M1M, worksheet for line 4 instructions, to determine how to report this amount.

Line 5 — Federal Bonus Depreciaon Addion

Include this amount on the appropriate line on the worksheet for line 3 in the Schedule M1M instructions.

Line 7 — Special Deducon under Secon 965

Individuals: Not applicable.

Estates and Trusts: Include on line 34 of Form M2.

ESBTs: Include on line 21 of Form M2SB.

2019 Schedule KS Instrucons

Continued

Line 8a and 8b — Accelerated Installment Sale Gains

Nonresident individuals – if any information is reported to you on line 8 of Schedule KS, le Form M1AR with your Minnesota income tax

return.

Resident individuals – if information is reported to you on line 8, retain a copy of this schedule for your records for the entire period that you,

or an entity you have an interest in is receiving installment sale payments. If you become a non-resident in a future year while payments are

being made you are required to le Form M1AR with your nal resident tax return.

Line 9 — Addion Due to Federal Changes Not Adopted by Minnesota

Include on line 3 of Schedule M1NC. Enclose a copy of this schedule with Form M1NC.

Line 10 - IRC Secon 461 Net Nonbusiness Income/Loss

Individuals: Include on step 10 of the worksheet for excess business losses within the Schedule M1NC instructions for line 7. Enclose a copy

of this schedule with Form M1NC.

Estates and Trusts: Use this amount when calculating line 35 of Form M2. For any portion distributed to beneciaries, report the benecia-

ry’s pro rata share of this amount on line 10 of Schedule KF.

ESBTs: Use this amount when calculating line 22 of Form M2SB.

Line 11 - Business Interest Expense Limitaon

Individuals: Include on line 8 of Schedule M1NC. Enclose a copy of this schedule with Form M1NC.

Estates and Trusts: Include on line 36 of Form M2.

ESBTs: Include on line 23 of Form M2SB.

Line 16 — Subtracon Due to Federal Changes not Adopted by Minnesota

Include as a negative amount on line 3 of Schedule M1NC. Enclose a copy of this schedule with Form M1NC.

Line 17 — Increasing Research Acvies Credit

Include in the total on line 9 of Schedule M1C. To claim this credit, you must include this schedule with Form M1.

Line 18 — Tax Credit for Owners of Agricultural Assets

Include on line 8 of Schedule M1C. To claim this credit, you must include this schedule with Form M1.

Line 19 — Historic Structure Rehabilitaon Credit

Include in the total on line 6 of Schedule M1REF and enter the NPS project number in the space provided. To claim this credit, you must

include this schedule with Form M1.

Line 20 — Employer Transit Pass Credit

Any amount of the credit remaining from Form ETP, not claimed on Form M8, line 6, may be passed through to shareholders based on their

distributive share.

Include this amount on line 2 of your Schedule M1C. To claim this credit, you must include this schedule with Form M1.

Line 21 — Enterprise Zone Credit

Include on line 7 of Schedule M1REF. To claim this credit, you must include this schedule with Form M1.

Line 26 — Minnesota Source Gross Income

Minnesota source gross income is used to determine if a nonresident is required to le a Minnesota income tax return. Gross income is in-

come before business or rental deductions and does not include losses.

If your 2019 Minnesota source gross income is $12,200 or more and you did not elect composite ling, you are required to le Form M1 and

Schedule M1NR, Nonresidents/Part-Year Residents.

If your 2019 Minnesota source gross income is less than $12,200 and you had Minnesota tax withheld (see line 38), le Form M1 and Sched-

ule M1NR to receive a refund.

Lines 27–36 — Minnesota Poron of Federal Amounts

Lines 27–36 apply to nonresident shareholders. All income of a Minnesota resident is assigned to Minnesota, regardless of the source.

If certain items are not entirely included in your federal adjusted gross income because of passive activity loss limitations, capital loss limita-

tions, section 179 limitations or for other reasons, include only the amounts that you included in your federal adjusted gross income.

Include the amounts from lines 27–36 on the corresponding lines in column B of Schedule M1NR.

Lines 38–40 — Composite Income Tax and Nonresident Withholding

Although Minnesota source gross income (line 26) determines whether you must le a Minnesota return, your Minnesota source distributive

income is ultimately taxed.

Lines 38–40 were used to determine your share of the S corporation’s Minnesota source distributive income. You may need to refer to these

amounts when you le your home state’s income tax return.

2019 Schedule KS Instrucons (Connued)

Continued

If you are required to pay Minnesota tax on your Minnesota source distributive income, the S corporation is required to withhold tax, unless

you elect to have the S corporation pay composite tax to Minnesota on your behalf. If you elected for the S corporation to pay composite tax,

you are not required to le Form M1.

Line 38. Your Minnesota source distributive income is considered your Minnesota taxable income from this S corporation.

If the amount on line 38 for Minnesota income tax was withheld, you must include your Minnesota source distributive income from line 38

on Schedule M1W, line 7, column B.

Line 39. If you elected composite income tax, the amount paid on your behalf equals 9.85 percent of your Minnesota taxable income on line

38, minus your share of any credits on lines 18-21. You are not required to le Form M1.

Line 40. If you did not elect composite income tax, the S corporation may be required to withhold tax from your Minnesota source distribu-

tive income. The amount withheld equals 9.85 percent of your Minnesota taxable income on line 38, minus your share of any credits on lines

18-21.

To claim nonresident withholding when you le your Form M1, include the amount from Schedule KS, line 40 on Schedule M1W, line 7,

column C. Also include the amount from Schedule KS, line 38 on Schedule M1W, line 7, column B. You must include this schedule when

you le your return.

2019 Schedule KS Instrucons (Connued)

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