LA Corporate return - ACT 123 and DPAd

[Lynn EA USTCP in Louisiana]

I have a Louisiana corporate return to complete.  The company is an electrical contractor and eligible for the DPAD deduction.  They are currently on the accrual basis (and will be reverting to cash basis for 2018).   There are NOL CF to use against 2017 net income, not fully extinguishing federal taxable income.  On the state corporate return the NOL CF is used against 72% of the 2017 net income, and there are ACT 123 adjustments to deduct 1/3 of the prior year's unused NOL. 

Federal taxable income (before the NOL CF) is $334,567

CIFT 620, page 1, line 1A shows LA net income $343,441 (higher than federal income by the act amount of the DPAD deduction of $8,874)

Schedule D lines 27, 27, 28 and 30 net income are also the same as page 1, line 1A $343,441

Schedule F line 1 agrees with the federal net income of $334,567.  We have to add back the LA income tax paid in 2017 of $1,490 which results in schedule F line 4 of $336,057, which does not agree with schedule D line 25.  

Regarding the Act 123 adjustments,

CIT 620-, page 1, line 1C2 deduction is $46,023 (1/3 of the unused NOL)

Instructions say to also list Act 123 recovery on Schedule F line H.  If I do that, then schedule F line 4 will again not agree with schedule D line 25.

Cathy in Louisiana, or anyone else doing Louisiana corporate returns, are you finding problems with these calculations? 

Thanks, Lynn

 

 

[Catherine]

I found a problem just *reading* your description, Lynn!  I think I went cross-eyed about half-way through.  

[Lynn EA USTCP in Louisiana]

The state legislature is to blame for these frickin' issues, which complicates what used to be a reasonably easy return to complete, 4 pages. This return is now 17 pages long!!   My eyes cross trying to complete one without problems;  tackling these with the legislature mandated limitations is so aggravating. 

[Abby Normal]

Take solace in the fact that no auditor will understand it either. When I'm faced with at situation like this, if there are no red errors, I make some notes, call it day and only have to see it again if the government asks about it.

[jklcpa]

After reading Lynn's post, I may never complain about any of my returns ever again. 

[Lynn EA USTCP in Louisiana]

ATX just pushed out an update to this form - I'll have to check it to see if it cured my ills.  Maybe this post could qualify me for the Tax Star of the week, don't ya'll think ??? !!!

 

[Catherine]

8 hours ago, Lynn EA USTCP in Louisiana said:

The state legislature

Years ago, I decided to refer to ALL of them (local, state, federal) as legis-vermin.  There's something very satisfying about that term.  And everyone who hears it laughs (ruefully) and gets it immediately.  Said it once to a nice female legis-vermin and I thought she was going to fall out of her seat, she was laughing so hard.  Said I didn't know the half of it, and couldn't wait to tell her husband.  

[Bart]

4 hours ago, Catherine said:

Years ago, I decided to refer to ALL of them (local, state, federal) as legis-vermin.  There's something very satisfying about that term.  And everyone who hears it laughs (ruefully) and gets it immediately.  Said it once to a nice female legis-vermin and I thought she was going to fall out of her seat, she was laughing so hard.  Said I didn't know the half of it, and couldn't wait to tell her husband.  

Sounds even better that politricks