What’s new for 2011
Factor Percentages Have Changed
The property and payroll factors on Schedule M8A have changed from 6.5 percent
to 5 percent each, and the sales factor has changed from 87 percent to 90 percent. Effective for tax year 2011.
Federal Legislation Update
Several modifications that Minnesota did not conform to in the past were fully adopted or no longer apply at the federal level, beginning with tax year 2011. As a result, the discharge of indebtedness addition line has been removed from Schedule KS.
Note: Minnesota continues to require an 80 percent addback for bonus depreciation and Section 179 expensing.
Due Dates for Estimated Tax
Beginning with tax year 2011, S corporation estimated tax payments are due by the 15th day of the fourth, sixth and ninth months of the tax year and the first month following the end of the tax year.
Beginning with tax year 2011, all pass- through entities — S corporations, partnerships and trusts — must use Schedule EST, Underpayment of Estimated Tax, to determine the additional charge for under- payment of estimated tax.
Individuals will continue to use Schedule M15, and
The Department of Revenue will launch a new website in mid-2012. The redesigned site will feature simple navigation and better design, allowing users to get information they need as quickly as possible.
They’re also changing our URL to www.revenue.state.mn.us. Until the new site is launched both the new link (www. revenue.state.mn.us) and old link (www. taxes.state.mn.us) will direct visitors to the current site.
The new Revenue website address will be added to forms, instructions, fact sheets, etc. as they are updated.
CREDITS: This is an excerpt from A Guide to Starting a Business in Minnesota, provided by the Minnesota Department of Employment and Economic Development, Small Business Assistance Office, Twenty-eighth Edition, January 2010, written by Charles A. Schaffer, Madeline Harris, and Mark Simmer. Copies are available without charge from the Minnesota Department of Employment and Economic Development, Small Business Assistance Office.
This post is an excerpt from the Minnesota Department of Revenue’s publication, 2011 S Corporation Form M8 Instructions.
This is also part of a series of posts on S corporation M8 instructions.