Iowa Application for Refund Due to the Carryback of Capital Losses

Application for Refund Due to the Carryback of Capital Losses
42028-CAP.pmd
IA 1139 CAP

tax.iowa.gov

Office use only

Application for Refund
Due to the Carryback of Capital Losses

All amounts should be in whole dollars.
Corporation Name and Address:

▲

FEIN:

Do not attach to Iowa
return; mail in separate
envelope

▲

Type of Tax:
Corporation

Franchise

▲

Loss Return for the period ended _____ / _____ / ____ ▲
An Iowa capital loss
can be carried back
three tax periods.

Check the box if name, address, or FEIN
has changed.
Phone number: __________________
NOTE: The net operating loss and
alternative minimum tax loss can only
be carried forward for tax years
beginning on or after January 1, 2009.

Amount of
capital loss

Remaining to be
carried forward

$_______________ ▲

$_______________ ▲

Federal Audit Involved

Yes

No

▲

3rd preceding tax period

2nd preceding tax period

1st preceding tax period

_____ / _____ / ______ ▲

_____ / _____ / ______ ▲

_____ / _____ / _____ ▲

as last
reported on
_________

as last
reported on
_________

as last
reported on
_________

after
carryback

after
carryback

after
carryback

1. Net income .........................................................
2. Iowa capital loss .................................................
3. Capital loss subtotal. Subtract line 2 from line 1.
4. 50% federal refund from capital loss ..................
5. Subtotal. Add lines 3 and 4.................................
6. Nonbusiness income ..........................................
7. Income subject to apportionment .......................
8. Iowa percentage .................................................
9. Income apportioned to Iowa ...............................
10. Iowa nonbusiness income ..................................
11. Income before Net Operating Loss.....................
12. Iowa Net Operating Loss carryforward ...............
13. Iowa Net Operating Loss carryback ...................
14. Income subject to tax..........................................
15. Computed tax .....................................................
16. Alternative Minimum Tax. Include forms ............
17. Total tax liability ..................................................
18. Recomputed tax liability from line 17 ..................
19. Decrease in tax. Subtract line 18 from line 17 ....

▲

▲

▲

I, the undersigned, declare under penalties of perjury and false certificate, that I have examined this Application for Refund, and,
to the best of my knowledge and belief, it is true, correct, and complete.
Officer’s Signature: ________________________________ Date: ____________ Title: ____________________________
Preparer’s Signature: _______________________________ Date: ____________ Preparer’s Phone: _________________
Preparer’s ID No.: __________________
You must enclose a copy of page 1 of the company’s Iowa returns as filed
and any federal forms 1120X or 1139 filed for all periods involved with this
claim.
Interest on claim will accrue starting on the date all required information is received by the Department.
42-028a (09/21/2021)

IA 1139-CAP Instructions
Tax periods beginning on or after January 1,
2009, both the Iowa net operating loss (NOL) and
alternative minimum tax net operating loss (AMT
NOL) can only be carried forward 20 taxable periods.
Form IA 1139-CAP can be used only for the
carryback of an Iowa capital loss. If any other
changes are involved, form IA 1120X must be filed.
An Iowa capital loss can be carried back three tax
periods and carryback claims must be filed within
three years of the due date of the return producing
the capital loss. Enclose copies of page 1 of your
Iowa return for all periods involved with this claim,
including the loss year and any federal claims
involved (1139 or 1120X).
Loss Information: Provide the amount of Iowa
capital loss. Show the remaining loss to be carried
forward after this carryback. Indicate whether any
year involved in this claim has been adjusted by
federal audit. If yes, include a copy of the federal
audit.
As Last Reported On: The figures used should be
from the last form filed. Provide a copy of the last
form filed or the date of the last Iowa audit. Line 1:
Net Income - Iowa income as last computed after
additions and reductions on IA 1120 or IA 1120A, line
8. Include adjustments to federal domestic
production activities deduction.
Line 2: Iowa Capital Loss - Amount of loss from
federal return or refund claim.
Line 4: 50% Federal Refund from Capital Loss
(accrual basis only): 50% of the amount from any
applicable federal claim (refunds for federal taxes
deducted on an Iowa return in a year beginning prior
to January 1, 2021 only). If refund is due to both a
capital loss and a net operating loss, compute the
amount attributable to the capital loss in the following
manner: federal capital loss ÷ (capital loss + net
operating loss) x federal refund x 50%. This line does
not apply to IA 1120F.
Line 6: Nonbusiness Income - Amount from IA 1120,
line 9, or from IA 1120F and/or schedules, or as last
computed.
Line 7: Income Subject to Apportionment - Subtract
line 6 from line 5.
Line 8: Iowa Percentage - Amount from IA 1120, line
11 or as last computed. If your business activity is
entirely in Iowa, enter 100%.
Line 9: Income Apportioned to Iowa - Multiply line 7
by line 8.
Line 10: Iowa Nonbusiness Income - Amount from
IA 1120, line 13, as last computed, or from IA 1120F
and/or schedules.

Line 11: Income Before Net Operating Loss - Add
lines 9 and 10.
Line 12: Iowa Net Operating Loss Carryforward –
Amount from IA 1120, line 15, or IA 1120A, line 9, as
last computed, or from IA 1120F and/or schedules.
Line 13: Iowa Net Operating Loss - “As last reported”
and “After carryback” - loss previously carried back.
Line 14: Income Subject to Tax - Subtract lines 12
and 13 from line 11.
Line 15: Computed Tax - Multiply line 14 by the
following:
Corporation Tax:
For tax years beginning before January 1, 2021, if
line 14 is:
• Under $25,000; multiply line 14 by 6%.
• $25,000 to $100,000; multiply line 14 by 8% and
subtract $500.
• $100,000 to $250,000; multiply line 14 by 10%
and subtract $2,500.
• Over $250,000; multiply line 14 by 12% and
subtract $7,500.
For tax years beginning on or after January 1, 2021,
if line 14 is:
• $100,000 or less; multiply line 14 by 5.5% (.055).
• $100,001 to $250,000; multiply line 14 by 9%
(.09) and subtract $3,500
• Over $250,000; multiply line 14 by 9.8% (.098)
and subtract $5,500.
Franchise Tax on Financial Institutions:
Total income subject to tax: 5%
Line 16: Alternative Minimum Tax (AMT): Amount
from IA 4626, from IA 4626F, or as last computed. If
the amount of AMT or AMT credit is changed, the
original computation and the revised computation
must be included, as well as an updated IA 148. The
Iowa AMT is repealed for tax years beginning on or
after January 1, 2021. The AMT credit is available
only for tax years beginning before January 1, 2022
Line 17: Total Tax Liability - Add lines 15 and 16.
Line 18: Recomputed Tax Liability - Amount from
line 17 “after carryback.”
Mail completed form with applicable enclosures to:
Compliance Services
Iowa Department of Revenue
P.O. Box 10465
Des Moines IA 50306-0465
Questions:
Call: 515-281-3114 or 800-367-3388
E-mail: [email protected]

42-028b (11/12/2021)