Montana ~ Personal Income Tax: Subtraction Enacted for Business Deductions Reduced Due to Federal Credit

CCH Tax Day Report

A Montana personal income tax deduction has been enacted for taxpayers who, in determining federal adjusted gross income, reduced their business deductions because a federal tax credit was elected. Under the new provision, which applies to tax years beginning after December 31, 2018, a taxpayer is allowed to deduct the amount of the business expense paid when there is no corresponding state income tax credit or deduction, regardless of the credit taken.

Ch. 382 (H.B. 574), Laws 2017, effective October 1, 2017, applicable as noted

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