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IA 101 Nonconformity Adjustments (Rev. Sept. 2020)
tax.iowa.gov

Name(s): ___________________________________ Tax period (MM/DD/YY): ___________________
Federal Employer Identification Number (FEIN) or SSN: ______________________________________

Before you complete this form, read the instructions. A copy of this form and supporting documentation
should be retained for as long as adjustments are applicable. This form is for reporting carryforward
and other adjustments resulting from 2018 and 2019 nonconformity with the Internal Revenue Code
(IRC). Not all adjustments will apply to all taxpayers, or to all tax types. Individuals note that certain
adjustments have already been made elsewhere on the IA 1040. Individual taxpayers with adjustments on
the lines noted should enter zero as instructed when completing this form to account for changes already
made on the IA 1040.
Amounts may be positive or negative.
Use whole dollars.
Part I: Nonconformity Adjustments

1. Contributions to capital .......................................................................................... 1. _____________
2. Like-kind exchanges .............................................................................................. 2. _____________
3. Limitation on business interest expenses, TY 2019 only (see instructions) ...........3. _____________
3a. _____________
3b. _____________
4. Charitable contribution limitations (Individuals: enter 0) ........................................ 4. _____________
5. Treatment of S-Corp charitable contributions for certain ESBT shareholders ....... 5. _____________
6. Limitation on excess farm losses ........................................................................... 6. _____________
7. Qualified equity grants ........................................................................................... 7. _____________
8. Capitalization rules ................................................................................................ 8. _____________
9. Qualified opportunity zones ................................................................................... 9. _____________
10. Basis limitation on partnership losses .................................................................. 10. ____________
11. Sales or transfers involving 10-percent owned foreign corporations ................... 11. ____________
12. Other adjustments ............................................................................................... 12. ____________
13. Total nonconformity adjustments. Add lines 1-12. ............................................... 13. ____________

Include this form with your tax return.

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IA 101 Nonconformity Adjustments (Rev. Sept. 2020)
tax.iowa.gov

Part II: Accumulated IA 101 Nonconformity Adjustments
Keep a copy of this form for your records. You will need the information from this chart to complete this
form for future years. Part II of this form is only to be used for tracking carryforward issues resulting from
Iowa’s 2018 nonconformity. Any nonconformity adjustments resulting from Iowa’s nonconformity with the
federal CARES Act interest expense limitation in tax year 2019 (amounts entered on line 3a) should not be
used when completing Part II.
A B C D
2018 IA 101 Current year Amount
Nonconformity Nonconformity IA 101 remaining as
adjustment adjustments nonconformity adjustments for
amount claimed in prior adjustment future years on
years IA 101
(A-B-C=D)
a. Contributions to capital

b. Limitations on business
interest expense (TY 2019
only)
c. S-Corp charitable
contributions for ESBT
shareholders
d. Qualified equity grants

e. Capitalization rules

f. Qualified opportunity
zones
g. Basis limitation on
partnership losses

Include this form with your tax return.

42-029b (09/25/2020)

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2020 IA 101 Instructions, page 1

What’s New March 24, 2018. This meant that, with few
This form was updated on July 10, 2020, to limited exceptions, Iowa did not conform with
reflect certain nonconformity adjustments in tax changes to the IRC included in Public Law 116-
year 2019 and later resulting from the Taxpayer 94 (Taxpayer Certainty and Disaster Relief Act)
Certainty and Disaster Relief Act of 2019 (Public or Public Law 116-136 (CARES Act). For tax
Law 116-94), and the Coronavirus Aid, Relief, years beginning on or after January 1, 2020,
and Economic Security “CARES” Act of 2020 Iowa has adopted what is commonly referred to
(Public Law 116-136). It was further updated in as “rolling conformity” and generally conforms
September 2020, to reflect Iowa’s with the most recent version of the IRC.
nonconformity with the IRC section 163(j) However, as a result of Iowa’s nonconformity for
interest expense limitation for tax years 2020 2018 and 2019, certain adjustments to Iowa
and later. income may be needed in 2019 and subsequent
Purpose of Form years.
This form provides for common adjustments to This form may be used by taxpayers filing IA
Iowa net income that may be necessary in tax 1120, IA 1120F, IA 1120S, IA 1065, IA 1040 and
years 2019 and later resulting from the IA 1041. Individual income tax (IA 1040) filers
following: should note that the adjustment for charitable
1. Carryover adjustments resulting from Iowa’s contribution carryforwards on line 4 of this form
2018 nonconformity with federal law. Do not must be accounted for on IA 1040, Schedule A.
use this form to report carryover adjustments Individual income taxpayers should enter zero
from tax year 2018 if you did not file an Iowa on line 4 when completing this form.
return in 2018. For all tax types, differences between Iowa and
2. An Iowa like-kind exchange election in tax federal depreciation and § 179 expensing are
year 2019. accounted for on the IA 4562A and B, and are
3. Certain nonconformity adjustments in tax not entered on this form.
year 2019 resulting from Iowa’s Part I Instructions
nonconformity with the Taxpayer Certainty Line 1: Contributions to capital - Certain
and Disaster Relief Act of 2019 (Public Law contributions to the capital of a corporation by a
116-94), and CARES Act of 2020 (Public Law governmental entity or civic group made during
116-136). tax year 2018 were required to be included in
Include this form with your tax return if you the corporation’s 2018 gross income for federal
enter any adjustment on Part I lines 1-12. purposes, but were treated as a tax-free
For tax year 2018, Iowa generally conformed contribution to capital for Iowa purposes. This
with the Internal Revenue Code (IRC) in effect adjustment was reported on line 1 of the 2018
on January 1, 2015. This meant that, with a few Nonconformity Adjustments Worksheet. When
limited exceptions, Iowa did not conform with the property is disposed of, the corporation will
changes to the IRC included in Public Law 114- need to apply the basis rules for capital
113 (PATH Act), Public Law 115-97 (TCJA), contributions under IRC § 362(c) and reduce the
Public Law 115-123 (Bipartisan Budget Act of corporation’s basis for Iowa tax purposes in any
2018), Public Law 115-141 (Consolidated such property received or purchased with
Appropriations Act of 2018), Public Law 116-94 property received in 2018 from a governmental
(Taxpayer Certainty and Disaster Relief Act), or entity or civic group by the amount on line 1 of
Public Law 116-136 (CARES Act) for tax years the 2018 Nonconformity Adjustments
beginning on or after January 1, 2018, and Worksheet. Adjust the amount of gain or loss on
before January 1, 2019. See 2018 Iowa Acts, that property accordingly and enter any
Senate File 2417, sec. 63 for a complete list of adjustment here in the year you dispose of the
provisions of the TCJA with which Iowa did property. It is possible that not all adjustments
conform for 2018. will be taken in the same year if different
For tax years beginning on or after January 1, properties acquired through 2018 contributions
2019, but before January 1, 2020, Iowa are disposed of at different times. Use Part II of
generally conforms with the IRC in effect on this form to track your adjustments over multiple

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                                                          2020 IA 101 Instructions, page 2 

years. The cumulative amount of positive          If you filed your 2019 Iowa  return prior  to  the 
adjustments on this line for all tax years cannot CARES Act using the 30% limitation, and later 
exceed the amount subtracted on line 1 of the     amended your 2019 federal  return to take 
2018 Iowa Nonconformity Worksheet (Part II,       advantage of the increased 50% limitation, an 
row a, Column A).                                 amended  2019 Iowa return is not  required  to 
Line 2: Like-kind  exchanges  -    See IA 8824    report this difference. However, if you do file an 
Worksheet, line 25 and enter the gain or loss     amended  2019 Iowa return  for  other reasons, 
adjustment  from that line  here. This may also   you should not report the adjustment from line 
require adjustments on the IA 4562A and B.        3 of the worksheet on the IA 101, line 3, subline 
                                                  “3a”. Keep this worksheet for your records, as 
Line 3:  Limitation on  business  interest 
                                                  you will need it in computing your 2020 Iowa 
expenses (TY 2019 only) 
                                                  return. 
Line 3 equals the sum of sublines “a” and “b”. 
No adjustment is allowed on this line for tax     If you are filing your original 2019 Iowa return 
years beginning on or after January 1, 2020.      after enactment of the CARES  Act and your 
Subline “3a” instructions: This subline “a”       Iowa return incorporates the increased  50% 
only applies to   taxpayers        other than     limitation you used for federal purposes, report 
partnerships. Partnerships completing an IA       the nonconformity adjustment from line 3 of the 
1065 should enter zero on this subline.           worksheet on the IA 101, line 3, subline “3a”. 
Iowa did not conform  with  the increase from     Keep this worksheet and the pro forma federal 
30% to 50% of a  taxpayer’s (other than  a        8990 you completed for Iowa purposes. You are 
partnership’s) adjusted taxable income (ATI)      responsible for providing documentation at the 
used in calculating the IRC § 163(j) deduction    Department’s request to prove your eligibility for 
for tax year 2019 as enacted in the CARES Act.    a carryforward adjustment in future years. 
Taxpayers that did not elect or were not eligible Subline “3b” instructions: For tax year 2018, 
to use the increased 50% ATI limitation in        Iowa did not conform with the business interest 
computing their 2019  IRC § 163(j) deduction      expense limitation in IRC §  163(j), which 
should enter zero on this subline.                imposed a limitation on the business interest 
If, for tax year 2019, you calculated your IRC §  expense deduction but allowed taxpayers to 
163(j) limitation for federal tax purposes using  carry forward the disallowed amount. For tax 
50% of your ATI, either before or after you filed year 2018, Iowa allowed a full deduction for 
your original Iowa tax return, you  must          business interest expense that was disallowed 
recalculate your IRC § 163(j) deduction for Iowa  for federal  purposes under  IRC  §  163(j). The 
tax purposes using 30% of your ATI.  This         adjustment for this full deduction was reported 
recalculation must be done by first completing a  on the  2018 Nonconformity Adjustments 
pro forma 2019 federal form 8990 for Iowa tax     Worksheet, line 3, or on the IA 1040, line 14, 
purposes, with the appropriate amount entered     code “u”. 
on line 26 equaling your ATI multiplied by 30%    For tax years 2019 and thereafter, Iowa requires 
(.30). Next, complete the worksheet below:        taxpayers  to add back the amount that  was 
                                                  deducted for Iowa purposes in 2018 to the 
Tax year 2019 Interest Expense CARES Act 
                                                  extent that amount is included as a federal 
Nonconformity Adjustment Worksheet: 
                                                  carryforward amount from 2018 and deducted 
1. Enter the  amount from your 2019 federal       for federal purposes in the current year. Please 
8990, line 30, completed for federal purposes     see the following instructions on how to 
using 50% of your ATI. _________________          calculate the amount for line 3. First complete 
2. Enter the amount from your pro forma federal   Part II,  row  b, Columns A and B  of this  form 
8990, line 30, completed for Iowa tax             using the instructions for Part II, then complete 
purposes using 30% of your ATI. _________         the “Tax  Year  2019  Interest Expense 
                                                  Carryforward Adjustment Worksheet” below.
3. Subtract line 2 from line 1 of this worksheet. 
Enter that amount here. ________________  

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2020 IA 101 Instructions, page 3

Tax Year 2019 Interest Expense years 2019-2023 to include the amount of that
Carryforward Adjustment Worksheet: 2018 contribution otherwise allowable for Iowa
tax purposes.
1. _________ Enter the amount from your 2019
federal form 8990, line 5. Also, for tax year 2018 only, Iowa did not
conform with the temporary suspension under §
2. _________ Enter the sum of the amounts
20104 of the Bipartisan Budget Act of 2018 of
from your 2019 federal form 8990, line 2 and
charitable contribution limitations for certain
line 3.
contributions made for California wildfire relief
3. _________ Subtract line 2 from line 1 of this efforts. To the extent you made one of these
worksheet. Enter that amount here. qualifying contributions but it caused you to
4. _________ Enter the amount from your 2019 exceed your contribution percentage limitation
federal form 8990, line 30, as calculated under IRC § 170(b) in tax year 2018, the amount
using the 30% ATI limitation (use your pro of the excess was added back on line 11 of the
forma 2019 federal 8990 if necessary). 2018 Nonconformity Adjustments Worksheet. If
5. _________ Subtract line 3 from line 4 of this you included such an add back in tax year 2018,
worksheet. If zero or less, STOP, you do not you may recalculate your Iowa contribution
have a current year Iowa business interest carryforward amount under IRC § 170(d) for tax
expense adjustment to enter on your IA 101, years 2019-2023 to include the amount added
line 3, subline “3b”. If greater than zero enter back on line 11 of the 2018 Nonconformity
here and continue to line 6 of this worksheet. Adjustments Worksheet.
6. _________ Enter the amount from Part II, row To the extent the recalculation of your Iowa
b, Column A of this IA 101. contribution carryforward to include either of the
7. _________ Enter the lesser of the amount on amounts described above increases your
line 5 or line 6 of this worksheet here. This is current year charitable contribution deduction,
your 2019 Iowa business interest expense enter that deduction here. No adjustment shall
carryforward adjustment. Also enter this be made on this line for tax year 2024 or later.
amount on Part I, line 3, subline “3b” of this Line 5: Treatment of S-Corp charitable
form. contributions for certain Electing Small
The total amount entered on line 3 equals the Business Trust (ESBT) shareholders
sum of sublines “3a” and “3b”. No ESBTs only: Enter as a positive adjustment on
adjustment is allowed on line 3 for tax years this line the amount of any charitable
beginning on or after January 1, 2020. contribution deduction carryforward allowed as
a deduction for federal purposes this year,
Line 4: Charitable contribution limitations
which you were already allowed to deduct for
(IA 1120 and IA 1120F filers only).
Iowa tax purposes on the 2018 Nonconformity
Individuals: Enter zero and account for this Adjustments Worksheet, line 12, due to Iowa’s
adjustment on IA 1040, Schedule A. nonconformity.
For tax year 2018 only, Iowa did not conform It is possible that not all ESBT charitable
with the federal repeal of the charitable contribution adjustments on this line due to 2018
deduction for college athletic event seating nonconformity will be taken in the same year. If
rights under § 13704 of the TCJA. If you made you do not claim your entire federal carryforward
such a charitable contribution in 2018 and it was attributable to this 2018 Iowa nonconformity
not otherwise limited by your contribution deduction for federal tax purposes in one year,
percentage limitation under IRC § 170(b), it was use Part II of this form to track your adjustments
deducted on line 11 of the 2018 Nonconformity over multiple years. The cumulative positive
Adjustments Worksheet. However, if the adjustments entered on this line for all years
allowable deduction was instead limited and not shall not exceed the amount subtracted on line
deductible for Iowa tax purposes in 2018, you 12 of the 2018 Iowa Nonconformity Adjustments
may recalculate your Iowa contribution Worksheet (IA 101 Part II, row c, Column A).
carryforward amount under IRC § 170(d) for tax

42-029e (09/29/2020)

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                                                        2020 IA 101 Instructions, page 4 

Line 6: Limitation on excess farm losses           equal the amount you deducted on line 14 of the 
                                                   2018 Iowa   Nonconformity    Adjustments
For tax year 2018, the limitation on excess farm 
                                                   Worksheet for the employee(s) and the stock(s) 
losses for noncorporate taxpayers in IRC  § 
                                                   for which you are allowed a federal deduction 
461(j) still applied for Iowa tax purposes. This 
                                                   this year. 
means that you may have a carryforward of 
excess farm losses as described in IRC  §          It is possible that adjustments on this line due to 
461(j)(2) for Iowa purposes from tax year 2018     2018 nonconformity will need to be taken over 
to tax year 2019, even though you had no such      multiple years if the deferred income from 2018 
carryforward   for    federal      purposes.       is included in the employees’ federal income in 
Noncorporate taxpayers were instructed, on the     different years. If not all adjustments attributable 
Iowa 1040, to calculate their 2018 excess farm     to Qualified Equity Grants from 2018 are made 
loss limitation (and  carryforward amount to       in one year, use Part II of this form to track your 
2019) using the 2017 federal schedule F excess     adjustments over multiple    years.  The 
farm loss worksheets and to add the disallowed     cumulative adjustments entered on this line for 
amount back on their 2018 IA  1040, line  14,      all of the years in which you have an adjustment 
using code “m”. Enter the allowable amount of      on this line shall not exceed the amount  you 
your carryforward to 2019 on line 6 of the IA 101. entered on line 14 of the 2018 Nonconformity 
The deduction entered on this line may not         Adjustments Worksheet (IA 101 Part II, row d, 
exceed the amount of carryforward generated        Column A). 
for Iowa purposes in tax year 2018 under IRC §     Line 8: Capitalization rules 
461(j) and previously added back.                  Certain amounts of interest expense incurred in 
No deduction is allowed on this line for tax year  the aging  process of beer, wine, or distilled 
2020 or later.                                     spirits and  of  replanting costs incurred in the 
Line 7: Qualified equity grants                    replanting  of citrus plants lost  by reason of 
                                                   casualty as provided in IRC §  263A(d)(2)(C) 
Employees: Enter as a negative adjustment the 
                                                   were  allowed as a deduction for federal 
amount of income, if any, included on your 
                                                   purposes but not for Iowa purposes in 2018.  
federal return that is attributable to qualified 
stock for which you made the election in IRC §     Enter these amounts as a negative adjustment 
83(i) in tax year 2018. This adjustment applies    on line 8 in the year or years  in which you 
only if you made an IRC § 83(i) election in 2018   dispose of the property  for which the 2018 
and had to include the stock as income on your     federal deduction was allowed.  You may only 
2018 Nonconformity Adjustments Worksheet. If       deduct amounts attributable to property which 
you made an IRC § 83(i) election in 2019 or any    you actually disposed of in any given year, so it 
later year, or made the election in 2018 but did   may take more than one year to recover all costs 
not file an Iowa  return for  that year, no        entered on line 15 of the 2018 Iowa 
adjustment should be made on this line. The        Nonconformity  Adjustments Worksheet. The 
amount entered on this line may not exceed the     cumulative amounts entered on this line for all 
amount of income you included on line 14 of the    years may not exceed the amount you entered 
2018 Nonconformity Adjustments Worksheet for       on line 15 of the 2018 Iowa Nonconformity 
the stock  you are including in  federal income    Adjustments Worksheet for a given asset. Use 
this year.                                         IA 101 Part II to track your allowable deductions 
                                                   for  this line over time.  The cumulative 
Employers: Enter, as a positive adjustment, the 
                                                   adjustments entered  on this line for all years 
amount of any deduction you were allowed in 
                                                   shall not exceed the amount you entered on line 
the current year for income  attributable to 
                                                   15 of the 2018 Nonconformity Adjustments 
qualified stock for which your employee made 
                                                   Worksheet (IA 101 Part II, row e, Column A). 
an IRC § 83(i) election in tax year 2018, and for 
which you were allowed an Iowa, but not a          Line 9: Qualified opportunity zones  
federal, deduction in 2018 due to  Iowa’s          If you made an investment of capital gains in a 
nonconformity with IRC § 83(i) for that year. The  federal qualified opportunity fund in tax year 
positive adjustment entered on this line should    2018 that qualified for deferral from inclusion in

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                                                         2020 IA 101 Instructions, page 5 

 federal taxable income under IRC § 1400Z-2,        of the 2018 Nonconformity Worksheet (IA 101 
and that capital gain income was added back for     Part II, row g, Column A). 
Iowa tax purposes on line 17 of your 2018           Line 11: Sales or  transfers  involving 10-
Nonconformity Adjustments Worksheet, you are        percent owned foreign corporations 
allowed a subtraction for Iowa  tax purposes        If you are required to adjust your basis in a 
during the tax year the capital gains are           specified 10-percent owned foreign corporation 
ultimately included in federal taxable income.      under IRC  §  961(d) and part of that basis 
This subtraction is equal to the total amount of    adjustment includes a reduction in basis for an 
the previously-deferred capital gains that are      IRC  §  245A deduction taken for federal 
included in federal taxable income, not to          purposes, but not allowed for Iowa purposes in 
exceed the amount previously included on line       tax year 2018, you may add back the amount of 
17 of your 2018 Nonconformity Adjustments           that 2018 federal § 245A deduction to your basis 
Worksheet.                                          for purposes of calculating your Iowa loss in the 
It is possible that the  total adjustment will be   year of the stock disposition. Your  basis 
subtracted over several years if the capital gain   adjustment may not  exceed the amount you 
is recognized in different years  for federal       entered on line 28 of the 2018 Nonconformity 
purposes. Use Part II of this form to track your    Adjustments Worksheet that was attributable to 
adjustments over multiple         years. The        your ownership in the corporation for which you 
cumulative amount of negative adjustments on        are disposing of stock in the current year. 
this  line for all  tax years cannot exceed the     Line 12: Other adjustments 
amount added back on line 17 of the 2018 Iowa       Attach a supporting  schedule explaining the 
Nonconformity Worksheet (Part II, row f,            adjustment amount(s) entered on this line. Enter 
Column A).                                          on this line any adjustments to taxable income 
No adjustment is allowed on this line for tax       resulting from carryforward issues related to 
years beginning on or after January 1, 2027.        2018 nonconformity  not included elsewhere. 
Line  10: Basis  limitation  on  partnership        This may include adjustments for  federal 
losses                                              limitations triggered by recalculated  federal 
                                                    taxable income. Also enter certain adjustments 
For tax year 2018 Iowa did not require partners 
                                                    to taxable income resulting from 2019 
to include charitable contributions or  foreign 
                                                    nonconformity  to  the Taxpayer Certainty and 
taxes in the partners’ loss limitation calculation 
                                                    Disaster Tax Relief Act of 2019 (Public Law 116-
as described in IRC § 704(d)(3)(A). As a result, 
                                                    94), or the CARES Act of 2020 (Public Law 116-
the partners may have been allowed a larger 
                                                    136). The Taxpayer Certainty and Disaster Tax 
partnership  loss deduction in  2018 for Iowa 
                                                    Relief Act nonconformity adjustments reported 
purposes than for  federal purposes, and 
                                                    on this line include  but are not limited to the 
therefore have  less  carryforward to deduct in 
                                                    exclusion from gross income of discharged 
2019 and  subsequent tax years. Enter  as a 
                                                    principal       residence    indebtedness,
positive adjustment on this line any amount that 
                                                    empowerment zone tax incentives, energy 
was allowed as a  2018 deduction for Iowa 
                                                    efficient commercial buildings    deduction, 
purposes on line 19 of the 2018 Nonconformity 
                                                    qualified electric utilities sales  to implement 
Adjustments Worksheet, but for federal 
                                                    Federal   Energy  Regulatory      Commission
purposes was  disallowed in 2018,  carried 
                                                    (FERC) or state electric restructuring policy, tax-
forward, and deducted this year.  
                                                    favored withdrawals from  retirement plans, 
It may take several years for the partner to add    recontributions  of  retirement    account
back all amounts that were deductible for Iowa      withdrawals for home purchases, and loans 
purposes but disallowed and carried forward for     from qualified plans.  For more information, see 
federal purposes as a result of this provision.     the Department’s  nonconformity guidance 
Use Part II of this form to track your adjustments  available at:  tax.iowa.gov/iowa-nonconformity-
over multiple years. The cumulative amount of       taxpayer-certainty-and-disaster-tax-relief-act-
positive adjustments on this line for all tax years 2019.
cannot exceed the amount subtracted on line 19 

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                                                           2020 IA 101 Instructions, page 6 

The CARES Act nonconformity adjustments              A should be the same each year you use this 
reported  on this line include the limitation on     form. 
excess business losses.  For more information,       Row a: Contributions to capital 
see the Department’s nonconformity guidance 
                                                     Insert the amount reported on your 2018 
available at: tax.iowa.gov/cares-conformity. 
                                                     Nonconformity Adjustments Worksheet, line 1. 
Line 13: Total 
                                                     This amount should have been a negative 
Total lines 1-12. Enter  the results in the 
appropriate place on  your Iowa tax return,  as      adjustment in 2018, but enter that figure as a 
provided in the chart below.                         positive amount here. 
       Enter positive        Enter negative          Row b: Limitations on  business  interest 
Iowa   amounts from line  amounts from line          expense (TY 2019 only) 
Form:  13 on:                13 on: 
                                                     Insert the amount of your 2018 nonconformity 
1040   Other income, line  Other income, line        adjustment attributable to the business interest 
       14, code x            14, code x 
                                                     expense limitation. This amount should have 
1041   Other income, line  Other income, line        been a negative adjustment in 2018, but enter 
       8                     8                       that figure as a positive amount here. 
1065   Part III, line 3      Part III, line 6        For individuals, this will be the sum of the 
                                                     amount you entered on your 2018 IA 1040, line 
                                                     14, Code “u”, and the amounts shown on all 
1120   Schedule A, line 15  Schedule A, line 15 
                                                     2019 IA 1065 Schedule K-1s, line 17 that you 
                                                     received.  
1120S  Part III, line 3      Part III, line 7 
                                                     For entities taxed as partnerships, this will be 
                                                     the sum of the amounts shown on all 2019 IA 
1120F  Schedule A, line 6  Schedule D, line 7 
                                                     1065 Schedule K-1s, line 17 that you received 
                                                     as a partner in another partnership, but should 
Part II: Accumulated IA 101 nonconformity 
                                                     not include the amount that you entered on your 
adjustments 
                                                     2018 Nonconformity Adjustments Worksheet, 
Part II of this form was created to assist 
                                                     line 3 and reported  to your partners on  the 
taxpayers in calculating the remaining amount 
                                                     partners’ 2019 IA 1065 K-1s, line 17. 
of nonconformity adjustments which may be 
                                                     For all other taxpayers, this will be the sum of 
required on Part I of this form in future tax 
                                                     the amount you entered on your 2018 
years. 
                                                     Nonconformity Adjustments Worksheet, line 3 
Part II is intended to track cumulative 
                                                     and the amounts shown on all 2019 IA 1065 
adjustments over time. In order to ensure all 
                                                     Schedule K-1s, line 17 that you received as a 
calculations in Part II are accurate, all entries in 
                                                     partner in another partnership. 
Part II should be entered as positive amounts, 
                                                     If you received a 2018 IA 1065 Schedule K-1 
even if the adjustment in Part I was negative (a 
                                                     from a partnership but did not receive a 2019 IA 
deduction).  
                                                     1065 Schedule  K-1 from that partnership, 
Column A: 2018 nonconformity adjustment 
                                                     contact that partnership and request information 
amount 
                                                     on your share of  the partnership’s 2018 
Generally, insert on rows a-g the amount of the      business interest expense adjustment, if  any, 
2018 nonconformity adjustment reported. This         that would have been included on the 2019 IA 
amount may have been a negative adjustment           1065 Schedule K-1, line 17.
in 2018, if this is the case, enter that figure as a 
positive amount here. The amounts in Column 
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2020 IA 101 Instructions, page 7

CAUTION: For partnerships, the amount A you have no current or future Column C
entered in Column A should not exceed, but adjustments. The amount in Column B can
may be less than, the sum of the amounts listed never exceed the amount in Column A.
in your 2018 federal form 8990, Schedule A, Column C: Current year IA 101
column (c). For all other taxpayers, the amount nonconformity adjustment
entered in Column A should not exceed, but
Enter the amount reported on Part I by
may be less than, the sum of your 2018 federal
appropriate row category for the current tax
form 8990, line 31, plus the sum of the amounts
year. The amount in Column C should always
listed in your 2018 federal form 8990, Schedule
be entered as a positive number, even if you
A, column (c).
made a negative adjustment for the
Row c: S-Corporation charitable corresponding line in Part I.
contributions for ESBT Shareholders
Row b: Limitations on business interest
Insert the amount from your 2018 expense Enter only the amount from line 3b of
Nonconformity Adjustment Worksheet, line 12. Part I in Column C, row b. Do not include the
This amount should have been a negative amount from Part I, line 3a or line 3 (unless the
adjustment in 2018, but enter that figure as a amount on line 3 is the same as the amount on
positive amount here. 3b) in Part II of this form, as this will result in an
Row d: Qualified equity grants incorrect calculation of the carryforward amount
Insert the amount from your 2018 to tax year 2020.
Nonconformity Adjustments Worksheet, line 14. Column D: Amount remaining as adjustment
The amount may have been either a positive for future years on IA 101
(employee) or negative (employer) adjustment Column D will equal the amount reported in
in 2018. Always enter that figure as a positive Column A, less the amount reported in Column
amount in Part II. B, less the amount reported in Column C. This
Row e: Capitalization rules amount can never be negative.
Insert the amount from your 2018 For rows a, b, c, and g this is the amount you
Nonconformity Adjustments Worksheet, line 15. have remaining to add back in future years.
This should be a positive amount. For rows e, and f, this is the amount you have
Row f: Qualified opportunity zones remaining to deduct in future years.
Insert the amount from your 2018 For row b, once you have completed the 2020
Nonconformity Adjustments Worksheet, line 17. IA 163A Interest Expense Carryover Adjustment
This should be a positive amount. in tax year 2020, the amount in Column D
Row g: Basis limitation on partnership should be 0 for 2020 and all subsequent tax
losses years.
Insert the amount from your 2018 For row d, if you had a 2018 adjustment
Nonconformity Adjustments Worksheet, line 19. because you were an employee who was
This amount should have been a negative required to include a deferred federal amount for
adjustment in 2018, but enter that figure as a Iowa purposes, this is the amount you have
positive amount here. remaining to deduct in future years. If you were
an employer who was allowed a deduction in
Column B: IA 101 adjustments claimed in
2018 because your employee was not allowed
prior years
to defer recognition of qualifying stocks, this is
Report in Column B the sum of the amounts, by the amount you have remaining to add back in
appropriate row category, you entered on your future years.
IA 101 for all prior years (beginning in tax year
2019). This should equal the sum of the Part II,
Column B and Column C from your most
recently filed prior year IA 101. For the first tax
year that you file an IA 101, these amounts
should be zero. If Column B is equal to Column

42-029i (09/29/2020)

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