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The purpose of this letter is to inform you of a legislative change that was signed into law on February 9, 2018 that affects the Schedule K-1 you recently received from Minnesota Soybean Processors (MNSP). As part of the Bipartisan Budget Act of 2018, the small agri-biodiesel producer credit was retroactively extended to include gallons produced in 2017. In order to expedite this information to you, we are sending this letter to illustrate the adjustments that need to be made to your Schedule K-1. Please provide this to your tax advisor in addition to your Schedule K-1. We will not be mailing an updated K-1 package to you.
MNSP is eligible for a total credit of $1,500,000. This amount is also an increase to ordinary income and a negative AMT adjustment. To determine your share of credit and corresponding increase to ordinary income and negative AMT adjustment, multiply your ending profit percentage by $1,500,000. The adjustments to your Schedule K-1 are as follows:
Ordinary income Box 1: $1,500,000 x your ending profit %
Credits Box 15P: $1,500,000 x your ending profit %
AMT items Box 17F: -$1,500,000 x your ending profit %
These numbers are in addition to the Schedule K-1 you previously received.
If you had unit transfers during the year and need your weighted average ownership percentage, please contact MNSP.
If you are a non-resident of MN and previously received a MN KPI with your K-1 package, the amounts on page 2, lines 20 and 21 will also increase by the increased ordinary income computed above. The MN income tax withheld on page 3, line 36 will be increased by 9.85% of the increased income.
If you have already filed your tax return, it may be necessary to amend to include this information. Please consult your tax advisor.
Minnesota Soybean Processors
click here to download/media/files/K1 Letter 2018 to Shareholders.pdfGo Back»