There is no limitation on the education for capital losses incurred that is allowable in computing the repacement tax liability of a Subchapter S corporation. Dividends paid by a Subchapter S corporation do not qualify for the subtraction for dividends received from an enterprise zone. The subtraction modification allowed for interest on U. S. Government obligations is net of bond premium amortization, but is not reduced for expenses allocable to such income. The compensation of a nonresident officer of the Public Health Service is exempt from Illinois income tax under the Soldier's and Sailors' Civil Relief Act of 1940. Early retirement pay received from school district qualifies for the subtraction modification.
Military pensions are exempt from Illinois income taxation.
Prior to effective date of Public Act 91-541, no subtraction is allowed for wages whose deduction is disallowed under IRC Section 280C because the taxpayer has claimed a Work Opportunity Credit with respect to such wages. Prior to the enactment of Public Act 91-541, no subtraction modification is allowed for deductions disallowed under Section 280C of the Internal Revenue Code. Subtraction modification allowed to partnerships for a reasonable allowance for compensation paid or accrued for services rendered by partners explained. Interest on bonds issued by Illinois agencies is exempt only if expressly provided by statute.