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Category: Wisconsin

Wisconsin Addition or Subtraction From Income - Differences in Federal and Wisconsin Basis of Assets

You may need to add or subtract if there is a difference between the federal basis and the Wisconsin basis of your property.  Enter the additions in the Addition to Income section and the subtractions in the Subtraction from Income section.

Additions or subtractions are necessary if:

  1. You acquired property after December 31, 1964, which may be depreciated or amortized (such as buiding and leaseholds), and the federal basis is greater or less than the Wisconsin basis.
  2. You sold (or otherwise disposed of) property which may not be depreciate or amortized (such as land, stocks, and bonds) in a taxable transaction, and your basis in the assets was greater or less for federal purposes than for Wisconsin.
  3. You sold (or otherwise disposed of) property where the federal basis is greater than the Wisconsin basis due to a previous gain on the sale of an asset being deferred because gain was invested in a "qualified new business venture" or a qualified Wisconsin business."

EXAMPLE:

You sold stock which you acquired by inheritance and your federal basis was greater than your Wisconsin basis.  You must make an adjustment for the difference in basis.

Compute the amount of any addition or subtraction due to a difference in basis on Wisconsin Schedule T, Transitional Adjustments.  Include this form with your filing.

CAUTION:

If the difference in basis is due to the difference in the federal and Wisconsin definition of the Internal Revenue Code, use Schedule I to adjust for the difference in basis rather than Schedule T.