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Category: Wisconsin

Wisconsin Schedule WD

If your federal adjusted gross income includes capital gains and/or losses, you must complete Schedule WD. Schedule WD determines whether any capital gain/loss addition must be reported on line 3. For example, after completing Schedule WD, you may be required to include an amount as an addition to income on line 3 because Wisconsin Law limits the deduction for a net capital loss to $500.

The purpose of the Wisconsin Schedule WD is used to determine the amount of capital gain or loss which you must include in your Wisconsin income. Generally, all amounts reported on your Federal Schedule D must be reported on Schedule WD. However, for Wisconsin, you may exclude 30% of the net capital gain from assets held more than one year (60% in the case of farm assets). The amount of net capital loss that can be applied against other income after offsetting capital gains is limited to $500 as mentioned above. Unused capital losses are carried over to later years until fully used.

Note: If you Wisconsin capital gain or loss consists only of a capital gain distribution from a mutual fund or real estate investment trust, you do not have to complete Schedule WD.

Nonresidents and Part-Year Residents

Nonresidents should include only gain or loss from Wisconsin sources on Schedule WD. Part-Year residents should include the gain or loss received from all sources while a Wisconsin resident and the gain or loss from Wisconsin sources while a nonresident.

Gain or loss from Wisconsin sources includes gain or loss from the sale of land, buildings, and machinery located in Wisconsin, gain from the sale of stock acquired under an incentive stock option or employee stock purchase plan to the extent attributable to personal services performed in Wisconsin, and your share of gain or loss from an estate or trust, partnership, limited liability company (LLC), or tax-option (S) corporation which has been reported to you on Wisconsin Schedule 2K-1, 3K-1, or 5K-1. It does not include losses from nonbusiness bad debts and worthless securities, and gains or losses from sales of stocks (except gain on stock acquired under an incentive stock option or employee stock purchase plan as explained above) while a nonresident.

For additional information, please see the Schedule WD instructions.