LRB-2773/1
MES:mfd:arm
1997 - 1998 LEGISLATURE
March 2, 1998 - Introduced by Representatives Grothman, F. Lasee, Ainsworth,
Albers, Duff, Hutchison, Jeskewitz, Kelso, Ladwig, Musser, Nass, Owens,
Porter, Spillner, Reynolds and Ziegelbauer, cosponsored by Senators
Farrow, Drzewiecki, Huelsman and Schultz. Referred to Joint survey
committee on Tax Exemptions.
AB852,1,2
1An Act to amend 71.05 (10) (c) of the statutes;
relating to: capital loss carry over
2provisions.
Analysis by the Legislative Reference Bureau
Under current law, after netting capital gains and losses, a taxpayer may only
offset against ordinary income losses of $500 or less. Any losses in excess of $500
must be carried forward to the next taxable year and be offset against ordinary
income.
This bill increases from $500 to $3,000 the maximum net capital loss that may
be offset against ordinary income in a taxable year. Under the bill, any losses in
excess of $3,000 must be carried forward to subsequent taxable years and be offset
against ordinary income.
This bill will be referred to the joint survey committee on tax exemptions for a
detailed analysis, which will be printed as an appendix to this bill.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB852, s. 1
3Section
1. 71.05 (10) (c) of the statutes is amended to read:
AB852,2,44
71.05
(10) (c) The amount required so that the net capital loss, after netting
5capital gains and capital losses to arrive at total capital gain or loss, is offset against
1ordinary income only to the extent of
$500
$3,000. Losses in excess of
$500 $3,000 2shall be carried forward to
the next subsequent taxable
year years and offset against
3ordinary income up to the limit under this paragraph. Losses shall be used in the
4order in which they accrue.
AB852,2,96
(1) This act first applies to taxable years beginning on January 1 of the year
7in which this subsection takes effect, except that, if this subsection takes effect after
8July 31, this act first applies to taxable years beginning on January 1 of the year
9following the year in which this subsection takes effect.
