71.30(11)(h)2.
2. The total amount received from all designations to the veterans trust fund under this subsection made by corporations during the previous fiscal year.
71.30(11)(h)3.
3. The net amount remaining after the administrative costs under
subd. 1. are subtracted from the total received under
subd. 2.
71.30(11)(i)
(i)
Appropriations. From the moneys received from designations to the veterans trust fund under this subsection, an amount equal to the sum of administrative expenses certified under
par. (h) 1. shall be deposited into the general fund and credited to the appropriation under
s. 20.566 (1) (hp), and the net amount remaining certified under
par. (h) 3. shall be deposited into the veterans trust fund and used for the veterans programs under
s. 25.36 (1).
71.30(11)(j)
(j)
Refunds. An amount designated as a donation to the veterans trust fund under this subsection is not subject to refund to a corporation that designates the donation unless the corporation submits information to the satisfaction of the department within 18 months from the date that taxes are due from the corporation or from the date that the corporation filed the return, whichever is later, that the amount designated is clearly in error. A refund granted by the department under this paragraph shall be deducted from the moneys received under this subsection in the fiscal year that the refund is certified under 71.75 (7).
71.30 History
History: 1987 a. 312;
1987 a. 411 ss.
144,
145,
182 to
185;
1989 a. 31,
56;
1991 a. 39;
1995 a. 27,
209;
1997 a. 27;
1999 a. 9;
2001 a. 16;
2003 a. 33,
99,
135,
255;
2005 a. 25,
74,
361,
479,
483;
2007 a. 20,
226.
TAX-OPTION CORPORATIONS
71.32
71.32
Conformity. Unless specifically provided in this subchapter, tax-option corporations shall be subject to all of the provisions, requirements and liabilities of this chapter, so far as applicable, unless the context requires otherwise.
71.32 History
History: 1987 a. 312.
71.33
71.33
Intent. It is the intent of this subchapter and other subchapters relating to the treatment of tax-option corporations and their shareholders to prevent the double inclusion or omission of any item of income, deduction or basis.
71.33 History
History: 1987 a. 312.
71.34
71.34
Definitions. In this subchapter:
71.34(1am)
(1am) "Aggregate effective tax rate" means the sum of the effective tax rates imposed by a state, U.S. possession, foreign country, or any combination thereof, on the person or entity.
71.34(1b)
(1b) "Effective tax rate" means the maximum tax rate imposed by the state, U.S. possession, or foreign country, multiplied by the apportionment percentage, if any, applicable to the person or entity under the laws of that state, U.S. possession, or foreign country.
71.34(1e)
(1e) For purposes of
sub. (1k) (j) and
(L), "interest expenses" means interest that would otherwise be deductible under section
163 of the Internal Revenue Code and deductible in the computation of Wisconsin adjusted gross income.
71.34(1g)(n)(n) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 1998, and before January 1, 2000, means the federal Internal Revenue Code as amended to December 31, 1998, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188, and as amended by
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-276,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-276,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1998, do not apply to this paragraph with respect to taxable years beginning after December 31, 1998, and before January 1, 2000, except that changes to the Internal Revenue Code made by
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-276,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-276,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(o)
(o) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 1999, and before January 1, 2003, means the federal Internal Revenue Code as amended to December 31, 1999, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66 and sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188, and as amended by
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16, P.L. 107.22, P.L. 107.116,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 1999, do not apply to this paragraph with respect to taxable years beginning after December 31, 1999, and before January 1, 2003, except that changes to the Internal Revenue Code made by
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101, 301 (a), and 406 of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(p)
(p) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 2002, and before January 1, 2004, means the federal Internal Revenue Code as amended to December 31, 2002, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 106-519, sections 162 and 165 of
P.L. 106-554,
P.L. 106-573, section 431 of
P.L. 107-16, and sections 101 and 301 (a) of
P.L. 107-147, and as amended by
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101 and 301 (a) of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 2002, do not apply to this paragraph with respect to taxable years beginning after December 31, 2002, and before January 1, 2004, except that changes to the Internal Revenue Code made by
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(q)
(q) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 2003, and before January 1, 2005, means the federal Internal Revenue Code as amended to December 31, 2003, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 106-519, sections 162 and 165 of
P.L. 106-554,
P.L. 106-573, section 431 of
P.L. 107-16, sections 101 and 301 (a) of
P.L. 107-147, sections 106, 201, and 202 of
P.L. 108-27, section 109 of
P.L. 108-121, and section 1201 of
P.L. 108-173, and as amended by
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101 and 301 (a) of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121, excluding section 109 of
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 2003, do not apply to this paragraph with respect to taxable years beginning after December 31, 2003, and before January 1, 2005, except that changes to the Internal Revenue Code made by
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 307, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(r)
(r) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 2004, and before January 1, 2006, means the federal Internal Revenue Code as amended to December 31, 2004, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188, sections 1, 3, 4, and 5 of
P.L. 106-519, sections 162 and 165 of
P.L. 106-554,
P.L. 106-573, section 431 of
P.L. 107-16, sections 101 and 301 (a) of
P.L. 107-147, sections 106, 201, and 202 of
P.L. 108-27, section 1201 of
P.L. 108-173, sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311, and sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357, and as amended by
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101 and 301 (a) of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 2004, do not apply to this paragraph with respect to taxable years beginning after December 31, 2004, and before January 1, 2006, except that changes to the Internal Revenue Code made by
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(s)
(s) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 2005, and before January 1, 2007, means the federal Internal Revenue Code as amended to December 31, 2005, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188, sections 1, 3, 4, and 5 of
P.L. 106-519, sections 162 and 165 of
P.L. 106-554,
P.L. 106-573, section 431 of
P.L. 107-16, sections 101 and 301 (a) of
P.L. 107-147, sections 106, 201, and 202 of
P.L. 108-27, section 1201 of
P.L. 108-173, sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311, sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-1, sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58, section 11146 of
P.L. 109-59, section 301 of
P.L. 109-73, and sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, and as amended by
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101 and 301 (a) of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-59, excluding section 11146 of
P.L. 109-59,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 2005, do not apply to this paragraph with respect to taxable years beginning after December 31, 2005, and before January 1, 2007, except that changes to the Internal Revenue Code made by
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, and changes that indirectly affect the provisions applicable to this subchapter made by
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, apply for Wisconsin purposes at the same time as for federal purposes.
71.34(1g)(t)
(t) "Internal Revenue Code" for tax-option corporations, for taxable years that begin after December 31, 2006, means the federal Internal Revenue Code as amended to December 31, 2006, excluding sections 103, 104, and 110 of
P.L. 102-227, sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66, sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188, sections 1, 3, 4, and 5 of
P.L. 106-519, sections 162 and 165 of
P.L. 106-554,
P.L. 106-573, section 431 of
P.L. 107-16, sections 101 and 301 (a) of
P.L. 107-147, sections 106, 201, and 202 of
P.L. 108-27, section 1201 of
P.L. 108-173, sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311, sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 109-1, sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58, section 11146 of
P.L. 109-59, section 301 of
P.L. 109-73, sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135, sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222, sections 811 and 844 of
P.L. 109-280, and
P.L. 109-432, and as indirectly affected in the provisions applicable to this subchapter by
P.L. 99-514,
P.L. 100-203,
P.L. 100-647, excluding sections 803 (d) (2) (B), 805 (d) (2), 812 (c) (2), 821 (b) (2), and 823 (c) (2) of
P.L. 99-514 and section 1008 (g) (5) of
P.L. 100-647,
P.L. 101-73,
P.L. 101-140,
P.L. 101-179,
P.L. 101-239,
P.L. 101-508,
P.L. 102-227, excluding sections 103, 104, and 110 of
P.L. 102-227,
P.L. 102-318,
P.L. 102-486,
P.L. 103-66, excluding sections 13113, 13150 (d), 13171 (d), 13174, and 13203 (d) of
P.L. 103-66,
P.L. 103-296,
P.L. 103-337,
P.L. 103-465,
P.L. 104-7,
P.L. 104-188, excluding sections 1123 (b), 1202 (c), 1204 (f), 1311, and 1605 (d) of
P.L. 104-188,
P.L. 104-191,
P.L. 104-193,
P.L. 105-33,
P.L. 105-34,
P.L. 105-178,
P.L. 105-206,
P.L. 105-277,
P.L. 106-36,
P.L. 106-170,
P.L. 106-230,
P.L. 106-554, excluding sections 162 and 165 of
P.L. 106-554,
P.L. 107-15,
P.L. 107-16, excluding section 431 of
P.L. 107-16,
P.L. 107-22,
P.L. 107-116,
P.L. 107-134,
P.L. 107-147, excluding sections 101 and 301 (a) of
P.L. 107-147,
P.L. 107-181,
P.L. 107-210,
P.L. 107-276,
P.L. 107-358,
P.L. 108-27, excluding sections 106, 201, and 202 of
P.L. 108-27,
P.L. 108-121,
P.L. 108-173, excluding section 1201 of
P.L. 108-173,
P.L. 108-203,
P.L. 108-218,
P.L. 108-311, excluding sections 306, 308, 316, 401, and 403 (a) of
P.L. 108-311,
P.L. 108-357, excluding sections 101, 201, 211, 242, 244, 336, 337, 422, 847, 909, and 910 of
P.L. 108-357,
P.L. 108-375,
P.L. 108-476,
P.L. 109-7,
P.L. 109-58, excluding sections 1305, 1308, 1309, 1310, 1323, 1324, 1325, 1326, 1328, 1329, 1348, and 1351 of
P.L. 109-58,
P.L. 109-59, excluding section 11146 of
P.L. 109-59,
P.L. 109-73, excluding section 301 of
P.L. 109-73,
P.L. 109-135, excluding sections 101, 105, 201 (a) as it relates to section 1400S (a), 402 (e), 403 (e), (j), and (q), and 405 of
P.L. 109-135,
P.L. 109-151,
P.L. 109-222, excluding sections 101, 207, 209, 503, 512, and 513 of
P.L. 109-222,
P.L. 109-227, and
P.L. 109-280, excluding sections 811 and 844 of
P.L. 109-280, except that section 1366 (f) (relating to pass-through of items to shareholders) is modified by substituting the tax under
s. 71.35 for the taxes under sections 1374 and 1375. The Internal Revenue Code applies for Wisconsin purposes at the same time as for federal purposes. Amendments to the federal Internal Revenue Code enacted after December 31, 2006, do not apply to this paragraph with respect to taxable years beginning after December 31, 2006.
71.34(1k)
(1k) "Net income or loss" of a tax-option corporation means net income or loss computed under the internal revenue code, as defined under
sub. (1g), except that:
71.34(1k)(ag)
(ag) Section
164 (a) (3) of the internal revenue code is modified so that state taxes and taxes of the District of Columbia that are value-added taxes, single business taxes or taxes on or measured by all or a portion of net income, gross income, gross receipts or capital stock are not deductible.
71.34(1k)(b)
(b) The items referred to in section
1366 (a) (1) (A) of the internal revenue code shall be included.
71.34(1k)(c)
(c) The deduction referred to in sections
212 and
703 (a) (2) (E) of the internal revenue code shall be allowed.
71.34(1k)(d)
(d) An addition or subtraction, as appropriate, shall be made for the net amount of state and federal differences including differences arising from the different basis of assets disposed of in a transaction in which gain or loss is recognized for state tax purposes, different depreciation methods or difference in basis of depreciable assets, different elections, or transitional adjustments due to differences in the statutes for taxable years 1986 and 1987 pertaining to the computation of net income of a tax-option corporation.
71.34(1k)(e)
(e) An addition shall be made for the amount of credit computed under
s. 71.28 (3) and used by the corporation in the current year.
71.34(1k)(f)
(f) An addition shall be made for the amount of interest, less related expenses, excluded by reason of section
103 of the internal revenue code (relating to interest received on state and municipal obligations and on volunteer fire department and mass transit obligations) or any other federal law.
71.34(1k)(g)
(g) An addition shall be made for credits computed by a tax-option corporation under
s. 71.28 (1dd),
(1de),
(1di),
(1dj),
(1dL),
(1dm),
(1ds),
(1dx),
(3),
(3g),
(3h),
(3n),
(3p),
(3t),
(3w),
(5e),
(5f),
(5g),
(5h),
(5i),
(5j), and
(5k) and passed through to shareholders.
71.34(1k)(h)
(h) Section
162 of the internal revenue code (relating to trade or business expenses) is modified so that payments for wages, salaries, bonuses, interest or other expenses paid to an entertainer or entertainment corporation may be deducted only if the corporation complies with
ss. 71.63 (3) (b),
71.64 (4) and
(5) and
71.80 (15) (e).
71.34(1k)(i)
(i) In section
1366 (f) of the Internal Revenue Code, the tax under
s. 71.35 is substituted for the taxes under sections
1374 and
1375 of the Internal Revenue Code.
71.34(1k)(j)
(j) An addition shall be made for any amount deducted or excluded under the Internal Revenue Code for interest expenses and rental expenses that are directly or indirectly paid, accrued, or incurred to, or in connection directly or indirectly with one or more direct or indirect transactions with, one or more related entities.
71.34(1k)(k)
(k) A deduction shall be allowed for the amount added to gross income under
par. (j), to the extent that the conditions under
s. 71.80 (23) are satisfied.
71.34(1m)(a)(a) Notwithstanding
sub. (1g), a qualified retirement fund for a taxable year for federal income tax purposes is a qualified retirement fund for the taxable year for purposes of this subchapter.
71.34(1m)(b)
(b) Notwithstanding
sub. (1g), section 101 of
P.L. 109-222, related to extending the increased expense deduction under section
179 of the Internal Revenue Code, applies to property used in farming that is acquired and placed in service in taxable years beginning on or after January 1, 2008, and used by a person who is actively engaged in farming. For purposes of this paragraph, "actively engaged in farming" has the meaning given in
7 CFR 1400.201, and "farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code.
71.34(1p)
(1p) "Related entity" means any person related to a taxpayer as provided under section
267 or
1563 of the Internal Revenue Code during all or a portion of the taxpayer's taxable year and any real estate investment trust under section
856 of the Internal Revenue Code, except a qualified real estate investment trust, if more than 50 percent of any class of the beneficial interests or shares of the real estate investment trust are owned directly, indirectly, or constructively by the taxpayer, or any person related to the taxpayer, during all or a portion of the taxpayer's taxable year. For purposes of this subsection, the constructive ownership rules of section
318 (a) of the Internal Revenue Code, as modified by section
856 (d) (5) of the Internal Revenue Code, shall apply in determining the ownership of stock, assets, or net profits of any person.
71.34(1r)
(1r) For purposes of
sub. (1k) (j) and
(L), "rental expenses" means the gross amounts that would otherwise be deductible in the computation of Wisconsin adjusted gross income for the use of, or the right to use, real property and tangible personal property in connection with real property, including services furnished or rendered in connection with such property, regardless of how reported for financial accounting purposes and regardless of how computed.
71.34(2)
(2) "Tax-option corporation" means a corporation which is treated as an S corporation under subchapter S of the internal revenue code and has not elected out of tax-option corporation status under
s. 71.365 (4) (a) for the current taxable year.
71.34(3)
(3) "Tax-option item" means an item of income, loss or deduction.
71.34(4)
(4) "Wisconsin net income", for tax-option corporations engaged in business wholly within this state, means net income and, for tax-option corporations engaged in business both within and outside this state, means the amount assigned to this state under
s. 71.25.
71.34 History
History: 1987 a. 312;
1987 a. 411 ss.
18,
23,
146;
1989 a. 31,
336;
1991 a. 39,
269;
1993 a. 16,
437;
1995 a. 27,
380,
428;
1997 a. 27,
37,
237;
1999 a. 9,
194;
2001 a. 16,
109;
2003 a. 33,
99,
135,
255,
326;
2005 a. 25,
49,
74,
361,
479,
483;
2007 a. 20,
96,
226.
71.35
71.35
Imposition of additional tax on tax-option corporations. In addition to the other taxes imposed under this chapter, there is imposed on every tax-option corporation, except a corporation that qualifies for the exception under section
1374 (c) (1) of the internal revenue code and that has not elected to change from tax-option status under
s. 71.365 (4) (a) for that taxable year, that has a net recognized built-in gain, as defined in section
1374 (d) (2) of the internal revenue code, during a recognition period, as defined in section
1374 (d) (7) of the internal revenue code as modified by this section, a tax computed under section
1374 of the internal revenue code except that the rate is that under
s. 71.27 (2), the net recognized built-in gain is computed using the Wisconsin basis of the assets and the Wisconsin apportionment percentage for the current taxable year, the taxable income is the Wisconsin taxable income and the credit and net operating losses are those under this chapter rather than the federal credits and net operating losses. The tax under this section does not apply if the return is filed pursuant to a federal S corporation election made before January 1, 1987, and the corporation has not elected to change its status under
s. 71.365 (4) (a) for any intervening year. If a corporation that elected to change from tax-option status under
s. 71.365 (4) (a) subsequently elects to become a tax-option corporation, its recognition period begins with the first day of the first taxable year affected by the subsequent election.
71.35 History
History: 1987 a. 312;
1989 a. 31.
71.36
71.36
Tax-option items. 71.36(1)(1) It is the intent of this section that shareholders of tax-option corporations include in their Wisconsin adjusted gross income their proportionate share of the corporation's tax-option items unless the corporation elects under
s. 71.365 (4) (a) not to be a tax-option corporation.
71.36(1m)
(1m) A tax-option corporation may deduct from its net income all amounts included in the Wisconsin adjusted gross income of its shareholders, the capital gain deduction under
s. 71.05 (6) (b) 9. and all amounts not taxable to nonresident shareholders under
ss. 71.04 (1) and
(4) to
(9) and
71.362. For purposes of this subsection, interest on federal obligations, obligations issued under
s. 66.0621 by a local professional baseball park district, a local professional football stadium district, or a local cultural arts district, obligations issued under
ss. 66.1201,
66.1333, and
66.1335, obligations issued under
s. 234.65 to fund an economic development loan to finance construction, renovation or development of property that would be exempt under
s. 70.11 (36) and obligations issued under
subch. II of ch. 229 is not included in shareholders' income. The proportionate share of the net loss of a tax-option corporation shall be attributed and made available to shareholders on a Wisconsin basis but subject to the limitation and carry-over rules as prescribed by section
1366 (d) of the Internal Revenue Code. Net operating losses of the corporation to the extent attributed or made available to a shareholder may not be used by the corporation for further tax benefit. For purposes of computing the Wisconsin adjusted gross income of shareholders, tax-option items shall be reported by the shareholders and those tax-option items, including capital gains and losses, shall retain the character they would have if attributed to the corporation, including their character as business income. In computing the tax liability of a shareholder, no credit against gross tax that would be available to the tax-option corporation if it were a nontax-option corporation may be claimed.
71.36(2)
(2) A tax-option corporation shall separately state all tax-option items the separate treatment of which may affect the liability of any shareholder for tax under this chapter.
71.36(3)(a)(a) The tax treatment of all tax-option items shall be determined at the corporate level.
71.36(3)(b)
(b) All shareholders of tax-option corporations shall treat tax-option items on their returns under this chapter in a manner consistent with the manner in which those tax-option items are treated on the corporation's Wisconsin income or franchise tax return or shall notify the department of revenue of any inconsistency and the reason for it.
71.362
71.362
Situs of income. 71.362(1)(1) All tax-option items of nonresident individuals, nonresident estates and nonresident trusts derived from a tax-option corporation not requiring apportionment under
sub. (2) shall follow the situs of the business of the corporation from which they are derived, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.
71.362(2)
(2) Nonresident individuals, nonresident estates and nonresident trusts deriving income from a tax-option corporation which is engaged in business within and without this state shall be taxed only on the income of the corporation derived from business transacted and property located in this state and losses and other items of the corporation deductible by such shareholders shall be limited to their proportionate share of the Wisconsin loss or other item, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state. For purposes of this subsection, all intangible income of tax-option corporations passed through to shareholders is business income that follows the situs of the business, except that all income that is realized from the sale of or purchase and subsequent sale or redemption of lottery prizes if the winning tickets were originally bought in this state shall be allocated to this state.
71.362 History
History: 1987 a. 312;
1999 a. 9.
71.365
71.365
General provisions. 71.365(1)(1)
Adjusted basis of shareholders' stock in tax-option corporation. For purposes of this chapter, the adjusted basis of a shareholder in the stock and indebtedness of a tax-option corporation shall be determined in the manner prescribed by the internal revenue code for a shareholder of an S corporation, except that the nature and amount of items affecting that basis shall be determined under this chapter. This subsection does not apply to 1978 and earlier taxable years of corporations which were S corporations for federal income tax purposes or to taxable years of corporations for which an election has been made under
sub. (4) (a).
71.365(1m)
(1m) Tax-option corporations; depreciation. 71.365(1m)(a)(a) Except as provided in
par. (b), a tax-option corporation shall compute amortization and depreciation under the federal Internal Revenue Code as amended to December 31, 2000, except that property first placed in service by the taxpayer on or after January 1, 1983, but before January 1, 1987, that, under s.
71.04 (15) (b) and
(br), 1985 stats., is required to be depreciated under the Internal Revenue Code as amended to December 31, 1980, and property first placed in service in taxable year 1981 or thereafter but before January 1, 1987, that, under s.
71.04 (15) (bm), 1985 stats., is required to be depreciated under the Internal Revenue Code as amended to December 31, 1980, shall continue to be depreciated under the Internal Revenue Code as amended to December 31, 1980. Any difference between the adjusted basis for federal income tax purposes and the adjusted basis under this chapter shall be taken into account in determining net income or loss in the year or years for which the gain or loss is reportable under this chapter. If that property was placed in service by the taxpayer during taxable year 1986 and thereafter but before the property is used in the production of income subject to taxation under this chapter, the property's adjusted basis and the depreciation or other deduction schedule are not required to be changed from the amount allowable on the owner's federal income tax returns for any year because the property is used in the production of income subject to taxation under this chapter. If that property was acquired in a transaction in taxable year 1986 or thereafter in which the adjusted basis of the property in the hands of the transferee is the same as the adjusted basis of the property in the hands of the transferor, the Wisconsin adjusted basis of that property on the date of transfer is the adjusted basis allowable under the Internal Revenue Code as defined for Wisconsin purposes for the property in the hands of the transferor.
71.365(1m)(b)
(b) For property acquired and placed in service in taxable years beginning on or after January 1, 2006, a tax-option corporation that is actively engaged in farming may compute amortization and depreciation on property used in farming under any subsequent change to section 101 of
P.L. 107-147 or section 201 of
P.L. 108-27 enacted after December 31, 2005. For purposes of this paragraph, "actively engaged in farming" has the meaning given in
7 CFR 1400.201, and "farming" has the meaning given in section
464 (e) (1) of the Internal Revenue Code. This paragraph does not apply unless a federal law change enacted after December 31, 2005, revises section 101 of
P.L. 107-147 or section 201 of
P.L. 108-27.
71.365(2)
(2) Corporation business loss carry-forward prohibition. The corporation net business loss carry-forward provided by
s. 71.26 (4) may not be claimed by a tax-option corporation.
71.365(3)
(3) Credits not allowed. The credits under
s. 71.28 (4) and
(5) may not be claimed by a tax-option corporation or shareholders of a tax-option corporation.
71.365(4)
(4) Election to change from tax-option status. 71.365(4)(a)(a) If persons who hold more than 50% of the shares on the day on which this election is made consent, a corporation that is an S corporation for federal income tax purposes and that does not have a qualified subchapter S subsidiary may elect, on or before the due date or extended due date of its return under this chapter, not to be a tax-option corporation for that taxable year and for later taxable years until its status is again changed.
71.365(4)(b)
(b) If persons who, on the day on which the election occurs, hold more than 50% of the shares of a corporation that has elected out under
par. (a) consent, a corporation that is an S corporation for federal income tax purposes may elect, on or before the due date or extended due date of its return under this chapter, to be a tax-option corporation for that taxable year, except that no corporation electing under
par. (a) and no successor of such a corporation may be a tax-option corporation for any of the next 4 taxable years after the taxable year to which its election under
par. (a) first applies.
71.365(5)
(5) Federal return copy. A tax-option corporation shall file with its state franchise or income tax return an exact copy of its federal income tax return for the same year and shall file any other return or statement filed with or made to, or any document received from, the U.S. internal revenue service, and any form required of that corporation and prescribed by the department of revenue, affecting the taxation of its shareholders.
71.365(6)
(6) Notice to shareholders of appeals and other proceedings. Any notice of determination by the department of any tax-option item may be contested by a tax-option corporation under
subch. XIV. A tax-option corporation shall timely notify all shareholders of any administrative or judicial proceeding about the determination of any tax-option item. Each shareholder may participate in any such proceeding and shall be bound by the final determination in that proceeding.
71.365(7)
(7) Qualified subchapter S subsidiaries. If a tax-option corporation elects to treat a subsidiary as a qualified subchapter S subsidiary for federal purposes, that election also applies for this chapter. If this state has jurisdiction to impose the taxes under this chapter on the qualified subchapter S subsidiary, this state has the jurisdiction to impose the taxes under this chapter on the tax-option corporation.
71.365(9)
(9) Adjustment under rules. A corporation that elects under
sub. (4) (a) not to be a tax-option corporation and a corporation that elects to become a tax-option corporation shall adjust its income, under rules promulgated by the department of revenue, for the taxable year for which that election is first effective to avoid the omission or double inclusion of any item of income, loss or deduction.
71.365 Cross-reference
Cross Reference: See also s.
Tax 2.03, Wis. adm. code.
URBAN TRANSIT COMPANIES
71.37
71.37
Conformity. Unless otherwise provided in this subchapter or the context requires otherwise, urban transit companies are subject to this chapter.
71.37 History
History: 1987 a. 312.
71.38
71.38
Definition. In this subchapter, "urban mass transportation of passengers" means the transportation of passengers by means of vehicles having a passenger-carrying capacity of 10 or more persons including the operator, such capacity to be determined by dividing by 20 the total seating space measured in inches, when such transportation takes place entirely within contiguous cities, villages or towns and in cities, villages or towns contiguous to that in which the carrier has its principal place of business, or within or between cities, villages or towns located within a radius of 10 miles of the city, village or town in which the carrier has its principal place of business, or entirely within one city, village or town contiguous thereto, or within a county having a population of 500,000 or more or within such county and the counties contiguous thereto, or suburban operations classified as such by the department of transportation.
71.38 History
History: 1987 a. 312;
1993 a. 16,
246.
71.385
71.385
Determination of cost. The cost of property used and useful in providing urban mass transportation of passengers and the depreciation accrued on such property shall be determined on the basis of the reports and orders on file with the department of transportation.
71.385 History
History: 1987 a. 312;
1993 a. 16.
71.39
71.39
Imposition of tax. 71.39(1)(1)
Special tax; computation. In lieu of the income and franchise tax rates prescribed in
s. 71.27, there shall be assessed, levied and collected upon the taxable income of every corporation whose principal source (defined for purposes of this subchapter as being 50% or more) of gross income is the urban mass transportation of passengers a special income tax of 50% determined in accordance with this chapter, except that:
71.39(1)(a)
(a) United States income, excess or war profits and defense taxes shall be allowed as a deduction from gross income to the extent of the total payment actually made during the tax year.
71.39(1)(b)
(b) A deduction shall be allowed from such taxable income before the imposition of the special tax levied by this section, in an amount equivalent to 8% of the amount by which the cost of the property of such corporation used and useful in providing its urban mass transportation of passengers exceeds the cumulated amount of the depreciation accrued against such property as of the end of the fiscal year for which the income or franchise tax return is filed.
