2011 - 2012 LEGISLATURE
August 25, 2011 - Introduced by Representatives J. Ott, Ziegelbauer, Spanbauer,
and LeMahieu, cosponsored by Senators Kedzie, Galloway,
Grothman, Schultz
and Lasee. Referred to Committee on Jobs, Economy and
Small Business.
AB225,1,2 1An Act to renumber and amend 71.05 (10) (c); and to create 71.05 (10) (c) 2.
2of the statutes; relating to: federalizing the treatment of capital losses.
Analysis by the Legislative Reference Bureau
Under current law, the maximum amount of a capital loss that may be deducted
from income each year is $500; the federal limit is $3,000.
For taxable years beginning on January 1, 2012, this bill federalizes the
treatment of capital losses by eliminating the $500 annual limit on capital loss
Because this bill relates to an exemption from state or local taxes, it may be
referred to the Joint Survey Committee on Tax Exemptions for a report to be printed
as an appendix to the 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:
AB225, s. 1 3Section 1. 71.05 (10) (c) of the statutes is renumbered 71.05 (10) (c) 1. and
4amended to read:
AB225,2,55 71.05 (10) (c) 1. The amount required so that the net capital loss, after netting
6capital gains and capital losses to arrive at total capital gain or loss, is offset against

1ordinary income only to the extent of $500. Losses in excess of $500 shall be carried
2forward to the next taxable year and offset against ordinary income up to the limit
3under this paragraph subdivision. Losses shall be used in the order in which they
4accrue. This subdivision does not apply to any taxable year that begins after
5December 31, 2011.
AB225, s. 2 6Section 2. 71.05 (10) (c) 2. of the statutes is created to read:
AB225,2,97 71.05 (10) (c) 2. Any Wisconsin loss carry-forwards that exist as of December
831, 2011, shall be allowed as provided under section 1211 (b) of the Internal Revenue
AB225,2,1010 (End)