Tax 2.955 Note
2016 Iowa Return
Tax 2.955 Note
Iowa Rental Income $4,000
Tax 2.955 Note
Iowa Net Tax $ 185
Tax 2.955 Note
Estimated Tax Payments 200
Tax 2.955 Note
Refund $ 15
Tax 2.955 Note
The taxpayer may claim a credit for net income tax paid to other states of $185 on the 2016 Wisconsin return, even though a part of the tax was paid in 2017.
Tax 2.955 History
History: Cr.
Register, December, 1978, No. 276, eff. 1-1-79; am. (4) (b),
Register, January, 1981, No. 301, eff. 2-1-81; r. (2) (a) and (b), (3) (b), am. (2) (c), (3) (d) and (4), renum. (3) (c) to be (3) (b), r. and recr. (5),
Register, September, 1983, No. 333, eff. 10-1-83; am. (1), (2), (3) (a) and (b), (4) (intro.), renum. (3) (cv) to be (3) (d), cr. (2) (b), (3) (c), (4) (c) and (d), r. and recr. (4) (a) and (b),
Register, June, 1990, No. 414, eff. 7-1-90; am. (3) (intro.), (a), (4) (b) 2., 3., (c) and (d),
Register, April, 1993, No. 448, eff. 5-1-93;
CR 17-019: am. (3) (a), cr. (4) (e), (f)
Register June 2018 No. 750 eff. 7-1-18; correction in (4) (f) made under s.
35.17, Stats.,
Register June 2018 No. 750;
CR 19-141: am. (2), cr. (2m), am. (4) (intro), (b) 2., 3., (c), (d), (5) (Example) Register September 2020 No. 777, eff. 10-1-20. Tax 2.956
Tax 2.956 Historic structure and rehabilitation of nondepreciable historic property credits. Tax 2.956(2)
(2)
Definition of “begun". In the initial applicability of s.
71.07 (9m) and
(9r), Stats., the date a project is “begun" means the date on which the physical work of rehabilitation commences. The physical work of rehabilitation commences when actual construction, or destruction in preparation for construction, commences. The term “physical work of rehabilitation," however, does not include preliminary activities such as planning, designing, securing financing, exploring, researching, developing plans and specifications, or stabilizing a building to prevent deterioration, such as placing boards over broken windows.
Tax 2.956 History
History: Emerg. cr. 12-28-88; cr.
Register, June, 1989, No. 402, eff. 7-26-89; corrections in (1) and (2) made under s. 13.93 (2m) (b) 7., Stats.,
Register October 2002 No. 562; correction in (1) made under s. 13.92 (4) (b) 7., Stats.,
Register August 2013 No. 692.
Tax 2.957
Tax 2.957 Relocated business credit or deduction. Tax 2.957(1)(1)
Purpose. The purpose of this section is to prescribe the method by which the percentage of the workforce payroll of a business and the dollar amount of wages paid to such workforce moved to this state during a taxable year shall be determined for purposes of ss.
71.05 (6) (b) 47.,
71.28 (9s), and
71.47 (9s), Stats.; provide examples of actions that may indicate a business has relocated to this state from another state or country; and limit the deduction provided for in s.
71.05 (6) (b) 47. am.,
b., and
c., Stats.
Tax 2.957(2)(a)
(a) “Business" means any organization or enterprise operated for profit, including a sole proprietorship, partnership, firm, business trust, joint venture, syndicate, corporation, limited liability company, or association.
Tax 2.957(2)(c)
(c) “Employee" has the meaning given in section
3121 (d) of the Internal Revenue Code.
Tax 2.957(2)(e)
(e) “Wages" has the meaning given in section
3121 (a) of the Internal Revenue Code.
Tax 2.957(3)(b)
(b) Registering to do business in Wisconsin with the department of financial institutions.
Tax 2.957(5)
(5)
Workforce payroll. For purposes of ss.
71.05 (6) (b) 47. a.,
71.28 (9s) (a) 2., and
71.47 (9s) (a) 2., Stats., the determination as to whether 51% or more of the workforce payroll of a business has moved to this state during a taxable year shall be made using a fraction, the numerator of which is the total amount of wages paid by the business during the taxable year to employees of the business who are residents of this state, and the denominator of which is the total amount of wages paid by the business during the taxable year to all employees of the business.
Tax 2.957 Note
Example: During the taxable year in which Business A begins doing business in Wisconsin, Business A pays $6,000,000 of wages to employees of Business A who are residents of Wisconsin and $10,000,000 of total wages to all employees of Business A. Sixty (60) percent of the workforce payroll of Business A moved to Wisconsin during the taxable year (6,000,000/10,000,000).
Tax 2.957(6)
(6)
Workforce wages. For purposes of ss.
71.05 (6) (b) 47. a.,
71.28 (9s) (a) 2., and
71.47 (9s) (a) 2., Stats., the determination as to whether at least $200,000 of wages paid to the workforce of a business has moved to this state during a taxable year shall be made using the total amount of wages paid by the business during the taxable year to employees of the business who are residents of this state.
Tax 2.957 Note
Example: During the taxable year in which Business B begins doing business in Wisconsin, Business B pays $250,000 of wages to employees of Business B who are residents of Wisconsin. Wages of $250,000 paid to the workforce of Business B moved to Wisconsin during the taxable year.
Tax 2.957(7)(b)
(b) The credit or deduction under this section may not be claimed by a business that relocates to Wisconsin in a taxable year beginning after December 31, 2013.
Tax 2.957 Note
Example: Partner B determines the amount otherwise eligible for the modification under s.
71.05 (6) (b) 47. b., Stats., is a loss of $5,000. Partner B may not make a modification under s.
71.05 (6) (b) 47. b., Stats.
Tax 2.957 History
History: EmR1104: emerg. cr. eff. 4-7-11;
CR 11-023: cr.
Register November 2011 No. 671, eff. 12-1-11;
CR 14-005: am. (7) (title), renum. (7) to (7) (a), cr. (7) (b)
Register August 2014 No. 704, eff. 9-1-14.
Tax 2.96
Tax 2.96
Extensions of time to file corporation franchise or income tax returns. Tax 2.96(1)(a)(a) General. Except as provided in pars.
(am) and
(b), corporation franchise or income tax returns are due on or before the 15th day of the 4th month following the close of a corporation's taxable year unless an extension of time for filing has been granted.
Tax 2.96(1)(am)
(am) For tax exempt corporations with unrelated business taxable income, the franchise or income tax return is due on or before the 15
th day of the 5
th month following the close of the corporation's taxable year unless an extension of time for filing has been granted.
Tax 2.96(1)(b)
(b) Short-period returns. Corporation franchise or income tax returns for periods of less than 12 months are due on or before the federal due date.
Tax 2.96(2)(a)(a)
Automatic extension. For corporation franchise or income tax returns, an automatic extension is allowed for a period of 7 months or until the original due date of the corporation's corresponding federal return, whichever is later. If any extension is obtained for federal purposes, that extension also applies for Wisconsin purposes and is further extended for another 30 days after the federal due date. A copy of federal extension form
7004, or other federal extension form, if applicable, shall be attached to any Wisconsin franchise or income tax
return filed under extension, even if the extension was not requested for federal purposes.
Tax 2.96(2)(b)
(b) Combined returns. For corporations required to use combined reporting under s.
71.255, Stats., any extension granted to the designated agent of the combined group is considered granted to each corporation in the combined group.
Tax 2.96(2)(c)
(c) Estimated tax payment. A taxpayer who desires to minimize interest charges during the extension period may pay the estimated tax liability on or before the original due date of the franchise or income tax return. The estimated tax liability includes the economic development surcharge imposed under s.
77.93, Stats.
Tax 2.96 Note
Note: See s.
Tax 2.66 for rules relating to the payment of estimated taxes by combined groups.
Tax 2.96(3)(a)
(a) Regular interest. Except as provided in par.
(b), additional tax due with the complete return and the economic development surcharge imposed under s.
77.93, Stats., which are not paid by the original due date are subject to interest at 12% per year during the extension period and 1 1/2% per month from the end of the extension period until the date of payment.
Tax 2.96(3)(b)
(b) Delinquent interest. If 90% of the tax shown on the return is not paid by the unextended due date of the return, the difference between that amount and the estimated taxes paid along with any interest due is subject to interest at 1 1/2% per month until paid regardless of any extension granted for filing the return. The tax shown on the return includes the economic development surcharge imposed under s.
77.93, Stats.
Tax 2.96(3)(c)
(c) Late filing fee. A corporation return filed after the extension period is subject to a $150 late filing fee.
Tax 2.96 History
History: Cr.
Register, February, 1978, No. 266, eff. 3-1-78; am. (1), (2) (a) and (c), (3) (a) and (c), (4) and (5),
Register, September, 1983, No. 333, eff. 10-1-83; am. (1), (2) (a) and (b), (4) and (5), r. (2) (c), renum. (2) (d) to be (2) (c),
Register, February, 1990, No. 410, eff. 3-1-90; r. and recr.
Register, December, 1995, No. 480, eff. 1-1-96;
CR 10-095: am. (1) (a), (3) (a), (b), cr. (1) (am), r. and recr. (2), r. (4)
Register November 2010 No. 659, eff. 12-1-10;
CR 12-011: am. (2) (c), (3) (a) to (c)
Register July 2012 No. 679, eff. 8-1-12;
CR 19-141: am. (1) (a) Register September 2020 No. 777, eff. 10-1-20. Tax 2.96 Annotation
Cross Reference: See s. Tax 2.60 for combined reporting definitions relating to this section. See s. Tax 2.65 for rules relating to the designated agent. See s. Tax 2.66 for rules relating to the payment of estimated taxes by combined groups. See s. Tax 2.67 for rules relating to the filing of a combined return.
Tax 2.98(1)(a)
(a) Hurricanes, fires, storms, floods, and other similar casualties may cause persons to suffer losses from damage to property used in a trade or business or for income-producing purposes for which insurance coverage is nominal or nonexistent. Losses sustained from casualties of this kind may be deductible on a federal and a Wisconsin income tax return.
Tax 2.98(1)(b)
(b) If a taxpayer sustains a casualty loss from a disaster in an area subsequently determined by the president of the United States to warrant federal assistance, section
165 (i) of the Internal Revenue Code gives taxpayers the election to deduct the loss on the return for the current tax year or on the return for the immediately preceding tax year.
Tax 2.98(2)(a)(a) The Wisconsin income tax treatment is determined under the federal Internal Revenue Code in effect under s.
71.22 (4), Stats., for corporations and s.
71.01 (6), Stats., for individuals.
Tax 2.98(2)(b)
(b) If a corporation, designated agent of a combined group, or an individual desires to make the election after having filed a Wisconsin income tax return for the preceding taxable year, the casualty loss may be claimed by filing an amended Wisconsin return for that year.
Tax 2.98 Note
Note: Tax 2.98 explains some federal provisions relating to disaster area losses and how the Wisconsin law for individuals conforms to the federal law, however, it does not explain all the details regarding casualty losses. Internal Revenue Service Publication 547, entitled Casualties, Disasters, and Thefts may be helpful in understanding such details as how to deduct a casualty loss, what to do if the loss exceeds income, how to adjust the basis of property damaged or replaced, how to report the amount received from insurance or other sources, and related casualty loss problems.
Tax 2.98 History
History: Cr.
Register, April, 1978, No. 268, eff. 5-1-78; r. (2), renum. (3) to be (2) and am. (2) (a) 1. and (b),
Register, September, 1983, No. 333, eff. 10-1-83; am. (1) (a), r. (2) (b), renum. (2) (a) 1. and 2. to be (2) (a) and (b) and am.,
Register, February, 1990, No. 410, eff. 3-1-90;
CR 10-095: am. (2) (b)
Register November 2010 No. 659, eff. 12-1-10;
CR 13-012: am. (1) (b)
Register August 2013 No. 692, eff. 9-1-13.
Tax 2.986
Tax 2.986 Registration of a business under s. 73.03 (69), Stats. Tax 2.986(1)(1)
Purpose. This section establishes the method of valuing property and the registration deadline for purposes of s.
73.03 (69), Stats.
Tax 2.986(2)
(2)
Definition. In this section, “doing business in this state" has the meaning given in s.
71.22 (1r), Stats.
Tax 2.986(3)
(3)
Method of valuing property. For purposes of s.
73.03 (69) (b) 2., Stats., real and tangible personal property owned by the business shall be valued at its original cost and real and tangible personal property rented by the business shall be valued at an amount equal to the annual rental paid by the business, less any annual rental received by the business from sub-rentals, multiplied by 8.
Tax 2.986(4)(a)(a) Except as provided in par.
(b), a business shall register with the department under s.
73.03 (69), Stats., on or before the close of the calendar year for which the business desires registration. A business may not be registered for a calendar year if the registration is not within the time provided in this subsection.
Tax 2.986(4)(b)
(b) A business that desires registration for the calendar year in which it begins doing business in this state shall register with the department during the following calendar year.
Tax 2.986 Note
Example: Business A begins doing business in Wisconsin on March 8, 2014. Business A must register with the department for calendar year 2014 between January 1, 2015, and December 31, 2015.
Tax 2.986 History
History: CR 14-005: cr.
Register August 2014 No. 704, eff. 9-1-14.
Tax 2.99
Tax 2.99
Dairy and livestock farm investment credit. Tax 2.99 Note
Note: 2005 Wis. Act 25 renamed the “dairy investment credit" the “dairy and livestock farm investment credit," effective for taxable years beginning on or after January 1, 2006. The term “dairy and livestock farm investment credit" as used in this section refers to the “dairy investment credit" for taxable years prior to January 1, 2006.
Tax 2.99(2)(a)
(a) “Amount the claimant paid in the taxable year" means the purchase price of facilities or equipment acquired and first placed in service in this state during taxable years that begin after December 31, 2003, and before January 1, 2017.
Tax 2.99(2)(b)
(b) “Dairy farm modernization or expansion" has the meaning as given in ss.
71.07 (3n),
71.28 (3n), and
71.47 (3n), Stats. “Dairy farm modernization or expansion" refers only to those facilities or equipment in this state used exclusively on the claimant's dairy farm related to the dairy animals located on the claimant's dairy farm. “Dairy farm modernization or expansion" does not include the purchase of:
Tax 2.99(2)(b)2.
2. Vehicles licensed for highway use, snowmobiles, and all-terrain vehicles.
Tax 2.99(2)(c)
(c) “First placed in service" has the meaning as given under Treas. Reg. section 1.167 (a)-11 (e) (1) (i) for purposes of computing depreciation.
Tax 2.99 Note
Note: Treas. Reg. s. 1.167 (a)-11 (e) (1) (i) provides, in part, that property is first placed in service when first placed in a condition or state of readiness and availability for a specifically assigned function.
Tax 2.99(2)(d)
(d) “Milk production" means the activity of producing and handling milk on the claimant's dairy farm in this state for human consumption, but does not include activities such as transporting, pasteurizing, or homogenizing milk or making butter, cheese, ice cream or other dairy products.
Tax 2.99(2)(e)
(e) “Used exclusively related to dairy animals" means used in this state on the claimant's dairy farm to the exclusion of all other uses except for other uses not exceeding 5% of total use.
Tax 2.99 History
History: Emerg. cr. eff. 9-17-04;
CR 04-115: cr.
Register March 2005 No. 591, eff. 4-1-05;
CR 12-011: am. (title), (1), (2) (a)
Register July 2012 No. 679, eff. 1-8-12.
