SB44-AA40,2,5
5"
Section 1580cde. 71.01 (5p) of the statutes is created to read:
SB44-AA40,2,146
71.01
(5p) "Intangible expenses and costs" includes expenses, losses, and costs
7for, related to, or directly or indirectly in connection with the direct or indirect
8acquisition of, use of, maintenance or management of, ownership of, sale of, exchange
9of, or any other direct or indirect disposition of intangible property to the extent that
10such expenses, losses, and costs are allowed as deductions or costs to determine
11federal taxable income under the Internal Revenue Code. For purposes of this
12subsection, "expenses, losses, and costs" include losses related to or incurred directly
13or indirectly in connection with discounting transactions; royalty, patent, technical,
14and copyright fees; licensing fees; and other similar expenses and costs.".
SB44-AA40,2,17
17"
Section 1580dhb. 71.01 (9b) of the statutes is created to read:
SB44-AA40,2,2018
71.01
(9b) "Related entity" means any person related to a taxpayer as provided
19under section
267,
318, or
1563 (a) (3) of the Internal Revenue Code during all or a
20portion of the taxpayer's taxable year.
SB44-AA40,3,222
71.05
(6) (a) 21. Any amount deducted or excluded under the Internal Revenue
23Code for management and service fees, interest expenses and costs, intangible
24expenses and costs, and any other expenses and costs directly or indirectly paid,
1accrued, or incurred to, or in connection directly or indirectly with one or more direct
2or indirect transactions with, one or more related entities.".
SB44-AA40,3,4
4"
Section 1582bb. 71.22 (3m) of the statutes is created to read:
SB44-AA40,3,135
71.22
(3m) "Intangible expenses and costs" includes expenses, losses, and costs
6for, related to, or directly or indirectly in connection with the direct or indirect
7acquisition of, use of, maintenance or management of, ownership of, sale of, exchange
8of, or any other direct or indirect disposition of intangible property to the extent that
9such expenses, losses, and costs are allowed as deductions or costs to determine
10federal taxable income under the Internal Revenue Code. For purposes of this
11subsection, "expenses, losses, and costs" include losses related to or incurred directly
12or indirectly in connection with discounting transactions; royalty, patent, technical,
13and copyright fees; licensing fees; and other similar expenses and costs.".
SB44-AA40,3,15
15"
Section 1582dpb. 71.22 (9b) of the statutes is created to read:
SB44-AA40,3,1816
71.22
(9b) "Related entity" means any person related to a taxpayer as provided
17under section
267,
318, or
1563 (a) (3) of the Internal Revenue Code during all or a
18portion of the taxpayer's taxable year.
SB44-AA40, s. 1582dpp
19Section 1582dpp. 71.26 (2) (a) of the statutes is renumbered 71.26 (2) (a)
20(intro.) and amended to read:
SB44-AA40,3,2321
71.26
(2) (a)
Corporations in general. (intro.) The "net income" of a corporation
22means the gross income as computed under the Internal Revenue Code as modified
23under sub. (3)
minus and modified as follows:
SB44-AA40,3,24
241. Minus the amount of recapture under s. 71.28 (1di)
plus.
SB44-AA40,4,1
12. Plus the amount of credit computed under s. 71.28 (1), (3), (4), and (5)
plus.
SB44-AA40,4,6
23. Plus the amount of the credit computed under s. 71.28 (1dd), (1de), (1di),
3(1dj), (1dL), (1dm), (1ds), (1dx), and (3g) and not passed through by a partnership,
4limited liability company, or tax-option corporation that has added that amount to
5the partnership's, limited liability company's, or tax-option corporation's income
6under s. 71.21 (4) or 71.34 (1) (g)
plus.
SB44-AA40,4,10
74. Plus the amount of losses from the sale or other disposition of assets the gain
8from which would be wholly exempt income, as defined in sub. (3) (L), if the assets
9were sold or otherwise disposed of at a gain and minus deductions, as computed
10under the Internal Revenue Code as modified under sub. (3)
, plus.
SB44-AA40,4,14
115. Plus or minus, as appropriate, an amount equal to the difference between
12the federal basis and Wisconsin basis of any asset sold, exchanged, abandoned, or
13otherwise disposed of in a taxable transaction during the taxable year, except as
14provided in par. (b) and s. 71.45 (2) and (5).
SB44-AA40,4,2016
71.26
(2) (a) 6. Plus any amount deducted or excluded under the Internal
17Revenue Code for management and service fees, interest expenses and costs,
18intangible expenses and costs, and any other expenses and costs directly or indirectly
19paid, accrued, or incurred to, or in connection directly or indirectly with one or more
20direct or indirect transactions with, one or more related entities.".
SB44-AA40,4,22
22"
Section 1583bb. 71.34 (1) (j) of the statutes is created to read:
SB44-AA40,5,423
71.34
(1) (j) An addition shall be made for any amount deducted or excluded
24under the Internal Revenue Code for management and service fees, interest
1expenses and costs, intangible expenses and costs, and any other expenses and costs
2directly or indirectly paid, accrued, or incurred to, or in connection directly or
3indirectly with one or more direct or indirect transactions with, one or more related
4entities.".
SB44-AA40,5,6
6"
Section 1583dhb. 71.42 (1p) of the statutes is created to read:
SB44-AA40,5,157
71.42
(1p) "Intangible expenses and costs" includes expenses, losses, and costs
8for, related to, or directly or indirectly in connection with the direct or indirect
9acquisition of, use of, maintenance or management of, ownership of, sale of, exchange
10of, or any other direct or indirect disposition of intangible property to the extent that
11such expenses, losses, and costs are allowed as deductions or costs to determine
12federal taxable income under the Internal Revenue Code. For purposes of this
13subsection, "expenses, losses, and costs" include losses related to or incurred directly
14or indirectly in connection with discounting transactions; royalty, patent, technical,
15and copyright fees; licensing fees; and other similar expenses and costs.".
SB44-AA40,5,17
17"
Section 1583dpe. 71.42 (4m) of the statutes is created to read:
SB44-AA40,5,2018
71.42
(4m) "Related entity" means any person related to a taxpayer as provided
19under section
267,
318, or
1563 (a) (3) of the Internal Revenue Code during all or a
20portion of the taxpayer's taxable year.
SB44-AA40,6,322
71.45
(2) (a) 16. By adding to federal taxable income any amount deducted or
23excluded under the Internal Revenue Code for management and service fees,
24interest expenses and costs, intangible expenses and costs, and any other expenses
1and costs directly or indirectly paid, accrued, or incurred to, or in connection directly
2or indirectly with one or more direct or indirect transactions with, one or more
3related entities.".
SB44-AA40,6,12
6"(2z)
Payments to related entities. The treatment of sections 71.01 (5p) and
7(9b), 71.05 (6) (a) 21., 71.22 (3m) and (9b), 71.34 (1) (j), 71.26 (2) (a) 6., 71.42 (1p) and
8(4m), and 71.45 (2) (a) 16. of the statutes and the renumbering and amendment of
9section 71.26 (2) (a) of the statutes first apply to taxable years beginning on January
101 of the year in which this subsection takes effect, except that if this subsection takes
11effect after July 31 this act first applies to taxable years beginning on January 1 of
12the year following the year in which this subsection takes effect.".
