71.05(1)(hn)(hn) Wisconsin grants awarded during and related to the pandemic. Income received in the form of a grant issued by the Wisconsin Economic Development Corporation during and related to the COVID-19 pandemic under the ethnic minority emergency grant program. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible. 71.05(1)(hp)(hp) Grants from the federal restaurant revitalization fund. Income received in the form of a grant from the restaurant revitalization fund under section 5003 of the federal American Rescue Plan Act of 2021, P.L. 117-2. Amounts otherwise deductible under this chapter that are paid directly or indirectly with the grant money are deductible. Amounts excluded under this paragraph by a tax-option corporation or partnership shall be treated as tax-exempt income for purposes of sections 705 and 1366 of the Internal Revenue Code. 71.05(1)(i)(i) Commercial loans. Income of a tax-option corporation that is a financial institution, as defined in s. 69.30 (1) (b), including interest, fees, and penalties, derived from a commercial loan of five million dollars or less provided to a person residing or located in this state and used primarily for a business or agricultural purpose in this state. 71.05(2)(2) Nonresident reciprocity. All payments received by natural persons domiciled outside Wisconsin who derive income from the performance of personal services in Wisconsin shall be excluded from Wisconsin gross income to the extent that it is subjected to an income tax imposed by the state of domicile; provided that the law of the state of domicile allows a similar exclusion of income from personal services earned in such state by natural persons domiciled in Wisconsin, or a credit against the tax imposed by such state on such income equal to the Wisconsin tax on such income. 71.05 Cross-referenceCross-reference: See also s. Tax 2.02, Wis. adm. code. 71.05(3)(3) Menominee Indian tribe; distribution of assets. No distribution of assets from the United States to the members of the Menominee Indian tribe as defined in s. 49.385 or their lawful distributees, or to any corporation, or organization, created by the tribe or at its direction pursuant to section 8, P.L. 83-399, as amended, and no issuance of stocks, bonds, certificates of indebtedness, voting trust certificates or other securities by any such corporation or organization, or voting trust, to such members of the tribe or their lawful distributees shall be subject to income taxes under this chapter; provided, that so much of any cash distribution made under said P.L. 83-399 as consists of a share of any interest earned on funds deposited in the treasury of the United States pursuant to the supplemental appropriation act, 1952, (65 Stat. 736, 754) shall not by virtue of this subsection be exempt from the individual income tax of this state in the hands of the recipients for the year in which paid. For the purpose of ascertaining the gain or loss resulting from the sale or other disposition of such assets and stocks, bonds, certificates of indebtedness and other securities under this chapter, the fair market value of such property, on termination date as defined in s. 70.057 (1), 1967 stats., shall be the basis for determining the amount of such gain or loss. 71.05(5)(5) Fractional year. When an income tax return is required to be filed for a fractional part of a year under s. 71.03 (3), the Wisconsin taxable income shall be placed on an annual basis using the method applicable for federal income taxes under section 443 (b) (1) of the internal revenue code. 71.05(6)(6) Modifications and transitional adjustments. Some of the modifications referred to in s. 71.01 (13) and (14) are: 71.05(6)(a)(a) Additions. To federal adjusted gross income add: 71.05(6)(a)1.1. The amount of any interest, except interest under par. (b) 1., less related expenses, which is not included in federal adjusted gross income, and except the amount of any interest or original issue discount derived from bonds issued under subch. IV of ch. 18. 71.05 Cross-referenceCross-reference: See also s. Tax 3.095, Wis. adm. code. 71.05(6)(a)3.3. Any amount deducted as a capital loss carry-over from any taxable year prior to the 1965 taxable year. 71.05(6)(a)4.4. The amount of any lump sum distribution taxable under section 402 (d) (1) of the internal revenue code (relating to distributions from employee benefit plans). 71.05(6)(a)5.5. Any amount deducted as a capital loss carry-over from any taxable year prior to the 1975 taxable year if the capital asset which generated the loss had a situs outside of Wisconsin. 71.05(6)(a)6.6. Any amount received in taxable year 1979 or thereafter by a Wisconsin resident shareholder as a proportionate share of the earnings and profits of a tax-option corporation which was accumulated prior to the beginning of its 1979 taxable year and not considered a dividend when received under section 1375 (d) (1) of the internal revenue code as amended to December 31, 1978. 71.05(6)(a)7.7. Any amount deducted under section 170 (i) of the internal revenue code (relating to the deduction of charitable contributions by individuals who do not itemize deductions). 71.05(6)(a)9.9. Any amount excluded from adjusted gross income under section 641 (c) (1) of the internal revenue code (relating to gain on the sale of any property by a trust within 2 years of acquisition). 71.05(6)(a)12.12. All penalties for early withdrawals from time savings accounts and deposits deducted for federal income tax purposes and paid while the individual charged with the penalty was a nonresident of this state; all reforestation expenses related to property not in this state, deducted for federal income tax purposes and paid while the individual paying the expense was not a resident of this state; all contributions to individual retirement accounts, simplified employee pension plans and self-employment retirement plans and all deductible employee contributions, deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual’s wages and net earnings from a trade or business taxable by this state and the denominator of which is the individual’s total wages and net earnings from a trade or business; the contributions to a Keogh plan deducted for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual’s net earnings from a trade or business, taxable by this state, and the denominator of which is the individual’s total net earnings from a trade or business; the amount of health insurance costs of self-employed individuals deducted under section 162 (L) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual’s net earnings from a trade or business, taxable by this state, and the denominator of which is the individual’s total net earnings from a trade or business; and the amount of self-employment taxes deducted under section 164 (f) of the internal revenue code for federal income tax purposes and in excess of that amount multiplied by a fraction the numerator of which is the individual’s net earnings from a trade or business, taxable by this state, and the denominator of which is the individual’s total net earnings from a trade or a business. 71.05(6)(a)13.13. The amount claimed by a fiduciary as an itemized deduction under section 164 or 216 (a) (1) of the internal revenue code on the federal fiduciary return. 71.05(6)(a)14.14. Any amount received as a proportionate share of the earnings and profits of a corporation that is an S corporation for federal income tax purposes if those earnings and profits accumulated during a year for which the shareholders have elected under s. 71.365 (4) (a) not to be a tax-option corporation, to the extent not included in federal adjusted gross income for the current year. This subdivision does not apply to earnings and profits accumulated during a year for which a tax-option corporation has made an election under s. 71.365 (4m) (a) to be taxed at the entity level. 71.05(6)(a)15.15. The amount of the credits computed under all of the following and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4) or 71.34 (1k) (g): Effective date noteNOTE: Subd. 15. a. is repealed eff. 1-1-43 by 2025 Wis. Act 118, section 36. Effective date noteNOTE: Subd. 15. b. is repealed eff. 1-1-43 by 2025 Wis. Act 118, section 37. Effective date noteNOTE: Subd. 15. c. is repealed eff. 1-1-37 by 2025 Wis. Act 118, section 38. Effective date noteNOTE: Subd. 15. d. is repealed eff. 1-1-41 by 2025 Wis. Act 118, section 39. Effective date noteNOTE: Subd. 15. e. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 40. Effective date noteNOTE: Subd. 15. f. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 41. Effective date noteNOTE: Subd. 15. g. is repealed eff. 1-1-30 by 2025 Wis. Act 118, section 42. Effective date noteNOTE: Subd. 15. h. is repealed eff. 1-1-32 by 2025 Wis. Act 118, section 43. Effective date noteNOTE: Subd. 15. i. is repealed eff. 1-1-29 by 2025 Wis. Act 118, section 44. Effective date noteNOTE: Subd. 15. n. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 45. Effective date noteNOTE: Subd. 15. q. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 46. Effective date noteNOTE: Subd. 15. r. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 47. Effective date noteNOTE: Subd. 15. t. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 48. Effective date noteNOTE: Subd. 15. u. is repealed eff. 1-1-35 by 2025 Wis. Act 118, section 49. Effective date noteNOTE: Subd. 15. v. is repealed eff. 1-1-34 by 2025 Wis. Act 118, section 50. 71.05(6)(a)16.16. Any amount recognized as a loss under section 1001 (c) of the Internal Revenue Code if a surviving spouse and a distributee exchange their interests in marital property under s. 766.31 (3) (b). 71.05(6)(a)17.17. The amount received under s. 71.60 that is not included in federal adjusted gross income. 71.05(6)(a)18.18. Any amount deducted as moving expenses under section 217 of the internal revenue code if the expense relates to a move made by an individual who changes his or her domicile from this state as a result of the move or if the expense relates to a move made by an individual who is not domiciled in this state as a result of the move. 71.05(6)(a)20.20. The amount of any excess distribution, as that term is used in section 1291 (b) of the Internal Revenue Code, from a passive foreign investment company. 71.05(6)(a)23.23. Any amount deducted by an individual under section 62 (a) (20) of the Internal Revenue Code related to attorney fees or court costs, involving an unlawful discrimination claim, if the individual is a nonresident or part-year resident of this state and if the judgment or settlement resulting from the claim is not taxable by this state. 71.05(6)(a)24.24. The amount deducted or excluded under the Internal Revenue Code for interest expenses, rental expenses, intangible expenses, and management fees 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. 71.05(6)(a)25.25. The amount computed under s. 71.07 (5n) in the previous taxable year and not passed through by a partnership, limited liability company, or tax-option corporation that has added that amount to the partnership’s, company’s, or tax-option corporation’s income under s. 71.21 (4) (a) or 71.34 (1k) (m) and not included in federal adjusted gross income. 71.05(6)(a)26.26. For the taxable year in which a distribution is received, all of the following amounts distributed from a college savings account, as described in s. 224.50: 71.05(6)(a)26.a.a. To the extent that the receipt of the amounts by the owner or beneficiary of the account results in a penalty as provided in 26 USC 529 (c) (6), any amount that was not used for qualified higher education expenses, as defined in 26 USC 529 (c) (7), (8), and (9) and (e) (3), and was contributed to the account, except that this subd. 26. a. applies only to amounts for which a subtraction was made under par. (b) 32. or 32m. For purposes of this subd. 26. a., a first in, first out method of accounting shall apply to the account. 71.05(6)(a)26.b.b. Any amount rolled over by an owner into another state’s qualified tuition program, as described in 26 USC 529 (c) (3) (C) (i), to the extent that the amount was previously claimed as a deduction under par. (b) 32. or 32m. For purposes of this subd. 26. b., a first in, first out method of accounting shall apply to the account. 71.05(6)(a)26.c.c. To the extent that an amount is not otherwise added back under this subdivision, any amount withdrawn from the account for any purpose if the withdrawn amount was contributed to the account within 365 days of the day on which the amount was withdrawn from the account and if the withdrawn amount was previously subtracted under par. (b) 32. For purposes of this subd. 26. c., a first in, first out method of accounting shall apply to the account. 71.05(6)(a)27.27. Except as provided in subd. 28., to the extent that an amount is not included in federal adjusted gross income, any amount withdrawn from a qualified ABLE account described under section 529A (b) (1) of the Internal Revenue Code for any reason other than the payment of qualified disability expenses, as defined in section 529A (e) (5) of the Internal Revenue Code, for the account beneficiary. 71.05(6)(a)28.28. Upon the termination of an account as described under s. 16.643 or 224.55, any amount in the account that is returned to an account owner’s estate. 71.05(6)(a)29.29. The amount deducted under the Internal Revenue Code as moving expenses, as defined in s. 71.01 (8j), paid or incurred during the taxable year to move the taxpayer’s Wisconsin business operation, in whole or in part, to a location outside the state or to move the taxpayer’s business operations outside the United States. 71.05(6)(b)(b) Subtractions. From federal adjusted gross income subtract to the extent included in federal taxable or adjusted gross income unless the modification is an item, other than a capital gain deduction under s. 71.36 or interest on U.S. obligations, that is passed through to an individual from a tax-option corporation and would be included in that corporation’s income if it were not a tax-option corporation: 71.05(6)(b)1.1. The amount of any interest or dividend income which is by federal law exempt from taxation by this state less the related expense in regard to both the distributable and nondistributable interest and dividend income on a fiduciary return. 71.05 Cross-referenceCross-reference: See also ss. Tax 3.095 and 3.096, Wis. adm. code.
/statutes/statutes/71
true
statutes
/statutes/statutes/71/i/05/6/a/12
Chs. 70-79, Taxation
statutes/71.05(6)(a)12.
statutes/71.05(6)(a)12.
section
true
