2006 Instructions For The Wisconsin Fiduciary Return Form 2 And Schedules Cc, Wd, And 2k-1 (Page 12 of 18) in pdf

SCHEDULE 2K-1 – BENEFICIARY’S SHARE

SPECIFIC INSTRUCTIONS

OF INCOME, DEDUCTIONS, ETC.

Lines 1 through 9. Enter in column b the amount from federal

Schedule 2K-1 shows each beneficiary’s share of income,

Schedule K-1 unless the item is computed under a provision of

deductions, etc., distributed by the estate or trust. Schedule 2K-1

federal law that Wisconsin doesn’t follow. Enter total federal

requires an entry for the federal amount, adjustment, and Wis-

long-term capital gains on line 4, column b.

consin amount of each applicable estate or trust item.

If an item is computed under a provision of federal law that

Prepare a Schedule 2K-1 for each individual or entity that was

cannot be used for Wisconsin purposes, enter in column b the

a beneficiary during the estate’s or trust’s taxable year. Enclose a

amount from the federal Schedule K-1 plus or minus, as

copy of each beneficiary’s Schedule 2K-1 with the Form 2 filed

appropriate, the beneficiary’s share of the amount from

with the department. Keep a copy as part of the estate’s or trust’s

Schedule B, column 1 of Form 2. On line 13, identify the

records and give each beneficiary his or her own separate copy.

beneficiary’s share of the amount from Schedule B, column 1

as a “Schedule I Adjustment” if the beneficiary is an individual

EXCEPTIONS: A Schedule 2K-1 need not be prepared for a

or a “Schedule B Adjustment” if the beneficiary is a trust or

Wisconsin resident beneficiary if there are no differences

estate. Each beneficiary must account for this federal –

between federal and Wisconsin income, deductions, gains or

Wisconsin difference on Wisconsin Schedule I (or Schedule B).

losses and there are no Wisconsin credits or withholding to be

reported. Schedule 2K-1 need not be prepared for nonresident

Enter the amount of the beneficiary’s share of modifications

beneficiaries if the income, deductions, etc., distributed are not

from lines 3, 5, 8, 10, and 11 of Schedule A, Form 2 on the

from Wisconsin sources and there are no Wisconsin credits to

appropriate lines of Schedule 2K-1, column c. Show addition

be reported. Income from Wisconsin sources includes:

modifications as a positive number. Show subtraction

modifications with the number in parentheses.

• Wages, salaries, commissions, and other income for personal

services performed in Wisconsin.

Example 1: If the federal amount on line 1, column b of

Schedule 2K-1 includes any U.S. government interest, show

• Rents and royalties from tangible property located in

the beneficiary’s share of the amount of U.S. government interest

Wisconsin, such as land, buildings, and machinery.

as a subtraction modification in column c.

• Gains or losses from sales or other dispositions of tangible

Example 2: If the federal amount on line 6, 7, or 8, column b of

property located in Wisconsin, such as land, buildings, and

Schedule 2K-1 includes a deduction for state and local income

machinery.

taxes, show the beneficiary’s share of the amount of taxes as

• Profits or losses from businesses, professions, and farm

an addition modification in column c.

operations conducted in Wisconsin, including sole

proprietorships, partnerships, limited liability companies

NOTE: Do not adjust for state and municipal interest on line 1,

(LLCs), and tax-option (S) corporations.

column c. Enter state and municipal interest taxable to Wiscon-

sin as a subtraction on line 13, column c under “Tax-exempt

• Income from the Wisconsin state lottery, a multijurisdictional

interest.”

lottery if the winning lottery ticket or lottery share was

purchased from a Wisconsin retailer, or pari-mutuel wager

For lines 3 and 4, enter in column d the beneficiary’s share of

winnings and purses.

the amounts from lines 6c and 14c of Wisconsin Schedule WD

(Form 2). Enter in column b the amounts from lines 3 and 4a of

• Winnings from a casino or bingo hall located in Wisconsin

the federal K-1. The difference between column d and column

and operated by a Native American tribe or band.

b is entered as the adjustment in column c.

On each Schedule 2K-1, enter the name and federal

Line 10. If the beneficiary is an individual, the Wisconsin amount

identification number of the trust or estate. Also enter the

in column d is zero. If the beneficiary is another estate or a

beneficiary’s identifying number (social security number for

trust, the amount in column d will be the same as column b.

individuals), name, and address and the fiduciary’s name and

address in the appropriate spaces.

Line 11. If an amount is entered in column b as “Excess deduc-

tions” and the beneficiary is an individual, enter the negative of

Column b. Federal Amount – Enter the applicable amount from

the amount in column b in column c and zero in column d. If the

federal Schedule K-1.

beneficiary is an estate or trust, the amount to enter in column c

EXCEPTION: If the federal amount was computed using a

is determined as explained in the previous column under

provision of federal law that Wisconsin doesn’t follow, you must

“Column c. Adjustment.”

first complete Schedule B on Form 2, page 3. See the instruc-

tions for lines 1 through 9 of Schedule 2K-1 for more information.

Line 12. Enter the beneficiary’s share of adjustment for

minimum tax purposes and distributable tax preference items

Column c. Adjustment – Enter the amount of any additions or

from federal Schedule K-1. If any adjustment on lines 5 through

subtractions from federal income (modifications and any other

9 in column c of Schedule 2K-1 relates to an item that generates

adjustments) made to arrive at the amount of any item of estate

an “adjustment” or tax preference amount for minimum tax

or trust income, deduction, etc., reportable under Wisconsin law.

purposes, any resulting increase or decrease in the amount of

the “adjustment” or tax preference for Wisconsin purposes

Column d. Wisconsin Amount – Enter the amount of each

should be entered as an adjustment in column c.

estate or trust item which is reportable by the beneficiary under

Wisconsin law (column b plus or minus column c).

2006 Instructions For The Wisconsin Fiduciary Return Form 2 And Schedules Cc, Wd, And 2k-1 Page 12

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