2006 Instructions For The Wisconsin Fiduciary Return Form 2 And Schedules Cc, Wd, And 2k-1 (Page 5 of 18) in pdf

TAX COMPUTATION

Line 11. Other Credits Include the following credits on lines a

through f of line 11. Fill in the total of the amounts on lines a

Line 6a. Gross Tax Using the Wisconsin taxable income on

through f on line 11g. To find out if you can take any credit, see

line 5, enter the tax from the tax table on pages 15-18.

the appropriate schedule. Enclose a copy of the completed

schedule(s) with Form 2.

Exceptions

a Schedule MS – Manufacturer’s Sales Tax Credit If the

• Qualified funeral trusts (QFTs) – If this is a composite return

estate or trust had unused manufacturer’s sales tax credit

for a qualified funeral trust and each separate QFT has taxable

from 1998 though 2005, complete Schedule MS to determine

income of $9,160 or less, multiply the amount on line 5 by

the amount of carryover credit that may be claimed for 2006.

4.6% (.046) and fill in the result on line 6a. If any of the

Fill in the amount of your available manufacturer’s sales tax

separate QFTs has taxable income of more than $9,160,

credit carryforward from line 10 of Schedule MS on line 11a.

compute the tax separately for each QFT and fill in the total

b Schedule DI – Dairy and Livestock Farm Investment

of the tax computed separately for each QFT on line 6a.

Credit The dairy and livestock farm investment credit is based

• Electing small business trusts (ESBTs) – Special rules apply

on the amount paid for dairy or livestock farm modernization

when computing tax for an ESBT. ESBTs must separate the

or expansion related to the operation of a dairy or livestock

income from S corporations treated as a separate trust from

farm located in Wisconsin. See Schedule DI.

other trust income. The net income for that S portion is

determined under federal law, as modified by the additions

c Schedule DC – Development Zones Credits Special tax

and subtractions listed in Schedule A of Form 2. The separate

credits may be available to estates or trusts doing business

trust is taxed on its Wisconsin taxable income at the highest

in Wisconsin development zones. If you qualify for the credit,

rate for fiduciaries (6.75%). The tax is computed on the

complete Wisconsin Schedule DC. Fill in the amount of your

following worksheet:

credit from Schedule DC on line 11c.

d Schedule TC – Technology Zone Credit The technology

ESBT Worksheet – Electing Small Business Trust

zone credit may be available for estates or trusts doing

business in Wisconsin technology zones. If you qualify for

1. Separate S corporation income

the credit, complete Wisconsin Schedule TC. Fill in the

(also enter on line 6b of Form 2) ................. 1. $

amount of your credit from Schedule TC on line 11d.

.0675

2. Tax rate ......................................................... 2.

e Schedule VC (Part II) – Early Stage Seed Investment Credit

3. Tax on S corporation income

The early stage seed investment credit is based on an

(multiply line 1 by line 2) .............................. 3.

investment paid to a fund manager certified by the

4. Other trust income (from line 5, Form 2) .... 4.

Department of Commerce that the fund manager invests in

5. Tax on line 4 from tax table ......................... 5.

a certified business. See Schedule VC.

6. Total tax (add lines 3 and 5).

Enter on line 6a of Form 2 ........................... 6.

f Schedule OS – Credit for Net Tax Paid to Another State

A resident estate or trust that has paid tax both to Wisconsin

You must enclose with Form 2 a copy of the 5K-1 from the tax-

and another state on the same income may be able to claim

option (S) corporation (or the K-1 from the federal S corporation if

a credit for such tax. Read the Schedule OS instructions to

the S corporation was not required to file a Wisconsin return) that

determine if you may claim the credit. If you qualify for the

includes the name and EIN of the corporation.

credit, complete Schedule OS. Fill in the amount of your credit

from Schedule OS on line 11f. Be sure to enter in the box on

line 11f the 2-letter postal abbreviation for the other state to

Line 7. Supplement to Federal Historic Rehabilitation Credit

which you paid tax. If you paid tax to more than one other

A special tax credit may be available for the preservation or

state, fill in the number 99 in the box.

rehabilitation of certain historic structures located in Wisconsin

and used for business purposes. The Wisconsin Historical

Line 14. Recycling Surcharge The recycling surcharge

Society administers the historic preservation program. For more

applies to estates and trusts that have trade or business activi-

information about this program, visit the Historical Society’s

ties in Wisconsin and have $4,000,000 or more of gross receipts

web site at

from trade or business activities for federal income tax purposes.

iptax_credit.asp; write to the Division of Historic Preservation,

Wisconsin Historical Society, 816 State St., Madison WI 53706-

If the estate or trust is subject to the recycling surcharge,

1488; or call (608) 264-6490.

complete Wisconsin Schedule RS. Fill in the amount from line 2

or 3 of Schedule RS on line 14 of Form 2. Enclose a copy of

If you qualify for this credit, complete Part 1 of Wisconsin

Schedule RS with Form 2.

Schedule HR. Schedule HR is available from any department

office.

Line 15. Recapture of Investment Credit If there is a

recapture of investment credit, enter the recapture amount on

Line 9. Alternative Minimum Tax Estates and trusts may be

line 15 and enclose Schedule DC.

subject to the Wisconsin alternative minimum tax if the total of

federal alternative minimum taxable income and certain

Line 17. Wisconsin Income Tax Withheld Enter the estate’s

Wisconsin adjustments is greater than $22,500.

or trust’s share of Wisconsin tax withheld by a pass-through

entity, as reported on the Schedule 2K-1, 3K-1, or 5K-1 received

CAUTION: An estate or trust may be subject to the Wisconsin

from the pass-through entity. Enclose a copy of this

alternative minimum tax even though it is not subject to the

Schedule 2K-1, 3K-1, or 5K-1 with the Form 2 that is filed with

federal alternative minimum tax.

the department. Include on line 17 only the share of withhold-

Enter on line 9 of Form 2 the alternative minimum tax from line 20

ing that is attributable to income the trust or estate has reported

of Wisconsin Schedule MT.

on Form 2. The share of withholding attributable to income

2006 Instructions For The Wisconsin Fiduciary Return Form 2 And Schedules Cc, Wd, And 2k-1 Page 5

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