Instructions For 2008 Schedule Rt - State Of Wisconsin (Page 4 of 12) in pdf

Wisconsin Schedule RT Instructions

Page 4

Specific Instructions for Part I

On lines 1 through 3, enter the name and identi-

The schedule for line 4c must contain the follow-

fication number of related entities to whom the

ing information for each related entity:

taxpayer paid, accrued, or incurred the expense

• Entity name.

described. Also identify the type of entity and fill

• Entity’s federal employer identification num-

in the amount of the expense, in the aggregate,

attributable to each entity. If you are filing under

ber (or social security number if an individual).

the apportionment method, enter the unappor-

• Type of entity (corporation, S corp., partner-

tioned amounts. List the related entity with the

ship, individual, fiduciary, other).

largest amount first.

• Amount of related entity expense not included

in lines 1 through 4b.

Supporting Documentation and Attachments

• Description of expense.

If you are reporting related entity expenses paid,

accrued, or incurred to more than two related

You may also submit any other documentation

entities for any of the expense types in lines 1

you believe would enhance the Department of

through 3, you must prepare and submit with

Revenue’s understanding of the transactions.

Schedule RT a schedule listing the name, identi-

However, this additional documentation is not

fication number, entity type, expense type, and

required.

expense amount corresponding to the related

entities included in lines 1c, 2c, and 3c.

Guidelines for Adequate Disclosure

For line 4c, you must submit a supplemental

You must disclose actual numbers. Entering

schedule for any related entity expenses except

“available on request” will not be considered an

for interest, rent, or royalty expenses; manage-

adequate disclosure. However, for each of lines

ment or service fees; or inventory purchases, if

1 through 4c, disclosure will be considered ade-

the total amount of such expenses paid, ac-

quate if the total of that expense type for all re-

crued, or incurred to related entities is more than

lated entities combined is within 10% of the ac-

10% of total expenses claimed for the taxable

tual amount of such expense.

year.

Specific Instructions for Part II

Complete Part II only if you had related entity in-

penses fit the criteria corresponding to boxes i.,

terest or rental expenses you wish to deduct on

ii., or iii. of item A.

your Wisconsin return.

Each of the three boxes in item A, as well as

In item A, check all boxes that are true in their

item B, are explained in detail below. Also see

entirety for the interest expense or rental ex-

the section Additional Guidance for Part II, be-

pense you reported in Part I. If a box is true in its

ginning on page 6.

entirety for a portion of the expense you re-

ported, check the box and refer to the instruc-

Item A, Box i.

tions to item B.

Section 71.80(23)(a)1., Wis. Stats., provides that

In item B, you will enter the amount of interest

a Wisconsin deduction is generally allowed for a

expenses and rental expenses eligible for a

related entity interest or rental expense under

Wisconsin deduction based on whether the ex-

either of the following circumstances:

Instructions For 2008 Schedule Rt - State Of Wisconsin Page 4

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