Instructions For 1998 Schedule Dc - Wisconsin Department Of Revenue (Page 6 of 7) in pdf

Form 1 filers: From the amount on Form 1, line 24, subtract

Part IV — Recapture of Investment Credit

the married couple credit from line 25 and the manufacturer’s

sales tax credit from line 26.

General Instructions

Form 1NPR filers: From the amount on Form 1NPR, line 45,

At the end of each taxable year, you must determine whether,

subtract the married couple credit from line 46 and the

during the year, you disposed of or stopped using in a

manufacturer’s sales tax credit from line 47.

development zone any property for which you claimed

investment credit in a prior year.

Form 2 filers: From the amount on Form 2, line 10, subtract

the manufacturer’s sales tax credit from line 11.

You must refigure the investment credit that you took in an

earlier year if:

You disposed of the property before the end of the

Part III — Corporations — Limitation on Tax Credit

recapture period or the useful life of the property.

Carryovers

You moved the property out of the development zone or,

if the property is mobile property, the base of operations

Corporations, except tax-option (S) corporations, that have

is moved out of the zone before the end of the recapture

unused development zone credits from years beginning

period for the property.

before January 1, 1998, must complete Part III.

You changed the use of the property so that it no longer

Except for the former research credit and the new develop-

qualifies as investment credit property. For example,

ment zones credit, the credits may be offset only against tax

you must refigure the credit if you change the use of

due that is attributable to income from business operations in

property from business use to personal use, or if the

the development zone and tax attributable to income from

percentage of business use of the property decreases

other business operations that are directly related to the

to 50% or less.

business operations in the development zone.

Tax-option (S) corporations, partnerships, LLCs treated as

Example: A corporation operates a printing business at two

partnerships, estates, and trusts must give their sharehold-

locations, one in a development zone and the other outside

ers, partners, members, or beneficiaries the information they

the zone. Income from the printing activities conducted

need to refigure the credit.

outside the development zone is income from directly related

business operations.

Specific Instructions

Caution: If you receive tax credits from more than one

corporation, partnership, or LLC treated as a partnership, you

Line 67. Describe the property for which you must refigure

must compute the allowable credits from each entity sepa-

the credit. Use a separate column for each item. If you need

rately. You may not offset credits from a business that

more columns, attach other schedules with all the information

incurred a loss against the tax owed on income from another

shown on this form. Include the total from the separate

business entity that operated at a profit. Attach a worksheet

schedules on line 75.

to Schedule DC showing your calculations.

Line 68. Enter the day, month, and year that the property was

Line 45. Enter the Wisconsin net income (loss) from the

available for service.

conduct of business operations in a Wisconsin development

zone. Partners and members of LLCs treated as partnerships

Line 69. Enter the original estimated useful life or recovery

should include their shares of the partnership’s or LLC’s net

period that you used to figure depreciation for the property.

development zone income if development zone credits flow

through from the entity.

Line 71. Enter the day, month, and year that the property

ceased to be qualified investment credit property.

Line 46. Enter the Wisconsin net income (loss) from the

conduct of other business operations that are directly related

Decrease in business use: If you take investment credit for

to the business operations conducted in a Wisconsin

property and the percentage of business use in a later year

development zone.

falls to 50% or less, you are treated as having disposed of the

property. Business use is computed on a taxable-year basis.

A decrease in business use is deemed to take place on the

first day of the taxable year.

Instructions For 1998 Schedule Dc - Wisconsin Department Of Revenue Page 6

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