Form I-128 - Instructions For Completing Wisconsin Schedule I

INSTRUCTIONS FOR COMPLETING WISCONSIN SCHEDULE I – 1998

INTRODUCTION – Generally, the Wisconsin Statutes require

ments made in the current year or a prior year. This would

that the computation of taxable income on the 1998 Wisconsin

occur, for example, when different rates of depreciation or

income tax return is to be based on the Internal Revenue Code

amortization were allowable for Wisconsin and federal pur-

enacted as of December 31, 1997. Changes to the Internal Revenue

poses in 1975 or thereafter.

Code enacted after December 31, 1997 do not apply for Wisconsin

income tax purposes.

To properly report such gain or loss on your Wisconsin

return, you must first remove all gain or loss included in your

Wisconsin law also provides that the following provision of federal

federal adjusted gross income. This is done by filling in line

law does not apply for Wisconsin purposes (even though this

2a or 2b and/or line 3a or 3b. Then fill in the revised gain or

provision was enacted into federal law prior to December 31, 1997):

loss on line 2c and/or line 3c. Attach a revised federal

Schedule D, Form 4684, or Form 4797 marked “Revised for

• The exclusion for 50% of the gain from the sale or exchange of

Wisconsin purposes” to Form 1 or Form 1NPR.

qualified small business stock issued after August 10, 1993, and

held for more than five years.

Do not complete lines 2 and 3 if you did not make Schedule

I adjustments in the current year or a prior year for the

As a result, certain income and deduction items may be different for

property you sold or otherwise disposed of during 1998.

Wisconsin and federal purposes. Any difference must be adjusted on

this schedule. A description of items requiring adjustment can be

5. Complete line 5 to make all other adjustments needed to convert

found under ITEMS REQUIRING ADJUSTMENT.

1998 federal adjusted gross income to the amount allowable for

Wisconsin. See the listing under Section A of ITEMS RE-

WHO MUST FILE – If the computation of your federal adjusted

QUIRING ADJUSTMENT.

gross income or itemized deductions reflects any of the differences

in Wisconsin and federal law for 1998, you must complete this

When an adjustment is made on line 2, 3, or 5, this may affect

schedule and attach it to your Wisconsin income tax return, Form 1

other amounts which must then also be adjusted. For example,

or Form 1NPR.

the amount of social security includable in federal adjusted gross

income may be affected when an adjustment is made to an

To the extent Schedule I adjustments in a prior year affect income or

income item. The adjustment to social security includable in

expense items in 1998 (e.g., ACRS depreciation was not allowed to

federal adjusted gross income should be reported on line 5.

be claimed on residential real property or certain farm property

placed in service during 1986), you must also make adjustments on

When completing line 5, if you are adjusting an expense item

Schedule I for 1998.

(e.g., depreciation or amounts claimed as Adjustments to In-

come on lines 23 through 31a of federal Form 1040), fill in the

It also may be necessary to prepare a 1998 Schedule I to adjust the

amounts in Col. I and Col. II as negative numbers. Put parenthe-

amount of gain or loss reportable from sales of certain assets during

ses around the amounts to show negative numbers.

1998. See the instructions for lines 2 and 3 under SPECIFIC

INSTRUCTIONS.

If you are adjusting an income item, fill in the amounts in Col.

I and Col. II as positive numbers.

PARTNERS, BENEFICIARIES OF ESTATES AND

TRUSTS, AND SHAREHOLDERS OF TAX-OPTION (S)

Complete Col. III as follows:

CORPORATIONS – The income and deduction items computed

on the Wisconsin returns of partnerships, estates and trusts, and tax-

• If the amounts in Col. I and Col. II are positive numbers and

option (S) corporations may also be affected by the differences

the amount in Col. II is larger than the amount in Col. I,

between Wisconsin and federal law for 1998. As a result, the

subtract Col. I from Col. II. Fill in the difference in Col. III.

distributive shares of these items which are reportable on the

individual Wisconsin income tax returns of the respective partners,

• If the amounts in Col. I and Col. II are positive numbers and

the amount in Col. I is larger than the amount in Col. II,

beneficiaries, and shareholders may differ for Wisconsin and federal

income tax purposes. Such partners, beneficiaries, and shareholders

subtract Col. II from Col. I. Fill in the difference as a negative

should receive notification from the partnership, estate or trust, or

number in Col. III.

tax-option (S) corporation of the amounts reportable for Wisconsin

• If the amounts in Col. I and Col. II are negative numbers and

purposes. By comparing the amounts reportable for Wisconsin and

the amount in Col. II is larger than the amount in Col. I,

federal purposes, the partner, beneficiary, or shareholder should

subtract Col. I from Col. II. Fill in the difference as a negative

determine the items which differ and make the appropriate adjust-

number in Col. III. When figuring which amount is larger,

ments.

treat both amounts as if they were positive numbers.

SPECIFIC INSTRUCTIONS

• If the amounts in Col. I and Col. II are negative numbers and

(Numbered to correspond with the line numbers on Schedule I)

the amount in Col. I is larger than the amount in Col. II,

subtract Col. II from Col. I. Fill in the difference as a positive

INSTRUCTIONS FOR PART I

number in Col. III. When figuring which amount is larger,

treat both amounts as if they were positive numbers.

1. Fill in your 1998 federal adjusted gross income from line 33 of

your federal Form 1040.

6. The amount on line 6 is your recomputed federal adjusted gross

income based on the Internal Revenue Code in effect for Wis-

2 & 3. If you sold or otherwise disposed of certain property during

consin for 1998. This amount is the starting point for determin-

1998, the gain or loss reportable from such sale may differ for

ing Wisconsin taxable income on Form 1.

Wisconsin and federal purposes due to Schedule I adjust-

I-128

Form I-128 - Instructions For Completing Wisconsin Schedule I - 1998

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