Instructions For Form 3 - Wisconsin Partnership Return - 1998 Page 10

ADVERTISEMENT

Line-by-Line Instructions (continued)
Page 10
year to the total days in the limited liability company’s taxable
The Wisconsin amount (column d) of the ordinary income on line 1
year.
is computed by multiplying the Wisconsin amount ($9,000) from
Schedule 3K, column d, by Partner B’s profit and loss percentage
Note: Partnerships whose Wisconsin partners may qualify for farm-
(33.33%) and by ABC Partnership’s Wisconsin apportionment per-
land preservation credit or farmland tax relief credit should attach a
centage (70%). This results in the following calculation:
copy of the farmland property tax bill to the Schedule 3K-1 given to
each Wisconsin partner. It isn’t necessary for the partnership to attach
$9,000 x .3333 x .7 = $2,100
the property tax bill to the Schedules 3K-1 sent to the department.
Since Partner B is a nonresident of Wisconsin, the Wisconsin amount
Partners will compute their allowable credits based on their propor-
(column d) of the interest income on line 4a is zero and of the tax-
tionate shares of the partnership’s property taxes. For additional
exempt interest income on line 16 is equal to the federal amount
information about farmland preservation credit, see the Wisconsin
(column b).
Schedule FC instructions. See the instructions for Wisconsin Form 1,
1NPR, 4, or 5 for details on the farmland tax relief credit.
The adjustment (column c) for each item is the difference between
column b and column d.
Example of Schedule 3K-1 for Individual
For Partner C, Schedule 3K-1 would show the following:
Partners
(a)
(b)
(c)
(d)
ABC Partnership is a calendar year multistate partnership
Distributive
Federal
Wisconsin
share items
amount
Adjustment
amount
whose income is attributable 70% to a business located in
1
Ordinary income
$ 3,000
$ (678)
$ 2,322
Wisconsin. There are three individual partners (A, B, and C)
4a
Interest income
233
(175)
58
who each have a one-third interest in the profits and losses of
16
Tax-exempt interest income
100
(25)
75
U.S. government interest included on line 4a, column d: $8
22
the partnership. Partner A was a Wisconsin resident during all
of 1998. Partner B was an Illinois resident during this period.
The federal amounts (column b) are computed by multiplying the
Partner C was a resident of Wisconsin until moving to Florida
amounts from Schedule 3K, column b, by Partner C’s profit and loss
percentage (33.33%).
on April 1, 1998. Therefore, Partner C was a part-year
resident of Wisconsin during the partnership’s taxable year,
The Wisconsin amounts (column d) are computed in two parts: one
having been a resident for 90 days and a nonresident for 275
for the period that Partner C was a resident of Wisconsin (90 days)
days.
and one for the period that Partner C was a nonresident of Wisconsin
(275 days).
Schedule 3K for the year ending December 31, 1998, shows the
The adjustment (column c) for each item is the difference between
following amounts on the lines indicated.
column b and column d.
(a)
(b)
(c)
(d)
The Wisconsin amount (column d) of the ordinary income on line 1
Distributive
Federal
Wisconsin
share items
amount
Adjustment
amount
is computed as follows:
1
Ordinary income
$ 9,000
$ -0-
$ 9,000
4a
Interest income
700
-0-
700
(1) For the period of residence, multiply the Wisconsin amount of
Tax-exempt interest income
300
(300)
-0-
16
ordinary income from Schedule 3K ($9,000) by the profit and loss
22
U.S. government interest included on line 4a, column d: $100
percentage (33.33%) and by the ratio of days Partner C was a resident
of Wisconsin to total days in the taxable year (90/365). Add to that
For Partner A, Schedule 3K-1 would show the following:
result the amount computed for the period of nonresidence in (2)
(a)
(b)
(c)
(d)
below.
Distributive
Federal
Wisconsin
share items
amount
Adjustment
amount
(2) For the period of nonresidence, multiply the Wisconsin amount
1
Ordinary income
$ 3,000
$ -0-
$ 3,000
of ordinary income from Schedule 3K ($9,000) by Partner C’s profit
4a
Interest income
233
-0-
233
and loss percentage (33.33%) and by ABC Partnership’s Wisconsin
16
Tax-exempt interest income
100
(100)
-0-
apportionment percentage (70%). Multiply the result by the ratio of
22
U.S. government interest included on line 4a, column d: $33
days Partner C was a nonresident of Wisconsin to total days in the
These amounts are computed by multiplying the amounts from
taxable year (275/365). This results in the following calculation:
Schedule 3K by Partner A’s profit and loss percentage (33.33%).
Period of residence:
$9,000 x .3333 x 90/365
=
$
740
For Partner B, Schedule 3K-1 would show the following:
Period of nonresidence: $9,000 x .3333 x .7 x 275/365 =
1,582
Total
$ 2,322
(a)
(b)
(c)
(d)
Distributive
Federal
Wisconsin
share items
amount
Adjustment
amount
The Wisconsin amount (column d) of the interest income on line 4a
Ordinary income
$ 3,000
$ (900)
$ 2,100
1
is the amount computed for the period of residence. The calculation
Interest income
233
(233)
-0-
4a
is:
16
Tax-exempt interest income
100
-0-
100
22
U.S. government interest included on line 4a, column d: $0
Period of residence:
$700 x .3333 x 90/365
=
$
58
Period of nonresidence:
0
The federal amounts (column b) are computed by multiplying the
Total
$
58
amounts from Schedule 3K, column b, by Partner B’s profit and loss
percentage (33.33%).

ADVERTISEMENT

00 votes

Related Articles

Related forms

Related Categories

Parent category: Financial