Instructions For Form 3 - Wisconsin Partnership Return

Line-by-Line Instructions

(continued)

Page 13

• Gross commissions.

tangible personal property picked up by the purchaser, or the pur-

chaser’s agent, at the seller’s Wisconsin business location and

• Gross receipts from personal and other services.

immediately transported to the purchaser’s out-of-state business

location aren’t Wisconsin sales. However, if the seller doesn’t have

• Gross rents from real property or tangible personal property.

nexus with the state in which the purchaser’s business is located, the

• Interest on trade accounts and trade notes receivable.

sales are “thrown back” to Wisconsin as discussed later. Wisconsin

sales include sales of tangible personal property that are picked up by

• A partner’s share of the partnership’s gross receipts or a member’s

the purchaser, or the purchaser’s agent, at the seller’s out-of-state

share of the limited liability company’s gross receipts.

business location and immediately transported to the purchaser’s

• Gross management fees.

Wisconsin business location.

• Gross royalties from income producing activities.

Enter on line 21a sales of tangible personal property delivered to the

federal government, including its agencies and instrumentalities, in

• Gross franchise fees from income producing activities.

Wisconsin if the property is shipped from an office, store, warehouse,

“Gross receipts” means gross sales less returns and allowances, plus

factory, or other place of storage in Wisconsin. Sales to federal gov-

service charges, freight, carrying charges, or time-price differential

ernment locations in Wisconsin, which are shipped from an office,

charges incidental to the sales. Federal and state excise taxes, includ-

store, warehouse, factory, or other place of storage outside Wisconsin,

ing sales and use taxes, are included as part of the receipts if the taxes

aren’t Wisconsin sales.

are passed on to the buyer or included as part of the selling price of

Enter on line 21b sales of tangible personal property delivered to the

the product.

federal government, including its agencies and instrumentalities,

The following items are among those not included for sales factor

outside Wisconsin if the property is shipped from an office, store,

purposes:

warehouse, factory, or other place of storage in Wisconsin and the

seller doesn’t have nexus in the destination state. These sales are

• Gross receipts and gain or loss from the sale of tangible business

included in the numerator of the sales factor at 50%.

assets, except receipts from the sale of inventory, scrap, or by-

products or from the operation of a farm, mine, or quarry.

Enter on line 21c sales, other than sales to the federal government,

that are “thrown back” to Wisconsin. These are sales of tangible

• Gross receipts and gain or loss from the sale of nonbusiness real

personal property shipped from an office, store, warehouse, factory,

or tangible personal property.

or other place of storage in Wisconsin to a state in which the seller

• Gross rents and rental income or loss from real property or tangi-

doesn’t have nexus. “Throwback” sales are included in the numerator

ble personal property if that real property or tangible personal

of the sales factor at 50%.

property isn’t used in the production of business income.

“State” means any state of the United States, the District of Columbia,

• Royalties from nonbusiness real property or nonbusiness tangible

the Commonwealth of Puerto Rico, and any territory or possession of

personal property.

the United States.

• Proceeds and gain or loss from the redemption of securities.

Enter on line 22 the “double throwback” sales. These are sales, other

than sales to the federal government, of tangible personal property by

• Interest, except interest on trade accounts and trade notes receiv-

an office in Wisconsin to a purchaser in another state, but not shipped

able, and dividends.

or delivered from Wisconsin, if the taxpayer doesn’t have nexus in (1)

• Gross receipts and gain or loss from the sale of intangible assets,

the state from which the property is delivered or shipped, or (2) the

except inventory.

destination state. “Double throwback” sales are included in the nu-

merator of the sales factor at 50%.

• Dividends deductible in determining net income.

• Gross receipts and gain or loss from the sale of securities.

Note: For purposes of throwback sales and double throwback sales,

“state” means any state of the United States, the District of Columbia,

• Proceeds and gain or loss from the sale of receivables.

the Commonwealth of Puerto Rico, and any territory or possession of

the United States. A foreign country isn’t a state.

• Refunds, rebates, and recoveries of amounts previously expended

or deducted.

Enter on line 23 the total sales for Wisconsin (sum of lines 20a

• Foreign exchange gain or loss.

through 22) and the total company.

• Royalties and income from passive investments in patents, copy-

Enter on line 24, for both Wisconsin and the total company, gross

rights, trademarks, trade names, plans, specifications, blueprints,

receipts of apportionable income, other than sales of tangible per-

processes, techniques, formulas, designs, layouts, patterns, draw-

sonal property, that are includable in the sales factor.

ings, manuals, and technical know-how.

Gross receipts are attributable to Wisconsin if the income producing

• Pari-mutuel wager winnings and purses.

activity that gives rise to the receipts is performed in Wisconsin. If the

income producing activity is performed partly in and partly outside

• Other items not includable in apportionable income.

Wisconsin, assign receipts to Wisconsin based on the ratio of direct

Enter on lines 20a and 20b the appropriate Wisconsin destination

costs of performing the services in Wisconsin to the direct costs of

sales. Gross receipts from the sales of tangible personal property

performing the services in all states having jurisdiction to tax the

(except sales to the federal government) are Wisconsin sales if the

business.

property is delivered or shipped to a purchaser in Wisconsin. Sales of

Instructions For Form 3 - Wisconsin Partnership Return - 1998 Page 13

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