Instructions For Form 3 - Wisconsin Partnership Return - 1998 Page 7

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Line-by-Line Instructions
(continued)
Page 7
filed with the department. Keep a copy as part of the partnership’s
method. (See “Determining the Wisconsin Income of Multistate
records, and give each partner his or her own separate copy. In addi-
Partnerships” on page 11.) Complete Form 4B on the back of
tion, give each partner a copy of the “Partner’s Instructions for 1998
Form 3 and enter the partnership’s apportionment percentage from
Schedule 3K-1.”
Form 4B, line 28 or 33, as appropriate.
Since the Wisconsin Schedule 3K-1 replaces the federal Schedule
Item M. Check this box only if the partner is a nonresident or
K-1, a partnership doesn’t have to also file a federal Schedule K-1 for
part-year resident of Wisconsin during the partnership’s taxable
each partner with Form 3.
year and the partnership is a nonunitary, multistate partnership that
must compute its Wisconsin income under the separate accounting
Instead of using the department-printed Schedules 3K-1, you may
method. (See “Determining the Wisconsin Income of Multistate
substitute computer-printed Schedules 3K-1, provided the substitute
Partnerships” on page 11.) Attach a schedule, similar to Form 4C,
forms meet the department’s specifications. Substitute forms that do
that shows the allocation of the Wisconsin amount of each partner-
not meet the specifications will be returned to you for correction.
ship item reported on Form 3, Schedule 3K, column d, to
Wisconsin and outside Wisconsin and the basis of such allocation.
Partnerships with 100 or more partners are encouraged to file Sched-
ules 3K-1 using magnetic tape, cartridge, diskette, or standard
Lines 1, 2, 3, 4c, 4d, 4e, 4f, 5, 6, 7, 9, 11, 14, and 15. Enter the
microfiche.
partner’s share of the federal amount, adjustment, and amount
determined under Wisconsin law for each item. The federal amount
Specifications for magnetic tape, cartridge, diskette, standard micro-
is the amount reported on federal Schedule K-1.
fiche, and substitute computer-printed forms may be obtained by
writing to the Tax Processing Bureau Staff Specialist, Tax Processing
Note: On line 22, explain the reason for any adjustment in column c.
Bureau, Wisconsin Department of Revenue, P.O. Box 8903, Madi-
son, WI 53708-8903 or calling (608) 266-1530 (FAX (608) 264-
A. Corporations and Other Partnerships
6884).
A corporation’s or another partnership’s Wisconsin amount (column
d) of each item of income, loss, or deduction is the amount deter-
Note: You may submit copies of the federal Schedules K-1 instead of
preparing Schedules 3K-1 in the following situations:
mined under Wisconsin law before apportionment or separate
accounting. Any allocation of partnership income, loss, or deduction
• If the partnership operates only in Wisconsin and, on Schedule
is accounted for when the partner computes its own apportionment
3K, reports no adjustments in column c or credits in column d,
percentage and uses that percentage on its Wisconsin return. Combine
you may use Schedules K-1 to report the Wisconsin partnership
the amounts in column b with any adjustments in column c and enter
items for all partners.
the results in column d. The amounts on Schedule 3K-1, column d,
should be the amounts from Schedule 3K, column d, multiplied by
• If the partnership operates in and outside Wisconsin and, on
the partner’s profit and loss percentage.
Schedule 3K, reports no adjustments in column c or credits in
column d, you may use Schedules K-1 for full-year Wisconsin
B. Individual, Estate, and Trust Full-Year Residents of Wisconsin
resident partners.
All partnership income of full-year Wisconsin residents is taxable
Be sure to state on the partner’s federal Schedule K-1, including the
regardless of the situs of the partnership or the nature of the income
copy filed with the department, that there aren’t any Wisconsin ad-
from the partnership, such as business income, service income, or
justments or credits.
professional income, unless otherwise exempt (such as United States
government interest). This applies to both general partners and lim-
Identifying Numbers, Names, and Addresses. On each
ited partners.
Schedule 3K-1, enter the partner’s identifying number (social
security number for individuals), name, and address, and the part-
Therefore, a Wisconsin resident partner’s share of the adjustment and
nership’s federal employer identification number, name, and
Wisconsin amount for each item is the partner’s proportionate share
address in the appropriate spaces.
of the adjustment and Wisconsin amount shown on Schedule 3K. See
the example on page 10.
Items A through J. Enter the information requested from the
partner’s federal Schedule K-1.
C. Individual, Estate, and Trust Nonresidents of Wisconsin
Caution: If the partner is a corporation or another partnership, don’t
A nonresident partner’s share of the partnership’s income derived
complete items K, L, or M.
from business transacted in Wisconsin, services performed in Wis-
consin, or real or tangible personal property located in Wisconsin is
Item K. Enter the partner’s state of residence (domicile). If the
taxable by Wisconsin. Gains and losses resulting from sales of stocks,
partner’s state of residence changed during the partnership’s taxable
bonds, or other intangibles which are passed through to nonresident
year, indicate all states involved. If the partner moved into or out of
partners aren’t taxable by Wisconsin. Business income is taxable
Wisconsin during the partnership’s taxable year and the partnership
whether or not the individual partner conducts business in Wisconsin.
has activities in more than one state, the partner’s Wisconsin share
This applies to both general partners and limited partners. However,
of the distributive items will be affected. See the instructions below
partnership income derived from personal services, including profes-
for more information.
sional services, is taxable to a nonresident partner only if that
Item L. Check this box only if the partner is a nonresident or
nonresident partner personally performs services in Wisconsin. The
part-year resident of Wisconsin during the partnership’s taxable
amount of personal service income attributable to the nonresident
year and the partnership is a unitary, multistate partnership that
partner’s services performed in Wisconsin is taxable.
must compute its Wisconsin income under the apportionment

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