Instructions For Form 3 - Wisconsin Partnership Return - 1998 Page 9

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Line-by-Line Instructions
(continued)
Page 9
Lines 4a, 4b, and 16. Enter the partner’s share of the federal
Line 12b. Enter the partner’s proportionate share of the manu-
amount, adjustment, and Wisconsin amount for each item. The
facturer’s sales tax credit computed on Schedule 3Z.
federal amount is the amount reported on federal Schedule K-1.
Line 12c. Enter the partner’s proportionate share of the supple-
A. Corporations and Other Partnerships
ment to the federal historic rehabilitation tax credit from Schedule
HR.
A corporation’s or another partnership’s Wisconsin amount (column
d) is the amount determined under Wisconsin law before apportion-
Note: The basis of the partner’s interest in the partnership must be
ment or separate accounting.
reduced by its proportionate share of the credit computed.
B. Full-Year Residents of Wisconsin
Lines 17 and 18. Enter the partner’s proportionate share of the
federal amount, adjustment, and Wisconsin amount for each of
Generally, intangible income, such as interest and dividends, passed
these items. The federal amount is the amount reported on the
through to partners who are full-year Wisconsin residents is taxable.
partner’s federal Schedule K-1. The adjustment in column c is the
However, the amount of interest on United States government obliga-
difference between the nontaxable or nondeductible amount for
tions included on line 4a, column d, is not taxable for Wisconsin
federal and Wisconsin purposes. Show increases in the amount of
income tax purposes and is reported on line 22. Interest on state and
tax-exempt income or nondeductible expenses as additions. Report
local government bonds generally is exempt for federal purposes but
decreases in the amount of tax-exempt income or nondeductible
taxable by Wisconsin. Show the amount of state and local govern-
expenses as subtractions. The Wisconsin amount (column d) is the
ment bond interest that is taxable by Wisconsin as a subtraction on
amount of nontaxable income or nondeductible expenses for Wis-
line 16, column c.
consin.
Enter the partner’s proportionate share of the adjustment and Wiscon-
Lines 19 and 20. Enter the distributions of money and property
sin amount shown on Schedule 3K. See the example on page 10.
made to each partner, on the appropriate line.
C. Nonresidents of Wisconsin
Line 21. Enter in column d the partner’s proportionate share of
the partnership’s gross income that is reportable to Wisconsin. For
Intangible income, such as interest and dividends, passed through to
a resident partner, gross income is the total amount received from
a nonresident partner isn’t taxable by Wisconsin. This applies to both
all activities, before deducting the cost of goods sold or any other
general partners and limited partners.
expenses. For a nonresident partner, gross income includes gross
receipts from trade or business activities, gross rents, the gross sales
For income reported on lines 4a and 4b, the adjustment (column c) is
price of assets, and other gross receipts that are attributable to
equal to the federal amount (column b) and the Wisconsin amount
Wisconsin.
(column d) is zero. For federally tax-exempt interest reported on line
16, the Wisconsin amount (column d) is equal to the federal amount
Line 22. Complete as necessary. Include the federal amount,
(column b). See the example on page 10.
adjustment, and Wisconsin amount for each item when applicable.
Attach additional schedules if more space is needed. Include the
D. Part-Year Residents of Wisconsin
following items on line 22:
Individuals who are part-year residents of Wisconsin must report to
• The amount of interest income from United States government
Wisconsin intangible income, such as interest and dividends, passed
obligations that is included on line 4a, column d.
through while they were Wisconsin residents. The intangible income
is allocated between the periods during which the partner was a
• For a corporation or another partnership that is a general partner,
resident or nonresident based on the number of days during the part-
enter the partner’s proportionate share of the partnership’s Wis-
nership’s taxable year that the partner was a resident or nonresident
consin and total property, payroll, and sales from Form 4B, lines
of Wisconsin. This applies whether the partnership operated solely in
16, 19, and 25.
Wisconsin or in and outside of Wisconsin. See the example on
• If the partnership is engaged in both farming and some other
page 10.
business activity, indicate on the Schedules 3K-1 of noncorporate
Lines 8, 10, 11, and 13a. Enter the partner’s share of the federal
partners the portion of each of the share items that is attributable
amount, adjustment, and Wisconsin amount for each item.
to the farm operations. The partners use this information in ap-
plying the farm loss limitations.
If these amounts are allowable in computing an individual’s Wiscon-
sin itemized deduction credit, multiply the amounts on Schedule 3K,
• If the partner is a full-year Wisconsin resident individual, estate,
column d, by the partner’s profit and loss percentage. Don’t apply the
or trust and the partnership is a limited liability company treated
apportionment percentage or use the amount determined by separate
as a partnership, indicate on this line the partner’s share of the in-
accounting, regardless of the partner’s state of residence.
come or franchise taxes paid to other states which was entered on
line 21, of Schedule 3K.
If the amounts are adjustments to Wisconsin income, instead of
deductions used in figuring the itemized deduction credit, multiply
If the partner is a part-year Wisconsin resident individual, estate,
the amounts on Schedule 3K, column d, by the apportionment per-
or trust and the partnership is a limited liability company treated
centage or use the amount determined by separate accounting.
as a partnership, indicate on this line the partner’s share of the in-
Multiply that result by the partner’s profit and loss percentage.
come or franchise taxes paid to other states which was entered on
line 21, of Schedule 3K times the ratio of days the partner was a
Line 12a. Enter the partner’s proportionate share of the devel-
Wisconsin resident during the limited liability company’s taxable
opment zones credit from Schedule DC.

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