Instructions For Completing Wisconsin Shedule I-2003 - Income Tax Return (Page 3 of 4) in pdf

A. ITEMS AFFECTING THE COMPUTATION OF

(b) Wisconsin – Depreciation on leasehold

FEDERAL ADJUSTED GROSS INCOME

improvement property must be computed

under the provisions of the Internal Revenue

1. Small Business Stock

Code in effect on December 31, 2000.

(a) Federal – An exclusion is allowed for 50% of

6. Deduction for Tuition and Fees

the gain from the sale or exchange of qualified

small business stock issued after August 10,

(a) Federal – A deduction is allowed for up to

$3,000 of qualified tuition and fees paid during

1993, and held for more than five years.

the taxable year in connection with enrollment

(b) Wisconsin – Gain from the sale or exchange of

at an institute of higher education. (Public

qualified small business stock is included in

Law 107-16)

gross income.

(b) Wisconsin – The federal deduction for up to

$3,000 of qualified tuition and fees does not

2. Treatment of Extraterritorial Income

apply for Wisconsin. (Note Although the

(a) Federal – An exclusion from gross income is

federal deduction for tuition and fees cannot be

allowed for extraterritorial income that is

claimed for Wisconsin, you may qualify for a

qualifying foreign trade income. (Public Law

tuition deduction provided by Wisconsin law. If

106-519)

you claimed the federal tuition and fees deduc-

tion, you must complete Schedule I to remove

(b) Wisconsin – The treatment of extraterritorial

the federal deduction. See page 11 of the

income is determined under the provisions of

Form 1 instructions (page 16 of Form 1NPR

the Internal Revenue Code as amended to

instructions) for more information on the

December 31, 1999.

Wisconsin deduction for tuition paid.)

3. Expensing of Environmental Remediation

7. Installment Method for Accrual Basis

Costs

Taxpayers

(a) Federal – The expensing of environmental

(a) Federal – Accrual basis taxpayers may report

remediation costs is no longer limited to

income from an installment sale under the

targeted areas. (Public Law 106-554)

installment method. (Public Law 106-573)

(b) Wisconsin – The expensing of environmental

(b) Wisconsin – Accrual basis taxpayers cannot

remediation costs is limited to qualified

use the installment method for reporting sales

expenses at a qualified contaminated site within

and other dispositions. Gain from the sale of

a targeted area.

property must be recognized in the year of the

sale, rather than when payments are received.

4. Special Depreciation Allowance for New York

Liberty Zone Property

8. Thirty Percent Bonus Depreciation

(a) Federal – An additional first-year depreciation

deduction is allowed equal to 30% of the

deduction equal to 30% of the adjusted basis of

adjusted basis of qualified New York Liberty

qualified property is allowed. In the case of the

Zone property. (Public Law 107-147)

limitation on depreciation for luxury automo-

(b) Wisconsin – The additional 30% first-year

biles, the amount of depreciation allowable in

depreciation deduction for qualified New York

the first year is increased by $4,600. (Public

Liberty Zone property does not apply. Depre-

Law 107-147)

ciation on such property must be computed

(b) Wisconsin – The bonus depreciation allowance

under the provisions of the Internal Revenue

for certain property does not apply. Deprecia-

Code in effect on December 31, 2000.

tion must be computed under the provisions of

the Internal Revenue Code in effect on Decem-

5. Treatment of Qualified Leasehold

ber 31, 2000.

Improvement Property

(a) Federal – For purposes of the depreciation

rules, 5-year property includes qualified New

York Liberty Zone leasehold improvement

property. (Public Law 107-147)

Instructions For Completing Wisconsin Shedule I-2003 - Income Tax Return Page 3

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