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

9. Fifty Percent Bonus Depreciation

13. Treatment of Dependent Care Assistance

Programs

(a) Federal – Fifty percent (rather than 30%) bonus

depreciation is allowed for certain property

(a) Federal – Dependent care assistance provided

placed in service after May 5, 2003 and before

under a dependent care assistance program for

January 1, 2005. In the case of luxury automo-

a member of the uniformed services by reason

biles, the amount of depreciation allowable in

of such member’s status or service is an

the first year is increased to $7,650. (Public

income-excludable qualified military benefit.

Law 108-27)

(Public Law 108-121)

(b) Wisconsin – The bonus depreciation provisions

(b) Wisconsin – The treatment of dependent care

do not apply. Depreciation must be computed

assistance provided for a member of the

under the provisions of the Internal Revenue

uniformed services is determined under the

Code in effect on December 31, 2000.

provisions of the Internal Revenue Code in

effect on December 31, 2002.

10. Increase in Section 179 Expensing

14. Overnight Travel Expenses of National Guard

(a) Federal – For taxable years beginning in 2003,

and Reserve Members

the amount that may be expensed under sec.

179, Internal Revenue Code, is increased to

(a) Federal – National Guard and Reserve members

$100,000. The phase-out threshold is increased

who must travel more than 100 miles away from

from $200,000 to $400,000. Off-the-shelf

home and stay overnight as part of their official

computer software is considered qualifying

duties are deemed to be away from home in the

property. (Public Law 108-27)

pursuit of a trade or business. A deduction from

gross income is allowed for their unreimbursed

(b) Wisconsin – The amount that may be expensed

overnight travel, meals, and lodging expenses.

under sec. 179 is determined under the

(Public Law 108-121).

provisions of the Internal Revenue Code in

effect on December 31, 2002.

(b) Wisconsin – A deduction is not allowed for

unreimbursed overnight travel, meals, and

11. Death Gratuities Payable with Respect to

lodging expenses of National Guard and Reserve

Deceased Members of the Armed Forces

members.

(a) Federal – The $6,000 increase in the military

15. Death Benefits Payable to Astronauts

death gratuity payment is exempt from federal

income tax. (Public Law 108-121)

(a) Federal – The exclusion from gross income for

amounts paid by an employer by reason of the

(b) Wisconsin – The treatment of the death gratuity

death of an employee who is a terrorist victim

adjustment is determined under the provisions

applies to any astronaut whose death occurs in

of the Internal Revenue Code in effect on

the line of duty. (Public Law 108-121)

December 31, 2002.

(b) Wisconsin – The exclusion from gross income

12. Qualified Military Base Realignment and

for amounts paid by an employer by reason of

Closure

the death of an astronaut does not apply.

(a) Federal – Qualified military base realignment

B. ITEMS AFFECTING THE COMPUTATION OF

and closure fringe benefit payments made after

ITEMIZED DEDUCTIONS

November 11, 2003, are excluded from gross

income. (Public Law 108-121)

1. Investment Interest

(b) Wisconsin – The treatment of qualified military

(a) Federal – Ordinary dividends taxed as net

base realignment and closure fringe benefit

capital gain cannot be taken into account as

payments is determined under the provisions of

investment income when determining the

the Internal Revenue Code in effect on Decem-

allowable deduction for investment interest

ber 31, 2002.

expense. (Public Law 108-27)

(b) Wisconsin – All ordinary dividends (except

Alaska Permanent Fund dividends) are used in

determining the allowable deduction for

investment interest expense.

Instructions For Completing Wisconsin Shedule I-2003 - Income Tax Return Page 4

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