Instructions for 2016 Schedule QI
Purpose of Schedule QI
Schedule QI is used to:
• Claim an exclusion for qualifying long-term capital gain from the sale of an investment in a qualified Wisconsin business.
• Adjust the gain or (loss) on the sale of an investment in a qualified Wisconsin business where the investor previously
deferred long-term gain that was invested in a qualified Wisconsin business.
Who May File Schedule QI
Schedule QI must be filed by individuals, including individual partners or members of a partnership, limited liability company,
limited liability partnership, or shareholders of a corporation, to claim the long-term capital gain exclusion.
A separate Schedule QI must be filed for each sale involving a qualified Wisconsin business that is eligible to exclude long-
term capital gain.
• If the sale in the qualified Wisconsin business includes more than one investment, only file one Schedule QI to reflect the
entire sale, even if there are multiple investments that qualify to exclude long-term capital gain. See note below.
• For each different date a sale occurs in a qualified Wisconsin business, a separate Schedule QI must be filed.
Note See Example 1 on page 2 of the instructions under C Corporations. This example reflects purchases of shares on
5-31-2011 and 6-30-2011 that qualify for a long-term capital gain exclusion. The sale of the investment includes the sale of
all 900 shares purchased in 2009 through 2012. Even though there are two qualified Wisconsin investments from 2011, the
sale of the investment is only in one qualified Wisconsin business and, therefore, only one Schedule QI should be filed for the
entire sale of the investment.
General Instructions
Exclusion of gain Certain long-term capital gains from the sale of a qualified Wisconsin investment may be excluded from
income. A qualified Wisconsin investment means:
• The investment was in a business that was a qualified Wisconsin business for the year of the investment and at least two of
the four subsequent years, and
• The investment was made after December 31, 2010, and held for at least five uninterrupted years.
A qualified Wisconsin business means a business that was certified by the Wisconsin Economic Development Corporation or,
for 2014 and thereafter, was registered with the Department of Revenue. A list of qualified Wisconsin businesses is available
on our website at https://
Caution The list of qualified businesses have provided information concerning property, payroll, and number of employees for
purposes of registering as a qualified Wisconsin business. The information has not been reviewed for purposes of determining
eligibility for the exclusion or deferral.
Deferral of gain from a previous sale If you filed Wisconsin Schedule CG, Income Tax Deferral of Long-Term Capital Gain
for 2011 or after, you may have qualified to defer tax on long-term capital gain if such gain was invested in a qualified Wisconsin
business.
The basis of the investment in the qualified Wisconsin business must be reduced by the amount of gain deferred. This deferred
gain is subject to tax when the investment is sold, it cannot be excluded.
Investment in a single member LLC If you invested in a single member LLC on or after January 1, 2011, the long-term
capital gain exclusion for investment in a qualified Wisconsin business may be allowed if all of the following are met:
• The LLC filed federal Form 8832 or 2553 electing to be taxed as a C corporation or S corporation on or before January 1,
2011, and the election was approved by the IRS.
• The federal election also applies for Wisconsin tax purposes.
I-177 (N. 12-16)
Wisconsin Department of Revenue