Looking for a Wisconsin Tax Forms And Templates? Download it for free!

Specific Instructions

Line 1 Enter the date the investment in the qualified Wisconsin business was sold.

Line 2 Enter the date the first investment was made when the business was a qualified Wisconsin business.

Note See example 1 on page 2 of the instructions under C Corporations. This example reflects shares purchased as early as

5-31-2009; however, 5-31-2011 is the first date an investment was made when the C corporation was a qualified Wisconsin

business. For this example, 05-31-2011 should be entered on line 2 of Schedule QI.

Line 3 Only check one option for the entity structure of the qualified Wisconsin business.

Line 4 Enter the name and Federal Employer Identification Number (FEIN) of the qualified Wisconsin business.

Line 5 Enter the sales price of the investment sold in the qualified Wisconsin business as reported on the federal Form 8949.

Line 6 The Wisconsin basis in the investment sold may differ from the federal basis. There may be a basis difference because:

• You deferred long-term gain from the sale of an asset in 2011 or after and invested the deferred gain in a qualified Wisconsin

business. This deferral of gain would have been reported on Schedule CG for the year of the deferral.

• You were a member of a partnership or a shareholder of a tax-option (S) corporation and your annual adjustment to the basis

for Wisconsin tax purposes was more or less than the adjustment to the basis for federal tax purposes. This basis adjustment

is determined annually. See the Schedule 3K-1 instructions

(partners) or the Schedule

5K-1

instructions (shareholders).

If you are affected by either or both of the above (or any other reason for difference in basis), you must complete Part 1

of Wisconsin Schedule T, Transitional Adjustments, and line 6 or 15 of Wisconsin Schedule WD. Also enter the Wisconsin

adjusted basis from Part 1 of Schedule T on line 6 of Schedule QI.

If the Wisconsin basis of your investment is the same as the federal basis, enter on line 6 of Schedule QI, the federal basis of

this investment as reported on federal Form 8949 or line 1a or 8a of Schedule D if Form 8949 is not filed.

Line 7 The amount of deferred long-term gain is the amount reported on Schedule CG for the appropriate year.

Line 8 This is the basis used to determine gain allowed in computing the allocation for non-taxable qualified gain. The

deferred long-term gain from line 7 must be included in this amount.

Line 9 This is the amount used to determine non-taxable qualified gain for investments in partnerships and tax-option (S)

corporations. The deferred long-term gain cannot be used as a basis reduction when determining this amount. If line 9 is

0 (zero) or less, continue to line 10 only if the sale is from an investment in a C corporation.

Line 10 For C corporations, non-taxable qualified gain is directly related to the gain on shares sold of a qualified Wisconsin

investment. See the examples in C Corporations below. For partnerships and tax-option (S) corporations an allocation must

be computed using the gain calculated on line 9 to determine the non-taxable qualified gain. See the examples in Partnerships

and Tax-Options (S) Corporations on page 5 of the instructions. Note If line 9 is 0 (zero) or less, there can still be a non-taxable

qualified gain, but only from the sale of an investment in a C corporation.

Caution Information showing how you computed the allocation of the qualified gain must be filed with your return.

The gain entered on line 10 should be reported on line 15a of Schedule WD.

C Corporations

Sale of Investment in

If the sale of an investment in a C corporation includes investments made when the corporation was not a qualified Wisconsin

business, the investments must be separated to determine the taxable gain and non-taxable qualified gain. The non-taxable

qualified gain is directly related to the gain on shares sold as a qualified Wisconsin investment.

- 2 -

I-177 (N. 12-16)

Wisconsin Department of Revenue

Instructions For 2016 Schedule Qi - Sale Of Investment In A Qualified Wisconsin Business Page 2