Instructions For 2016 Schedule Qi - Sale Of Investment In A Qualified Wisconsin Business Page 3
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9Example 1
• C corporation XYZ was a qualified Wisconsin business for 2011, 2012, 2013, and 2014.
• 900 Shares in C corporation XYZ were sold on 8-30-2016 at $100 per share as follows:
(The chart below reflects federal basis and has not been adjusted for Wisconsin)
Shares Sold
Selling Price
Basis of
Date of Purchase
Shares Purchased
Gain
08-30-2016
$100/Sh.
Shares Sold
5-31-2009
200
200
$20,000
$40,000
($20,000)
5-31-2010
200
200
$20,000
$50,000
($30,000)
5‑31‑2011
200
200
$20,000
$5,000
$15,000
6‑30‑2011
200
200
$20,000
$5,000
$15,000
6-30-2012
100
100
$10,000
$5,000
$5,000
Total
900
900
$90,000
$105,000
($15,000)
• Only the shares purchased on 5-31-2011 and 6-30-2011 are considered a qualified Wisconsin investment.
– Shares in XYZ purchased in 2009 and 2010 do not qualify because XYZ was not a qualified Wisconsin business at the
time of the investment.
– Shares purchased in 2012 do not qualify because the shares were not held for at least five years.
• In this example investments made in XYZ did not include a deferred long-term capital gain from an asset previously sold.
• The gain of $30,000 ($15,000 + $15,000) on the sale of the 400 shares from 2011 is qualified gain reported on line 10 of
Schedule QI and must be reported on line 15a of Schedule WD. See example 2 on page 4 on how to report a sale of invest-
ment when there is a deferred long-term gain.
• The sale of the investment is entered on Schedule QI as follows:
Line 1
Date investment sold: 08 30 2016
Line 2
Purchase date of initial investment in the qualified Wisconsin business: 05 31 2011
Line 3
Type of investment:
X
Stock purchase
Partnership interest
LLC membership
Line 4
Entity Name:
XYZ Inc.
FEIN: xx-xxxxxxx
Line 5
Sales price of investment as reported on federal Form 8949 . . . . . . . . . . . . . . . . . . . .
90000
Line 6
Cost or other basis adjusted for Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
105000
Line 7
Deferred long-term gain included in the investment . . . . . . . . . . . . . . . . . . . . . . . . . . .
0
Line 8
Add line 6 and line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
105000
Line 9
Amount used to determine non-taxable qualified gain.
Subtract line 8 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
- 15000
Non‑Taxable Long‑Term Gain
Line 10 Amount you computed to be non-taxable qualified gain.
(Enter on line 15a of Schedule WD) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30000
Taxable Long‑Term Gain
Line 11
Add line 6 and line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
135000
Line 12 Net taxable long-term gain or (loss). Subtract line 11 from 5 . . . . . . . . . . . . . . . . . . .
- 45000
- 3 -
I-177 (N. 12-16)
Wisconsin Department of Revenue
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