Schedule Cg - Income Tax Deferral Of Long-Term Capital Gain - 2012 Page 2
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2“Long-term capital gain means the gain realized from the sale
Specific Instructions
of any capital asset held more than one year that is treated as
a long-term gain under the Internal Revenue Code.
Line 4
Fill in the amount of long-term capital gain
deposited in a segregated account in a financial institution.
“Qualified new business venture” is a business certified
If the long-term gain will be reinvested in a “qualified new
by the Wisconsin Economic Development Corporation
business venture,” do not fill in more than $10,000,000. The
(WEDC). A business may be certified, and may maintain
$10,000,000 limitation does not apply if the long-term gain
such certification, only if the business is engaged in one of
was reinvested in a “qualified Wisconsin business.”
the following:
• Developing a new product or business process.
This is the amount of long-term capital gain that may be
deferred if reinvested. Individuals claim the deferral of gain
• Manufacturing, agriculture, or processing or assembling
when completing Wisconsin Schedule WD.
products and conducting research and development.
Lines 8 and 9 Complete line 8 if the long-term gain was
reinvested in a “qualified new business venture.” Complete
The business must submit an application to WEDC in each
line 9 if the long-term gain was reinvested in a “qualified
calendar year for which it desires certification.
Wisconsin business.”
“Qualified Wisconsin business” means a business certified
Line 11
The basis of the investment is calculated by
by the WEDC. The business must submit an application to
subtracting the deferred gain (line 4) from the amount of the
WEDC in each calendar year for which it desires certification.
investment in the “qualified new business venture” or the
A business may be certified if:
“qualified Wisconsin business” (line 10). The reduced basis
• The amount of payroll compensation paid by the business
will result in a larger gain (or smaller loss) for Wisconsin than
in Wisconsin is equal to at least 50 percent of the amount of
for federal purposes when the investment is sold or otherwise
all payroll paid by the business, and
disposed of in the future.
• The value of real and tangible personal property owned or
Note: If you invested the deferred gain in a “qualified
rented and used by the business in Wisconsin is equal to at
Wisconsin business” and hold the investment for 5 years, if
least 50 percent of the value of all real and tangible personal
certain conditions are met you may be able to exclude gain
property owned or rented and used by the business.
from the sale or disposition of the investment. The business
must have been certified for the year of the investment and
Where to get information on a “qualified new business
for two of the subsequent four years. The gain that may be
venture” or a “qualified Wisconsin business”
excluded does not include the amount of deferred gain.
For further information on a qualified new business venture”
Attachments
or a “qualified Wisconsin business,” go to the WEDC website
at or contact WEDC, 201 W. Washington
A copy of Schedule CG must be enclosed with your Wisconsin
Avenue, PO Box 1687, Madison WI 53703 (telephone
income tax return.
608-267-4417).
Additional Information
Procedures
If you have questions about the deferral of gain, contact any
An individual may subtract from federal adjusted gross
Wisconsin Department of Revenue office or write or call:
income any amount (limited to $10,000,000 if reinvestment is
in a “qualified new business venture”) of a long-term capital
Customer Service Bureau,
gain if the individual does all of the following:
Wisconsin Department of Revenue
• Deposits the gain into a segregated account in a financial
Mail Stop 5-77
institution.
PO Box 8949
Madison WI 53708-8949
• Within 180 days after the sale of the asset that generated
the gain, invests all of the proceeds in the account in a
Telephone: 608) 266-2772
“qualified new business venture” or “qualified Wisconsin
business.”
You may also email your questions to:
• Attaches completed Schedule CG to the individual’s
income@revenue.wi.gov
Wisconsin income tax return for the taxable year in which
Return to Page 1
the deferral of gain is claimed.
Schedule CG and Instructions
- 2 -
Wisconsin Department of Revenue
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