Instructions For 2009 Schedule Y: Wisconsin Subtraction Modification For Dividends Page 3
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4Schedule Y Instructions
■ Line 1h. Additional Schedules Y – If the corpora-
CAUTION: If the payee owned more than 50%, but
tion or combined group has more qualifying dividends
less than or equal to 70%, of the combined voting
than can be reported on lines 1a to 1f, you must use
power of the payer’s stock, you must determine how
lines 1a to 1f of an additional Schedule Y (or addi-
much of the dividends qualify to be eliminated from
tional Schedules Y) to report the remaining qualifying
combined unitary income. You may only report the
dividends. Complete lines 1h through 4 only for the
qualifying amount on lines 1a through 1f.
first Schedule Y.
■ Line 3. Foreign Taxes – On line 3, enter taxes
The following example illustrates how to complete
paid to a foreign nation on dividends listed on lines
Schedule Y in the case of a combined group:
1a to 1f (including dividends listed on lines 1a to 1f of
additional Schedules Y) if you are claiming those for-
Example of Lines 1a to 1f for a Combined Group:
eign taxes as a deduction elsewhere on your return.
Combined Group ABC consists of Member A, Mem-
You may be including them as a deduction in the
ber B, and Member C and uses a calendar year.
federal taxable income you report on line 1 of Form 4
Member A has owned 60% of the voting stock of B
or Form 5, or you may be claiming them as a subtrac-
since July 1, 2006 and 80% of the voting stock of C
tion on Schedule W, line 7.
since January 15, 2005. During 2009, A received a
total of $200,000 in dividends from B and $500,000 in
dividends from C. No other corporations in the group
received dividends. Member A determined that 25%
of the dividend from B was paid out of E&P that
wasn’t attributable to combined unitary income.
Therefore, only $150,000 (= 75% x $200,000) of the
dividend from B qualifies for the elimination of divi-
dends.
Group ABC would complete lines 1a and 1b as fol-
lows:
Line 1a
Name of Payer Corporation……….….…….Member B
Name of Payee Corporation………….....….Member A
Date Acquired by Payee…………….….….07/01/2006
Payee’s Ownership of Payer..“> 50% but < or = 70%”
Dividends Received:………………………….$150,000
Line 1b
Name of Payer Corporation….……….…….Member C
Name of Payee Corporation………….…….Member A
Date Acquired by Payee……………..…….01/15/2005
Payee’s Ownership of Payer………..………....“>70%”
Dividends Received:………………..….…….$500,000
Alternatively, the dividends from Member C could
have been reported on line 1a and the dividends from
Member B on line 1b.
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