Instructions For 2009 Form 4cl: Net Capital Loss Adjustments For Combined Group Members (Page 3 of 4) in pdf

Form 4CL Instructions

■

Line 9c. Additional Capital Loss Applied – The

lesser of line 9a and line 1 represents the total

amount of non-sharable capital loss to be applied

Parts II, III, and IV: Carryovers Available

against the corporation’s share of the combined

group’s net capital gain. If this amount includes both

Part II determines the amount you enter in Part I,

current year net capital loss from line 4 and non-

line 5. Parts III and IV determine the amount you en-

sharable capital loss carryovers from line 7, the cur-

ter in Part I, line 6.

rent year net capital loss is considered used before

the capital loss carryovers.

■ Part II. Non-Sharable Capital Loss Carryovers –

Complete columns a through d as instructed on the

■

Line 9d. Member’s Share of Net Capital Gain

form, and enter the total from column d on Part I,

Included in Combined Unitary Income – On

line 5.

line 9d, you will enter the percentage of the group’s

aggregate net capital gain from Form 4R, line 18 that

■ Part III. Sharable Capital Loss Carryovers – For

represents the amount included in the corporation’s

2009 returns, capital loss carryovers generally won’t

Wisconsin income. For corporations that are mem-

be sharable since capital loss carryovers incurred in

bers of groups that use apportionment, this is the per-

taxable years beginning before January 1, 2009 are

centage reported in Form 4A, Part II, column c.

non-sharable. However, for rare cases where a com-

bined group is filing short period combined returns for

For corporations that are in groups that do business

more than one short period that begins in 2009, there

only in Wisconsin (“100% Wisconsin groups”), you

may be sharable capital loss carryovers to compute

will need to compute this percentage based on the

in Part III.

corporations’ relative shares of combined unitary in-

come. For members of 100% Wisconsin groups, the

NOTE: For 2009 returns, do not complete Part III or

corporation’s share of combined unitary income is the

Part IV except in cases where the combined group

sum of the amounts on lines L1 and L2 of Form 4M,

is filing short period combined returns for more than

Wisconsin Combined Group Member-Level Data.

one short period that began in 2009.

The following example illustrates this computation:

Example

for

Members

100%

Wisconsin

Complete columns a through d of Part III as in-

Groups) Combined Group JKLM consists of Mem-

structed on the form. In order to complete column e,

ber J, Member K, Member L, and Member M. The

you will need to complete Part IV to ensure that shar-

members’ amounts on Form 4M, lines L1 (Share of

able loss carryovers are not double-counted. In col-

Combined Unitary Income) and L2 (Adjustment for

umn f, subtract the column e amounts from the col-

Current Year Loss Offset) are as follows:

umn d amounts as instructed. Enter the total from

column f on Part I, line 6.

__J__

__K__

__L__

__M__

Line L1

20,000

30,000

-8,000

-17,000

■

Part IV. Sharable Capital Loss Carryovers – Do

Line L2

-10,000

-15,000

8,000

17,000

not complete Part IV unless you have completed col-

$10,000

$15,000

umns a through d of Part III. The purpose of Part IV is

to compute the amount of sharable loss carryovers

Assume that on Form 4R, line 18, the combined

the corporation already used in the combined group’s

group computed an aggregate net capital gain of

aggregate computation for the taxable year, so that

$5,000, and that Member J and Member K both have

this amount is not used again in computing additional

non-sharable capital loss carryovers.

loss allowable on Form 4CL.

The percentage that Member J enters on line 9d of

Form 4CL is 40% (= $10,000/$25,000)). The per-

Complete lines 1 through 5 of Part IV as instructed on

centage that Member K enters on line 9d is 60%

the form and apply the total from line 5 to the avail-

(= $15,000/$25,000). Members L and M do not com-

able sharable carryovers in Part III, column d, using

plete Form 4CL since they do not have a share of the

the oldest carryovers first. In Part III, column e, enter

group’s combined unitary income and thus do not

the amounts you applied from line 5 on the lines cor-

have a share of the aggregate net capital gain.

responding to the appropriate years.

Instructions For 2009 Form 4cl: Net Capital Loss Adjustments For Combined Group Members Page 3

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