Instructions For 2014 Schedule 4i: Wisconsin Adjustments For Insurance Companies

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Instructions for 2014 Schedule 4I:
Wisconsin Adjustments for Insurance Companies
Purpose of Schedule 4I
Part II: Nontaxable Income from
Life Insurance Operations
When a corporation computes its Wisconsin fran-
chise or income tax liability, certain aspects of its tax
This is where you compute the nontaxable income
computation are different if the corporation is an in-
from life insurance operations. This amount is carried
surance company. Subchapter VII of chapter 71 of
forward to Schedule 4W, Wisconsin Subtractions
the Wisconsin Statutes provides for these differ-
from Federal Income.
ences.
■ Line 5. Federal Taxable Income – Enter the
Whether or not a corporation is an insurance compa-
amount from Form 4, line 1.
ny, it uses Form 4 to compute its Wisconsin franchise
■ Line 6. Total Addition Modifications – Enter the
or income tax liability. The purpose of Schedule 4I is
to account for adjustments an insurance company
company’s total Wisconsin addition modifications.
must make so the amounts on Form 4 reflect the cor-
This is the amount from Schedule 4V, line 12.
poration’s status as an insurance company.
■ Line 8. Subtraction Modifications – Add the
amounts on Schedule 4W, lines 1 through 13 plus
Line-by-Line Instructions
line 15 and enter the total.
These instructions are presented in the order the
lines appear on Schedule 4I:
NOTE: To complete lines 10a and 10b, refer to the
Annual
Statement
adopted
by
the
National
Association of Insurance Commissioners for the
year 2014, as filed with the Commissioner of
Part I: Additions Specific to Insurance Companies
Insurance of the State of Wisconsin. For life and
accident and health insurance companies, refer to
the Summary of Operations, Analysis of Operations
This is where you compute Wisconsin addition
by Lines of Business.
modifications that are unique to insurance companies
so you can include them on Schedule 4V, Wisconsin
Additions to Federal Income.
■ Line 10a. Net Gain From Operations, Other than
■ Line 1. Loss Carryforward – Enter the insurance
Life Insurance – Include income from the following
sources:
company’s loss carryforward, including any capital
loss carryforward previously deducted for Wisconsin,
Net income, after dividends to policyholders and
that was deducted in computing the federal taxable
before federal and foreign income taxes, from
income you reported on Form 4, line 1.
property and casualty insurance.
■ Line 2. Dividend Income – Enter the insurance
Net gain from operations, after dividends to
policyholders and before federal income taxes,
company’s dividend income received during the tax-
from accident and health insurance.
able year to the extent the dividends were deducted
from, or not included in, the federal taxable income
Net
realized
capital
gains
or
losses
on
you reported on Form 4, line 1.
investments from accident and health insurance
operations.
■ Line 3. Deduction for Discounting Unpaid Loss-
es – Enter any deduction under section 847 of the
NOTE: Apportion net realized capital gains or
Internal Revenue Code that was claimed in compu-
losses among life insurance lines and accident and
ting the federal taxable income you reported for the
health insurance lines in the same manner as net
insurance company on Form 4, line 1.
investment income is required to be apportioned by
■ Line 4. Total – Enter this amount on Schedule 4V,
the Commissioner of Insurance. Net realized capital
gains or losses are allocated after the Interest
line 10.
Maintenance Reserve (IMR) adjustment and before
capital gains tax.
IC-120

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