Instructions For 2014 Schedule 4i: Wisconsin Adjustments For Insurance Companies (Page 2 of 3) in pdf

Schedule 4I Instructions

■ Line 10b. Total Net Gain from Operations – In-

plying the adjustment. If line 16 is a positive amount,

clude income from the sources included in line 10a

you do not have to complete Part III.

above, plus the following sources:

■ Line 17. Dividends Received Deduction – Enter

•

Net gain from operations, after dividends to

the company’s total dividends received deduction

policyholders and before federal income taxes,

from line 4 of the insurance company’s Schedule 4Y,

from life insurance.

Wisconsin Subtraction Modification for Dividends.

•

Enter this amount as a negative number.

Net

realized

capital

gains

losses

investments from life insurance operations.

■ Line 18. Apportionment Percentage – Enter the

■ Line 11. Percentage – In determining the income

company’s apportionment percentage from line 8 of

or loss from nonlife lines of insurance, the percentage

Form 4.

will be one of the following:

•

Zero, if the numerator (line 10a) is negative and

■ Line 20. Net Business Loss Adjustment – Enter

adjusted federal taxable income (line 9) is

this amount on Form 4, line 12.

positive.

•

Zero, if the numerator (line 10a) is positive and

adjusted federal taxable income (line 9) is

negative.

Part IV: Tax Adjustment

•

Zero, if the numerator (line 10a) is zero.

Since the tax liability of an insurance company is

•

Greater than zero but not more than one, if the

generally the lesser of 7.9% of its net income or 2%

numerator (line 10a) is positive, the denominator

of its gross premiums, this is where you compute an

(line 10b) is positive, and adjusted federal taxable

adjustment to the insurance company’s tax liability in

income (line 9) is positive.

cases where the 2% of gross premiums computation

applies.

•

Greater than zero but not more than one, if the

numerator (line 10a) is negative, the denominator

■ Line 21. Wisconsin Net Income –

(line 10b) is negative, and adjusted federal

taxable income (line 9) is negative.

Enter the insurance company's Wisconsin net income

from Form 4, line 15.

•

One, if the numerator (line 10a) is positive, the

denominator (line 10b) is zero or negative, and

■ Line 23a. Gross Premiums – The franchise tax

adjusted federal taxable income (line 9) is

positive.

measured by net income attributable to all lines of

insurance in Wisconsin may not exceed 2% of the

•

One, if the numerator (line 10a) is negative, the

gross Wisconsin premiums as defined in sec. 76.62,

denominator (line 10b) is zero or positive, and

Wis. Stats. On line 23a, enter the amount of gross

adjusted federal taxable income (line 9) is

premiums, other than life insurance premiums, re-

negative.

ceived for direct insurance less return premiums and

cancellations and returns from savings and gains on

all insurance other than reinsurance by the insurer

during the preceding year in Wisconsin.

Part III: Net Business Loss Adjustment

Attach a schedule detailing the computation of Wis-

consin gross nonlife premiums, including references

If the insurance company has a net business loss,

to the applicable schedules, columns, and lines of

this is where you adjust that loss as required under

your annual statement.

sec. 71.45(4), Wis. Stats., so it doesn’t include the

dividends received deduction.

■ Line 26. Tax Adjustment – If line 25 is greater

■ Lines 14 through 16. Net Income or Loss –

than line 22, enter $0 on line 26. If line 25 is less than

line 22, subtract line 25 from line 22 and enter the

Complete lines 14 through 16 of Part III to compute

result on line 26. This is the tax adjustment to enter

the net business loss for the taxable year before ap-

or include on Form 4, line 17.

IC-120

Instructions For 2014 Schedule 4i: Wisconsin Adjustments For Insurance Companies Page 2

Related Articles

Related forms

Related Categories