Instructions For 2014 Form 6y: Wisconsin Subtraction Modification For Dividends Page 3
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4Form 6Y Instructions
Enter the information for each member in a separate
CAUTION: If the payee owned more than 50%, but
column. If there are more than three members, use
less than or equal to 70%, of the combined voting
additional Forms 6Y. For example, if there are seven
power of the payer’s stock, you must determine how
members in the combined group, enter members one
much of the dividends qualify to be eliminated from
through three on Form 6Y (do not complete the com-
combined unitary income. You may only report the
bined total column yet). Next, enter members four
qualifying amount on lines 1a through 1f.
through six on an additional Form 6Y (do not com-
plete the combined total column yet). Finally, com-
plete a new Form 6Y for the seventh and final mem-
The following example illustrates how to complete
ber. Complete the combined total column on the last
Form 6Y in the case of a combined group:
Form 6Y for all group members.
Example of Lines 1a to 1f for a Combined Group:
■ Line 3. Foreign Taxes – On line 3, enter taxes
Combined Group ABC consists of Member A, Mem-
paid to a foreign nation on dividends listed on lines
ber B, and Member C and uses a calendar year.
1a to 1f if you are claiming those foreign taxes as a
Member A has owned 60% of the voting stock of B
deduction elsewhere on your return. You may be in-
since July 1, 2006 and 80% of the voting stock of C
cluding them as a deduction in the federal taxable
since January 15, 2005. During 2014, A received a
income you report on Form 6, or you may be claiming
total of $200,000 in dividends from B and $500,000 in
them as a subtraction from income on Form 6, Part II,
dividends from C. No other corporations in the group
line 4g.
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
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
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.
■ Line 1h. Additional Forms 6Y – Leave this line
blank. If there are more than three members, com-
plete as many Forms 6Y as necessary to account for
all the members of the group.
IC-425
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