Instructions For 2014 Form 6cl: Net Capital Loss Adjustments For Combined Group Members Page 3
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4Form 6CL Instructions
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Line 9c. Additional Capital Loss Applied – The
lesser of line 9a and line 1 represents the total
amount of non-sharable and sharable capital loss
Parts II, III, and IV: Carryovers Available
amounts to be applied against the corporation’s
share of the combined group’s net capital gain. If this
Part II determines the amount you enter in Part I,
amount includes both current year net capital loss
line 5. Parts III and IV determine the amount you en-
from line 4 and non-sharable/sharable capital loss
ter in Part I, line 6.
carryovers from line 7, the current year net capital
loss is considered used before the capital loss car-
■ Part II. Non-Sharable Capital Loss Carryovers –
ryovers. The amount reported on line 9c should be
Complete columns a through d as instructed on the
used when updating your non-sharable and sharable
form, and enter the total from column d on Part I,
capital loss carry forward tables since this is the
line 5.
amount of capital loss carry forwards being used up.
■ Part III. Sharable Capital Loss Carryovers –
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Line 9d. Member’s Share of Net Capital Gain
Complete columns a through d of Part III as instruct-
Included in Combined Unitary Income – On
ed on the form. In order to complete column e, you
line 9d, you will enter the percentage of the group’s
will need to complete Part IV to ensure that sharable
aggregate net capital gain from Form 6, Part I, line 30
loss carryovers are not double-counted. In column f,
that represents the amount included in the corpora-
subtract the column e amounts from the column d
tion’s Wisconsin income. For corporations that are
amounts as instructed. Enter the total from column f
members of groups that use apportionment, this is
on Part I, line 6.
the percentage reported on Form 6, Part III, line 1d.
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Part IV. Sharable Capital Loss Carryovers – Do
For corporations that are in groups that do business
not complete Part IV unless you have completed col-
only in Wisconsin (“100% Wisconsin groups”), you
umns a through d of Part III. The purpose of Part IV is
will need to compute this percentage based on the
to compute the amount of sharable loss carryovers
corporations’ relative shares of combined unitary in-
the corporation already used in the combined group’s
come. For members of 100% Wisconsin groups, the
aggregate computation for the taxable year, so that
corporation’s share of combined unitary income is the
this amount is not used again in computing additional
sum of the amounts on Form 6, Part III, lines 2 and 3.
loss allowable on Form 6CL.
The following example illustrates this computation:
Complete lines 1 through 5 of Part IV as instructed on
Example
for
Members
of
100%
Wisconsin
the form and apply the total from line 5 to the availa-
Groups: Combined Group JKLM consists of Mem-
ble sharable carryovers in Part III, column d, using
ber J, Member K, Member L, and Member M. The
the oldest carryovers first. In Part III, column e, enter
members’ amounts on Form 6, Part III, lines 2 (Share
the amounts you applied from line 5 on the lines cor-
of Combined Unitary Income) and 3 (Adjustment for
responding to the appropriate years.
Current Year Loss Offset) are as follows:
__J__
__K__
__L__
__M__
Line L1
20,000
30,000
-8,000
-17,000
Line L2
-10,000
-15,000
8,000
17,000
$10,000
$15,000
$0
$0
Assume that on Form 6, Part I line 30, the combined
group computed an aggregate net capital gain of
$5,000, and that Member J and Member K both have
non-sharable capital loss carryovers.
The percentage that Member J enters on line 9d of
Form 6CL is 40% (= $10,000/$25,000)). The per-
centage that Member K enters on line 9d is 60%
(= $15,000/$25,000). Members L and M do not com-
plete Form 6CL since they do not have a share of the
group’s combined unitary income and thus do not
have a share of the aggregate net capital gain.
IC-544
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