Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members printable pdf download

Instructions for 2015 Form 6CL:

Net Capital Loss Adjustments for Combined Group Members

Who Should File Form 6CL

aggregate computation, to capital gains that are

reportable on a separate entity basis on Form N.

Form 6CL is only for corporations that are combined

group members. File Form 6CL only if either A. or B.

A non-sharable capital loss is one which originated:

below is true:



In a taxable year beginning before January 1,

2009, or

A. The corporation has unused capital loss carryo-



vers incurred in taxable years beginning before

In the combined unitary income of another

January 1, 2009 (or other non-sharable capital

combined group, or

losses) and the combined group reports a net cap-



In transactions reportable on a separate entity

ital gain on Form 6, Part I, line 30, or

basis on Form N.

B. The corporation has capital gain/loss items to re-

As an alternative to completing 2015 Form 6CL, a

port on Form N, Wisconsin Nonapportionable and

combined group member with non-sharable capital

Separately Apportioned Income, for the taxable

loss carryovers may choose to carry them back to a

year and the combined group computes a sus-

taxable year beginning before 2009, to the extent al-

pended net capital loss on Form 6, Part I, line 30

lowed under section 1212 of the Internal Revenue

and part of that suspended net capital loss is at-

Code. Also, see s. Tax 2.61(6)(c), Wisconsin Adminis-

tributable to the corporation.

trative Code, for further details regarding elections a

corporation may make regarding its capital loss car-

NOTE: If neither A. nor B. above is true in its entirety,

ryovers.

do not file Form 6CL for the corporation. Also, Form

6CL does not apply to corporations that are not

Line-by-Line Instructions

combined group members, even if they are filing a

Form N with the combined return.

These instructions are presented in the order the lines

appear on Form 6CL:

Purpose of Form 6CL

Under section 1211 of the Internal Revenue Code,

Part I: Net Capital Loss Adjustments

capital losses may only be used to offset capital gains.

Under sec. 71.255(4)(i) and (11), Wis. Stats., and s.

■ Line 1. Net Capital Gain Included in Combined

Tax 2.61(6)(c), Wisconsin Administrative Code, the

Unitary Income – Enter the amount of net capital gain

capital loss limitation is determined on an aggregate

from Form 6, Part I, line 30, but only if that amount was

basis for the combined group, similarly to how it is de-

greater than $0. This is the net capital gain you com-

termined for a consolidated group for federal purposes

puted on an aggregate basis for the combined group

under Treas. Regs. §1.1502-22 and 1.1502-23.

as a whole.

However, not all capital losses may be included in the

■ Line 2. Current Year Net Capital Loss Attributa-

aggregate computation for the combined group. The

ble to This Member – Complete this line only if Form

aggregate computation cannot include non-sharable

6, Part I, line 30 was $0 and the corporation’s capital

capital loss carryovers or capital gain/loss items that

gain and loss items that were included in the aggre-

members must report on a separate entity basis on

gate computation would have been a net capital loss if

Form N.

they were netted on a separate entity basis. On line 2,

you will enter the corporation’s share of the group’s

The purpose of Form 6CL is to allow a combined group

aggregate net capital loss.

member to:



To compute the amount on line 2, you’ll need to allo-

Use the non-sharable capital loss carryovers it

cate a share of the group’s aggregate net capital loss

could not include in the group’s aggregate compu-

to each member that would have had a net capital loss

tation, and

if its items included in the aggregate computation were



Apply all of its available capital losses, including

netted on a separate entity basis. The example below

its current year net capital loss from the group’s

illustrates:

IC-544

Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members

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