Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members (Page 3 of 4) in pdf

Form 6CL Instructions

both current year net capital loss from line 4 and non-

sharable/sharable capital loss carryovers from line 7,

the current year net capital loss is considered used be-

Parts II, III, and IV: Carryovers Available

fore the capital loss carryovers. The amount reported

on line 9c should be used when updating your non-

Part II determines the amount you enter in Part I,

sharable and sharable capital loss carry forward tables

line 5. Parts III and IV determine the amount you enter

since this is the amount of capital loss carry forwards

in Part I, line 6.

being used up.

■ Part II. Non-Sharable Capital Loss Carryovers –

■

Line 9d. Member’s Share of Net Capital Gain In-

Complete columns a through d as instructed on the

cluded in Combined Unitary Income – On line 9d,

form, and enter the total from column d on Part I, line 5.

you will enter the percentage of the group’s aggregate

net capital gain from Form 6, Part I, line 30 that repre-

■ Part III. Sharable Capital Loss Carryovers –Com-

sents the amount included in the corporation’s Wis-

plete columns a through d of Part III as instructed on

consin income. For corporations that are members of

the form. In order to complete column e, you will need

groups that use apportionment, this is the percentage

to complete Part IV to ensure that sharable loss car-

reported on Form 6, Part III, line 1d.

ryovers are not double-counted. In column f, subtract

the column e amounts from the column d amounts as

For corporations that are in groups that do business

instructed. Enter the total from column f on Form 6CL,

only in Wisconsin (“100% Wisconsin groups”), you will

Part I, line 6.

need to compute this percentage based on the corpo-

rations’ relative shares of combined unitary income.

■

Part IV. Sharable Capital Loss Carryovers – Do

For members of 100% Wisconsin groups, the corpora-

not complete Part IV unless you have completed col-

tion’s share of combined unitary income is the sum of

umns a through d of Part III. The purpose of Part IV is

the amounts on Form 6, Part III, lines 2 and 3. The

to compute the amount of sharable loss carryovers the

following example illustrates this computation:

corporation already used in the combined group’s ag-

gregate computation for the taxable year, so that this

Example for Members of 100% Wisconsin Groups:

amount is not used again in computing additional loss

Combined Group JKLM consists of Member J, Mem-

allowable on Form 6CL.

ber K, Member L, and Member M. The members’

amounts on Form 6, Part III, lines 2 (Share of Com-

Complete lines 1 through 5 of Part IV as instructed on

bined Unitary Income) and 3 (Adjustment for Current

the form and apply the total from line 5 to the available

Year Loss Offset) are as follows:

sharable carryovers in Part III, column d, using the old-

__J__

__K__

__L__

__M__

est carryovers first. In Part III, column e, enter the

Line

20,000

30,000

-8,000

-17,000

amounts you applied from line 5 on the lines corre-

sponding to the appropriate years.

Line

-10,000

-15,000

8,000

17,000

$10,000

$15,000

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 percent-

age 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

Instructions For 2015 Form 6cl: Net Capital Loss Adjustments For Combined Group Members Page 3

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