Instructions For 2010 Form 4cl: Net Capital Loss Adjustments For Combined Group Members Page 3
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4Form 4CL 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 carry-
■ Part II. Non-Sharable Capital Loss Carryovers –
overs. 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 in-
Included in Combined Unitary Income – On
structed on the form. In order to complete column e,
line 9d, you will enter the percentage of the group’s
you will need to complete Part IV to ensure that shar-
aggregate net capital gain from Form 4R, line 18 that
able loss carryovers are not double-counted. In col-
represents the amount included in the corporation’s
umn f, subtract the column e amounts from the col-
Wisconsin income. For corporations that are mem-
umn d amounts as instructed. Enter the total from
bers of groups that use apportionment, this is the per-
column f on Part I, line 6.
centage reported in Form 4A, Part II, column c.
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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 lines L1 and L2 of Form 4M,
loss allowable on Form 4CL.
Wisconsin Combined Group Member-Level Data.
The following example illustrates this computation:
Complete lines 1 through 5 of Part IV as instructed on
the form and apply the total from line 5 to the avail-
Example
for
Members
of
100%
Wisconsin
able sharable carryovers in Part III, column d, using
Groups: Combined Group JKLM consists of Mem-
the oldest carryovers first. In Part III, column e, enter
ber J, Member K, Member L, and Member M. The
the amounts you applied from line 5 on the lines cor-
members’ amounts on Form 4M, lines L1 (Share of
responding to the appropriate years.
Combined Unitary Income) and L2 (Adjustment for
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 4R, line 18, 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 4CL 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 4CL 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.
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