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2024 Schedule CG and Instructions Page 2 of 2
• The business has at least 2 full-time employees,
• The amount of payroll compensation paid by the business in Wisconsin is at least 50% of all payroll compensation paid
by the business, and
• The value of real and tangible personal property owned or rented and used by the business in Wisconsin is equal to at
least 50 percent of the value of all real and tangible personal property owned or rented and used by the business.
Note For purposes of the payroll qualification, an employee of a professional employer organization, as defined in sec.
202.21(5), Wis. Stats., or a professional employer group, as defined in sec. 202.21(4), Wis. Stats., who is performing
services for a client is considered an employee solely of that client.
Procedures
An individual may subtract from federal adjusted gross income any amount of a long-term capital gain if the individual does
all of the following:
• Within 180 days after the sale of the asset that generated the gain, invests all of the long-term gain in a qualified
Wisconsin business.
Note A list of qualified Wisconsin businesses that have registered with the department is available at: https://www.
revenue.wi.gov/Pages/Report/qualified-businesses.aspx. As required by sec. 73.03(69)(d), Wis. Stats., the registered
businesses have provided information concerning property, payroll, and number of employees for purposes of
registering as a qualified Wisconsin business. This information has not been reviewed for purposes of determining
eligibility for the deferral under sec. 71.05(26), Wis. Stats.
• Attaches a completed Schedule CG to the individual’s Wisconsin income tax return for the taxable year in which the
deferral of gain is claimed.
Specific Instructions
Line 3 This is the amount of long-term capital gain that may be deferred if reinvested in a qualified Wisconsin business.
Individuals claim the deferral of gain when completing Wisconsin Schedule WD.
Line 4 The date on line 4 must be within 180 days of the date on line 1. If not within 180 days, you do not qualify for the
deferral of gain.
Line 5 Complete line 5 if the long-term gain was reinvested in a qualified Wisconsin business. Fill in the name of the
business and the federal employer identification number (FEIN) of the business.
Line 7 The basis of the investment is calculated by subtracting the deferred gain (line 7) from the amount of the investment
in the qualified Wisconsin business (line 6). The reduced basis will result in a larger gain (or smaller loss) for Wisconsin than
for federal purposes when the investment is sold or otherwise disposed of in the future.
Note If you invested the deferred gain in a qualified Wisconsin business, held the investment for 5 years, and certain
conditions are met, you may be able to exclude gain from the sale or disposition of the investment. The business must have
been certified by WEDC or registered with the department for the year of the investment and for two of the subsequent
four years. The gain that may be excluded does not include the amount of deferred gain. For further information, see
Schedule QI, Sale of Investment in a Qualified Wisconsin Business.
Attachments
A copy of Schedule CG must be included with your Wisconsin income tax return.
Additional Information
For more information, you may:
• E-mail your questions to: DORIncome@wisconsin.govDRAFT 08-01-2024
• Call (608) 266-2772
(Telephone help is also available using TTY equipment. Call the Wisconsin Telecommunications Relay System at 711
or, if no answer, (800) 947-3529. These numbers are to be used only when calling with TTY equipment.)
Applicable Laws and Rules
This document provides statements or interpretations of the following laws and regulations enacted as of July 31,
2024: secs. 71.05 (26), and 73.03(69)(d), Wis. Stats.
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