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Instructions for Schedule NR
Schedule NR is completed by part-year and nonresident es- corporation on Schedule 2WD. See page 2 of the Schedule
tates and trusts filing Form 2. Part I of Schedule NR is used to 2WD instructions for more information.
compute the Wisconsin taxable income of the estate or trust.
Part II of Schedule NR is used to compute an addition or sub- Line 7 If gains or losses from sales (or other dispositions) of
traction to federal taxable income. assets or from Schedules 2K-1, 3K-1, or 5K-1 are reported on
federal Form 4797 and there is a difference between the fed-
Note A trust that consists of resident assets and nonresident eral gain or loss and the Wisconsin gain or loss, follow the
assets, as provided under sec. 71.14(3m)(a), Wis. Stats., must three steps below:
check the part-year resident estate or trust box on Form 2 and
complete Wisconsin Schedule NR. STEP 1: Recompute federal Form 4797, using the Wisconsin
basis of assets instead of the federal basis and the Wisconsin
gain or loss instead of the federal gain or loss.
Part I – Computation of Wisconsin Taxable Income
Part I of Schedule NR has three columns for figures: Label this recomputed Form 4797 “Wisconsin.” Enclose the
“Wisconsin” Form 4797 with Form 2.
Column (a) is labeled “Federal Amount.” In this column, lines
1 through 24, fill in the same amounts reported on the federal STEP 2: If a net long-term capital gain is entered on the
return. “Wisconsin” Form 4797, the amounts from the “Wisconsin”
Form 4797 that apply to Wisconsin must be used to complete
Exception The computation of taxable income is based on the line 12 of Wisconsin Schedule 2WD.
provisions of federal law amended to December 31, 2022, with
certain exceptions. Federal laws enacted after December 31, STEP 3: Fill in the amount of ordinary gain or loss computed
2022, do not apply for Wisconsin purposes unless adopted by on the “Wisconsin” Form 4797 that applies to Wisconsin on
the Legislature. If any provision of federal law which does not line 7, column (b).
apply for Wisconsin purposes affects federal taxable income,
complete Schedule B of Form 2. The amount you fill in on Column (c) is labeled “Non-Wisconsin.” In this column, lines 1
lines 1 through 24 of Schedule NR should be revised to reflect through 24, fill in the amounts that do not apply to Wisconsin.
any Schedule B adjustment(s).
Part II – Computation of Addition or Subtraction
Column (b) is labeled “Wisconsin Amount.” In this column, Modification
lines 1 through 24, fill in the amounts that apply to Wisconsin.
Special instructions if lines 1 and/or 2 of Part II are a negative
Your federal taxable income may include items that aren’t amount:
taxable or deductible for Wisconsin, or it may not include
• If line 1 (federal income) is a negative amount and line 2
items that are taxable or deductible for Wisconsin. If so, you
must add or subtract these items from your federal income to (Wisconsin income) is a positive amount – Treat the amount
arrive at the correct Wisconsin income. See the instructions on line 1 as a positive amount. Add the amounts on line 1
for Schedule A of Form 2 for a comprehensive list of additions and line 2. Fill in the total on line 3 and on line 2 of Form 2.
and subtractions. • If line 1 (federal income) is a positive amount and line 2
(Wisconsin income) is a negative amount – Treat the
If a nonresident or part-year resident estate or trust is a
amount on line 2 as a positive amount. Add the amounts
partner in a partnership or shareholder in a tax-option (S)
corporation that elected to be taxed at the entity level, do not on line 1 and line 2. Fill in the total on line 4 and on line 4 of
report in column (b) of Schedule NR the estate’s or trust’s Form 2.
nondistributable portion of items of income, gain, loss, or • If line 1 (federal income) and line 2 (Wisconsin income) are
deduction reported on the Schedule 3K-1 from the electing both negative amounts – Treat both amounts as positive
partnership or the Schedule 5K-1 from the electing tax-option numbers.
(S) corporation.
▪ If the amount on line 1 is more than the amount on line
The portion of the electing partnership’s or tax-option (S) 2, subtract line 2 from line 1. Fill in the result on line 3
corporation’s items distributable to the beneficiaries must and on line 2 of Form 2.
be reported in column (b) of Schedule NR and on Schedule
2K-1 as if the election was not made. The estate or trust must ▪ If the amount on line 2 is more than the amount on line
provide beneficiaries with a supplemental statement detailing 1, subtract line 1 from line 2. Fill in the result on line 4
the items included on the Schedule 2K-1 that originated from and on line 4 of Form 2.
the electing partnership or tax-option (S) corporation.
Enter the amount, if any, from line 3 on line 2 of Form 2. Enter
Line 4 Enter in column (b) the amount from line 27 or 28 of the amount, if any, from line 4 on line 4 of Form 2.
Schedule 2WD.
If a nonresident or part-year resident estate or trust is a Applicable Laws and Rules
partner in a partnership or shareholder in a tax-option (S) This document provides statements or interpretations of
corporation that elects to be taxed at the entity level, do not
the following laws and regulations enacted as of July 31,
report the estate’s or trust’s nondistributable portion of capital
gain or loss from the electing partnership or tax-option (S) 2024: Subchapter II of Ch. 71, Wis. Stats.
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