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Instructions for 2024 Schedule A-02
Wisconsin Apportionment Percentage for Interstate Financial Institutions

Purpose of Schedule A-02

Financial institutions required to use apportionment must use the receipts factor prescribed in sec. Tax 2.49,
Wisconsin Administrative Code.

Under sec. Tax 2.49, interest, dividends, gross receipts or net gains from sales of securities held for investment
purposes, and other income from investment assets, may not be included in the receipts factor.

Line-by-Line Instructions

Share of Apportionment Factors

Partnerships, corporations, and tax-option (S) corporations must generally include their share of the numerator
and denominator of the partnership’s apportionment factors in the numerator and denominator of their
apportionment factors. Include these amounts using the Wisconsin apportionment Schedules A-01 through A-11,
as appropriate.

Line 1. Gross Interest and Other Fees from Loans Secured by Real Property – For the Wisconsin column,
include gross interest, fees, points, charges, and penalties from loans secured by real property if the real property
securing the loan is located in Wisconsin. If the real property securing the loan is located in Wisconsin and one or
more other states or foreign countries, the gross interest, fees, points, charges, and penalties is divided among
those states or foreign countries having jurisdiction to impose an income tax or franchise tax measured by net
income on the taxpayer in proportion to the fair market value of the real property securing the loan located in each
state or foreign country. The determination of whether the real property securing a loan is located in Wisconsin
is made at the time the original agreement was made and for each subsequent taxable year.

For the Total Company column, include gross interest, fees, points, charges, and penalties from loans secured by
real property everywhere.

Line 2. Gross Interest and Other Fees from Loans Secured by Tangible Personal Property – For the
Wisconsin column, enter gross interest, fees, points, charges, and penalties from loans secured by tangible
personal property if the tangible personal property securing the loan is located in Wisconsin. If the tangible
personal property securing the loan is located in both Wisconsin and one or more other states or foreign countries,
the gross interest, fees, points, charges, and penalties is divided among those states or foreign countries having
jurisdiction to impose an income tax or franchise tax measured by net income on the taxpayer in proportion to the
fair market value of the tangible personal property securing the loan located in each state or foreign country. The
determination of whether the tangible personal property securing a loan is located in Wisconsin is made at the
time the original agreement was made and for each subsequent taxable year.

For the Total Company column, enter gross interest, fees, points, charges, and penalties from loans everywhere.

Line 3. Gross Interest and Other Fees from Unsecured Loans – For the Wisconsin column, enter gross
interest, fees, points, charges, and penalties from loans that are not secured by real or tangible personal property
if the loan borrower is in Wisconsin.

For the Total Company column, enter gross interest, fees, points, charges, and penalties from loans made
everywhere.

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2024 Schedule A-02 Instructions

Line 4. Net Gains from Sales of Loans Secured by Real Property – For the Wisconsin column, enter the net
gains, but not less than zero, from the sale of loans secured by real property located in Wisconsin. If the real
property securing the loan is located in both Wisconsin and one or more other states or foreign countries, the net
gain is divided among those states or foreign countries having jurisdiction to impose an income tax or franchise
tax measured by net income on the taxpayer in proportion to the fair market value of the real property securing
the loan located in each state or foreign country.

For the Total Company column, enter the net gains, but not less than zero, from the sale of loans secured by real
property everywhere.

Line 5. Net Gains from Sales of Loans Secured by Tangible Personal Property – For the Wisconsin column,
enter the net gains, but not less than zero, from the sale of loans secured by tangible personal property located in
Wisconsin. If the tangible personal property securing the loan is located in both Wisconsin and one or more other
states or foreign countries, the net gain is divided among those states or foreign countries having jurisdiction to
impose an income tax or franchise tax measured by net income on the taxpayer in proportion to the fair market
value of the tangible personal property securing the loan located in each state or foreign country.

For the Total Company column, enter the net gains, but not less than zero, from the sale of loans secured by tangible
personal property everywhere.

Line 6. Net Gains from Sales of Unsecured Loans – For the Wisconsin column, enter the net gains, but not
less than zero, from the sale of loans not secured by real or tangible personal property if the loan borrower is
located in Wisconsin.

For the Total Company column, enter the net gains, but not less than zero, from the sale of loans not secured by real
or tangible personal property everywhere.

Line 7. Gross Receipts from Credit Card Receivables – For the Wisconsin column, enter gross interest, fees,
points, charges, and penalties from credit card receivables and gross receipts from annual fees and other fees
charged to credit card holders if the billing address of the credit card holder is in Wisconsin.

For the Total Company column, enter gross interest, fees, points, charges, and penalties from credit card
receivables and gross receipts from annual fees and other fees charged to credit card holders everywhere.

Line 8. Net Gains from Sales of Credit Card Receivables – For the Wisconsin column, enter the net gains, but
not less than zero, from the sale of credit card receivables if the billing address of the credit card holder is in
Wisconsin.

For the Total Company column, enter the net gains, but not less than zero, from the sale of credit card receivables
everywhere.

Line 9. Credit Card Issuer’s Reimbursement Fees – For the Wisconsin column, enter the taxpayer's credit card
issuer's reimbursement fees if the billing address of the credit card holder is in Wisconsin.

For the Total Company column, enter the taxpayer's credit card issuer's reimbursement fees everywhere.

Line 10. Gross Receipts from Merchant Discount – For the Wisconsin column, enter gross receipts from
merchant discount if the merchant's trade or business is located in Wisconsin. If the merchant's trade or business
is located in and outside Wisconsin, the numerator includes only receipts from merchant discounts on sales made
in Wisconsin. If the location of a sale cannot be determined, the numerator includes the merchant discount on the

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                                  2024 Schedule A-02 Instructions 

 sale if the merchant's commercial domicile is in Wisconsin. The receipts are computed net of any credit card holder 
 charge backs but may not be reduced by any interchange transaction fees or by any issuer's reimbursement fees 
 paid to another for charges made by its credit card holders. 
 
 For the Total Company column, enter  gross receipts from  merchant discount everywhere.  The receipts  are 
 computed net of any credit card holder charge backs but may not be reduced by any interchange transaction fees 
 or by any issuer's reimbursement fees paid to another for charges made by its credit card holders. 
 
 Line 11. Loan Servicing Fees – For the Wisconsin column, enter loan servicing fees derived from loans owned by 
 the taxpayer or another person, including servicing participations, and secured by tangible personal property or 
 real property located in Wisconsin. If the tangible personal property or real property securing the loan is located in 
 both Wisconsin and one or more other states or foreign countries, the loan servicing fees are divided among those 
 states or foreign countries having jurisdiction to impose an income tax or franchise tax measured by net income 
 on the taxpayer in proportion to the fair market value of the tangible personal property or real property securing 
 the loan located in each state or foreign country. If the location of the tangible personal property or real property 
 securing the loan cannot be determined, the numerator includes the loan servicing fees if the loan borrower or 
 guarantor of the loan is located in Wisconsin. Loan servicing fees derived from loans owned by the taxpayer or 
 another  person, including  servicing  participations,  and not secured by real or  tangible  personal property are 
 included in the Wisconsin column if the loan borrower or guarantor of the loan is located in Wisconsin. 
 
 For the Total Company column, enter loan service fees that are secured and unsecured by tangible personal 
 property and real property located everywhere. 
 
 Line 12. Gross Receipts from Travelers Checks, Cashier's Checks, Certified Checks, and Money Orders – 
 For the Wisconsin column, enter gross fees or other charges for issuing travelers, cashiers or certified checks, 
 and money orders if purchased in Wisconsin. 
 
 For the Total Company column, enter gross fees or other charges for the issuance of traveler's checks, cashier's 
 checks, certified checks, and money orders for the checks or money orders purchased everywhere. 
 
 Line 13. Gross Receipts from Automated Teller Machines and Safety Deposit Boxes – For the Wisconsin 
 column, enter gross receipts from the usage of automated teller machines or rental of safety deposit boxes located 
 in Wisconsin. 
 
 For the Total Company column, enter gross receipts from the usage of automated teller machines or rental of 
 safety deposit boxes everywhere. 
 
 Line 14. Gross Receipts from Maintaining Accounts – For the Wisconsin column, enter gross receipts from the 
 maintenance of accounts, including but not limited to service charges for maintaining accounts, overdraft charges, 
 charges for copies of statements and checks, and fees for account reconciliation, if 1) the service is provided to 
 an  account  holder  that  is  not  engaged in a  trade or  business, and the account holder's  billing  address  is in 
 Wisconsin, or 2) the service is provided to an account holder that is engaged in a trade or business, the account 
 holder maintains a regular place of business in Wisconsin, and the service received relates to the business in 
 Wisconsin. If the account holder receives the service in more than one state or the state in which the service is 
 received cannot be determined, the service is received in Wisconsin if the account holder, in the regular course of 
 the account holder's business, ordered the service from an office in Wisconsin. If the ordering office cannot be 
 determined, the services are received in Wisconsin if the account holder's billing address is in Wisconsin. 

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                  2024 Schedule A-02 Instructions 

 For the Total Company column, enter gross receipts from the maintenance of accounts, including but not limited 
 to service charges for maintaining accounts, overdraft charges, charges for copies of statements and checks, and 
 fees for account reconciliation everywhere. 
 
 Line 15. Gross Receipts from Electronic Funds Transfer – For the Wisconsin column, enter electronic funds 
 transfer fees  if  1) the service  is provided to a customer that is  not engaged in a trade  or business,  and the 
 customer's billing address is in Wisconsin, or 2) the service is provided to a customer that is engaged in a trade 
 or business, the customer maintains a regular place of business in Wisconsin, and the service received relates to 
 the business in Wisconsin. If the customer receives the service in more than one state or the state in which the 
 service is received cannot be determined, the service is received in Wisconsin if the customer, in the regular 
 course of the customer's business, ordered the service from an office in Wisconsin. If the ordering office cannot 
 be determined, the services are received in Wisconsin if the customer's billing address is in Wisconsin. 
 
 For the Total Company column, enter electronic funds transfer fees from everywhere. 
 
 Line 16. Gross Receipts from Cash Management Services – For the Wisconsin column, enter the gross amount 
 of any fees or charges generated from cash management services, including but not limited to lockbox services, 
 depository transfer checks, and payables management, if the service is provided to a customer that is engaged in 
 a trade or business, the customer maintains a regular place of business in Wisconsin, and the service received 
 relates to the business in Wisconsin. If the customer receives the service in more than one state or the state in 
 which the service is received cannot be determined, the service is received in Wisconsin if the customer, in the 
 regular course of the customer's business, ordered the service from an office in Wisconsin. If the ordering office 
 cannot be determined, the services are received in Wisconsin if the customer's billing address is in Wisconsin. 
 
 For the Total Company column, enter the gross amount of any fees or charges generated from cash management 
 services, including but not limited to lockbox services, depository transfer checks, and payables management 
 from everywhere. 
 
 Line 17. Gross Receipts  from International Trade  Services  – For the  Wisconsin column,  enter the  gross 
 receipts from international trade services, including but not limited to letters of credit and bankers acceptance 
 notes, if the service is provided to a customer that is engaged in a trade or business, the customer maintains a 
 regular place of  business in Wisconsin, and the service received relates to the  business in Wisconsin. If the 
 customer receives the service in more than one state or the state in which the service is received cannot be 
 determined, the service is received in Wisconsin if the customer, in the regular course of the customer's business, 
 ordered the service from an office in Wisconsin. If the ordering office cannot be determined, the services are 
 received in Wisconsin if the customer's billing address is in Wisconsin. 
 
 For the Total Company column, enter the gross receipts from international trade services, including but not limited 
 to letters of credit and banker's acceptance notes received everywhere. 
 
 Line 18. Gross Receipts from Data  Processing Services and Document Imaging Services  –                  For the 
 Wisconsin column, enter the gross receipts from  data processing services, document  imaging services,  and 
 microfilming services if the service is provided to a customer that is engaged in a trade or business, the customer 
 maintains a regular place of business in Wisconsin, and the service received relates to the business in Wisconsin. 
 If the customer receives the service in more than one state or the state in which the service is received cannot be 
 determined, the service is received in Wisconsin if the customer, in the regular course of the customer's business, 
 ordered the service from an office in Wisconsin. If the ordering office cannot be determined, the services are 
 received in Wisconsin if the customer's billing address is in Wisconsin. 

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2024 Schedule A-02 Instructions

For the Total Company column, enter the gross receipts from data processing services, document imaging
services, and microfilming services received everywhere.

Line 19. Gross Receipts from Research Services – For the Wisconsin column, enter the gross receipts from
research services if, 1) the service is provided to a customer that is not engaged in a trade or business, and the
customer's billing address is in Wisconsin, or 2) the service is provided to a customer that is engaged in a trade
or business, the customer maintains a regular place of business in Wisconsin, and the service received relates to
the business in Wisconsin. If the customer receives the service in more than one state or the state in which the
service is received cannot be determined, the service is received in Wisconsin if the customer, in the regular
course of the customer's business, ordered the service from an office in Wisconsin. If the ordering office cannot
be determined, the services are received in Wisconsin if the customer's billing address is in Wisconsin.

For the Total Company column, enter the gross receipts received from research services everywhere.

Line 20. Gross Receipts from Trust Services – For the Wisconsin column, enter the gross receipts from trust
services if, 1) the service is provided to a customer that is not engaged in a trade or business, and the customer's
billing address is in Wisconsin, or 2) the service is provided to a customer that is engaged in a trade or business,
the customer maintains a regular place of business in Wisconsin, and the service received relates to the business
in Wisconsin. If the customer receives the service in more than one state or the state in which the service is
received cannot be determined, the service is received in Wisconsin if the customer, in the regular course of the
customer's business, ordered the service from an office in Wisconsin. If the ordering office cannot be determined,
the services are received in Wisconsin if the customer's billing address is in Wisconsin.

For the Total Company column, enter the gross receipts received from trust services everywhere.

Line 21. Gross Receipts from Investment Banking Services – For the Wisconsin column, enter the gross
receipts, including commissions, management fees, or underwriting fees, earned from investment banking
services if, 1) the issuer of the securities is not engaged in a trade or business, and the issuer's billing address is
in Wisconsin, or 2) the issuer of the securities is engaged in a trade or business, the issuer of the securities
maintains a regular place of business in Wisconsin, and the securities relate to that person's business in
Wisconsin. If the securities relate to that person's regular place of business in more than one state, the receipts
from the performance of the service are included in the numerator of the receipts factor according to the portion
of the service received in Wisconsin. If the regular place of business to which the securities relate cannot be
determined, the service is received in Wisconsin if the issuer of the securities, in the regular course of the issuer's
business, ordered the service from an office in Wisconsin. If the ordering office cannot be determined, the service
is received in Wisconsin if the issuer's billing address is in Wisconsin.

For the Total Company column, enter the gross receipts, including commissions, management fees, or
underwriting fees, earned from investment banking services received everywhere.

Line 22. Gross Receipts from Brokerage Services – For the Wisconsin column, enter the fees, commissions,
margin interest, and other gross receipts from security brokerage services if the customer's billing address is in
Wisconsin. The Wisconsin column includes net gains, net of commissions, but not less than zero, from sales of
trading assets if the customer's billing address is in Wisconsin. “Trading assets" include securities, commodities,
and related financial instruments that a taxpayer acquires and holds for sale in its inventory account. The receipts
factor does not include gross receipts or net gains from sales or other dispositions of investment assets.

For the Total Company column, enter the total fees, commissions, margin interest, and other gross receipts from
security brokerage services received everywhere.

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                      2024 Schedule A-02 Instructions 

 Line 23. Gross Receipts from Services Provided to Regulated Investment Companies – For the Wisconsin 
 column, enter gross receipts and net gain described above from services provided to or on behalf of a regulated 
 investment company, as defined in section 851 of the Internal Revenue Code  (IRC). The regulated investment 
 company is considered the purchaser or consumer of the services. 
 
 At the taxpayer's option, the portion of the gross receipts received from a regulated investment company from the 
 sale of administration, distribution, or management services is included in the numerator of the receipts factor as 
 described below.  A taxpayer that makes this election must use this method to determine the receipts included in 
 the numerator of the receipts factor from each regulated investment company for or on behalf of which it performs 
 services and must compute the receipts from each regulated investment company separately. For purposes of 
 this paragraph: 
 
 • “Administration  services"  include  clerical,  accounting,  participant  record  keeping,  transfer  agency, 
   bookkeeping, data processing, custodial, internal auditing, legal, and tax services provided for a regulated 
   investment company but only if the provider of the services also provides, or is affiliated with a person that 
   provides, distribution or management services to the regulated investment company. 

 • “Distribution services" include advertising, servicing investor accounts, marketing, or selling shares of the 
   regulated investment company. In the case of advertising, servicing, or marketing shares, the services are 
   performed by a person that is or, in the case of a closed end company, was either engaged in the service of 
   selling the shares or affiliated with a person that is engaged in the service of selling the shares. In the case of 
   an open end company, the service of selling shares is performed pursuant to a contract entered into under 15 
   USC 80a-15(b). 

 • “Management services" include rendering investment advice directly or indirectly to a regulated investment 
   company, determining when sales and purchases of securities are to be made on behalf of the regulated 
   investment company, selling or purchasing securities constituting assets of a regulated investment company, 
   and related  activities,  but  only  if the activities are performed pursuant to a contract with  the regulated 
   investment company entered into under   15 USC 80a-15(a), for a person that has entered into the contract 
   with the regulated investment company or for a person that is affiliated with a person that has entered into the 
   contract with a regulated investment company. 

 • A person is affiliated with another person if each person is a member of the same affiliated group, as defined 
   under section 1504 of the IRC without regard to sub. (b) of section 1504. 

 • Receipts received from a regulated investment company include amounts received directly or indirectly from 
   the regulated investment company and amounts received from shareholders in the regulated investment 
   company. 
 
 The Wisconsin column includes the sum of receipts determined by multiplying the gross receipts from the sale of 
 administration, distribution, and  management services provided to  or on  behalf of each separate regulated 
 investment company by a fraction, computed as follows: 
 
 • The numerator of the fraction  is the sum  of the monthly percentages determined for each  month of the 
   regulated investment company's taxable year for federal income tax purposes, which taxable years ends 
   within or at the same time as the taxpayer's taxable year but excluding any month during which the regulated 
   investment company had no outstanding shares. The monthly percentage for each month is determined by 
   dividing the number of shares in the regulated investment company that are owned on the last day of the 
   month by shareholders whose domicile or commercial domicile is in Wisconsin by the total number of shares 
   in the regulated investment company outstanding on that date. 
 • The denominator of the fraction is the number of monthly percentages. 

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                                     2024 Schedule A-02 Instructions 

 For the Total Company column, enter the total gross receipts and net gain described above from services provided 
 to or on behalf of a regulated investment company no matter where performed. 
 
 Line 24. Gross Receipts from Other Services –      For the Wisconsin column, enter gross receipts from services 
 that are not described above if the purchaser of the service received the benefit of the service in Wisconsin under 
 any of the following circumstances: 
 
 The benefit of a service is received in Wisconsin if any of the following applies: 

 • The service relates to real property that is located in Wisconsin. 
 • The  service  relates  to  tangible  personal  property  that  is  delivered  directly  or  indirectly  to  customers  in 
   Wisconsin. 

 • The service is purchased by an individual who is physically present in Wisconsin at the time that the service 
   is received. 

 • The service is provided to a person engaged in a trade or business in Wisconsin and relates to that person's 
   business in Wisconsin. 
 
 If the purchaser of a service receives the benefit of a service in more than one state, the gross receipts from the 
 performance of the service are included in the numerator of the receipts factor according to the portion of the 
 service received in Wisconsin. 
 
 For the Total Company column, enter gross receipts from services not described above received everywhere. 
 
 Line 25. Gross Receipts from the Sale, Lease, Rental or License of Real Property –     For the Wisconsin 
 column, enter gross receipts from the lease, rental, or licensing of real property owned by the taxpayer if the real 
 property is located in Wisconsin and gross receipts from the sublease of real property if the real property is located 
 in Wisconsin. 
 
 For the Total Company column, enter gross receipts from the lease, rental, or licensing of real property owned by 
 the taxpayer and gross receipts from the sublease of real property located everywhere. 
 
 Line 26. Gross Receipts from the Sale, Lease, Rental or License of Tangible Personal Property – For the 
 Wisconsin column, enter gross receipts from the lease, rental, or licensing of tangible personal property owned 
 by the taxpayer and the sublease of tangible personal property if the property is located in Wisconsin during the 
 entire period of lease, rental, licensing, sublease, or other use. If the property is used in and outside Wisconsin 
 during the period of lease, rental, licensing, or sublease, gross receipts are included in the numerator of the 
 receipts  factor to the  extent that the  property is used  in  Wisconsin. The proportion  of use in  Wisconsin  is 
 determined by multiplying the gross receipts from the lease, rental, licensing, sublease, or other use of the property 
 by a fraction having as a numerator the number of days the property is in Wisconsin while leased, rented, licensed, 
 or subleased in the taxable year and having as a denominator the total number of days that the property is leased, 
 rented, licensed, or subleased in all states having jurisdiction to impose an income tax or franchise tax measured 
 by net income on the taxpayer in the taxable year. 
 
 Gross receipts from the lease, rental, or licensing of moving property, including motor vehicles, rolling stock, 
 aircraft, vessels, or mobile equipment, owned by the taxpayer and the sublease of moving property are included 
 in the numerator of the receipts factor to the extent that the property is used in Wisconsin. The proportion of use 
 of moving property in Wisconsin is determined as follows: 

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 • The proportion of use of a motor vehicle or rolling stock in Wisconsin is determined by multiplying the gross 
   receipts from the lease, rental, licensing, or sublease of the motor vehicle or rolling stock by a fraction having 
   as a numerator the number of miles traveled within Wisconsin by the motor vehicle or rolling stock while 
   leased, rented, licensed, or subleased in the taxable year and having as a denominator the total number of 
   miles traveled by the motor vehicle or rolling stock while leased, rented, licensed, or subleased in the taxable 
   year. 

 • The proportion of use of an aircraft in Wisconsin is determined by multiplying the gross receipts from the 
   lease, rental, licensing, or sublease of the aircraft by a fraction having as a numerator the number of takeoffs 
   and landings of the aircraft in Wisconsin while leased, rented, licensed, or subleased in the taxable year and 
   having as a denominator the total number of takeoffs and landings of the aircraft while  leased, rented, 
   licensed, or subleased in the taxable year. 

 • The proportion of use of a vessel or mobile equipment in Wisconsin is determined by multiplying the gross 
   receipts from the lease, rental, licensing, or sublease of the vessel or mobile equipment by a fraction having 
   as a numerator the number of days that the vessel or mobile equipment is Wisconsin while leased, rented, 
   licensed, or subleased in the taxable year and having as a denominator the total number of days that the 
   vessel or mobile equipment is leased, rented, licensed, or subleased in the taxable year. 

 • If the taxpayer is unable to determine the use of moving property under subd.2. a., b., or  whilec. the property 
   is leased, rented, licensed, or subleased in the taxable year, the moving property is conclusively deemed to 
   be used in Wisconsin in which the property is located at the time that the lessee, renter, licensee, or sublessee 
   takes possession of the property. 
 
 Line 27. Gross Receipts from Computer Software – For the Wisconsin column, enter gross receipts from the 
 use of computer software if the purchaser or licensee uses the computer software at a location in Wisconsin. 
 Computer software is used at a location in Wisconsin if the purchaser or licensee uses the computer software in 
 the regular course of business operations in Wisconsin, for personal use in Wisconsin, or if the purchaser or 
 licensee is an individual whose domicile is in Wisconsin. If the purchaser or licensee uses the computer software 
 in more than one state, the gross receipts are divided among those states having jurisdiction to impose an income 
 tax or franchise tax measured by net income on the taxpayer in proportion to the use of the computer software in 
 those states. To determine computer software use in Wisconsin, the department may consider the number of 
 users in each state where the computer software is used, the number of site licenses or workstations in Wisconsin, 
 and any other factors that reflect the use of computer software in Wisconsin. 
 
 For the Total Company column, enter gross receipts from the use of computer software used everywhere. 
 
 Line 28. Gross Royalties and Other Gross Receipts from Intangibles Excluding Securities  –                For the 
 Wisconsin column, enter gross royalties and other gross receipts received for the use of intangible property if the 
 user, purchaser, or licensee uses the intangible property at a location in Wisconsin.  Intangible property is used at 
 a location in Wisconsin if the user, purchaser, or licensee uses the property in the operation of a trade or business 
 at a location in Wisconsin, for personal use in Wisconsin, or if the user, purchaser, or licensee is an individual 
 whose domicile is in Wisconsin. If the user, purchaser, or licensee uses the intangible property in more than one 
 state, the gross royalties and other gross receipts from the sale or use of the intangible property shall be divided 
 among those states having jurisdiction to impose an income tax or franchise tax measured by net income on the 
 taxpayer in proportion to the use of the intangible property in those states. To determine intangible property use in 
 Wisconsin, the department  may  consider  the  number  of  licensed sites  in  each  state,  the volume  of  property 
 manufactured, produced, or sold at locations in Wisconsin, or any other factors that reflect the use of the intangible 
 property in Wisconsin. 

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For the Total Company column, enter gross royalties and other gross receipts received for the use of intangible
property no matter where used.

Line 29. Sales of Tangible Personal Property – For the Wisconsin column, enter gross receipts from the sales of
tangible personal property, except sales to the federal government, if the property is delivered or shipped to a
purchaser within Wisconsin regardless of the f.o.b. point or other conditions of the sales. Some situations in which
property is considered to be delivered or shipped to a purchaser within Wisconsin are if:

• The property is picked up outside Wisconsin by a purchaser having a Wisconsin business location and the
purchaser returns to Wisconsin with the property.

• The taxpayer, at the designation of the purchaser, or the purchaser delivers to or has the property shipped to
a recipient other than the purchaser within Wisconsin.

• The shipment by either the taxpayer or the purchaser terminates in Wisconsin, even though the property is
subsequently transferred by the purchaser to another state.

• The recipient is in Wisconsin, even though the property is ordered from outside Wisconsin.
• The property is being shipped by a seller or purchaser from one state to a consignee in another state and is
diverted while enroute to a purchaser in Wisconsin, or the designee of a purchaser who is in Wisconsin.

• Sales to the federal government are in Wisconsin if the property is shipped from an office, store, warehouse,
factory or other place of storage in Wisconsin and delivered to the federal government, including its agencies
and instrumentalities, in Wisconsin regardless of the f.o.b. point or other conditions of sale. Only sales for
which the federal government makes direct payment to the seller pursuant to the terms of its contract
constitute sales to the federal government. Thus, sales by a subcontractor to the prime contractor, the party
to the contract with the federal government, do not constitute sales to the federal government.

For the Total Company column, enter the gross receipts from the sales of tangible personal property everywhere.

Line 30. Gross Receipts Apportioned to a State Where the Taxpayer Would not be Taxable Under P.L.86-
272 – For the Wisconsin column, enter the throwback sales described below.

Throwback Sales

A “throwback sale” is a taxpayer’s sale of tangible personal property destined for a state where the taxpayer has
no nexus. If a sale is a throwback sale, it is included in the numerator of the sales factor as a Wisconsin sale.

For purposes of determining throwback sales, a “state” is any state of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, and any United States territory or possession. A foreign country is not a “state.”

Nexus in General. To determine if a taxpayer has nexus in another state for purposes of computing throwback
sales, apply the same rules used to determine if a similarly situated taxpayer would be subject to Wisconsin
franchise or income tax if it made the sale to Wisconsin from another state. However, if the Wisconsin Statutes
provide a specific exemption from nexus, such as in sec. 71.23(3), Wis. Stats., do not apply that Wisconsin
statutory exemption.

A taxpayer engaged in the business of selling tangible personal property does not have nexus in any state where
it is protected from taxation under federal Public Law 86-272 (P.L. 86-272). See sec. Tax 2.82, Wisconsin
Administrative Code, for more details of P.L. 86-272 and a description of what constitutes nexus for Wisconsin

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franchise or income tax purposes. Also see sec. Tax 2.39(6)(b), Wisconsin Administrative Code, for more
information about the relationship between nexus and throwback sales.

Nexus and Throwback Sales for Combined Groups. In a combined group, nexus is determined for the unitary
business as a whole. Therefore, a combined group member’s sales destined outside Wisconsin cannot be “thrown
back” to Wisconsin if any member of the combined group has nexus relating to the unitary business in the
destination state.

Example 1: Corporation B has an office and inventory in Wisconsin, but when considered as a separate entity, it does
not have any property or nexus-creating activity outside Wisconsin. However, Corporation B is in Combined Group
BC, which consists of Corporations B and C. Corporation C has an office and retail store in Illinois, which are part of the
same unitary business as B’s Wisconsin office and inventory.

Assume that B sells a widget to a customer located in Illinois and ships it by common carrier to the customer’s
Illinois address. Corporation B should not include that sale in its sales factor numerator as a throwback sale. Since
C has nexus in Illinois that relates to Combined Group BC’s unitary business, B is also deemed to have nexus in
Illinois.

See secs. Tax 2.61(7), and 2.82(5), Wisconsin Administrative Code, for further details of how nexus and
throwback sales are determined for combined groups.

Line 32. Apportionment Percentage (Separate return filers and pass-through entities) – Divide Wisconsin
column, line 31, by Total Company column, line 31, and multiply that amount by 100. Fill all spaces to the right
of the decimal point. Round to the nearest ten-thousandth of a percent (for example, 12.3456%). See the
instructions of the tax form being filed (Form 1NPR, 2, 3, 4, 4T, 5S, or 6) for how to report and use this percentage.

Conversion to Modified Sales Factor

Combined return filers complete lines 33 through 38 to compute the “modified sales factor” that will determine
their Wisconsin share of combined unitary income. .

Line 33. Intercompany Sales (Combined Group Members Only) – Any sales made between members of the
same combined group (“intercompany sales”), either directly or through interests in a pass-through entity, must
be excluded from the amounts being entered on lines 1 through 30.

Report the excluded intercompany sales on line 33. If these intercompany sales are already excluded from lines 1
through 30, do not enter any amounts on line 33.

Additional details about intercompany transactions involving pass-through entities are presented below and sec. Tax
2.61(7)(e), Wisconsin Administrative Code.

Sales to Pass-Through Entities Owned by Combined Group Members. If a combined group member makes
a sale to a pass-through entity which is more than 50 percent owned, directly or indirectly, by members of the
combined group, the member must eliminate an amount equal to the gross receipts of the sale multiplied by the
sum of all combined group members’ interests in the pass-through entity as of the date of the sale. The examples
below illustrate:

Example 2: Combined Group LM consists of Member L and Member M. L owns a 40% interest in Partnership P.
M owns a 60% interest in Partnership P. On March 1, 2024, L sells a widget to Partnership P for $10,000, and this
sale is includable in Group LM’s combined unitary income. In its computation of apportionment factors for 2024,
L must subtract $10,000 (= $10,000 x (40% + 60%)) from its sales factor denominator and, if applicable, from its
numerator.

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2024 Schedule A-02 Instructions

Example 3: Assume the same facts as Example 2, except that Member L owns a 25% interest and M owns a 50%
interest in Partnership P. In its computation of apportionment factors for 2024, L must subtract
$7,500 (= $10,000 x (25% + 50%)) from its sales factor denominator and, if applicable, from its numerator.

Sales by Pass-Through Entities Owned by Combined Group Members. If a pass-through entity makes a sale
to a combined group member and more than 50 percent of the pass-through entity is directly or indirectly owned
by members of the combined group, each member with an interest in the pass-through entity must subtract from
its sales factor numerator and denominator any amount that would otherwise be included attributable to the sale.

Example 4: Combined Group ST consists of Member S and Member T. S owns a 20% interest in Partnership R.
T owns an 80% interest in Partnership R. On October 1, 2024, Partnership R sells a widget to S for $20,000, and
this sale is includable in Group ST’s combined unitary income. In its computation of apportionment factors for
2024, S must subtract $4,000 (= $20,000 x 20%) from its sales factor denominator and, if applicable, from its
numerator. Similarly, T must subtract $16,000 (= $20,000 x 80%) from its sales factor denominator and, if
applicable, from its numerator.

Line 34. Sales Excluded from Combined Unitary Income (Combined Group Members Only) – If sales are included
in the amount reported Form 6, Part II, line 6 for separately apportioned income, those sales are excluded from the
numerator and denominator of the sales factor. Report the excluded amount of these sales on line 34.

However, if these excluded sales are entered on lines 1 through 30, do not enter any amounts on line 34.

See the instructions to Form N, Wisconsin Nonapportionable, Separately Accounted, and Separately Apportioned
Income, for further details on how to report and apportion separately apportioned income.

Line 37. Sales Previously Deferred (Combined Group Members Only) – If a combined group member made a
sale to another member of the combined group in a prior taxable year and gain or loss on the transaction was
deferred under the provisions of sec. 71.255(4)(g), Wis. Stats., the selling member must include the gross receipts
from the sale in its sales factor in the year the gain or loss is recognized, to the extent those gross receipts are
otherwise includable in the sales factor.

NOTE: Section 71.255(4)(g), Wis. Stats., provides that the intercompany deferral provisions of Treas. Reg.
§1.1502-13 apply to a combined group similarly to how they apply to a consolidated group for federal purposes.
See the instructions to Form 6, Part I, line 33, for details.

Report the gross receipts corresponding to any income recognized under sec. 71.255(4)(g), Wis. Stats., on line 37.
If these receipts are already included on lines 1 through 30, do not enter any amounts on line 37.

Under sec. Tax 2.61(7)(d), Wisconsin Administrative Code, special sourcing rules apply to amounts reported on
line 37. If a combined group member sells an item or service to another combined group member and the
purchaser subsequently resells it to a third party outside of the group, the situs of both sales is determined based
on the situs of the sale from the purchasing member to the third party. Also, the purchasing member must exclude
from its apportionment factors the amount the selling member already included attributable to that same item or
service.

Example 5: Combined Group YZ consists of Member Y and Member Z. Group YZ is on a calendar year. On
December 30, 2023, Y sells a widget with a cost of $400 to Z, for $600. Y ships the widget to Z’s
warehouse in Wisconsin. On January 30, 2024, Z resells the widget to Q, an unrelated third party, for $700.
Z ships the widget to Q’s headquarters in Illinois. Assume both the sale by Y and the sale by Z are
includable in combined unitary income and assume that Z has nexus in Illinois.

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2024 Schedule A-02 Instructions

In 2023, Y did not recognize any gain on the sale to Z because the gain was deferred under the provisions of
sec. 71.255(4)(g), Wis. Stats. Since the gain on the sale was not recognized, Y cannot include the $600 sale
in its apportionment factors for 2023.

In 2024, Y must include its $200 of gain on the sale to Z (= $600 - $400) in combined unitary income. Y must
also include the sale $600 in its sales factor denominator for 2024. Z must include its $100 gain on the sale to
Q (= $700 - $600) in combined unitary income for 2024. However, since $600 of Z’s sales price has already
been included in Y’s sales factor, Z may only include the remaining $100 of the sale amount in its sales factor
denominator. Neither Y nor Z include these amounts in their sales factor numerators since both sales are deemed
to have a situs in Illinois where Group YZ has nexus.

Additional Information and Assistance

Web Resources

The Department of Revenue’s web page, available at revenue.wi.gov, has a number of resources to provide
additional information and assistance, including:

• Forms
• Common questions
• Publications on specific tax topics
• The Wisconsin Tax Bulletin
• A home page specifically for combined reporting topics
• Links to the Wisconsin Statutes and Administrative Code

Contact Information

If you cannot find the answer to your question in the resources available on the Department of Revenue’s web
page, contact the Department using any of the following methods:

• E-mail your question to: DORFranchise@wisconsin.gov
• 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.)
• Send a fax to (608) 267-0834
• Write to the Audit Bureau, Wisconsin Department of Revenue, Mail Stop 3-107, PO Box 8906, Madison,
WI 53708-8906

Applicable Laws and Rules
This document provides statements or interpretations of the following laws and regulations enacted as
of the revised date: Chapter 71 Wis. Stats., and Chapter Tax 2, Wis. Adm. Code

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