Income tax deferral; qualified Wisconsin business.

(a)#

In this subsection: 1. “Claimant” means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation. 2. “Financial institution” has the meaning given in s. 69.30 (1) (b). 2m. “Investment” means amounts paid to acquire stock or other ownership interest in a partnership, corporation, tax-option corporation, or limited liability company treated as a partnership or corporation. 3. “Long-term capital gain” means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code. 4. “Qualified Wisconsin business” means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69).

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Income tax deferral; qualified Wisconsin business.

Official source

(a)#

In this subsection: 1. “Claimant” means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation. 2. “Financial institution” has the meaning given in s. 69.30 (1) (b). 2m. “Investment” means amounts paid to acquire stock or other ownership interest in a partnership, corporation, tax-option corporation, or limited liability company treated as a partnership or corporation. 3. “Long-term capital gain” means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code. 4. “Qualified Wisconsin business” means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69).

(a)(1)#

“Claimant” means an individual; an individual partner or member of a partnership, limited liability company, or limited liability partnership; or an individual shareholder of a tax-option corporation.

(a)(2)#

“Financial institution” has the meaning given in s. 69.30 (1) (b).

(a)(2m)#

“Investment” means amounts paid to acquire stock or other ownership interest in a partnership, corporation, tax-option corporation, or limited liability company treated as a partnership or corporation.

(a)(3)#

“Long-term capital gain” means the gain realized from the sale of any capital asset held more than one year that is treated as a long-term gain under the Internal Revenue Code.

(a)(4)#

“Qualified Wisconsin business” means a business certified by the Wisconsin Economic Development Corporation under s. 238.146, 2011 stats., or registered with the department under s. 73.03 (69).

(bm)#

For taxable years beginning after December 31, 2013, a claimant may subtract from federal adjusted gross income any amount of a long-term capital gain if the claimant does all of the following: 1. Within 180 days after the sale of the asset that generated the gain, invests all of the gain in a qualified Wisconsin business. 2. After making the investment as described under subd. 1., notifies the department, on a form prepared by the department, that the claimant will not declare the gain on the claimant’s income tax return because the claimant has reinvested the capital gain as described under subd. 1. The form shall be sent to the department along with the claimant’s income tax return for the year to which the claim relates.

(bm)(1)#

Within 180 days after the sale of the asset that generated the gain, invests all of the gain in a qualified Wisconsin business.

(bm)(2)#

After making the investment as described under subd. 1., notifies the department, on a form prepared by the department, that the claimant will not declare the gain on the claimant’s income tax return because the claimant has reinvested the capital gain as described under subd. 1. The form shall be sent to the department along with the claimant’s income tax return for the year to which the claim relates.

(c)#

The basis of the investment described in s. 71.05 (26) (b) 2., 2023 stats., shall be calculated by subtracting the gain described in s. 71.05 (26) (b) 1., 2023 stats., from the amount of the investment described in s. 71.05 (26) (b) 2., 2023 stats. The basis of the investment described in par. (bm) 1. shall be calculated by subtracting the gain described in par. (bm) 1. from the amount of the investment described in par. (bm) 1.

(d)#

If a claimant defers the payment of income taxes on a capital gain under this subsection, the claimant may not use the gain to net capital gains and losses, as described under sub. (10) (c).

(f)#

If a claimant claims a subtraction for a capital gain under s. 71.05 (26) (b), 2023 stats., or par. (bm), the gain may not be used as a qualifying gain under sub. (25).