For purposes of subd. 1m., “earned income” means wages, salaries, or professional fees, amounts received for services performed by an individual in the employ of his or her spouse, and other amounts received as compensation for personal services actually rendered, but does not include that part of the compensation derived by the taxpayer for personal services rendered by him or her to a corporation which represents a distribution of earnings or profits rather than a reasonable allowance as compensation for the personal services actually rendered. In the case of a taxpayer engaged in a trade or business in which both personal services and capital are material income-producing factors, under federal regulations, a reasonable allowance as compensation for the personal services rendered by the taxpayer shall be considered as earned income. Earned income includes gains, other than any gain which is treated under any provision of chapter 1 of the Internal Revenue Code as gain from the sale or exchange of a capital asset, and includes net earnings derived from the sale or disposition of, the transfer of any interest in, or the licensing of the use of property, other than goodwill, by an individual whose personal efforts created such property. Earned income does not include any amount not included in gross income, received as a pension or annuity, paid or distributed out of an individual retirement plan, within the meaning of section 7701 (a) (37) of the Internal Revenue Code, or received as deferred compensation. Earned income is computed notwithstanding the fact that each spouse owns an undivided one-half interest in the whole of the marital property. A marital property agreement or unilateral statement under ch. 766 transferring income between spouses has no effect in computing earned income under this paragraph.