Changes were made to the Wisconsin capital gain exclusion by 2009 Act 28. Effective for taxable years beginning on or after January 1, 2009, except as provided below, the net long-term capital gain exclusion is reduced from 60% to 30%.
On farm assets held more than one year and on all farm assets acquired from a decedent, the capital gain exclusion remains at 60% of the capital gain as computed under the Internal Revenue Code, not including amounts treated as ordinary income for federal income tax purposes because of the recapture of depreciation or any other reason.
"Farm assets" means livestock, farm equipment, farm real property, and farm depreciable property. Capital gains and capital losses for all assets are to be netted before application of the percentage.
The 2009 Wisconsin Schedule WD will be revised to reflect the law change.
July 13, 2009