Addback of Related Entity Expenses

  1. What types of expenses do I have to "add back" in computing my Wisconsin income?

  2. Who is a "related entity"?

  3. What are "interest expenses"?

  4. What are "rental expenses"?

  5. What are "intangible expenses"?

  6. What are "management fees"?

  7. Does the addback requirement apply to interest I included in my Wisconsin itemized deduction credit?

  8. How do I become eligible for a deduction for the amount added back?

  9. What documentation must I submit to show that a related entity interest or rental expense is deductible?

  10. If I have related entity interest or rental expenses that aren't eligible for a deduction and I had similar transactions in years before the addback was required, will the deductions be allowed for those prior years?

  11. If I have related entity interest or rental expenses that aren't eligible for a deduction, does the related entity still have to report the corresponding interest or rental income in Wisconsin income?

  12. How do pass-through entities report the Wisconsin addition and subtraction modifications associated with the addback requirement?

  13. How do members of pass-through entities report the Wisconsin addition and subtraction modifications associated with the addback requirement?


FOR QUESTIONS OR COMMENTS CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Corporation Franchise/Income Tax Assistance
PO Box 8906
Madison, WI 53708-8906
Phone: (608) 266-2772
Fax: (608) 267-0834
Email additional questions to DORFranchise@wisconsin.gov

January 11, 2019