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• Schedule SB, line 43, to report the subtraction modification of $5,000 relating to income from related entities whose
expenses were disallowed
• Schedule AD, line 29, to report a $15,000 addition modification for Wisconsin income taxed at the entity level of the tax-option
(S) corporation
Computation of the $15,000 addition for Wisconsin income reported by the tax-option (S) corporation
Description Amount
Federal ordinary business income from the tax-option (S) corporation $10,000
Schedule I depreciation difference ($20,000)
Schedule SB (line 43) - subtraction modification relating to income from related entities whose expenses
were disallowed ($5,000)
Schedule AD (line 29) - addition modification for Wisconsin loss reported by the tax-option (S)
corporation (enter as a positive amount on Schedule AD) ($15,000)
Line 30 – Partnership, Limited Liability Company, Trust, or Estate Adjustments
If you were a partner or member of a partnership or limited liability company (LLC) treated as a partnership, or you received
income from an estate or trust, you will receive a statement from the partnership, LLC, trust, or estate notifying you of any
additions or subtractions which you should make on your return. Fill in the amount of any such additions on line 30. See the
instructions for Schedule SB, line 47, for making adjustments for subtractions.
Required Attachments See the instructions earlier under the section titled Required Attachments for Additions Reported on
Lines 28 through 31.
Enter the name and FEIN of the partnership on the line(s) provided. For example, if you have a $1,000 addition from partnership
A and a $5,000 addition from partnership B, enter two separate additions on line 30 and enter the name and FEIN of partnership
A and partnership B on the lines provided. If you have more than 2 entries, attach a schedule listing each additional entry.
If an adjustment listed on Schedule 2K-1 or 3K-1 is due to a difference between federal and Wisconsin law, such as bonus
depreciation, this amount should be adjusted on Wisconsin Schedule . I
Line 31 – Partnership Entity Level Tax Election Adjustments
If you were a partner or member of a partnership or LLC treated as a partnership that elected to be taxed at the entity level,
you must compute your subtraction modification due to the entity-level tax election as follows. Note: If the partnership made
the election, the box will be checked on Schedule 3K-1, Part C, box 3.
1. Complete Schedule to modifyIyour federal adjusted gross income, using the Internal Revenue Code (IRC) in effect under
Wisconsin law, as if the election was not made.
2. Complete Schedule AD (line 30) to make any addition modifications as if the election was not made.
3. Complete Schedule SB (line 47) to make any subtraction modifications as if the election was not made.
4. For each partnership, net all partnership items included in your Wisconsin income (including the adjustments made on
Schedules I, AD, and SB above) and remove the partnership items by entering the net amount as either an addition to
income on Schedule AD, line 31, or a subtraction from income on Schedule SB, line 48. You must enter the FEIN for each
partnership for which you are removing items from your Wisconsin income. See example below.
Caution: Do not reverse any item of partnership gain or loss reported on federal Schedule D. These items have already been
removed from Wisconsin income when you completed Wisconsin Schedule WD. See the Schedule WD instructions for more
information.
Caution: If you are a partner of a partnership that did not make the entity level tax election but it directly or indirectly owned
another pass-through entity (lower tier) that made the election, you need to make a similar adjustment to your income, except only
for your share of that lower tier’s items. Box 4 of Part C on Schedule 3K-1 will be checked if a lower tier elected to pay the entity
level tax. The partnership is required to provide you a supplemental statement detailing your share of income, gain, loss, and
deduction that have been taxed by a lower-tier entity. Note: This also applies to beneficiaries of an estate or trust that directly or
indirectly owned a tax-option (S) corporation or partnership that elected to pay the entity level tax. In this instance, Box D of Part
II on the Schedule 2K-1 will be checked.
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