2017 I-129 Instructions for Wisconsin Schedule MT

I-129 (R. 11-17)

Instructions for 2017 Wisconsin Schedule MT

General Instructions

Who Must File

Generally, you may have to pay alternative minimum tax

if your Wisconsin income combined with any adjustment

or tax preference items totals more than:

• $84,500 if married filing a joint return,

• $54,300 if single or head of household,

• $42,250 if married filing a separate return, or

• $24,100 if a trust or estate.

(Note: These guidelines do not apply to part-year resident

and nonresident individuals, estates, and trusts because

of required proration.)

See the instructions for federal Form 6251 (Schedule I

of Form 1041 for estates and trusts) for descriptions of

adjustment and tax preference items.

Individuals, estates, and trusts must file Schedule MT if

the income tax computed on line 26 of Wisconsin Form 1,

line 52 of Wisconsin Form 1NPR, or line 8 of Wisconsin

Form 2 is less than the Wisconsin tentative minimum tax.

Specific Instructions

CAUTION: The Internal Revenue Service hadn’t finalized

the 2017 federal Forms 1041 and 6251 at the time that

Schedule MT went to print. Therefore, line numbers on

federal Forms 1041 and 6251 referred to on Schedule MT

and in these instructions may change.

Line 1 Federal Alternative Minimum Taxable Income

(AMTI)

Individuals – Fill in your federal AMTI from line 28 of

federal Form 6251.

Estates and Trusts – Fill in your share of AMTI from line 29

of Schedule I of federal Form 1041.

Exceptions

• If you are required to file a Wisconsin Schedule I

(complete Schedule B of Form 2 for estates and trusts)

because differences between federal and Wisconsin

law affect you, you must recompute Form 6251

(Schedule I of Form 1041 for estates and trusts),

substituting the federal income amounts determined

on Wisconsin Schedule I (using Schedule B of Form 2

for estates and trusts) for the income shown on federal

Form 1040 (Form 1041 for estates and trusts). Label

this recomputed Form 6251 (Schedule I of Form 1041

for estates and trusts) “Wisconsin” and enclose it with

your Wisconsin income tax return.

• If you are married filing a separate federal income tax

return and are required to include an additional amount

of federal AMTI on line 28 of federal Form 6251 because

your federal AMTI exceeds $249,450, fill in on line 1 of

Schedule MT the federal AMTI before such additional

amount was included.

Line 2 Additions

Because your federal AMTI (line 1 of Schedule MT) may

include items which are not deductible for Wisconsin, or

such federal income does not include items which are

taxable for Wisconsin, you may have to add these items

to arrive at the correct Wisconsin AMTI.

Resident Individuals – Fill in lines 2a, 2b, and 2c. Do not fill

in an amount on line 2d or 2e. Also, fill in lines 2f and 2g.

Exception If you are a beneficiary of an estate or trust,

fill in on line 2d the amount of state and local taxes which

is included in Column (c) of your Schedule 2K-1.

Resident Estates and Trusts – Fill in lines 2a through 2g.

For line 2b, fill in only the portion of the tax preference

for tax-exempt interest from line 8 of Schedule I of your

federal Form 1041 which is allocable to nondistributable

income.

Part-Year Resident and Nonresident Individuals, Estates,

and Trusts – Fill in -0- on line 2g and see the instructions

for line 4.

Line 3 Subtractions

Because your federal AMTI (line 1 of Schedule MT) may

in clude items which are not taxable for Wisconsin, or

such federal income does not include items which are

deductible for Wisconsin, you may have to subtract these

items to arrive at the correct Wisconsin AMTI (for example,

the Wisconsin capital gain exclusion is subtracted from

federal AMTI to arrive at Wisconsin AMTI).

Resident Individuals – Fill in lines 3a, 3b, and 3c. Do not

fill in an amount on line 3d. Also, fill in lines 3e and 3f.

Resident Estates and Trusts – Fill in lines 3a through 3f.

Part-Year Resident and Nonresident Individuals, Estates,

and Trusts – Fill in -0- on line 3f and see the instructions

for line 4.

Line 4

Resident Individuals, Estates, and Trusts – If line 3f is

smaller than line 2g, subtract line 3f from line 2g and

fill in the result on line 4. If line 3f is larger than line 2g,

subtract line 2g from line 3f and fill in the result as a

negative number.

I-129 (R. 11-17)

Part-Year Resident and Nonresident Individuals, Estates,

and Trusts – Complete the following worksheet to

determine the amount to fill in on line 4.

1. Wisconsin income from line 32 of

Form 1NPR

(line 2, Part II of Schedule NR)

2. Wisconsin net operating loss included

on line 15, column B of Form 1NPR

(line 16, column (b) of Schedule NR).

Enter as a positive number .......2.

3. State income tax refund from line 4,

column A of Form 1NPR

(line 8, column (a) of Schedule NR) ..3.

4. Recoveries of federal itemized

deductions included on line 15,

column A of Form 1NPR

(line 8, column (a) of Schedule NR) ..4.

5. Add lines 1 through 4 ............5.

6. Federal income (see Note below)

from line 33 of Form 1NPR*

(line 24, column (a) of Schedule NR) . 6.

7. Federal net operating loss carryover

from line 21 of federal Form 1040

(line 16, column (a) of Schedule NR).

Enter as a positive number .......7.

8. Estates and trusts – taxes from line

11, column (a) of Schedule NR .....8.

9. Add lines 6 through 8 ............9.

10. If line 9 is smaller than line 5, subtract

line 9 from line 5 and fill in the result.

If line 9 is larger than line 5, subtract

line 5 from line 9 and fill in the result

as a negative number ...........10.

Fill in the amount from line 10 of the worksheet on line 4

of Schedule MT.

* If line 31 is greater than line 16, subtract line 31 from

line 16 and enter as a negative number.

Note: If military compensation of a nonresident was

excluded from line 1, Column A of Form 1NPR, include

the amount excluded in federal income.

Line 6 Itemized Deduction Addback

Resident Individuals and Estates and Trusts – Fill in -0-

on line 6.

Part-Year Resident and Nonresident Individuals – You may

have to add back to federal AMTI a portion of your item-

ized deductions. Fill in the worksheet in the next column.

Itemized Deduction Addback Worksheet

Figure the amount to add back as follows:

1. Itemized deductions from line 40

of federal Form 1040 and line 6 of

federal Form 6251 (treat as a positive

number) less amounts from lines 2

through 5 and 8 of federal

Form 6251

2. Fill in one (1.00) minus the proration

ratio from line 34 of Form 1NPR ...2.

3. Multiply line 1 by line 2. Fill in the result

here and on line 6 of Schedule MT . 3.

Line 8 Adjustments

• If adjustments and preferences reported on lines 9, 12,

and 14 through 27 of federal Form 6251 (lines 2, 4, 6, 8,

and 10 through 23 of Schedule I of federal Form 1041

for estates and trusts) did not result in a tax benefit

for Wisconsin tax purposes, fill in the net amount of

those adjustments and preference items on line 8 of

Schedule MT. Adjustments and preferences will not

produce a tax benefit if you are a part-year resident

or nonresident of Wisconsin and the related income

or deduction does not have a Wisconsin situs. (Note:

Also include any portion of the adjustment from line 8

of federal Form 6251 that relates to investment interest

expense reported on Schedule E which did not result in

a tax benefit.)

Example: You are a nonresident of Wisconsin, but are

required to le a Wisconsin income tax return because

of rental property you own in Wisconsin. On lines 18

and 19 of federal Form 6251 you report an accelerated

depreciation tax preference of $5,000 that relates

to rental property you own in Illinois and a passive

activity loss adjustment of $5,000 that relates to an

Iowa partnership in which you are a limited partner.

The income from your rental property in Illinois is not

taxable to Wisconsin and the income from your limited

partnership interest is not allocable to Wisconsin. The

total of the accelerated depreciation tax preference and

passive activity loss adjustment ($10,000) should be

lled in on line 8 of Schedule MT as a negative number.

CAUTION: Estates and trusts should only enter

amounts allocable to nondistributable income.

Example: A nonresident trust is required to le a

Wisconsin tax return because of rental property owned

in Wisconsin. Line 4 of Schedule I of federal Form 1041

reports miscellaneous itemized deductions of $10,000

that relate to interest and dividends, one-half of which

are nondistributable income. As the interest and dividend

income is not allocable to Wisconsin, the amount of the

miscellaneous itemized deduction adjustment allocable

to nondistributable income ($5,000) should be lled in

on line 8 of Schedule MT as a negative number.

I-129 (R. 11-17)

• If an amount reported on line 14 of federal Form 6251

(line 10 of Schedule I of federal Form 1041 for estates

and trusts) with regard to incentive stock options is

included in federal AMTI, that adjustment relating to

stock options (including any basis adjustment) should

be reduced by 20% for Wisconsin purposes. Fill in the

20% reduction on line 8 of Schedule MT.

CAUTION: Do not add back 20% of the federal basis

adjustment made when incentive stock option stock is

sold if you did not receive a Wisconsin tax benefit from

reducing the federal adjustment in the year of exercise

by 20%.

• If any addition or subtraction amount on line 2a or 3a of

Schedule MT (or used in computing Wisconsin income

for nonresidents or part-year residents) relates to items

that generate adjustment or preference amounts for

minimum tax purposes on lines 9, 12, and 14 through

27 of federal Form 6251 (lines 6, 8, and 10 through 23 of

Schedule I of federal Form 1041 for estates and trusts),

any resulting increase or decrease in the amount of the

adjustment or preference item for Wisconsin purposes

should be filled in on line 8 of Schedule MT.

Example: On line 2a of Schedule MT, you claimed an

addition (from Schedule T) due to a difference in basis

for federal and Wisconsin purposes. The property is

depreciated using the ACRS method of depreciation.

As a result, you reported as a tax preference the

difference between ACRS depreciation and straight

line depreciation on federal Form 6251. The amount

of this tax preference should be reduced to reflect the

difference in depreciation allowable for Wisconsin and

federal purposes.

• If adjustments or preferences distributed to you from a

tax-option (S) corporation, partnership, estate, or trust

differ for Wisconsin, fill in the amount of the difference

on line 8 of Schedule MT.

Example: On your Wisconsin Schedule 5K-1

(Tax-Option (S) Corporation Shareholders’ Share

of Income, Deductions, etc.), the federal amount of

adjustments distributed is $8,000. An adjustment is

shown in Column (c) of ($3,000) and a Wisconsin

amount of $5,000 is shown in Column (d). Since $8,000

is already included on line 1 of Schedule MT, fill in

$3,000 on line 8 as a negative number.

Example: On your Wisconsin Schedule 3K-1

(Wisconsin Partner’s Share of Income, Deductions,

etc.), the federal amount of tax preferences distributed

is $5,000. A modification is shown in Column (c) of

($2,000) and a Wisconsin amount of $3,000 is shown in

Column (d). Since $5,000 is already included on line 1

of Schedule MT, fill in $2,000 on line 8 of Schedule MT

as a negative number.

• If the difference between the Wisconsin adjusted basis

and the federal adjusted basis of depreciable assets

owned on the last day of your 2013 tax year is not the

same for regular tax and minimum tax purposes, fill in

20% of the difference on line 8 of Schedule MT.

Example: For regular tax purposes, there is a basis

adjustment of ($25,000) resulting from the difference

between the Wisconsin adjusted basis and the federal

adjusted basis of depreciable assets owned on the

last day of your 2013 tax year. The basis adjustment

for minimum tax purposes is ($35,000). Fill in $2,000

($10,000 x 20%) as a negative number on line 8 of

Schedule MT.

Line 12 Wisconsin Alternative Tax Net Operating

Loss (ATNOL)

If you sustained a Wisconsin regular tax net operating

loss (NOL) in years prior to 2017, you must compute your

Wisconsin ATNOL and carryforward.

If you sustain a Wisconsin regular tax NOL in 2018 or

2019 and elect to carry it back to 2017, you must compute

your Wisconsin ATNOL and carryback.

Your ATNOL for the loss year is your regular tax NOL

reduced or increased, as appropriate, by those tax

preference items and adjustments from federal Form 6251

for the loss year that applied for Wisconsin. If in any year

the tax preferences and adjustments are greater than your

regular tax NOL, you do not have an ATNOL for that year.

An ATNOL for years prior to 2014 may be carried forward

and used to decrease AMTI for up to 15 years. An ATNOL

for 2014 and future years may be carried back for 2 years

and then carried forward for up to 20 years. If 2017 is the

first year to which the ATNOL is carried, the amount of the

carryforward or carryback is the amount of the ATNOL.

Otherwise, the amount of the carryforward or carryback is

the amount of the ATNOL remaining after subtracting the

amount used in the preceding carryforward or carryback

year(s) to decrease AMTI. You must consider the ATNOL

used in each carryforward or carryback year even if you

did not owe Wisconsin alternative minimum tax each year.

Example: Your regular tax NOL and tax preferences are

indicated below. For 2014 and 2015, you used $5,000 of

your ATNOL to decrease AMTI. You would compute your

Wisconsin ATNOL carryover of $9,000 to 2017 as follows:

2014 2015 2016

Regular tax NOL $5,000 $15,000 $29,000

Less tax preferences 2,000 4,000 33,000

ATNOL $3,000 $11,000 $ - 0 -

Less ATNOL used to

decrease AMTI 3,000 2,000 - 0 -

ATNOL carryover available

for 2017 $ - 0 - $ 9,000 $ - 0 -

I-129 (R. 11-17)

Line 13 If you are married filing a separate Wisconsin

income tax return and the result of subtracting line 12

from line 11 is more than $249,450, complete the following

worksheet:

1. Subtract line 12 of Schedule MT

from line 11 of Schedule MT ......1.

2. Exemption amount ..............2.

$ 249,450

3. Subtract line 2 from line 1 ........3.

4. Multiply line 3 by .25 (25%) .......4.

5. Enter the smaller of line 4 or $42,250 5.

6. Add lines 1 and 5. Fill in the result

here and on line 13 of Schedule MT 6.

If the amount filled in on line 13 is zero or less, do not fill

in the rest of this schedule. You do not owe a Wisconsin

alternative minimum tax.

Lines 14a and 14b

Resident Individuals, Estates, and Trusts – Fill in the

exemption amount shown on line 14a.

Part-Year Resident and Nonresident Individuals – Multiply

$84,500 ($54,300 if single or head of household, or

$42,250 if married filing separate return) by the proration

ratio from line 34 of Form 1NPR. Fill in the result on line 14b.

Nonresident Estates and Trusts and Part-Year Resident

Trusts – Use the following worksheet to compute the

amount to fill in on line 14b:

Nonresident Estates and Trusts and Part-Year

Resident Trust Worksheet

1. Total income from line 9, column (a)

of Schedule NR .................1.

2. Total income from line 9, column (b)

of Schedule NR . . . . . . . . . . . . . . . . 2.

3. Divide line 2 by line 1 (do not fill in

more than one (1)). This is your

proration ratio ................. 3.

4. Multiply $24,100 by the proration

ratio on line 3. Fill in the result on

line 14b of Schedule MT ......... 4.

Line 15 Exemption Phase-Out Amount You must

complete line 15 if:

You are: And line 13 is over:

Married filing jointly .............$160,900

Single or head of household ......$120,700

Married filing separately ..........$80,450

An estate or trust. . . . . . . . . . . . . . . . $80,450

If line 13 of Schedule MT is over these amounts, complete

the worksheet in the next column to compute the amount

to fill in on line 15:

1. Fill in the amount from line 13 of

Schedule MT ..................1.

2. Fill in $160,900 ($120,700 if single or

head of household, or $80,450 if

married filing separately or an estate

or trust) ......................2.

3. Subtract line 2 from line 1 ........3.

4. Multiply line 3 by .25 (25%). If this form

is for a part-year resident or nonresident

individual, a nonresident estate or trust,

or a part-year resident trust, complete

line 5 or 6 below. Otherwise stop here

and fill in this amount on line 15 of

Schedule MT ..................4.

5. Part-year resident and nonresident

individuals – multiply the amount on

line 4 by the proration ratio from line 34

of Form 1NPR. Fill in this amount on

line 15 of Schedule MT ..........5.

6. Nonresident estates and trusts and

part-year resident trusts – multiply

the amount on line 4 by the proration

ratio on line 3 of the worksheet for

line 14b. Fill in this amount on

line 15 of Schedule MT ..........6.

Line 16

Subtract line 15 from line 14a or 14b, as appropriate,

and fill in the result on line 16. If the result is zero or

less, fill in -0-.

Line 17

Subtract line 16 from line 13 and fill in the result on line 17.

If the amount filled in on line 17 is zero or less, do not

complete the rest of this schedule. You do not owe a

Wisconsin alternative minimum tax.

Line 18 Tentative Minimum Tax

Multiply the amount on line 17 by .065 (6.5%) and fill in

the result on line 18.

Line 19

Fill in the amount of your Wisconsin tax from line 26 of

Wisconsin Form 1, line 52 of Wisconsin Form 1NPR, or

line 8 of Wisconsin Form 2.

Line 20 Wisconsin Alternative Minimum Tax

If line 19 is larger than line 18, fill in -0- on line 20. You do

not owe a Wisconsin alternative minimum tax. If line 18

is larger than line 19, subtract line 19 from line 18 and fill

in the result on line 20. This is your Wisconsin alternative

minimum tax due. Fill in this amount on line 27 of Form 1,

line 53 of Form 1NPR, or line 9 of Form 2.