Wisconsin Income Allocation

Forum|Forum|3 years ago
March 4, 2023
9 replies
68 views

Resident state is Illinois. Own property in both AZ and WI. Sold one rental property in the non-resident state of AZ.
My Step 1: Completed the Federal Tax return in TurboTax.
My Step 2: Completed the AZ Tax return in Turbo Tax.
My Step 3: Tried completing the WI Tax return and it insists on taxing the capital gains from the sale in AZ. How do I stop WI from taxing the capital gains that are not from WI AND I am NOT a reside of WI.

Turbo Tax Premiere Windows Desktop Version

MaryK4

Level 15

It does not tax the capital gain- Wisconsin prepares the state AS IF you are a full-time resident, using all income, deductions, etc. It then computes the Wisconsin percentage of total income that percentage is applied to the tax due.

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447debbieAuthor

Level 4

But it is. It is taking my capital gains from the AZ sale, multiplying it by ~70%, and then listing that value (top redacted value below) with the title: Wisconsin Capital Gains and Losses

The full capital gain amount shows up on Form 1NPR Line 7 Column "Federal Amount"
The 70% value shows up on Form 1NPR Line 7 Column "Wisconsin Amount"
Nothing shows up on Form 1NPR Line 7 Column "Non-Wisconsin Amount"

In my opinion, the blank should be in the Column for "Wisconsin Amount" and some other value, either the 100% or the 70% should be in the Column for "Non-Wisconsin Amount"

On another note - same Form 1NPR: Turbo Tax is also putting my interest income, earned in my resident state of Illinois, into the column titled "Wisconsin Amount" vs the the column titled, "Non-Wisconsin Amount".