Question on Wisconsin State Return

[carolynm]

I'm preparing a return for a couple who bought and sold a rental property in 2006. The federal 4797 shows a gain of $10,000. For some reason this figures is flowing to Schedule T as if it is different for state purposes....am I perhaps entering something wrong? The basis and sales amount is the same for both the State and Federal returns.

Carolyn

[mcb39]

It is different for state purposes. Wisconsin only taxes 40% of long term capital gains so there is an adjustment of Sch T which is taken to the 1A as a deduction from Federal income.

Oops, reread your post and see that it was bought and sold in the same year. Check your dates of purchase and sale on Sch D. Also, take a look at the WI Sch WD and see what the adjustments are on there.; and where it is placing the sale.