E-file diagnostic: Wisconsin excess business interest expense and IRC 965(c) deductions
Wisconsin: Excess business interest expense and IRC 965(c) deductions are included in Other deductions to be reported federal column only. Wisconsin does not recognize these items and adjustment is required for Other deductions . Please make adjustment for Other deductions. Navigation: Organizer / States / Wisconsin / State Adjustments / Deductions adjustment tab / Other deductions / drill down to Other deductions detail.
This happens when the Federal form 1065, page 4, Schedule K, Line 13d Other deduction has entry for Excess business interest expense and there’s no adjustment is provided at Wisconsin’s Other Deductions.
Solution
- Go toOrganizer,States, then selectWisconsin.
- SelectAdjustments, then open theDeduction Adjustmentstab.
- Find toOTHER DEDUCTIONS ADJUSTMENTSsection.
- Drill down onOther deductionsline.
- Populate and make adjustment for other deductions based on the rules given in the diagnostic.
- Do a full recompute and recreate the e-file.
note
Excess business interest expense and IRC 965(c) deductions are included in other deductions to be reported federal column only. Wisconsin does not recognize these items, and adjustment is required for Other deductions.
