Wis. Stat. § 71.01 — WI Code / Chapter 71 / Section 71.01
Definitions.
Status: in_force

In this chapter in regard to natural persons and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds:

(1) “Adjusted gross income”, when not preceded by the word “federal”, means Wisconsin adjusted gross income, unless otherwise defined or the context plainly requires otherwise.

(1am) “Aggregate effective tax rate” means the sum of the effective tax rates imposed by a state, U.S. possession, foreign country, or any combination thereof, on the person or entity.

(1as) “Broadcaster” means a television or radio station licensed by the federal communications commission, a television or radio broadcast network, a cable television network, or a television distribution company. “Broadcaster” does not include a cable service provider, a direct broadcast satellite system, or an Internet content distributor.

(1b) For purposes of s. 71.04 (7) (df) , (dh) , (dj) , and (dk) , “commercial domicile” means the location from which a trade or business is principally managed and directed, based on any factors the department determines are appropriate, including the location where the greatest number of employees of the trade or business work, have their office or base of operations, or from which the employees are directed or controlled.

(1m) “Department” means the department of revenue.

(1n) For purposes of s. 71.04 (7) (df) , (dh) , (dj) , and (dk) , “domicile” means an individual’s true, fixed, and permanent home where the individual intends to remain permanently and indefinitely and to which, whenever absent, the individual intends to return, except that no individual may have more than one domicile at any time.

(1t) “Effective tax rate” means the maximum tax rate imposed by the state, U.S. possession, or foreign country, multiplied by the apportionment percentage, if any, applicable to the person or entity under the laws of that state, U.S. possession, or foreign country.

(2) “Entertainer” means a nonresident natural person who, for consideration, furnishes amusement, entertainment or public speaking services, or performs in one or more sporting events in this state and includes both employees and independent contractors.

(3) “Federal net operating loss” of persons other than corporations means net operating loss as determined by the taxpayer under the internal revenue code, or if redetermined by the department, as determined by the department under such code or as may be determined on final appeal therefrom.

(4) “Federal taxable income” and “federal adjusted gross income” of natural persons and fiduciaries mean taxable income or adjusted gross income as determined under the internal revenue code or, if redetermined by the department, as determined by the department under the internal revenue code or as may be determined on final appeal therefrom.

(5) “Fiduciary”, “income” and “person” and all other terms not otherwise defined, have the same meaning as in the internal revenue code unless otherwise defined or the context requires otherwise.

(5g) “File” means mail or deliver a document that the department prescribes to the department or, if the department prescribes another method of submitting or another destination, use that other method or submit to that other destination.

(5m) “Head of household” has the meaning given in section 2 (b) and (c) of the internal revenue code, except that “head of household” includes surviving spouse, as defined in section 2 (a) of the internal revenue code.

(5n) For purposes of s. 71.05 (6) (a) 24. and (b) 46. , “intangible expenses” include the following, to the extent that the amounts would otherwise be deductible in computing Wisconsin adjusted gross income:

(a) Expenses, losses, and costs for, related to, or directly or indirectly in connection with the acquisition, use, maintenance, management, ownership, sale, exchange, or any other disposition of intangible property.

(b) Losses related to, or incurred in connection directly or indirectly with, factoring transactions or discounting transactions.

(c) Royalty, patent, technical, and copyright fees.

(d) Licensing fees.

(e) Other similar expenses, losses, and costs.

(5p) “Intangible property” includes stocks, bonds, financial instruments, patents, patent applications, trade names, trademarks, service marks, copyrights, mask works, trade secrets, and similar types of intangible assets.

(5s) For purposes of s. 71.05 (6) (a) 24. and (b) 46. , “interest expenses” means interest that would otherwise be deductible under section 163 of the Internal Revenue Code and deductible in the computation of Wisconsin adjusted gross income.

(6)

(L)

1. For taxable years beginning after December 31, 2017, and before January 1, 2021, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2017, except as provided in subds. 2. and 3. and s. 71.98 , and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2017: sections 1, 3, 4, and 5 of P.L. 106-519 ; sections 101, 102, and 422 of P.L. 108-357 ; sections 1310 and 1351 of P.L. 109-58 ; section 11146 of P.L. 109-59 ; section 403 (q) of P.L. 109-135 ; section 513 of P.L. 109-222 ; section 104 of P.L. 109-432 ; sections 8233 and 8235 of P.L. 110-28 ; section 11 (e) and (g) of P.L. 110-172 ; section 301 of P.L. 110-245 ; section 15351 of P.L. 110-246 ; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343 ; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5 ; sections 211, 212, 213, 214, and 216 of P.L. 111-226 ; section 2122 of P.L. 111-240 ; sections 754 and 760 of P.L. 111-312 ; sections 104, 318, 322, 323, 326, 327, and 411 of P.L. 112-240 ; P.L. 114-7 ; section 1101 of P.L. 114-74 ; section 305 of division P of P.L. 114-113 ; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L. 114-113 ; and sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97 .

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2017, except that “Internal Revenue Code” includes sections 40307, 40413, and 41113 of P.L. 115-123 ; sections 101 (m), (n), (o), (p), and (q), 104 (a), 109, 401 (a) (54) and (b) (15) (A), (B), and (C) 19, 20, 23, 26, 27, and 28 of division U of P.L. 115-141 ; sections 102 and 104 of division M, sections 102, 103, 106, 107, 108, 109, 110, 111, 113, 114, 115, 116, 201, 204, 205, 206, 302, 401, and 601 of division O, section 1302 of division P, and sections 131, 202 (d), and 205 of division Q of P.L. 116-94 ; sections 1106, 2202, 2203, 2204, 2205, 2206, 2307, 3608, 3609, 3701, and 3702 of division A of P.L. 116-136 ; sections 202, 208, 209, 211, and 214 of division EE and sections 276 (a) and (b), 277, 278 (a), (b), (c), and (d), 280, and 285 of division N of P.L. 116-260 ; and sections 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L. 117-2 .

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except as follows:

a. Changes made by P.L. 115-63 and sections 11026, 11027, 11028, 13207, 13306, 13307, 13308, 13311, 13312, 13501, 13705, 13821, and 13823 of P.L. 115-97 first apply for taxable years beginning after December 31, 2017.

b. Changes made by section 1201 of P.L. 108-173 and section 307 of P.L. 109-432 first apply for taxable years beginning after December 31, 2010.

c. Changes made by section 13113 of P.L. 103-66 ; section 1241 of division B of P.L. 111-5 ; section 2011 of P.L. 111-240 ; section 753 of P.L. 111-312 ; and section 324 of P.L. 112-240 first apply for taxable years beginning after December 31, 2018.

(m)

1. For taxable years beginning after December 31, 2020, and before January 1, 2023, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2020, except as provided in subds. 2. and 3. and s. 71.98 , and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2020: sections 1, 3, 4, and 5 of P.L. 106-519 ; sections 101, 102, and 422 of P.L. 108-357 ; sections 1310 and 1351 of P.L. 109-58 ; section 11146 of P.L. 109-59 ; section 403 (q) of P.L. 109-135 ; section 513 of P.L. 109-222 ; section 104 of P.L. 109-432 ; sections 8233 and 8235 of P.L. 110-28 ; section 11 (e) and (g) of P.L. 110-172 ; section 301 of P.L. 110-245 ; section 15351 of P.L. 110-246 ; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343 ; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5 ; sections 211, 212, 213, 214, and 216 of P.L. 111-226 ; section 2122 of P.L. 111-240 ; sections 754 and 760 of P.L. 111-312 ; sections 104, 318, 322, 323, 326, 327, and 411 of P.L. 112-240 ; P.L. 114-7 ; section 1101 of P.L. 114-74 ; section 305 of division P of P.L. 114-113 ; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L. 114-113 ; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97 ; sections 40304, 40305, 40306, and 40412 of P.L. 115-123 ; section 101 (c) of division T of P.L. 115-141 ; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) of division U of P.L. 115-141 ; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94 ; sections 2304 and 2306 of P.L. 116-136 ; and sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260 .

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2020, except that “Internal Revenue Code” includes sections 9671, 9701, 9702, 9703, 9704, 9705, 9706, and 9707 of P.L. 117-2 ; and sections 80501, 80504, and 80602 of division H of P.L. 117-58 .

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except as follows:

a. Changes made by sections 20101, 20102, 20104, 20201, 40201, 40202, 40203, 40308, 40309, 40311, 40414, 41101, 41107, 41114, 41115, and 41116 of P.L. 115-123 ; section 101 (a), (b), and (h) of division U of P.L. 115-141 ; section 1203 of P.L. 116-25 ; section 1122 of P.L. 116-92 ; section 301 of division O, section 1302 of division P, and sections 101, 102, 103, 117, 118, 132, 201, 202 (a), (b), and (c), 204 (a), (b), and (c), 301, and 302 of division Q of P.L. 116-94 ; section 2 of P.L. 116-98 ; and sections 301, 302, and 304 of division EE of P.L. 116-260 apply for taxable years beginning after December 31, 2020.

b. Changes made by section 1201 of P.L. 108-173 and section 307 of P.L. 109-432 first apply for taxable years beginning after December 31, 2010.

(n)

1. For taxable years beginning after December 31, 2022, for individuals and fiduciaries, except fiduciaries of nuclear decommissioning trust or reserve funds, “Internal Revenue Code” means the federal Internal Revenue Code as amended to December 31, 2022, except as provided in subds. 2. and 3. and s. 71.98 , and subject to subd. 4.

2. For purposes of this paragraph, “Internal Revenue Code” does not include the following provisions of federal public laws for taxable years beginning after December 31, 2022: sections 1, 3, 4, and 5 of P.L. 106-519 ; sections 101, 102, and 422 of P.L. 108-357 ; sections 1310 and 1351 of P.L. 109-58 ; section 11146 of P.L. 109-59 ; section 403 (q) of P.L. 109-135 ; section 513 of P.L. 109-222 ; section 104 of P.L. 109-432 ; sections 8233 and 8235 of P.L. 110-28 ; section 11 (e) and (g) of P.L. 110-172 ; section 301 of P.L. 110-245 ; section 15351 of P.L. 110-246 ; section 302 of division A, section 401 of division B, and sections 312, 322, 502 (c), 707, and 801 of division C of P.L. 110-343 ; sections 1232, 1251, 1501, and 1502 of division B of P.L. 111-5 ; sections 211, 212, 213, 214, and 216 of P.L. 111-226 ; section 2122 of P.L. 111-240 ; sections 754 and 760 of P.L. 111-312 ; sections 104, 318, 322, 323, 326, 327, and 411 of P.L. 112-240 ; P.L. 114-7 ; section 1101 of P.L. 114-74 ; section 305 of division P of P.L. 114-113 ; sections 123, 125 to 128, 143, 144, 151 to 153, 165 to 167, 169 to 171, 189, 191, 326, and 411 of division Q of P.L. 114-113 ; sections 11011, 11012, 13201 (a) to (e) and (g), 13206, 13221, 13301, 13304 (a), (b), and (d), 13531, 13601, 13801, 14101, 14102, 14103, 14201, 14202, 14211, 14212, 14213, 14214, 14215, 14221, 14222, 14301, 14302, 14304, and 14401 of P.L. 115-97 ; sections 40304, 40305, 40306, and 40412 of P.L. 115-123 ; section 101 (c) of division T of P.L. 115-141 ; sections 101 (d) and (e), 102, 201 to 207, 301, 302, and 401 (a) (47) and (195), (b) (13), (17), (22) and (30), and (d) (1) (D) (v), (vi), (xiii), and (xvii) (II) of division U of P.L. 115-141 ; sections 104, 114, 115, 116, 130, and 145 of division Q of P.L. 116-94 ; sections 2304 and 2306 of P.L. 116-136 ; sections 111, 114, 115, 116, 118 (a) and (d), 133, 137, 138, and 210 of division EE of P.L. 116-260 ; sections 5003, 9041, 9673, 9675, and 9708 of P.L. 117-2 ; section 307 of division P of P.L. 117-103 ; section 13903 (b) of P.L. 117-169 ; and section 4151 of division FF of P.L. 117-328 .

3. For purposes of this paragraph, “Internal Revenue Code” does not include amendments to the federal Internal Revenue Code, including provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, enacted after December 31, 2022.

4. For purposes of this paragraph, the provisions of federal public laws that directly or indirectly affect the Internal Revenue Code, as defined in this paragraph, apply for Wisconsin purposes at the same time as for federal purposes, except as follows:

a. Changes made by sections 5001, 5002, 5005, 9623, 9624, and 9672 of P.L. 117-2 ; section 2 of P.L. 117-6 ; and sections 80401, 80402, and 80601 of division H of P.L. 117-58 apply for taxable years beginning after December 31, 2022.

b. Changes made by section 1201 of P.L. 108-173 and section 307 of P.L. 109-432 apply for taxable years beginning after December 31, 2010.

(7) Notwithstanding sub. (6) , for natural persons, fiduciaries, trusts and estates, at the taxpayer’s option, “internal revenue code”, for taxable year 1986 and subsequent taxable years, includes any revisions to the federal internal revenue code adopted after January 1, 1986, that relate to the taxation of income derived from any source as a direct consequence of participation in the milk production termination program created by section 101 of P.L. 99-198 .

(7m) Notwithstanding sub. (6) , for natural persons, fiduciaries, trusts and estates, at the taxpayer’s option, “internal revenue code” for taxable years beginning after December 31, 1987, includes any revisions to section 67 (c) of the internal revenue code adopted after January 1, 1988, that relate to the indirect expenses of regulated investment companies.

(7n) Notwithstanding sub. (6) , a qualified retirement fund for a taxable year for federal income tax purposes is a qualified retirement fund for the taxable year for purposes of this subchapter.

(7u) “Last day prescribed by law” has the meaning given in s. 71.738 , except that in s. 71.03 (2) (e) 1. and 2. “last day prescribed by law” includes extensions.

(7v) For purposes of s. 71.05 (6) (a) 24. and (b) 46. , “management fees” include expenses and costs, not including interest expenses, pertaining to accounts receivable, accounts payable, employee benefit plans, insurance, legal matters, payroll, data processing, purchasing, taxation, financial matters, securities, accounting, or reporting and compliance matters or similar activities, to the extent that the amounts would otherwise be deductible in the computation of Wisconsin adjusted gross income.

(8) “Married person” or “spouse” means a person determined under section 7703 (a) of the internal revenue code to be married, unless the context requires otherwise. A decree of divorce, annulment or legal separation terminates the marriage and the application of ch. 766 to property of the spouses after the date of the decree, unless the decree provides otherwise.

(8g) “Member” does not include a member of a limited liability company treated as a corporation under s. 71.22 (1k) .

(8j) For purposes of ss. 71.05 (6) (a) 29. , 71.21 (7) , 71.26 (3) (e) 4. , 71.34 (1k) (o) , and 71.45 (2) (a) 20. , “moving expenses” means all of the following:

(a) Vehicle rentals.

(b) Storage rentals.

(c) Moving company expenses for packing, unpacking, and transportation.

(d) Consulting fees and surveys.

(e) Brokerage commissions or fees.