Wisconsin Administrative Code › Department of Revenue › Chapter Tax 2 - Income Taxation, Returns, Records And Gross Income › Section Tax 2.495 - Apportionment of apportionable income of interstate brokers-dealers, investment advisers, investment companies, and underwriters

Current through June 24, 2024
(1) SCOPE. A
			 brokerage house, investment adviser, investment company, or underwriter that is
			 engaged in business both in and outside this state shall apportion its
			 apportionable income as provided in this section, except if the brokerage
			 house, investment adviser, investment company, or underwriter is in a combined
			 group, its Wisconsin share of the combined group's apportionable income is
			 computed as provided in s.
			 71.255(5),
			 Stats., and further detailed in s. Tax 2.61 (7). Nonapportionable income shall
			 be allocated as provided in s.
			 71.25(5) (b),
			 Stats.
Note:
A brokerage house, investment adviser,
				investment company, or underwriter that is a corporation may be in a combined
				group for taxable years beginning on or after January 1, 2009. See s. Tax 2.61
				(2) for a description of corporations required to use combined
				reporting.
(2) DEFINITIONS.
			 In this section:
(a) "Billing address" means
			 the address indicated in the taxpayer's books and records on the first day of
			 the taxable year, or on a later date in the taxable year when the customer
			 relationship began, to which a taxpayer regularly sends any notice, statement
			 or bill to the taxpayer's customer. The billing address of a customer who is a
			 natural person means the address of that person's domicile.
(b) "Brokerage commission" includes, but is
			 not limited to, all sales fees on agency or principal transactions whether
			 charged explicitly or implicitly.
(c) "Brokerage house" means a firm or place
			 where a broker-dealer conducts business.
(d) "Broker-dealer" means a person engaged in
			 the business of effecting transactions in securities, commodities, and related
			 financial instruments for the account of another or for the person's own
			 account. "Broker-dealer" does not include a sales agent; an issuer with respect
			 to purchasing and selling the issuer's own securities; a bank, savings
			 institution, or trust company, when effecting transactions for its own account
			 or as an agent; a person in that person's capacity as a personal
			 representative, executor, administrator, holder of power of attorney, guardian,
			 trustee of a testamentary or inter vivos trust, conservator, or pledgee; or any
			 other person excluded from the definition of "broker-dealer" in s.
			 551.102(4),
			 Stats.
(e) "Commercial domicile"
			 means the location from which a trade or business is principally managed and
			 directed. If the taxpayer is organized under the laws of a foreign country, the
			 commonwealth of Puerto Rico, or any territory or possession of the United
			 States, "commercial domicile" shall be deemed for the purposes of this section
			 to be the state of the United States or the District of Columbia from which the
			 taxpayer's trade or business in the United States is principally managed and
			 directed. It shall be rebuttably presumed that the location from which a trade
			 or business is principally managed and directed is the state of the United
			 States or the District of Columbia at which the greatest number of the
			 taxpayer's employees work, have their office or base of operations, or are
			 directed or controlled, as of the last day of the taxable year.
(em) "Engaged in business in and outside this
			 state" has the same meaning as in s. Tax 2.39 (2) (b).
(f) "Investment adviser" has the meaning
			 given in 15 USC
			 80b-2(a) (11).
(g) "Investment company" has the meaning
			 given in 15 USC
			 80a-3.
(h) "Person" means a natural person, estate,
			 trust, partnership, limited liability company, corporation, or any other
			 business entity.
(i) "Regular place
			 of business" means an office at which the taxpayer carries on its business in a
			 regular and systematic manner and which is regularly maintained, occupied, or
			 used by employees of the taxpayer.
(j) "Sales agent" means any individual other
			 than a broker-dealer who represents a broker-dealer or issuer in effecting or
			 attempting to effect transactions in securities. A sales agent includes a
			 partner, officer, or director of a broker-dealer or issuer, or a person
			 occupying a similar status or performing similar functions.
(k) "State" means a state of the United
			 States, the District of Columbia, the commonwealth of Puerto Rico, or any
			 territory or possession of the United States.
(L) "Taxpayer" means a broker-dealer,
			 investment adviser, investment company, or underwriter who is subject to
			 apportionment under this section.
(m) "Trading assets" include securities,
			 commodities, and related financial instruments that a taxpayer acquires and
			 holds for sale in its inventory account.
(n) "Underwriter" includes all persons
			 described under 15 USC
			 77b(a) (11).