Question

How to split capital gain in WI state tax return

Forum|Forum|5 years ago
February 23, 2021
1 reply
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Hello, I moved during the tax year from WI to NY.

I am planning to split my whole year's capital gain by days since it will be a much easier job for me.

NY state tax return has this option to choose how much capital gain you would like to put on.

When I am doing WI state tax return, I could not find the option to split short/long term capital gain. There is only some basis adjustment choice.

Any suggestion?

Thanks a lot.

E

ErnieS0

Capital gains for part-year residents are reported when actually received, rather than prorated. The detail on your 1099 from your financial institution will show when your capital gains were received throughout the year.

In the WI Long-Term Capital Gains and Losses Summary, you can select Don’t report on my Wisconsin return for any transactions that occurred while you were a NY resident.

On the screen Adjust Wisconsin Capital Gain Distributions, you can adjust the amount of capital gains received while a WI resident. To access that screen, say Yes to Adjustments for Capital Gains and Losses?

A part-year resident of Wisconsin must include in Wisconsin income:

• All capital gain and loss received while a Wisconsin resident

• Capital gain and loss received from Wisconsin sources during the period in which the individual is not a resident of Wisconsin

Related Resource:

Tax Information for Part-Year Residents and Nonresidents of Wisconsin for 2020

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J

Jayden_ChenAuthor

Thanks very much, that is very helpful. I would like to use your suggestion to report based on the time when the transaction happened.

Follow-up question when you mention the below rules.

A part-year resident of Wisconsin must include in Wisconsin income:

• Capital gain and loss received from Wisconsin sources during the period in which the individual is not a resident of Wisconsin

Early in the year 2020, I bought and hold the stock option of the former employer in WI, then sold those when I am in NY.

Will the income be considered as Wisconsin sources?

AmyC

Employee

Simply where you live when you sell the stock and receive the income. People buy and sell stock all the time. The stock is not traced back to location.

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