How does Schedule RT relate to the requirement to “add back” certain related entity expenses?
Related entity interest and rental expenses, which are two of the six expense categories reportable on Schedule RT, must be “added back” in the taxpayer′s computation of Wisconsin income for taxable years beginning on or after January 1, 2008. The provisions of 2007 Act 226 require taxpayers who have paid, accrued, or incurred interest or rental expenses to a related entity to add those expenses back to their federal income (as an addition modification) in computing Wisconsin income. Then, if certain conditions are met, the taxpayer may claim a deduction (as a subtraction modification) for these expenses. One of these conditions is the filing of Schedule RT as prescribed by the Department, except where the $100,000 threshold exception applies. If you have related entity interest or rental expenses but aren′t required to file Schedule RT, you must still refer to Schedule RT, Part II and to the Schedule RT instructions for guidelines to determine if those expenses meet the necessary cond
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