ScheduleCG: ScheduleCG (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Schedule CG documents the deferral of long-term capital gain reinvested in a qualified Wisconsin business. It reports the asset sale, reinvestment, amount of gain deferred, and basis of the investment, and is included with Wisconsin Form 1 or 1NPR.
Who files this form
Complete 2025 Schedule CG if you are not reporting a long-term capital gain on your 2025 Wisconsin Schedule WD because you reinvested the gain and are claiming a deferral.
Individuals may claim the deferral, including individual partners in partnerships, LLC members, and shareholders of tax-option (S) corporations. To qualify, you must invest all of the long-term gain in a qualified Wisconsin business within 180 days after selling the asset and attach Schedule CG to your Wisconsin income tax return.
What you'll need
Have the following information ready to complete Schedule CG:
- Your name and Social Security number, plus your spouse’s if filing jointly.
- The sale date and description of the asset sold.
- The amount of long-term capital gain from the sale.
- The investment date and type, such as stock purchase, partnership interest, or LLC membership.
- The qualified Wisconsin business’s name and federal employer identification number (FEIN).
- The amount of gain invested and the amount being deferred.
Include a copy of the completed Schedule CG with your Wisconsin income tax return. The deferral is claimed when completing Wisconsin Schedule WD.
How to file
Complete Schedule CG and include it with Wisconsin Form 1 or 1NPR for the tax year in which you claim the deferral. Claim the deferral when completing Wisconsin Schedule WD.
On Schedule CG, report the asset sale, gain, and reinvestment details. Calculate the investment’s basis on line 8 by subtracting the deferred amount on line 7 from the invested amount on line 6.
The supplied text does not give a mailing address or e-filing instructions.
Common mistakes
- Reinvesting too late. The investment date on line 4 must be within 180 days of the sale date on line 1. Otherwise, you do not qualify for the deferral.
- Leaving out Schedule CG. A copy must be included with your Wisconsin income tax return.
- Assuming registration confirms eligibility. The form warns that information provided by registered businesses has not been reviewed to determine eligibility for this deferral.
- Including deferred gain in a later exclusion. Any gain eligible for the exclusion described in the form’s five-year investment note does not include the deferred gain.
Questions people ask
What counts as a long-term capital gain?
It is gain from selling a capital asset held for more than one year that is treated as a long-term gain under the Internal Revenue Code.
Must I reinvest all of the gain?
Yes. The procedures require you to invest all of the long-term gain in a qualified Wisconsin business within 180 days after the asset sale.
How does deferring the gain affect my investment’s basis?
Subtract the deferred gain from the invested amount. This reduced basis will result in a larger gain, or smaller loss, for Wisconsin than for federal purposes when you later sell or otherwise dispose of the investment.
Could a later sale of the investment qualify for a gain exclusion?
Possibly. The form says an investment held for five years may qualify if certain conditions are met. The business must have been certified by WEDC or registered with the department for the investment year and two of the next four years. The exclusion does not cover the deferred gain. See Schedule QI for more information.