ScheduleRT-1: ScheduleRT-1 (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Schedule RT-1 is a statement of disallowed related entity expenses. It identifies the entities involved and reports disallowed interest, rent, intangible expenses, and management fees, along with information to substantiate a corresponding subtraction modification.
Who files this form
The entity that paid, accrued, or incurred the disallowed related-entity expense completes Part I and provides the schedule to the related entity to which the expense was paid, accrued, or incurred.
The related entity named in Part I, item B completes Part II. If it included the corresponding income in its Wisconsin income, it may claim a subtraction modification. To substantiate that subtraction, it must file Schedule RT-1 with its Wisconsin return.
What you'll need
Have the following information available:
- Names and taxpayer identification numbers, either FEINs or SSNs, for both entities.
- The taxpayer type of the entity that paid, accrued, or incurred the expense.
- The beginning and ending dates of that entity’s tax year for which the expenses were disallowed.
- Disallowed expense amounts for interest, rent, intangible expenses, and management fees.
- The pro forma federal income tax return lines where the recipient reported the income eligible for the subtraction, for the year it may claim the subtraction.
How to file
- The entity that paid, accrued, or incurred the expense completes Part I, items A through D. Enter each disallowed expense amount and total lines 1 through 4 on line 5.
- Provide the schedule to the related entity identified in Part I, item B.
- That related entity completes Part II, item A, identifying the pro forma federal return lines where it reported the eligible income.
- To substantiate the subtraction modification, file the schedule with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6.
The supplied form does not specify a mailing address or an e-file procedure.
Common mistakes
- Do not skip the form’s reminder to read the instructions before filling in the schedule. No instructions were included in the supplied text.
- Do not leave Schedule RT-1 out of the Wisconsin return when using it to substantiate the subtraction modification. The form says the schedule must be filed with that return.
Questions people ask
What expenses does Schedule RT-1 cover?
Part I lists disallowed interest expense, rent expense, intangible expense, and management fees.
Who completes Part II?
The entity named in Part I, item B, which is the entity to which the corresponding income was reported.
When may the recipient claim the subtraction modification?
If the recipient included the income in its Wisconsin income, it may claim the corresponding subtraction for the taxable year that includes the ending date of the period shown in Part I, item C.
What income-reporting details belong in Part II?
Enter the lines of the pro forma federal income tax return where the eligible income was reported for the year the subtraction may be claimed.
Must Schedule RT-1 be included with the Wisconsin return?
Yes. To substantiate the subtraction modification, the recipient must file this schedule with its Wisconsin return.