ScheduleRT: ScheduleRT (2024)
Wisconsin · Wisconsin DOR · Used for tax years 2024
Wisconsin Schedule RT is the 2024 Related Entity Expenses Disclosure Statement. It reports interest, rent, management fees, and intangible expenses involving related entities, including amounts added back to federal income and amounts eligible for a Wisconsin subtraction deductio
What you'll need
To complete Schedule RT, have the following information ready:
- Your taxpayer name, or the combined group member's name if applicable, and identifying number.
- Each related entity or payee's name and identification number.
- Related entity interest expenses, rent expenses, management fees, and intangible expenses.
- The amounts in each expense category that qualify for a deduction under Part II.
Use separate schedules to report additional related entities beyond the spaces provided. Enter those totals on lines 1c, 2c, 3c, and 4c, as applicable.
How to file
File Schedule RT with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6, as applicable.
- In Part I, enter related entity expenses by category and total each category.
- Add lines 1d, 2d, 3d, and 4d on line 5. This is the amount you must add back to federal income.
- In Part II, enter expenses eligible for deduction on lines 6a through 6d.
- Add lines 6a through 6d on line 7. This is the amount you may deduct as a Wisconsin subtraction modification.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
Do not assume that a deduction claimed in Part II is final. The form warns that the Department of Revenue may adjust the deduction if:
- The requirements of section 71.80(23), Wisconsin Statutes, are not met.
- Adjustments among related entities are needed to prevent tax evasion or clearly reflect their income.
- The transactions that produced the deduction lack economic substance.
Questions people ask
What expenses does Schedule RT cover?
The form covers related entity interest expenses, rent expenses, management fees, and intangible expenses.
Can an expense added back in Part I also qualify for a deduction?
Yes. An expense added back to income and reported in Part I is eligible for deduction if Condition A, B, or C in Part II applies. Enter qualifying amounts by expense type on lines 6a through 6d.
What does Condition A require?
All three statements must be true:
- The transaction's primary motivation was one or more business purposes other than avoiding or reducing state income or franchise taxes.
- The transaction meaningfully changed the taxpayer's economic position apart from tax effects.
- The expenses were paid, accrued, or incurred on terms reflecting an arm's-length relationship.
Must Conditions B and C apply for Condition A to be met?
No. The form says Conditions B and C generally indicate that Condition A is likely to be true, but Condition A can be true independently of either one.