ScheduleRT: ScheduleRT (2025)
Wisconsin · Wisconsin DOR · Used for tax years 2025
Wisconsin Schedule RT is the 2025 Related Entity Expenses Disclosure Statement. It reports interest, rent, management fees, and intangible expenses added back to federal income, along with any amounts eligible for a Wisconsin subtraction modification.
What you'll need
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.
- The amounts of 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. Part I has lines for the totals from those schedules.
How to file
File Schedule RT with Wisconsin Form 1, 1NPR, 2, 3, 4, 4T, 5S, or 6.
In Part I, report the related entity expenses by category. Add the category totals 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 those amounts on line 7 to determine the Wisconsin subtraction modification.
The form does not provide a mailing address or e-file directions.
Common mistakes
Do not assume the deduction cannot be adjusted. The form warns that the Department of Revenue may adjust the amount deducted if:
- The requirements of section 71.80(23), Wisconsin Statutes, are not met.
- Adjustments among related entities are necessary to prevent tax evasion or clearly reflect their income.
- The transactions producing 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 a deduction if Condition A, B, or C in Part II applies. Report qualifying amounts on lines 6a through 6d and their total on line 7.
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; it meaningfully changed the taxpayer’s economic position apart from tax effects; and the expense terms reflected an arm’s-length relationship.
Must Conditions B and C also apply if Condition A is met?
No. The form states that Condition A may be true independently of Conditions B and C.