Increasing the net capital loss deduction. (FE)

What it would have done

Summary by the Legislative Reference Bureau, the Legislature's nonpartisan drafting office. It's their wording, not ours.

Under current law, an individual subtracts his or her capital losses from capital gains when computing the amount of gain subject to the state income tax. If the capital losses exceed the capital gains, the individual may use up to $500 of the net loss to offset ordinary income, thus reducing the amount of ordinary income subject to tax. If the individual's net capital loss exceeds $500, the individual may carry forward the excess to future years and offset up to $500 of ordinary income each year until the net loss is used up. Federal law similarly allows individuals to offset net capital losses against ordinary income and carry forward the excess. However, the maximum annual offset under federal law is $3,000, which is reduced to $1,500 for married individuals who file separate returns. This bill increases the maximum annual offset for Wisconsin income tax purposes from $500 to $1,500 for married individuals filing separately and $3,000 for all other individuals.

Because this bill relates to an exemption from state or local taxes, it may be referred to the Joint Survey Committee on Tax Exemptions for a report to be printed as an appendix to the bill.

Who's behind it

3 senators are its authors⁠. All 3 are Republicans.

12 more lawmakers signed on in support⁠.

What it would cost

State agencies filed a cost estimate. Each opens as a PDF from the Legislature.

• Fiscal Estimate From DOR

Versions and amendments

Every text the Legislature printed for this bill, including proposed changes. Each opens on the Legislature's site.

• Amendment Histories