LRB-3398/1
MES:jld:pg
2003 - 2004 LEGISLATURE
February 2, 2004 - Introduced by Representative Underheim. Referred to
Committee on Ways and Means.
AB787,1,3
1An Act to amend 71.07 (5) (a) 7. of the statutes;
relating to: including net
2gambling losses in the calculation of the individual income tax itemized
3deduction credit.
Analysis by the Legislative Reference Bureau
This bill modifies the nonrefundable itemized deductions credit. Under current
law, the itemized deductions credit is calculated as 5 percent of the difference
between the sum of certain amounts that are allowed as itemized deductions under
the Internal Revenue Code and the standard deduction. Some amounts that are
allowed as itemized deductions under the Internal Revenue Code, such as casualty
and theft deductions, miscellaneous deductions, and interest incurred to purchase
or refinance a residence that is not a principal residence and that is not located in
this state, are not allowed in the calculation of the itemized deductions credit.
Gambling losses, to the extent of a taxpayer's gambling winnings, are a
miscellaneous itemized deduction under the Internal Revenue Code and may not be
used in the calculation of the itemized deductions credit.
Under this bill, a taxpayer may include gambling losses in the calculation of his
or her itemized deductions credit.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB787, s. 1
1Section
1. 71.07 (5) (a) 7. of the statutes is amended to read:
AB787,2,52
71.07
(5) (a) 7. Miscellaneous itemized deductions under the Internal Revenue
3Code, without regard to whether such deductions are subject to the 2% floor as
4described in section
67 of the Internal Revenue Code
, except that the general
5prohibition in this subdivision does not apply to gambling losses.
AB787,2,107
(1) This act first applies to taxable years beginning on January 1 of the year
8in which this subsection takes effect, except that if this subsection takes effect after
9July 31 this act first applies to taxable years beginning on January 1 of the year
10following the year in which this subsection takes effect.
