Tax 3.01(3)(d)1.a. a. Tangible personal property affixed to real property if the owner of the tangible personal property is the same as or related to the owner of the real property.

Tax 3.01(3)(d)1.b. b. Services rendered in connection with rented real property if the owner of the property is the same as or related to the entity providing the service.

Tax 3.01(3)(d)2. 2. For purposes of the addition modification, the method used to compute the expense and the manner in which it is reported for financial accounting purposes are immaterial.

Tax 3.01 Note Example: Amounts paid under capital leases might not be called “rent expenses” in the financial accounting records of a taxpayer, but these expenses are considered “rent expenses” for purposes of the addition modification.

Tax 3.01(3)(e) (e) Management fees.

Tax 3.01(3)(e)1. 1. Other than services provided by the taxpayer’s own employees, management fees include expenses and costs otherwise deductible in computing Wisconsin adjusted gross income or Wisconsin net income for the purchase or retention of services, including services that pertain to any of the following:

Tax 3.01(3)(e)1.a. a. Accounts receivable or payable.

Tax 3.01(3)(e)1.b. b. Employee benefit plans.

Tax 3.01(3)(e)1.c. c. Insurance, including self-insurance.

Tax 3.01(3)(e)1.d. d. Legal matters.

Tax 3.01(3)(e)1.e. e. Payroll.

Tax 3.01(3)(e)1.f. f. Data processing.

Tax 3.01(3)(e)1.g. g. Purchasing.

Tax 3.01(3)(e)1.h. h. Taxation.

Tax 3.01(3)(e)1.i. i. Financial matters.

Tax 3.01(3)(e)1.j. j. Securities.

Tax 3.01(3)(e)1.k. k. Accounting.

Tax 3.01(3)(e)1.L. L. Reporting or compliance matters.

Tax 3.01(3)(e)1.m. m. Activities similar to those described in this subd. 1. a. to L.

Tax 3.01(3)(e)2. 2. Subdivision 1. a. to m. are in no way intended to and should not be construed as limiting the scope of the activities subject to this paragraph.

Tax 3.01(3)(f) (f) Intangible expenses.

Tax 3.01(3)(f)1. 1. Intangible expenses include any of the following expenses to the extent they would otherwise be deductible in the computation of Wisconsin adjusted gross income or Wisconsin net income:

Tax 3.01(3)(f)1.a. a. Royalty, patent, technical, and copyright fees.

Tax 3.01(3)(f)1.b. b. Licensing fees.

Tax 3.01(3)(f)1.c. c. Losses related to, or incurred in connection directly or indirectly with, factoring transactions or discounting transactions.

Tax 3.01(3)(f)1.d. d. Amortization expenses.

Tax 3.01(3)(f)1.e. e. Other expenses, losses, or costs for, related to, or directly or indirectly in connection with acquiring, using, maintaining, managing, owning, selling, exchanging, or disposing of intangible property.

Tax 3.01(3)(f)2. 2. For a taxpayer purchasing amortizable intangible property from a related entity, the amortization expenses on that property are intangible expenses subject to the addition modification. This also applies to any other amortizable intangible expenses paid, accrued, or incurred between a taxpayer and a related entity.

Tax 3.01(4) (4) Subtraction modification.