Wisconsin 1031 Exchange Requirements
Wisconsin 1031 Exchange Requirement
To fully defer all capital gains taxes, all
wisconsin 1031 exchanges must meet four separate requirements:
First, 100% of all proceeds from the sale of the first wisconsin property must be reinvested into the second, replacement wisconsin property.
Second, the amount of equity ( wisconsin property value minus loan value) of the replacement wisconsin property must be equal to or greater than that of the relinquished wisconsin property.
Third Wisconsin 1031 Exchange Requirement: The wisconsin real estate investor must not have constructive receipt of the sale proceeds at any time during this exchange period or the money becomes taxable income. Typically, this is accomplished by using a professional exchange facilitator as a middleman to hold the sale proceeds and execute the exchange documents.
Fourth Wisconsin 1031 Exchange Requirement: Both relinquished and replacement wisconsin property must be like-kind. As used in IRC 1031(a), the words Like-Kind have reference to the nature or character of the wisconsin property and not to its grade or quality. One kind of class of wisconsin property may not, under that section, be exchanged for wisconsin property of a different kind or class.
Contact us today to be put in touch with a qualified wisconsin 1031 broker for your next wisconsin 1031 exchange.