When you sell real property in Wisconsin, typically you are required to pay capital gains taxes on the net proceeds. This can be a heavy tax burden for real estate investors. Thankfully, a 1031 exchange can help you avoid these taxes by deferring your gains and re-investing that money into new property.
Wisconsin 1031 Exchange Services
There are several rules and deadlines you have to follow in order to execute a 1031 exchange in the state of Wisconsin. First of all, your replacement property and your relinquished property need to be like-kind to one another. Second, you need to abide by the following 1031 exchange deadlines:
Types of 1031 Exchanges in Wisconsin
1031 exchanges in Wisconsin come in a few different types:
- Forward 1031 Exchanges. Forward 1031 exchanges are the most common type. With a forward exchange, the taxpayer sells a piece of relinquished property, identifies replacement property, and then moves their sales proceeds into that replacement property.
- Reverse 1031 Exchanges. Reverse exchanges have the same outcome of forward exchanges, but the process is reversed. It begins with acquiring your replacement property and ends with the sale of your relinquished property.
- Build-to-Suit 1031 Exchanges. Build-to-suit 1031 exchanges allow you to utilize some of your net proceeds from the sale of your relinquished property to construct some improvements to your replacement property.
Start Your Wisconsin 1031 Exchange
If you are looking to sell your real property in Wisconsin and want to avoid hefty capital gains taxes, consider a 1031 like-kind exchange. A Wisconsin qualified intermediary can walk you through the 1031 exchange process and make sure you have all of your bases covered for a successful 1031 exchange. We provide 1031 exchange services to taxpayers in Green Bay, Wausau, Eau Claire, and throughout the state of Wisconsin. Call us today to discuss the specifics of your 1031 exchange – 877.373.1031.
