Combined rate and how to defer it in Wisconsin.
Wisconsin's top income tax rate on capital gains of 7.65% pushes the combined investment property figure to 31.5% (20% federal + 3.8% NIIT + 7.65% state), one of the higher combined rates in the Midwest.
Wisconsin taxes capital gains as ordinary income at up to 7.65% at the state level. Combined with federal, the total is 31.5%. Estimate the full bill with depreciation recapture using the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 31.5% rate by rolling all proceeds into a qualifying replacement property. Model it in the 1031 exchange calculator and track your 45-day and 180-day deadlines with the timeline calculator.