Legal Question in Business Law in Wisconsin

Re: capital gains

Capital Gains are calculated by subtracting the

basis of the property being sold, together

with the expenses of sale, from the property's

selling price. Gains from the sale of personal

property are treated differently from gains for

sale of real estate. Generally, there is no such

thing as reinvesting to avoid the gains tax.

However, real estate may qualify for a deferral of

the tax, depending upon several factors. An

incorporated business may either sell its assets

or the owner may sell his stock in the business.

Two very different tax consequences occur. In

addition to the legal aspects of such a sale, a CPA

should also be consulted.