Wisconsin business lawyer Richard Kranitz explains the significant state tax breaks for investing in a Qualified Wisconsin Business, including capital gains
Office of Richard A. Kranitz (N/A:N/A)
— Richard A. Kranitz, business attorney and coach
GRAFTON, WISCONSIN, UNITED STATES, February 25, 2019 /EINPresswire.com/ — Savvy investors may enjoy significant state tax breaks for investing in a Qualified Wisconsin Business. Benefits include a potential total exclusion of long-term capital gains on sale and increased flexibility in deferring capital gains tax. Richard A. Kranitz, in a newly published comment, reviews these issues. The full comment will be published on the Blog of Mr. Kranitz at https://richardkranitzblog.blogspot.com/
In order to take advantage of the tax savings, investment must be made in a business that meets the definition of a Qualified Wisconsin Business under the statute. In order to be a Qualified Wisconsin Business, certain businesses that meet the statutory criteria can register with the Wisconsin Department of Revenue. The required qualifications are as follows:
– The business must have at least 2 full time employees
– The business must pay at least half of its payroll in the state of Wisconsin
– At least half of the value of the business’ real and tangible personal assets must be located in the state of Wisconsin. This includes both owned and rented assets.
A business meeting such qualification must register each year with the Department of Revenue to maintain its status as a Qualified Wisconsin Business. The qualifications must be met each year as well to maintain the status. In order to receive the benefit of long-term capital gain saving, the investment must be maintained for at least five years and the business must be a Qualified Wisconsin Business in the first year when investment is made and then at least 2 out of the next 4 years. Anyone interested in taking advantage of this provision would be well advised to consult a qualified attorney to ensure that any transaction meets the requirements of the statute.
A Qualified Wisconsin Business can also be a vehicle to defer long-term capital gains tax. Upon the sale of any asset with long-term capital gains tax, the seller can defer the capital gains tax owed by investing it into a Qualified Wisconsin Business within 180 days of the sale. There are, however, several considerations with this transaction. One consideration is that partial deferral is not allowed. All of the sales proceed must be invested into a Qualified Wisconsin Business. Also, the deferred gain will eventually be recognized. The deferred gain will lower basis in the new investment and then the deferred portion is not eligible for long-term capital gains exclusion.
Any investor interested in taking advantage of these tax breaks are encouraged to plan and discuss the issues with a qualified attorney.
About Richard A. Kranitz
Richard Kranitz is an experienced attorney and business consultant in the areas of corporate, securities and tax planning for corporations, partnerships, joint ventures, limited liability companies, multi-unit enterprises, and a variety of different non-profit entities. In addition, he has counseled their owners and executives in compensation planning, estate plans, and asset protection.
LinkedIn Profile: https://www.linkedin.com/in/richard-kranitz-63684b
Attorney Profile: https://solomonlawguild.com/richard-a-kranitz-esq
News at: https://hype.news/attorney-richard-a-kranitz/n-16281b97-6a6a-4de2-be3e-796f2da08677/stories
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