Wis. Admin. Code § Tax 2.30 — Property located outside Wisconsin — depreciation and sale

Tax 2.30(1) (1) Scope. This section applies only with respect to resident individuals, estates, and trusts.

Tax 2.30(2) (2) Definition. In this section, “Internal Revenue Code” means the Internal Revenue Code in effect for the taxable year specified in s. 71.01 (6) , Stats.

Tax 2.30(3) (3) Resident individuals, estates, and trusts. Income or loss derived from property and business located outside Wisconsin by resident individuals, estates, and trusts, is taxable or deductible as appropriate under ch. 71 , Stats. Except as provided in sub. (4) , the basis for depreciation and for determining gain or loss on disposition of property for these taxpayers is the same as the basis determined under the Internal Revenue Code, whether the property was acquired before becoming or while a resident of this state.

Tax 2.30(4) (4) Exceptions.

Tax 2.30(4)(a) (a) When an individual acquires a new residence, the adjusted basis of the new residence is not reduced for nonrecognized gain from the sale or exchange of an old residence located outside Wisconsin if:

Tax 2.30(4)(a)1. 1. The sale or exchange of the old residence occurred in taxable year 1975 or thereafter when the individual was not a resident of Wisconsin; or

Tax 2.30(4)(a)2. 2. The sale or exchange of the old residence occurred before taxable year 1975, whether the individual was a resident or not at the time of the sale or exchange.

Tax 2.30(4)(b) (b) When an individual sells or exchanges a principal residence located outside Wisconsin and the nonrecognition of gain provisions do not apply, the adjusted basis of the residence sold or exchanged is not reduced for nonrecognized gain from any previous sale or exchange of a principal residence located outside Wisconsin if:

Tax 2.30(4)(b)1. 1. The previous sale or exchange occurred in taxable year 1975 or thereafter when the individual was not a resident of Wisconsin; or

Tax 2.30(4)(b)2. 2. The previous sale or exchange occurred before taxable year 1975, whether the individual was a resident or not at the time of the sale or exchange.

Tax 2.30(4)(c) (c) For residential real property and certain agricultural real property placed in service during taxable year 1986, depreciation and gain or loss on disposition of the property shall be computed under the Internal Revenue Code in effect on December 31, 1980 unless:

Tax 2.30(4)(c)1. 1. The property is placed in service out-of-state by a taxpayer during taxable year 1986 before the taxpayer becomes a Wisconsin resident. In this case, the property’s adjusted basis and depreciation are the same as the amounts allowable for federal tax purposes.

Tax 2.30(4)(c)2. 2. The property located out-of-state is acquired in a transaction occurring in taxable year 1986 or thereafter where the basis of the property in the hands of the transferee is the same as the adjusted basis of the property in the hands of the transferor. The adjusted basis of the property on the date of the transfer is the same as the federal adjusted basis.