Escrow & Title

A Wisconsin property owner who sells property in 2026 has a capital gain. For federal tax purposes, the gain is calculated as:

ASale price minus original purchase price only
BSale price minus the adjusted basis (original cost plus improvements minus depreciation)✓ Correct
CThe full sale price regardless of basis
DOnly the gain in the last year of ownership

Explanation

Capital gain is calculated as the net sale proceeds minus the adjusted tax basis (original cost plus capital improvements minus depreciation claimed).

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