Thomas sells his Wisconsin vacation cabin for $310,000. The transaction qualifies for no exemptions under Wis. Stat. § 77.25. Thomas's real estate agent tells him that the Real Estate Transfer Return (Form PE-500) only needs to be filed if the transfer fee is actually owed — so exempt transactions do not require a PE-500. Is the agent's statement correct, and what is Thomas's actual obligation?
Correct Answer
D) The agent is incorrect; a PE-500 must be filed for all conveyances, including exempt ones, with the appropriate exemption code noted
Under Wisconsin Statutes §§ 77.21–77.25 and Wisconsin DOR guidance, a Real Estate Transfer Return (Form PE-500) must be filed for every conveyance of Wisconsin real property — including those that qualify for an exemption from the transfer fee. When a transfer is exempt, the grantor must still complete and submit the PE-500 and indicate the applicable exemption code. This requirement ensures the state maintains a complete record of all real property transfers. Since Thomas's sale is not exempt, he owes both the fee ($310,000 ÷ $100 × $0.30 = $930) and must file the PE-500.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The cost approach estimates a property's value by calculating the current cost to rebuild the improvements, subtracting accumulated depreciation, and adding the land value. It is most reliable for new construction and special-purpose properties.
Depreciation is an accounting method of allocating the cost of an asset over its useful life, allowing investors to deduct a portion of the asset's cost each year.
Highest and best use is an appraisal concept that identifies the most profitable, legally permitted, physically possible, and financially feasible use of a property. It is the foundation of all property valuation.
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