Tax Free States
There are seven tax free states. They are Alaska, Florida, Nevada,
South Dakota, Texas, Washington and Wyoming.
One of the many concerns investors have when they look into 1031
property exchanges is the issue of a geographic relocation of real
estate. If you own a property in one state, and you're looking to invest
in a property in another state, the transaction generally qualifies for
a deferment of capital gains taxes. After all, one of the main reasons
people reinvest in a replacement property is to protect their profits.
Some states have certain stipulations when it comes to 1031 exchanges.
The best thing you can do if you have specific questions is speak with
your tax accountant or legal counsel before investing in a replacement
property. You can also find out specific information for a particular
state by contacting the local tax board.
While some states impose a withholding requirement on the sale of real
estate for non-residents, the withholding is often waived in the case of
1031 exchanges. In most cases, you simply need to fill out a 1031
exemption form, and file it with the state. Real estate purchased
outside of the United States generally does not qualify for a tax
exemption through a 1031 exchange.
At TM 1031 Exchange, we specialize in finding replacement properties.
Investors often seek replacement properties in locations all around the
United States. We help you find listings fast in order to comply with
IRS 1031 timelines. Take a look at some of the listings online at
www.tm1031exchange.com, or call us today at 1-877-486-1031 for more
information.
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