Tom: The short answer is yes. Section 1031 is a federal tax code, so it is recognized in all states, so you can exchange from state to state.

What states have 1031 exchanges?

You can sell an investment property in one state and use those funds to purchase property in another state within an exchange. This transaction is commonly called a state-to-state 1031 exchange….The following states have claw-back provisions in place:

• California.
• Oregon.
• Montana.
• Massachusetts.

Does a 1031 exchange have to be in the US?

Internal Revenue Code (IRC) Section 1031 applies to all citizens or residents of the United States (US) or non-resident aliens subject to US federal income taxes. Many Exchangors are not aware that international property is eligible for 1031 exchange tax treatment.

Can you 1031 out of California?

The State of California’s position has been that any capital gains accrued on California real estate will be subject to California tax upon the ultimate sale of the real property even if the investor had sold his or her California real estate and subsequently 1031 Exchanged into investment property located outside of …

How does a 1031 exchange work in the US?

A 1031 exchange in the United States allows you to exchange one real estate property for another without paying tax on the gain.

How does 1031 exchange of foreign real estate tax considerations?

1031 Exchange of Foreign Real Estate Tax Considerations. A 1031 exchange in the United States allows you to exchange one real estate property for another without paying tax on the gain. A 1031 exchange of foreign real estate allows you to exchange one foreign property for another with the same tax benefits.

How long does it take to replace a property in a 1031 exchange?

From the time of closing on the relinquished property, the investor has 45 days to nominate potential replacement properties and a total of 180 days from closing to acquire the replacement property. Identification requirements: The investor must identify the replacement property prior to midnight on the 45th day.

How to find out if your state has a 1031 reporting requirement?

Tax law is quite complex, and the best way to find out if your state has a 1031 reporting requirement is to consult with an experienced tax attorney.