When it comes to conducting a 1031 exchange, the process and rules are generally consistent across the United States due to the federal nature of the tax code. However, there are a few nuances and local considerations that might make a 1031 exchange in Texas slightly unique compared to other states.
Overall, while the fundamental rules of 1031 exchanges are the same across the United States, Texas offers a unique economic landscape and tax benefits that can be advantageous for real estate investors.
Texas does not have state or local capital gains taxes. The Combined Rate accounts for the Federal capital gains rate, the 3.8 percent Surtax on capital gains, and the marginal effect of Pease Limitations on itemized deductions, which increases the tax rate by 1.18 percent.
Texas does not have a state income tax.
Yes, 1031 Exchange Corporation is a member of the Federation of Exchange Accommodators (FEA), which is the only national organization for the exchange industry, formed to promote ethical standards of conduct and innovations in exchange practices.
Ten31 Texas, LLC, headquartered in Texas, is a full-service Qualified Intermediary that assists clients with standard 1031 exchanges, along with more complex reverse and improvement exchanges. They encourage potential clients to schedule a consultation to discuss property eligibility for a 1031 exchange. They are not a member of the Federation of Exchange Accommodators.
Texas Escrow Company, Inc., headquartered in North Texas, operates as a full-service title insurance company under the name Republic Title of Texas, Inc. The company specializes in handling the transfer of title for real estate transactions and providing title insurance. They emphasize a commitment to community, professionalism, and integrity, aiming to deliver exceptional customer service. Republic Title has a history dating back to 1965, officially founded in 1991, and has grown to be the largest title company in Texas. They operate 11 residential and 2 commercial offices across the Dallas-Fort Worth area. Despite their extensive services in title insurance and real estate transactions, they are not members of the Federation of Exchange Accommodators.