Video Transcript
Today, I’ll be speaking on two items for 1031 Exchanges in New Hampshire. First, Section 1031 is a federal tax code, which means you can complete an exchange to defer the capital gains taxes with property anywhere in the United States. The caution in New Hampshire is that although there is not a state capital gains tax per se, certain investment property owners will have a New Hampshire business profits tax due to the state in the year of the sale. The good news is you can still take advantage of a 1031 Exchange to defer up to a hundred percent of the capital gains taxes with no taxes due, including the business profits tax.
The second item, particular to New Hampshire, regards a Reverse Exchange in which you elect to purchase the new Replacement Investment Property first, and then sell your current real property subsequent to that. In this particular structure, we as the QI become the accommodation title holder and actually take title via the deed to the new Replacement Property and we park it for you until such time as your other property can be sold.
In most other US states, when the Replacement Property is transferred back to your ownership through the Reverse Exchange at the end, there are no deed taxes due at transfer. It is transferred for zero or minimal consideration. However, in New Hampshire, they do charge the full deed transfer tax stamps fee even though IPX1031 deeds the property back to you for zero dollars. This is a cost to consider when contemplating a Reverse Exchange with a parked property being located in New Hampshire.
Understanding the 1031 Exchange Process in New Hampshire
If you have any questions about the 1031 Exchange process in New Hampshire or any other 1031 Exchange topics, please visit our New Hampshire IPX 1031 web page at www.ipx1031.com/newhampshire. We’re happy to help.
Click to visit New Hampshire 1031 Exchange page