Video Transcript
Today, I will be speaking on 1031 Exchanges in Rhode Island. 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.
However, some states do have their own twist on 1031. In Rhode Island, you should note that if you are not a resident of the state, and you are selling investment property located in Rhode Island, the state will withhold a certain percentage at closing to be paid towards your state capital gains taxes due that year.
The good news is, you can apply for a non resident withholding exemption, but it must be submitted and approved prior to your sale closing date. Therefore, I suggest starting this process as soon as you have a signed agreement with a buyer.
Understanding the Rhode Island 1031 Exchange Process
If you have any questions about the Rhode Island 1031 Exchange process or any other 1031 Exchange topic, please visit our Rhode Island IPX 1031 web page at www.ipx1031.com/rhodeisland. We’re happy to help.
Click to visit Rhode Island 1031 Exchange page