Carl Pikus

No.  Exchange funds can only be used to purchase real property.

1031 is Federal law.  It covers all US states and US territories.  An exchanger can exchange into and out of any US state or territory.  Our office can facilitate exchanges into and out of any state or US territory. Call today (512) 956-0908 to get started.

No, Texas does not have any clawback or state specific 1031 Exchange rules or 1031 regulations.

For the taxpayer, the purpose of 1031 is to defer the taxes on the sale of their investment property. The most important question for the potential exchanger to ask is: How much will I pay in taxes if I don’t exchange this property? To answer that question the exchanger should determine their tax bracket and then estimate the property’s cost basis, gain and possible deprecation. Ask a CPA to help as we cannot give tax advice.

Work to get a solid estimate of the tax obligation the exchanger will pay if they don’t exchange their property. If the exchanger is sickened by the estimated tax obligation to the IRS due the next April, if the exchanger recoils at the thought of writing a check to the IRS for tens of thousands of dollars, hundreds of thousands of dollars, or millions of dollars, they are now an outstanding and motivated candidate for 1031.

After the tax obligation estimate is complete, the rest comes down to executing the rules of the exchange.
• Work with IPX1031 prior to the close of the Relinquished Property and sign 1031 Exchange docs at or before close.
• Identify your Replacement Property(s) on or before day 45 of the exchange.
• Close the Replacement Property(s) on or before the 180th day.

This website describes in detail all rules and timelines needed to have a successful exchange. And I am always available to answer your 1031 questions.