NEW Pennsylvania Law to Recognize 1031 State Tax Deferral
Unlike other states, when real estate was sold, Pennsylvania did not permit taxpayers to defer state taxes via a 1031 Exchange – only federal taxes could be deferred. This changed on July 8, 2022, when Pennsylvania Governor Tom Wolf signed House Bill 1342 into law. Included in the omnibus tax bill is a provision that will conform Pennsylvania’s state tax treatment of like-kind exchanges with Section 1031 of the federal Internal Revenue Code for tax years that begin after December 31, 2022. A summary of the bill provided by the Pennsylvania House can be found here (reference to Federal IRC § 1031 is on page 3).
About Investment Property Exchange Services, Inc. (IPX1031)
IPX1031 focuses solely on 1031 Tax Deferred Exchanges. IPX1031 goes beyond the ordinary to deliver exceptional customer service and achievement of client 1031 goals and objectives. Strength and stability backed with financial security, legal and industry expertise and a client-centric approach to high quality and proactive service positions IPX1031 as the national leader in 1031 Exchange services. IPX1031 is also the leading voice of 1031 companies working with its industry association, the Federation of Exchange Accommodators (FEA), on critical legislative issues affecting the 1031 Exchange industry and U.S. economy. More information about IPX1031 can be found at www.ipx1031.com.