Video Transcript
Today I will be speaking on 1031 Exchanges in Alabama. Section 1031 is a federal tax code, which means you can complete an exchange by selling and buying investment property anywhere in the United States. This will defer up to 100% of the capital gains taxes, state and federal, a huge tax savings, which could be upwards of 30% of the gain you made on an investment.
However, in Alabama, there is a withholding if you are a non resident that you need to be aware of and plan for prior to close. The buyer is responsible to withhold 3% for individuals and 4% for other taxpayers on transactions of $300,000 or more.
However, there is a 1031 exemption, and IPX1031 will provide the form along with our other 1031 documents. By fully deferring, you will defer the Alabama state tax. But there may be a remittance by IPX1031 on a failed 1031 Exchange or a partial 1031.
Understanding the Alabama 1031 Exchange Process
If you have any questions about the Alabama 1031 Exchange process or any other 1031 Exchange topics, please visit our Alabama IPX 1031 web page at www.ipx1031.com/alabama. We’re happy to help.
Click to visit Alabama 1031 Exchange page