Alabama 1031 Exchange – What Are the Requirements for a 1031 Exchange in AL?

Hi, Luke Hays with IPX1031 Exchange, and today I’ll 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% percent for other taxpayers on transactions of $300,000 or more. However, there is a 1031 exemption, and IPX 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. If you have any questions about this or any other 1031 exchange topics, please visit our IPX website,, or contact me directly, 629-203-2725. I’m happy to help. Thank you.

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