Rhode Island 1031 Exchange – What Are the Requirements for a 1031 Exchange in RI?

Hi. Patty Flowers with IPX1031 exchange.

And today, I will be speaking on 1031 one exchanges in Rhode Island.

Section 1031 one 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.

If you have any questions about this process or any other 1031 exchange topics, feel free to visit our website IPX1031.com or contact me directly. I’m happy to help. Thank you.

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