1031 Exchanges in Alabama

Everything you need to know about buying and selling Alabama real estate while minimizing your taxable gain.

Alabama Capital Gains Tax Rates

Alabama allows taxpayers to deduct federal income taxes from their state taxable income. The Combined Rate accounts for Federal, State and Local tax rates on capital gains income, the 3.8 percent Surtax on capital gains and the marginal effect of Pease Limitations (which results in a tax rate increase of 1.18 percent).

5.00%
State Rate
0.50%
Local Rate
None
Deductions
30.00%
Combined Rate

Alabama Income Tax Rates

For single taxpayers with AGI below $23,000, the standard deduction is $2,500. This standard deduction amount is reduced by $25 for every additional $500 of AGI, not to fall below $2,000. For Married Filing Joint taxpayers with AGI below $23,000, the standard deduction is $7,500. This standard deduction amount is reduced by $175 for every additional $500, not to fall below $4,000. For all taxpayers claiming a dependent with AGI of $20,000 or less, the dependent exemption is $1,000. This amount is reduced to $500 per dependent for taxpayers with AGI above $20,000 and equal to or less than $100,000. For taxpayers with over $100,000 AGI, the dependent exemption is $300 per dependent. Alabama allows taxpayers a deduction for total federal tax liability from their federal return less any federal tax credits claimed.

Find a Qualified Intermediary

Work with a qualified intermediary to qualify for a tax deferred real estate exchange. Find a local Alabama intermediary or exchange facilitator below.

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