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Arizona

1031 Exchanges

Arizona 1031 Exchange Rules

When it comes to a 1031 exchange, the process and rules are generally consistent across the United States due to the federal nature of the tax code. However, there can be some nuances based on local state laws and real estate market conditions that might make a 1031 exchange in Arizona unique compared to other states.

  1. Market Conditions: Arizona, particularly areas like Phoenix and Tucson, has been experiencing significant real estate growth and development. This can provide a wide range of investment opportunities in both residential and commercial properties. The dynamic market might offer unique opportunities for reinvestment in properties that are likely to appreciate.
  2. State Tax Considerations: Arizona does not have any specific state-level laws that significantly alter the process of a 1031 exchange, which is primarily governed by federal IRS rules. However, understanding the local tax implications, including county and city transfer taxes, is crucial as these can affect the overall cost of the transaction.
  3. Property Types: Arizona's diverse geography and economy offer a variety of property types that are eligible for 1031 exchanges. This includes traditional real estate like apartments and office buildings, as well as more unique properties such as ranches and agricultural land, which might not be as prevalent in other states.
  4. Professional Expertise: Arizona has a robust network of professionals specializing in 1031 exchanges, including Qualified Intermediaries, real estate agents, and tax advisors who are familiar with both the local market and the intricacies of tax-deferred exchanges. Leveraging local expertise can be particularly beneficial in navigating the specifics of the Arizona market.

Overall, while the fundamental rules of 1031 exchanges are consistent nationwide due to their basis in federal tax law, the unique real estate opportunities and local professional expertise available in Arizona can provide distinct advantages for investors considering a 1031 exchange in this state.

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Arizona State Tax Information

The Combined Rate accounts for Federal, State, and Local tax rate 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).

Bracket levels adjusted for inflation each year. Release dates for tax bracket inflation adjustments vary by state and may fall after the end of the applicable tax year. Arizona's dependent exemption is only available for one dependent, in addition to the exemptions for the filer and their spouse.

State Rate

2.50%

Local Rate

0.00%

Combined Rate

27.50%

Deductions

None

1031 Exchange Companies in Arizona

Asset Preservation, Inc.
deferred.com
Verified

Roseville, CA

Asset Preservation, Inc. (API), headquartered in California, is a leading national 1031 exchange company that serves as a qualified intermediary. API focuses on helping clients build wealth by using 1031 exchanges to defer capital gain taxes on investment properties, as outlined in IRC Section 1031. The company emphasizes providing unmatched service and the highest level of security in the 1031 exchange industry. API's team, including professional exchange counselors, attorneys, and accountants, collaborates to ensure smooth transactions without surprises, supported by stringent financial controls and robust security systems. They aim to be the premier IRC Section 1031 qualified intermediary nationally by delivering excellent service and secure, value-added solutions. API is a member of the Federation of Exchange Accommodators.
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IPX1031 (Investment Property Exchange Services, Inc.)
deferred.com
Verified

Chicago, IL

Investment Property Exchange Services, Inc. (IPX1031) is the largest and one of the oldest Qualified Intermediaries in the United States. As a wholly owned subsidiary of Fidelity National Financial (NYSE:FNF), a Fortune 500 company, IPX1031 provides industry leading security for exchange funds as well as expertise and experience in facilitating all types of 1031 Exchanges. IPX1031’s nationwide staff, which includes industry experts, veteran attorneys and accountants, is available to provide answers and guidance to clients and their legal and tax advisors.
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Starker Services, Inc.
deferred.com
Verified

Los Gatos, CA

Starker Services Incorporated is the nation's oldest, largest, and most experienced independent qualified Intermediary firm, successfully completing thousands of exchanges each year. Formed following the landmark Starker tax court decision, our sole function is to provide a staff of highly trained professionals available to discuss exchange strategies and prepare accurate documentation supporting all forms of tax deferred exchanges. Every major real estate firm has used Starker to counsel their clients in the strategies which may be available on the sale of real or personal property.
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1031 Specialists
deferred.com
Verified

Denver, CO

We are the 1031 Specialists trusted by savvy investors to facilitate fast, transparent, and error-free 1031 exchange transactions.Ultra-responsive. Client first. Sophisticated.With 1031 Specialists, clients get the exchange experience they deserve.
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ExStra 1031
deferred.com
Verified

,

Exchange Strategies Corporation was founded in 2006 to provide state-of-the-art reverse exchange accommodation services with un-matched responsiveness and asset security to Exchangors in all 50 states. We believe that if each exchange were properly optimized for its benefits to the Exchangor, then a reverse exchange would be the best choice in 35-40% of all exchanges.
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Exchangeable, LLC
deferred.com
Verified

Scottsdale, AZ

Exchangeable, LLC, headquartered in Arizona, positions itself as a comprehensive provider for 1031 exchange services. The company emphasizes its expertise in safeguarding sales profits from IRS capital gains taxes through a well-refined 1031 exchange process. They highlight the security of client funds, which are managed by a fiduciary partner using advanced security measures for transactions. Exchangeable, LLC is a member of the Federation of Exchange Accommodators, underscoring their commitment to trust, knowledge, and efficiency in handling exchanges.
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BHX 1031 Exchange LLC
deferred.com
Verified

Glendale, AZ

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Spectrum Exchange Corp.
deferred.com
Verified

Camp Verde, AZ

Spectrum Exchange Corp, based in Arizona, was founded in 1995 by Claire Westberg. The company has been known for its use of specialized software developed by Claire's husband, Rick Westberg, to provide high-quality 1031 exchange services. Claire Westberg retired in 2020, and the company is not a member of the Federation of Exchange Accommodators.
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Deferred.com Resources

Learn More

What is a 1031 Exchange?
Maximize your real estate investment potential with the 1031 Exchange Rules. We cover the specifics of these rules, the benefits of a 1031 exchange, and the different types of exchanges available. Learn about qualifying properties, crucial timelines, financial implications, and the role of qualified intermediaries.
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1031 Exchange Rules & Checklist
A 1031 exchange can be an incredible tool for real estate investors to reduce their tax liability. We demystify the rules required to qualify and successfully complete a like-kind exchange.
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1031 Exchange Examples
Review some common 1031 exchange examples and take advantage of our profit-generating ideas to use the 1031 Exchange to make your property portfolio more profitable.
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