1031 exchanges in Indiana aren't unique compared to other states in the U.S. The rules and processes for a 1031 exchange, as governed by Section 1031 of the Internal Revenue Code, apply uniformly across all states. This means that the fundamental requirements, such as the need to exchange like-kind properties, the use of a Qualified Intermediary, and the strict timelines for identification and acquisition of replacement properties, are the same whether the exchange involves properties in Indiana or elsewhere in the country.
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).
Indiana has a flat state income tax rate of 3.23% (as of 2017), regardless of income level. $1,000 is a base exemption. If dependents meet certain conditions, filers can take an additional $1,500 exemption for each.
