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Texas

Qualified Intermediaries

Texas 1031 Exchanges

When it comes to conducting 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 are a few nuances and local considerations that might make a 1031 exchange in Texas slightly unique compared to other states.

  1. No State Income Tax: Texas does not have a state income tax. This is beneficial because it simplifies the tax deferral process since you only need to consider federal capital gains taxes and not state taxes. In states with income taxes, you would need to also defer state taxes or potentially pay them depending on the state's rules regarding 1031 exchanges.
  2. Real Estate Market: Texas has a diverse and dynamic real estate market with significant commercial and residential growth in cities like Austin, Dallas, Houston, and San Antonio. This provides a wide range of investment opportunities for those looking to reinvest in different types of properties as part of their 1031 exchange. The robust market can offer more options for like-kind properties, which is a core requirement for a successful 1031 exchange.
  3. Local Economic Factors: The economic environment in Texas, which includes a strong job market and a growing population, can influence real estate values and investment potential. These factors can make Texas an attractive place to reinvest after selling a property, potentially leading to higher returns on investment.
  4. Property Types and Industries: Texas has unique investment opportunities in industries such as oil and gas, agriculture, and ranching, which might not be as prevalent in other states. Properties involved in these sectors can also be considered for 1031 exchanges, provided they meet the like-kind requirement.

Overall, while the fundamental rules of 1031 exchanges are the same across the United States, Texas offers a unique economic landscape and tax benefits that can be advantageous for real estate investors.

Texas State Tax Information

Texas does not have state or local capital gains taxes. The Combined Rate accounts for the Federal capital gains rate, the 3.8 percent Surtax on capital gains, and the marginal effect of Pease Limitations on itemized deductions, which increases the tax rate by 1.18 percent.

Texas does not have a state income tax.

State Rate

0.00%

Local Rate

0.00%

Combined Rate

25.00%

Deductions

None

1031 Exchange Providers in Texas

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.
CDEC 1031 Exchange
deferred.com
Verified

New York, NY

Founded in 1989, Chicago Deferred Exchange Company ("CDEC") is one of the oldest and most experienced Qualified Intermediaries in the country and is part of Wintrust Financial. CDEC has commented before the IRS National Office on important industry issues and is a nationally recognized authority on Section 1031 Like-Kind Exchanges. CDEC applied for, and received, several Private Letter Rulings from the Internal Revenue Service, as well as rulings from the City of New York Department of Finance, the State of New Jersey and the District of Columbia. A separate Qualified Trust Account is created for every client on every transaction. Funds held in trust, for the benefit of our clients, are segregated from creditors' claims by operation of law.
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.
1031 Exchange Corporation
deferred.com
Verified

Austin, TX

Yes, 1031 Exchange Corporation is a member of the Federation of Exchange Accommodators (FEA), which is the only national organization for the exchange industry, formed to promote ethical standards of conduct and innovations in exchange practices.
Ten31 Texas, LLC
deferred.com
Verified

Austin, TX

Ten31 Texas, LLC, headquartered in Texas, is a full-service Qualified Intermediary that assists clients with standard 1031 exchanges, along with more complex reverse and improvement exchanges. They encourage potential clients to schedule a consultation to discuss property eligibility for a 1031 exchange. They are not a member of the Federation of Exchange Accommodators.
Texas Escrow Company, Inc.
deferred.com
Verified

Dallas, TX

Texas Escrow Company, Inc., headquartered in North Texas, operates as a full-service title insurance company under the name Republic Title of Texas, Inc. The company specializes in handling the transfer of title for real estate transactions and providing title insurance. They emphasize a commitment to community, professionalism, and integrity, aiming to deliver exceptional customer service. Republic Title has a history dating back to 1965, officially founded in 1991, and has grown to be the largest title company in Texas. They operate 11 residential and 2 commercial offices across the Dallas-Fort Worth area. Despite their extensive services in title insurance and real estate transactions, they are not members of the Federation of Exchange Accommodators.
The Texas 1031 Exchange Company
deferred.com
Verified

Seguin, TX

Title Holdings, Inc.
deferred.com
Verified

Waco, TX

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