Sell in one state. Buy in another.
A 1031 exchange does not have to stay inside state lines. Investors regularly trade out of one market and into another without touching the federal deferral.
Exchanging across state lines
Federal deferral travels with you
Section 1031 is federal. Moving from one state to another does not affect the deferral itself.
State rules vary
Some states have clawback provisions or withholding requirements that apply when you sell and reinvest elsewhere. They are manageable when known in advance.
Local practice differs
Closing customs, title practice and escrow conventions are not the same everywhere. An intermediary that works nationally has seen yours.
Three steps, and we carry most of them
Call before you close
We confirm an exchange fits, map the deadlines against your timeline, and put the exchange agreement in place before the sale closes.
We hold the proceeds
Funds go from the closing table to us, never to you. That is what keeps the deferral intact.
You buy, we close it out
You identify and negotiate the replacement property. We handle the documentation, the funding and the reporting trail.
1031 Specialists
We facilitate exchanges no matter how complex and no matter where in the country a client is buying and selling. Investors leaving high-cost markets for higher-yield ones are one of the most common exchanges we handle.
We are a qualified intermediary for IRC Section 1031 tax-deferred exchanges, facilitating exchanges for real estate investors in all fifty states. We handle the exchange agreement, the identification and closing deadlines, and the custody of exchange funds. Every exchange includes unlimited tax optimization consulting, audit protection and an attorney guarantee, on a simple flat fee you pay at close.
Exchanging across state lines, answered
Can I sell in one state and buy in another?
Yes, routinely. Section 1031 is federal, so the deferral travels with you across state lines.
Do state taxes complicate it?
Sometimes. A few states have clawback provisions or withholding requirements when you sell there and reinvest elsewhere. They are manageable when identified early.
Do you work outside my state?
We facilitate exchanges in all fifty states, no matter where a client is buying or selling.
Talk to someone before the clock starts
Reach me directly, or call the main line and ask for anyone on the exchange team.
Main line
(631) 438-1031General email
info@1031specialists.comMailing address
30262 Crown Valley Pkwy, Suite B 464Laguna Niguel, CA 92677
The information on this page is general in nature and is not tax or legal advice. 1031 Specialists is a qualified intermediary, not a law firm, accounting firm or investment adviser. Consult your own tax and legal advisors about your circumstances before entering into an exchange.