1031 Exchange

[Joe Calisto]

Got a property in VA that I'm considering selling via 1031. Intent is to buy something equal to or greater in NC, question, what short term liability do I owe to VA once transaction is complete? Only liability ( I believe) to VA would be if and only if I sold the new NC property at a later date? If sold at a later date I would owe capital gains and depreciation recapture to federal government and capital gains to VA and NC based off initial 1031 numbers and gain/loss on final transaction?

[Andres Piedra]

Hi Joe. I did this exact thing a few months ago. I live in VA and sold a rental property here and 1031 exchanged it for 2 SFH's in North Carolina. This is a great question for an accountant or perhaps a 1031 Exchange company. I can link you up with the 1031 agent I used if you want to pick their brains.

For me, I figure I would cross that road if I ever came to it.