
Certified Exchange Specialist
Texas' trusted qualified intermediary for seamless 1031 tax-deferred exchanges on rental properties, commercial buildings, and multi-family investments.
Texas has become one of the hottest real estate markets in the country, with major metros like Dallas-Fort Worth, Houston, Austin, and San Antonio experiencing rapid population growth and property appreciation. Texas investors hold everything from single-family rental portfolios in suburban developments to large commercial properties along I-35 and I-10 corridors, multi-family apartment complexes in growing cities, and ranch land that qualifies for like-kind exchanges.
While Texas has no state income tax, which is a major advantage, investors still face federal capital gains taxes up to 20% plus the 3.8% Net Investment Income Tax, for a combined rate of up to 23.8%. On a $500,000 gain from a Dallas rental portfolio, that is still $119,000 in deferred taxes through a 1031 exchange. Texas is also a top destination for out-of-state investors using 1031 exchanges to move equity from high-tax states like California and New York into the Lone Star State's favorable tax environment.
Popular Texas 1031 exchange strategies include exchanging single-family rentals for multi-family apartment buildings in growing suburbs, swapping older commercial properties for newer builds in booming corridors, and using DST exchanges for investors ready to transition from active management. The state's strong population growth and job creation make Texas replacement properties attractive for both in-state and out-of-state exchangors. Leah Badach helps Texas investors with all exchange types, providing expert guidance on forward, reverse, construction, and DST exchanges.
Common questions from Texas investors