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Leah Badach, 1031 Exchange Specialist in Texas

1031 Exchange Specialist Texas

Certified Exchange Specialist

The Sontag GroupThe Sontag Group

Texas' trusted qualified intermediary for seamless 1031 tax-deferred exchanges on rental properties, commercial buildings, and multi-family investments.

10+
Years
5,000+
Exchanges
$1B+
Facilitated

1031 Exchanges for Texas Real Estate Investors

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.

Texas 1031 Exchange FAQ

Common questions from Texas investors

Does Texas have a state capital gains tax?
No. Texas has no state income tax, so your 1031 exchange defers only federal taxes (up to 23.8% with NIIT). This already makes Texas one of the most tax-friendly states for real estate investors.
Can I exchange Texas ranch land or agricultural property?
Yes. Ranch land, farmland, and agricultural property held for investment qualifies for 1031 exchanges. You can exchange into other agricultural land or into any other type of investment real estate.
What are the 1031 exchange deadlines?
You have 45 days from closing to identify potential replacement properties and 180 days total to close on the replacement property. These deadlines are strict and cannot be extended.
Can I exchange a property from another state into Texas?
Absolutely. Texas is one of the most popular destinations for 1031 exchange investors from high-tax states. The combination of no state income tax, strong growth, and favorable landlord laws makes TX very attractive.
What is a DST 1031 exchange?
A Delaware Statutory Trust is a pre-packaged investment qualifying as like-kind replacement. DSTs are popular with Texas investors who want passive income without the day-to-day responsibilities of property management.
How much does a 1031 exchange cost?
QI fees typically range from $750-$1,500 for a standard forward exchange. Even in a no-income-tax state like Texas, the federal tax savings almost always far exceed the cost.
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