1031 exchanges gained significant value recently in Rhode Island thanks to the state legislature and the Governor. The leaders of Rhode Island determined that raising the Rhode Island tax rate on capital gains from 1.67% to 9.9% was good for the economic viability of the state. These leaders did not really explain the basis for such a determination, they just passed the bill. This enormous rate increase will take effect for sales after December 31, 2009.
So, in order to avoid this additional tax, a 1031 exchange should be considered. See our website for the basics of 1031 exchanges and the types of properties that are eligible. But, for the right types of properties and for the right investor, the 1031 exchange will allow the Rhode Island tax to be deferred.
For more information on the Rhode Island tax, contact All States 1031 Exchange Facilitator, LLC owner F. Moore McLaughlin, IV, Esq., CPA, CES at 877-395-1031 or by e-mail at fmm@AllStates1031.com.
Tags: 1031, 1031 exchange, alexandra hart, Alexandra L. Hart, All States, capital gains tax, Certified Exchange Specialist, CES, investment, investment property, IRS, Moore McLaughlin, QI, qualified intermediary, qualifying property, Rhode Island, Rhode Island capital gains tax, Rhode Island tax