Nevada 1031 exchange rules
A 1031 exchange in Nevada follows the same federal rules as everywhere else, but Nevada adds some advantages and a few local details worth knowing. Nevada currently has no individual state income tax, has its own exchange-facilitator law, and charges a real property transfer tax at closing that a 1031 doesn't eliminate.
| Topic | How it works in Nevada |
|---|---|
| State income / capital gains tax | None for individuals. Nevada residents selling Nevada property generally face only federal tax on the gain. |
| Out-of-state property sold by Nevada residents | The state where the property sits may tax the gain (for example, California taxes California-source gain). |
| Nonresident withholding at closing | Nevada doesn't impose state income-tax withholding on real estate sales. (California, New York, and others do.) |
| Real property transfer tax (RPTT) | Due on recorded transfers. In Clark County the combined rate is $2.55 per $500 of value (about 0.51%). A 1031 defers income tax, not transfer tax. |
| Exchange facilitators (QIs) | Regulated under NRS Chapter 645G, with bonding, E&O, and segregated-funds requirements. |
| Federal rules | All IRC §1031 rules apply: like-kind real property, 45/180-day deadlines, QI, and Form 8824 reporting. |
How Nevada's tax picture changes the math
Nevada residents selling Nevada property
Because Nevada has no state income tax, a 1031 exchange here is mainly about deferring federal tax: long-term capital gains (up to 20%), depreciation recapture (up to 25%), and often the 3.8% Net Investment Income Tax. On a large sale that can still be hundreds of thousands of dollars.
Out-of-state investors buying in Nevada
Most of our clients sell in a high-tax state and buy in Las Vegas. The 1031 defers both federal tax and the home state's tax. Some states keep a claim on that deferred gain; California requires an annual FTB 3840 filing. See our state guides for California and New York.
Nevada residents exchanging out of state
If you live in Nevada and exchange into property in another state, that state generally won't tax the deferred gain from your Nevada sale, but it may tax income and future gain from the new property. Model both sides with your CPA.
Moving to Nevada is a separate question
Changing your residency to Nevada and completing an exchange are two different events with different rules. Read Nevada move and 1031: keep the tax files separate.
Nevada 1031 exchange companies and services
Searching for "1031 exchange companies in Nevada" turns up two kinds of firms: Qualified Intermediaries, which hold funds and paperwork, and real estate brokerages like ours, which sell and buy the property. You need a QI; you'll almost certainly want a broker who runs exchanges regularly. Look for:
- A QI that complies with NRS 645G and carries strong bonding and E&O coverage (full checklist).
- A broker with deep Las Vegas inventory knowledge who starts your search before day 0.
- A CPA who handles exchanges and multi-state returns.
Nevada 1031 Exchange FAQ
Tell us where you are in the sale. A licensed Nevada broker responds within one business day, usually the same day. We coordinate with your QI, CPA, and attorney; we don't replace them.