What a New York seller can defer with a 1031
New York has a top state income-tax rate of 10.9%, and New York City residents pay up to another 3.876%, so a New York real estate sale can carry combined state and city tax near 15% on top of federal tax. A properly structured 1031 exchange into Las Vegas property can defer all of it.
| Without a 1031 (illustration) | NYC resident | NY resident outside NYC |
|---|---|---|
| Gain on sale | $2,000,000 | $2,000,000 |
| Federal capital gains (20%) | $400,000 | $400,000 |
| Net Investment Income Tax (3.8%) | $76,000 | $76,000 |
| New York State (10.9% top) | $218,000 | $218,000 |
| New York City (3.876% top) | $77,520 | — |
| Estimated total | ~$771,520 | ~$694,000 |
Simplified top-rate illustration before depreciation recapture and selling costs. Rates: Tax Foundation 2026. Your CPA calculates the real number.
New York to Nevada 1031: how it works
New York taxes New York property, wherever you live
Gain from New York real estate is New York-source income, so nonresidents owe New York tax on it. Moving to Nevada before selling doesn't remove New York's claim on a New York property's gain. (New York City's personal income tax is based on residency, so it generally applies to city residents.)
Nonresident sellers deal with Form IT-2663 at closing
Nonresident individuals, estates, and trusts selling New York real property generally must file Form IT-2663 and pay estimated tax when the deed is recorded. The form accounts for gain deferred under §1031. Have your CPA prepare it well before closing so it doesn't hold up the deed.
A 1031 into Nevada defers New York tax
New York generally follows the federal 1031 result for personal income tax, so a qualifying exchange defers New York tax along with federal tax. New York does not use a California-style annual tracking form, but New York's claim on deferred New York-source gain is a question to raise with your CPA before you sell the replacement property.
Transfer taxes still apply
A 1031 defers income tax, not transfer taxes. New York State and New York City transfer taxes on the sale, and Clark County transfer tax on the Las Vegas purchase, are normal closing costs.
New York seller tax calculator
Tick "NYC resident" if you live in one of the five boroughs.
How New York investors use Las Vegas replacement property
New York sellers often trade a co-op, condo, or small building that takes a lot of management for newer Las Vegas rentals, net-lease property, or a DST. We handle tours by video, walk properties in person for you, and manage inspections and closing so you can buy from New York with confidence.
New York to Nevada 1031 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.