Florida 1031 Exchange

No State Tax in Florida, but the Federal Bill Is Still Large

Florida is one of the busiest investment-property markets in the country, and it has no state income tax. Some investors take that to mean a 1031 exchange matters less here. It does not. The federal exposure on its own is significant: capital gains up to 20%, the 3.8% net investment income tax, and up to 25% on depreciation recapture (the tax owed on deductions you already took). On a $500,000 gain, that can pass $124,000. A 1031 exchange, which lets you sell one investment property and reinvest in another while deferring the tax, can defer all of it and keep your full equity working in your next Florida property.

Florida's no-tax status also pulls in buyers from other states. If you are selling in a state that does tax gains, such as California or New York, and reinvesting in Florida, the origin state's rules still follow the sale. We coordinate those obligations for you. For more detail, see our Florida 1031 exchange rules guide.

What a Florida 1031 Exchange Costs

Our fee is a flat $1,000 for a standard delayed exchange, paid $750 at your sale closing and $250 at your purchase closing. No upfront fees and no percentage of your proceeds. Reverse and improvement exchanges are quoted separately. As an attorney-owned firm, we include your exchange documents and coordination with your title company, lender, and CPA.

Commercial and Investment Property We Exchange in Florida

We serve as qualified intermediary across Florida's investment real estate: apartments and multifamily, vacation and short-term rentals held for investment, retail and shopping centers, office and medical office, industrial and warehouse, self-storage, single-tenant net-lease (NNN), hospitality, mixed-use, and investment land. Property held for investment or business use generally qualifies. Primary homes and flips generally do not.

How to Start Your Florida 1031 Exchange

Call (888) 508-1901 before your sale closes, since the exchange has to be in place beforehand. We prepare your exchange agreement and route the proceeds to your segregated, FDIC-insured account. From your sale closing, you have 45 days to identify replacement property and 180 days to close. We track both dates with you and release funds only for qualified replacement property.

A Note on Risk

A 1031 exchange defers tax. It does not erase it. The 45-day and 180-day deadlines are firm and cannot be extended. To defer the entire gain, you need to reinvest all of your net proceeds and replace any paid-off debt with new financing or cash. Any shortfall, called boot, is taxable. WealthBuilder 1031 serves only as your qualified intermediary. We do not give tax, legal, or investment advice, and we do not sell investments or securities. Please confirm your situation with your attorney and tax advisor.

1031 Exchange Activity Across Florida

Investors run exchanges across Florida, from Miami and Fort Lauderdale to Tampa, Orlando, and Jacksonville. Replacement property commonly includes multifamily, retail, industrial, and net-lease assets, along with Delaware Statutory Trust (DST) interests for investors who want a hands-off option.

Florida's metros attract investors nationwide, and a 1031 lets owners reinvest without triggering the federal tax on the sale. Wherever you reinvest, that state's rules apply to the new property, and we coordinate them.

Frequently Asked Questions About 1031 Exchanges in Florida

How much does a 1031 exchange cost in Florida?

A flat $1,000 for a standard delayed exchange, split $750 at your sale closing and $250 at your purchase closing. No upfront fees. Reverse and improvement exchanges are quoted separately.

Florida has no state income tax, so is a 1031 exchange still worth it?

Yes. Even without state tax, federal capital gains (up to 20%), the 3.8% net investment income tax, and up to 25% depreciation recapture still apply. A 1031 exchange can defer all of it, which on a large gain can preserve six figures of equity.

I am selling out of state and buying in Florida. Can you handle that?

Yes. We act as your qualified intermediary nationwide and coordinate the rules of the state you are selling in, including any withholding or claw-back that applies there.

Do I need a qualified intermediary for a 1031 exchange in Florida?

Yes. The IRS does not allow you or your agent to take possession of the sale proceeds. A qualified intermediary receives the funds, holds them in a segregated account, and releases them only to buy your replacement property.

How long do I have to complete a 1031 exchange in Florida?

You have 45 days from your sale closing to identify replacement property, and 180 days to close on it. These federal deadlines do not extend.

What property qualifies for a 1031 exchange in Florida?

Most real estate held for investment or business use qualifies, including rentals, multifamily, commercial buildings, and land. Primary residences and property held mainly to flip generally do not.

1031 Exchange Services Across Florida

WealthBuilder 1031 serves real estate investors in communities throughout Florida. Find your city below.

Do not see your city? We serve investors statewide. Call (888) 508-1901 to start your Florida 1031 exchange, or learn the details in our Florida 1031 exchange rules guide.

More 1031 Exchange Resources

Get Started Today

It is easy to get started on your exchange. You can either call our office directly at 888-508-1901, or you can fill out our Start Your Exchange form.

Start Your Exchange

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