1031 exchange multi-state tax

Dear 1031x: If I do a 1031 exchange into another state and later sell the property. In which state do you pay the capital gains?

Dear K: Thank you for contacting us. The general rule is that you will first pay tax in the state where the property is located. Then, if the tax rate in the state where you reside is higher than the tax rate in the state where you sell, you will pay the difference in rate to the state in which you reside. I hope you will chose us for your 1031x needs
Sincerely,
Steven W. Hickox, Attorney & President
www.1031x.com
1-888-899-1031