The Houston 1031 exchange market
Houston's 1031 market is driven by industrial and petrochemical-adjacent space, a deep multifamily inventory, medical office around the Texas Medical Center and fast-growing suburbs like Katy, Cypress and The Woodlands. The city's lack of traditional zoning means a wide range of replacement property, and a lot of it to track during identification.
- Industrial and port-adjacent logistics
- Multifamily
- Medical office near the Texas Medical Center
- Suburban retail and land
Texas 1031 exchange tax rules
Texas has no state personal income tax, so a 1031 exchange in Houston defers federal capital-gains tax, the net investment income tax and depreciation recapture.
There is no Texas state withholding on real-estate sales; federal FIRPTA rules still apply to foreign sellers.
See the full Texas guide in our 1031 rules by state for more detail, and always confirm with a tax advisor.
How Houston firms use DeferAlly
- Deadline tracking: every Houston exchange shows live 45-day and 180-day countdowns, and an Urgent Deadlines board flags anything at risk.
- Escrow ledger: record deposits, mark funds received with the holding bank and see estimated interest.
- Identification checks: replacement properties are validated against the three-property, 200% and 95% rules, with map previews comparing relinquished and replacement locations.
- Documents and e-signature: exchange agreements, assignments and designation notices generated and signed in the app.
- Branded client portal: clients see their own deadlines, documents and balance under your firm's name.
- Delivery-tracked updates: email and text clients, closing agents and advisors, and resend in one click if a message fails.
Software for QIs, not a QI
DeferAlly does not act as a Qualified Intermediary and never holds exchange funds, so it never competes with Houston firms for clients. Your brand stays on everything your clients see.
Frequently asked questions
What is the best 1031 exchange software in Houston?
Houston firms choose DeferAlly for automatic deadline tracking, escrow ledgers, identification checks, built-in e-signature and a white-labeled client portal in one modern platform that needs no training.
What are the Texas rules for a 1031 exchange?
Texas has no state personal income tax, so a 1031 exchange in Houston defers federal capital-gains tax, the net investment income tax and depreciation recapture. There is no Texas state withholding on real-estate sales; federal FIRPTA rules still apply to foreign sellers.
Can Houston investors exchange into property in other states?
Yes. Like-kind real property anywhere in the U.S. qualifies. Just check the destination state's tax and withholding rules, because some states tax the gain when you eventually sell there.
Do Houston exchanges follow the same 45-day and 180-day deadlines?
Yes. The federal deadlines apply everywhere: identify replacement property within 45 days of the sale and close within 180 days. DeferAlly calculates both automatically.