District of Columbia conforms to federal Section 1031, so a properly structured like-kind exchange defers both your federal and District of Columbia capital-gains tax. District of Columbia generally taxes capital gains as ordinary income at rates up to 10.75%.
Yes. District of Columbia conforms to federal Section 1031, so a properly structured like-kind exchange defers both your federal and District of Columbia capital-gains tax. You still must use a Qualified Intermediary, identify replacement property within 45 days, and close within 180 days.
District of Columbia taxes capital gains as ordinary income, with a top marginal rate of about 10.75%. A 1031 exchange defers this state tax along with the federal tax.
No. District of Columbia does not impose a 1031 exchange clawback, so it does not separately track deferred gain on out-of-state replacement property.
DC withholds from nonresident sellers at closing.
DeferAlly guides you through a compliant 1031 exchange with $0 in platform fees. Start free and let our AI ally handle the 45- and 180-day clock.
Disclaimer: This page is general education, not tax or legal advice, and reflects commonly-cited 2025 rules. Confirm current rates and requirements with a qualified tax advisor and a Qualified Intermediary before acting.