What is the total capital gains tax penalty if I sell without a 1031 exchange in Oregon?

In Oregon, an investor selling real estate without a 1031 exchange faces up to 20% federal capital gains tax, 3.8% Net Investment Income Tax (NIIT), 25% depreciation recapture tax, plus 9.9% Oregon state tax—resulting in a combined tax drag of 35% to 42%+ on total net proceeds.

What are the strict deadlines for an IRC § 1031 Exchange in Oregon?

The IRS enforces two immutable deadlines: (1) The 45-day Identification Period: You must formally identify replacement properties in writing by midnight of Day 45. (2) The 180-day Exchange Period: You must close title on the identified replacement property within 180 calendar days of relinquished closing. Weekends and holidays do not extend these deadlines.

What are the state-specific clawback laws in Oregon?

Oregon enforces "OR Form 24 Real Estate Withholding Form Mandatory". If you sell property located in Oregon and exchange into out-of-state property, you may be required to file annual tracking returns until the gain is recognized.

Can I use a Delaware Statutory Trust (DST) for my 1031 exchange?

Yes. Under IRS Revenue Ruling 2004-86, beneficial fractional interests in a Delaware Statutory Trust (DST) qualify as like-kind real estate under Section 1031. DSTs allow investors to transition into passive, institutional-grade commercial real estate (Amazon logistics, Class-A multifamily, medical clinics) with zero landlord responsibilities.

← Back to 1031TaxShield

📍 Oregon Real Estate Exchange

1031 Exchange Capital Gains & Clawback Rules in Oregon

Selling commercial or investment real estate in Oregon? Without an IRC § 1031 exchange, you face up to 20% federal capital gains, 3.8% NIIT, 25% depreciation recapture, plus 9.9% Oregon state income tax.

Oregon Statutory Clawback & Filing Rules

Statute Requirement: OR Form 24 Real Estate Withholding Form Mandatory

Average Cap Rates in Oregon currently sit at 5.2% - 5.9%. Transition into diversified Delaware Statutory Trust (DST) properties to eliminate tenant hassles.

Model Your Oregon Tax Savings

Calculate exact tax drag and reserve an accredited Qualified Intermediary before closing title.

Open Interactive Oregon Calculator →