Combined rate and how to defer it in New Mexico.
New Mexico taxes capital gains as ordinary income at up to 5.90%, bringing the combined investment property rate to 29.7% (20% federal + 3.8% NIIT + 5.90% state).
New Mexico taxes capital gains as ordinary income at up to 5.90% at the state level. Combined with federal, the total is 29.7%. Estimate the full bill with depreciation recapture using the capital gains tax calculator.
A 1031 like-kind exchange can defer the combined 29.7% rate by rolling all proceeds into a replacement property. Model it in the 1031 exchange calculator and check your deadlines with the timeline calculator.