Combined rate and how to defer it in North Dakota.
North Dakota's 2.50% maximum rate on capital gains keeps the combined investment property figure at 26.3% (20% federal + 3.8% NIIT + 2.50% state), among the lower combined rates in the country.
North Dakota taxes capital gains at up to 2.50% at the state level. Combined with federal, you are at 26.3%. Estimate the full bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange can defer the full 26.3% combined rate by reinvesting all proceeds into a replacement property. Model it in the 1031 exchange calculator and check your deadlines with the timeline calculator.