Utah's flat 4.65% income tax applies to capital gains, pushing the combined investment property rate to 28.5% (20% federal + 3.8% NIIT + 4.65% state).
Utah taxes capital gains as ordinary income at a flat 4.65% state rate. Combined with federal, the total is 28.5%. Estimate the full bill with depreciation recapture in the capital gains tax calculator.
A 1031 like-kind exchange defers the combined 28.5% rate by reinvesting all proceeds into a replacement property. Model the exchange in the 1031 exchange calculator and check your deadlines with the timeline calculator.