Texas does not charge a state capital gains tax on home sales. Federal capital gains tax may still apply. If you owned and lived in your home for at least two of the last five years, you can exclude up to $250,000 of gain as a single filer or $500,000 filing jointly.
Texas State Capital Gains Tax
- Texas state tax on capital gains: $0. The Texas Constitution prohibits a state income tax under Article VIII, Section 24-a and prohibits a capital gains tax on individuals under Article VIII, Section 24-b.
- Local or city capital gains tax: $0. No Texas city or county imposes a capital gains tax.
- Federal capital gains tax: May still apply at 0%, 15%, or 20% on long-term gains, depending on your taxable income and filing status.
2026 Federal Long-Term Rates
- 0% rate: Taxable income up to $49,450 for single filers, $98,900 for married filing jointly, and $66,200 for head of household, per IRS Rev. Proc. 2025-32 for tax year 2026.
- 15% rate: Taxable income from the 0% ceiling up to $545,500 for single filers, $613,700 for married filing jointly, $579,600 for head of household, and $306,850 for married filing separately.
- 20% rate: Taxable income above the 15% ceiling.
Section 121 Exclusion
- Single filers: Exclude up to $250,000 of gain from a primary residence sale.
- Married filing jointly: Exclude up to $500,000 of gain.
- Requirements: You must have owned and used the home as your main residence for at least 24 months out of the five years before the sale, and not have claimed the exclusion on another sale within the prior two years, per IRS Publication 523.
When You Must Report the Sale
- You receive Form 1099-S: Report the sale on your tax return even if the full exclusion applies, per IRS Topic 701.
- Your gain exceeds the exclusion: Report on Schedule D and Form 8949.
- No 1099-S and full exclusion applies: You do not need to report the sale.
Does Texas have a capital gains tax on home sales?
No. Texas charges $0 state capital gains tax on any home sale. The Texas Constitution prohibits both a state income tax and a capital gains tax on individuals, families, estates, and trusts. Federal capital gains tax may still apply to your sale, and that is the focus of this guide.
How much is capital gains tax when selling a house in Texas?
Your Texas state capital gains tax is $0. Your federal capital gains tax depends on your taxable gain, your filing status, your other taxable income, and whether you qualify for the Section 121 primary residence exclusion. If you owned and lived in the home for at least two of the last five years, you may be able to exclude up to $250,000 of gain as a single filer or $500,000 as a married couple filing jointly. Any gain above the exclusion is taxed at federal long-term capital gains rates of 0%, 15%, or 20%, based on your total taxable income for the year.
Do I have to report the sale if I qualify for the full exclusion?
If you receive Form 1099-S from the closing agent, you must report the sale on your tax return even if the gain is fully excludable. If you do not receive a 1099-S and your entire gain is covered by the exclusion, you do not need to report the sale. When in doubt, report the sale. IRS Publication 523 covers the reporting rules in detail.
The Bottom Line Up Front
Texas sellers owe $0 in state capital gains tax, guaranteed by two provisions in the Texas Constitution. The only capital gains tax question for a Texas home seller is federal. If you meet the Section 121 ownership and use tests, you can exclude up to $250,000 of gain or $500,000 filing jointly. Gain above the exclusion is taxed at 2026 federal long-term capital gains rates of 0%, 15%, or 20%, depending on your total taxable income. Short-term gains on homes held one year or under are taxed at ordinary income rates. High-income sellers may also owe the 3.8% Net Investment Income Tax. This guide walks through the federal rates, the exclusion rules, how to calculate your gain, when to report the sale, and the special situations that change the math.
Does Texas Charge Capital Gains Tax on Real Estate
Texas charges $0 state capital gains tax on any real estate sale. This applies to primary residences, rental properties, land, ranches, commercial property, and any other real estate held by an individual.
- Constitutional prohibition on income tax: Texas Constitution Article VIII, Section 24-a prohibits the state from imposing an individual income tax.
- Constitutional prohibition on capital gains tax: Texas Constitution Article VIII, Section 24-b prohibits the state from imposing a tax on realized or unrealized capital gains of an individual, family, estate, or trust.
- No local capital gains tax: No Texas city, county, or special district imposes a capital gains tax.
- Federal tax still applies: Texas sellers are subject to federal capital gains tax on gains that exceed applicable exclusions or deductions. The rest of this guide covers the federal rules.
- Other closing costs are separate: Texas sellers pay closing costs at settlement that affect net proceeds. See the full breakdown in the Texas seller closing costs guide.
2026 Federal Long-Term Capital Gains Tax Rates
The table below shows the 2026 federal long-term capital gains tax brackets from IRS Rev. Proc. 2025-32. These rates apply to assets held over one year. Your capital gain is added to your ordinary taxable income when determining which bracket applies.
| Rate | Single | Married Filing Jointly | Head of Household | Married Filing Separately |
|---|---|---|---|---|
| 0% | Up to $49,450 | Up to $98,900 | Up to $66,200 | Up to $49,450 |
| 15% | Over $49,450 to $545,500 | Over $98,900 to $613,700 | Over $66,200 to $579,600 | Over $49,450 to $306,850 |
| 20% | Over $545,500 | Over $613,700 | Over $579,600 | Over $306,850 |
These thresholds are based on total taxable income, not just the capital gain. If you have $80,000 of ordinary taxable income as a single filer, your 0% capital gains space is already exhausted because $80,000 exceeds the $49,450 threshold. Your entire long-term capital gain would fall into the 15% bracket.
How Rate Stacking Works
Your ordinary income fills the income brackets first. Your long-term capital gain is added after your ordinary income. The IRS applies the 0%, 15%, and 20% rates to the capital gain portion based on where it falls in the combined total.
Example: A single filer with $80,000 of ordinary taxable income and a $65,000 long-term capital gain from a home sale has a combined taxable income of $145,000. The $80,000 of ordinary income already exceeds the $49,450 zero-rate threshold for single filers, so the entire $65,000 gain is taxed at 15%. Federal tax on the gain: $65,000 x 15% = $9,750. Texas state tax: $0.
How to Calculate Your Taxable Gain on a Texas Home Sale
Your taxable gain is not your sale price, your equity, or your mortgage payoff amount. It is your amount realized minus your adjusted basis, minus any applicable exclusion. Mortgage payoff is a cash-flow item that affects your net proceeds at closing but does not change your taxable gain.
Gain Calculation Worksheet
| Step | Item | Your Number |
|---|---|---|
| A | Sale price | $___ |
| B | Selling expenses: commissions and other closing costs tied to the sale | $___ |
| C | Amount realized: A minus B | $___ |
| D | Original purchase price | $___ |
| E | Qualifying purchase closing costs added to basis | $___ |
| F | Capital improvements: additions, new roof, kitchen renovation, HVAC, fencing, and similar items that add value, prolong useful life, or adapt the home to new uses | $___ |
| G | Adjusted basis: D plus E plus F | $___ |
| H | Gain: C minus G | $___ |
| I | Section 121 exclusion: up to $250,000 single, $500,000 joint | $___ |
| J | Federally taxable gain: H minus I, but not below zero | $___ |
| K | Texas state capital gains tax | $0 |
IRS Publication 523 defines your adjusted basis as the original purchase price plus qualifying settlement fees and closing costs plus capital improvements, minus any depreciation allowed or allowable and minus any other required basis reductions.
- Improvements add to basis: New roof, room additions, kitchen modernization, central air conditioning, new siding, deck or patio, plumbing upgrades, electrical upgrades, fencing, landscaping with permanent structures, and similar work that adds value or extends the life of the home.
- Repairs do not add to basis: Painting, fixing leaks, replacing broken hardware, patching drywall, and routine maintenance that keeps the home in ordinary condition without adding value.
- Exception: Repairs done as part of an extensive remodeling or restoration project count as improvements.
- Mortgage payoff is not basis: The amount you owe on your mortgage does not affect your gain calculation. A seller with a $200,000 mortgage payoff and a seller with no mortgage on the same property at the same sale price have the same taxable gain.
Worked Example: Primary Residence with Full Exclusion
A married couple bought a Texas home 10 years ago for $300,000 and spent $40,000 on a new roof and kitchen renovation. They sell for $500,000. Selling expenses are $30,000. They lived in the home the entire time.
| Line | Item | Amount |
|---|---|---|
| A | Sale price | $500,000 |
| B | Selling expenses | $30,000 |
| C | Amount realized | $470,000 |
| D+E+F | Adjusted basis: $300,000 + $40,000 | $340,000 |
| H | Gain | $130,000 |
| I | Section 121 exclusion, MFJ | $500,000 |
| J | Federally taxable gain | $0 |
| K | Texas state tax | $0 |
The entire $130,000 gain falls below the $500,000 joint exclusion. No federal or state capital gains tax is owed.
Worked Example: Single Filer with Gain Above the Exclusion
A single filer bought a Texas home 15 years ago for $200,000 and spent $50,000 on improvements. The seller sells for $600,000. Selling expenses are $35,000. The seller has $80,000 of ordinary taxable income from employment.
| Line | Item | Amount |
|---|---|---|
| C | Amount realized: $600,000 – $35,000 | $565,000 |
| G | Adjusted basis: $200,000 + $50,000 | $250,000 |
| H | Gain | $315,000 |
| I | Section 121 exclusion, single | $250,000 |
| J | Federally taxable gain | $65,000 |
Rate stacking: The seller’s $80,000 ordinary income already exceeds the $49,450 single-filer 0% threshold for 2026. The entire $65,000 long-term gain falls in the 15% bracket. Federal tax: $65,000 x 15% = $9,750. Texas state tax: $0.
NIIT check: This example uses $80,000 as the seller’s pre-sale MAGI. Adding the $65,000 taxable gain gives MAGI of $145,000. The single-filer NIIT threshold is $200,000. MAGI is below the threshold, so no NIIT applies. Total federal tax on the gain: $9,750.
The Section 121 Primary Residence Exclusion
Section 121 of the Internal Revenue Code lets you exclude gain from the sale of your main home. It shelters up to $250,000 or $500,000 of gain from federal tax.
- Ownership test: You owned the home for at least 24 months out of the five years before the sale date.
- Use test: You used the home as your main residence for at least 24 months out of the five years before the sale date. The 24 months do not need to be consecutive.
- Prior exclusion test: You did not claim the Section 121 exclusion on another home sale within the two years before this sale.
- Exclusion amounts: Up to $250,000 for single filers. Up to $500,000 for married couples filing jointly, if both spouses meet the use test and at least one meets the ownership test.
- Gain excluded from NIIT: Gain excluded under Section 121 is not included in net investment income for purposes of the 3.8% NIIT.
Partial Exclusion for Early Sales
If you sell before meeting the full two-year ownership or use test, you may still qualify for a partial exclusion if the sale is due to a change in employment, health, or certain unforeseen circumstances.
- Employment: The distance from your home to your new job location exceeds the distance to your old job location by at least 50 miles.
- Health: You moved to obtain diagnosis, cure, mitigation, or treatment of disease, illness, or injury for yourself or a qualifying family member.
- Unforeseen circumstances: Events including involuntary conversion of the home, natural or human-caused disaster, death, divorce or legal separation, multiple births from a single pregnancy, or inability to pay basic living expenses.
- Calculation: Determine the shortest of three periods: months you owned the home, months you used it as your main residence, and months since you last claimed a Section 121 exclusion. Divide that shortest period by 24 and multiply by the full exclusion amount. If a single filer owned and used the home for 18 months before a qualifying job change and had no prior exclusion, the partial exclusion is $250,000 x 18/24 = $187,500.
Short-Term vs Long-Term: Two Different Tests
Two separate time tests affect your tax when selling a Texas home. They measure different things and trigger different consequences.
| Test | Threshold | What It Controls | Source |
|---|---|---|---|
| Holding period for capital gains rates | Held over one year | Whether gain is taxed at long-term rates of 0%, 15%, or 20% instead of ordinary income rates | IRS Topic 409 |
| Section 121 exclusion eligibility | Owned and used as main home for 24 months out of the last 5 years | Whether you can exclude up to $250,000 or $500,000 of gain | IRS Topic 701, Pub 523 |
These tests are independent. A seller who owned a home for 14 months has a long-term capital gain because the holding period exceeds one year. But that seller does not qualify for the full Section 121 exclusion because the two-year ownership and use tests are not met. A partial exclusion may apply if the sale qualifies under the employment, health, or unforeseen circumstances rules. Without an applicable exclusion, the gain is taxed at long-term rates.
A seller who owned a home for 10 months has a short-term capital gain. Short-term gains are taxed at ordinary income rates. The full Section 121 exclusion does not apply because the two-year ownership and use tests are not met. A partial exclusion may apply if the sale qualifies under the employment, health, or unforeseen circumstances rules.
Net Investment Income Tax on Home Sale Gains
The 3.8% Net Investment Income Tax applies to certain high-income taxpayers under IRC Section 1411. It is calculated on the lesser of two amounts, not on every dollar of gain above a threshold.
- NIIT rate: 3.8%, reported on Form 8960.
- Modified adjusted gross income thresholds: $200,000 for single filers and head of household, $250,000 for married filing jointly, $125,000 for married filing separately.
- The lesser-of formula: NIIT is 3.8% of the lesser of your net investment income or the amount by which your MAGI exceeds your filing-status threshold. This means the tax can be less than 3.8% of your total gain.
- Section 121-excluded gain is not NII: Gain excluded under the primary residence exclusion is not included in net investment income. Only the taxable portion of your home-sale gain enters the NIIT calculation.
Worked Example: Rental Property with NIIT
A single filer with $100,000 of other income sells a Texas rental property for $425,000. The property was purchased for $250,000 and the owner took $50,000 in depreciation deductions over the holding period. Selling expenses are $25,000.
| Line | Item | Amount |
|---|---|---|
| Adjusted basis | $250,000 purchase – $50,000 depreciation | $200,000 |
| Amount realized | $425,000 – $25,000 selling expenses | $400,000 |
| Total gain | $400,000 – $200,000 | $200,000 |
| Depreciation recapture | $50,000 at 25% maximum rate | $12,500 |
| Remaining LTCG | $150,000 at 15% | $22,500 |
| NIIT calculation | MAGI: $100,000 + $200,000 = $300,000. Excess over $200,000 threshold: $100,000. NII: $200,000. Lesser of $200,000 or $100,000 = $100,000. NIIT: $100,000 x 3.8% | $3,800 |
| Total federal tax on the sale | $12,500 + $22,500 + $3,800 | $38,800 |
| Texas state tax | $0 |
Unrecaptured Section 1250 gain is taxed at a maximum 25% rate per IRS Topic 409. This example applies the full 25% maximum to all $50,000 of depreciation recapture; the actual rate can be below the 25% maximum depending on the seller’s taxable income. The remaining long-term capital gain is taxed at 15% because the seller’s combined taxable income falls in the 15% bracket. The NIIT uses the lesser-of formula, taxing only $100,000 of the $200,000 gain at 3.8%.
No Section 121 exclusion applies because the property was a rental, not the seller’s primary residence.
Reporting the Sale and Estimated Tax Payments
Whether you must report a home sale to the IRS depends on two factors: whether you received Form 1099-S and whether your gain exceeds the exclusion.
- You received Form 1099-S: Report the sale on Schedule D and Form 8949, even if the gain is fully excludable under Section 121. The IRS received a copy and will expect to see the sale on your return.
- Your gain exceeds the exclusion: Report the taxable portion on Schedule D and Form 8949. If depreciation recapture applies, also file Form 4797.
- No 1099-S and full exclusion applies: You do not need to report the sale. However, reporting it can create a clear record with the IRS.
Estimated Tax Payments
A home-sale gain above the exclusion can increase your total tax for the year. If the additional tax is not covered by withholding, you may need to make an estimated tax payment to avoid an underpayment penalty.
- $1,000 threshold: You avoid an underpayment penalty if you owe less than $1,000 in tax after subtracting withholdings and credits.
- Safe harbor options: You also avoid the penalty if you paid at least 90% of your current-year tax liability, or at least 100% of the tax shown on your prior-year return. If your prior-year adjusted gross income exceeded $150,000 or exceeded $75,000 for married filing separately, the prior-year safe harbor is 110% instead of 100%.
- Annualized installment method: If the home sale creates a large gain in one quarter while your income varied across the year, Form 2210 allows you to annualize your income and reduce or eliminate the penalty.
- W-2 withholding: If you are employed, adjusting your federal withholding can help cover the additional tax from a home-sale gain.
- Quarterly due dates: Estimated payments are due in four installments throughout the tax year.
Ways to Reduce, Defer, or Manage Capital Gains Tax
Several strategies can reduce, defer, or change the tax treatment of a home-sale gain. None of these strategies eliminate tax in all cases, and each has eligibility requirements.
| Strategy | Effect | Who Qualifies | Key Conditions |
|---|---|---|---|
| Section 121 exclusion | Eliminates tax on up to $250,000 or $500,000 of gain | Primary residence sellers meeting the ownership and use tests | Owned and used as main home 24 of last 60 months; no exclusion claimed in prior 2 years |
| Cost basis adjustments | Reduces taxable gain by increasing your adjusted basis | Any seller who made qualifying capital improvements | Must be improvements, not repairs; keep receipts and invoices |
| Holding beyond one year | Changes short-term ordinary rates to long-term capital gains rates | Any seller who has held under one year and can wait | The holding period must exceed one year from the date of acquisition |
| 1031 like-kind exchange | Defers tax by reinvesting proceeds into replacement investment property | Owners of real property held for business or investment use only | Not available for a primary residence; identify replacement property within 45 days; receive replacement property by the earlier of 180 days after transfer or the due date, including extensions, for the tax return for the year of transfer |
Qualified Opportunity Zone Investment
Qualified Opportunity Zone funds allow investors to defer eligible capital gains by reinvesting within 180 days. However, deferred gains are subject to inclusion rules and deadlines that have changed over time. Check the current IRS QOZ guidance for applicable recognition dates before relying on deferral. This is a complex, fact-specific strategy with evolving IRS guidance. Consult a tax professional before investing home-sale proceeds in a QOZ fund.
Special Situations for Texas Home Sellers
The standard Section 121 rules apply to a straightforward primary residence sale. The situations below change the math or the eligibility requirements.
Military or PCS Orders
Members of the Uniformed Services, Foreign Service, and intelligence community may suspend the five-year lookback period for up to 10 years while on qualified official extended duty. Qualified official extended duty means serving at a duty station at least 50 miles from your main home, or residing in government housing under government orders, for a period of more than 90 days or for an indefinite period. With the suspension, a service member who lived in a home for two years, deployed for eight years, and then sold the home could still qualify for the full Section 121 exclusion. The Texas homestead and PCS sell guide covers this scenario in detail.
Surviving Spouse
A surviving spouse who sells the home within two years of the date of death may qualify for the full $500,000 joint exclusion if both of these conditions are met: the surviving spouse has not remarried at the time of the sale, and neither spouse claimed the exclusion on another sale within the prior two years. The surviving spouse can count the deceased spouse’s time of ownership and use toward the eligibility tests.
Divorce or Separation
A transfer of a home to a spouse or former spouse as part of a divorce settlement is treated as a no-gain, no-loss transaction. The receiving spouse takes over the transferring spouse’s basis. If a divorce or separation agreement allows one spouse to remain in the home, the time that spouse lives in the home counts toward the use test for the other spouse. This means a spouse who moved out can still meet the two-year use test if the ex-spouse continued living there under the terms of the agreement.
Inherited Home
An inherited home’s basis is the fair market value on the date of the decedent’s death. If the estate’s personal representative elects an alternate valuation date, the basis is the value on that date instead. If Form 706 was filed or required, the value listed on the estate tax return controls. In Texas, a community-property state, the total fair market value at the date of death can become the basis of the entire community-property home, including the surviving spouse’s share, under IRS community-property rules. The heir’s taxable gain is calculated from this basis, not the original purchase price. The heir must meet the Section 121 ownership and use tests independently to claim the exclusion.
Primary Residence Converted to Rental
If you lived in a home as your primary residence and then converted it to a rental property, the Section 121 exclusion may still apply if you sell within the five-year lookback period and meet the two-year ownership and use tests. However, depreciation taken or allowable after May 6, 1997, cannot be excluded and must be reported as unrecaptured Section 1250 gain on Form 4797, taxed at up to 25%. Periods after 2008 during which the property was not used as your main home may count as nonqualified use, which can reduce the excludable gain. However, the portion of the five-year period after the last date you used the property as your main home is not treated as nonqualified use.
Frequently Asked Questions
Do I pay capital gains tax if I sell my house in Texas and buy another house
Buying another house does not automatically defer or eliminate capital gains tax. The Section 121 exclusion is based on your ownership and use of the home you sold, not on whether you reinvest in another property. If your gain exceeds the exclusion, you owe federal tax on the excess regardless of what you do with the proceeds. A 1031 exchange defers tax only on investment or business property, not a primary residence.
Is capital gains tax based on sale price, equity, or profit
Capital gains tax is based on your gain, which is the amount realized minus your adjusted basis. It is not based on sale price alone, and it is not based on your equity. Equity is sale price minus mortgage payoff, which is a cash-flow measure. Gain is sale price minus selling expenses minus what you paid for the home and qualifying improvements.
Does my mortgage payoff reduce my capital gains
No. Your mortgage payoff affects how much cash you receive at closing, but it does not change your taxable gain. A seller who owns a home free and clear and a seller with a large mortgage on the same property at the same sale price have the same taxable gain. Gain is calculated from basis and selling expenses, not from the loan balance.
What closing costs can I subtract from my gain
Selling expenses that reduce your amount realized include commissions, closing costs, and legal fees tied to the sale. The cost to sell a house in San Antonio guide itemizes these costs. On the purchase side, qualifying settlement fees and closing costs can be added to your basis. IRS Publication 523 lists which costs qualify.
What home improvements count toward my basis
Improvements that add value, prolong the useful life, or adapt the home to a new use increase your basis. Examples include a new roof, room additions, kitchen or bathroom renovation, central air conditioning, new siding, a deck or patio, plumbing and electrical upgrades, and permanent landscaping. Repairs that maintain the home in ordinary condition, like painting or fixing leaks, do not count unless they are part of an extensive remodeling project.
What if I lived in the home then rented it out
If you lived in the home as your main residence for at least two of the last five years before selling, you can still use the Section 121 exclusion even if the home was rented during part of that period. However, depreciation taken or allowable after May 6, 1997, must be reported as unrecaptured Section 1250 gain at up to 25%. Periods of rental use after 2008 may count as nonqualified use, which can reduce your excludable gain. The portion of the five-year period after the last date you used the property as your main home is not treated as nonqualified use.
Can I use a 1031 exchange on my Texas home
Not if it is your primary residence. A 1031 like-kind exchange under IRC Section 1031 applies only to real property held for business or investment use. A home you live in as your main residence does not qualify. If you own a rental or investment property in Texas, a 1031 exchange can defer the gain, but you must identify replacement property within 45 days and receive it by the earlier of 180 days after transfer or the due date, including extensions, for the tax return for the year of transfer.
What if I sell before two years because of a job change or PCS
You may qualify for a partial exclusion if the sale is due to a change in employment, health, or unforeseen circumstances. The partial exclusion equals the full exclusion amount multiplied by the shortest of three fractions: months of ownership divided by 24, months of residence divided by 24, or months since the last exclusion divided by 24. Military members on qualified official extended duty of more than 90 days at a duty station at least 50 miles from the home can suspend the five-year lookback period for up to 10 years.
What if I inherited a house in Texas
An inherited property’s basis is the fair market value on the date of the decedent’s death, or the value on an alternate valuation date if elected by the estate. You must independently meet the Section 121 ownership and use tests to claim the exclusion. If you inherited the home and never lived in it, you do not qualify for the exclusion, but your gain is still reduced by the date-of-death basis.
When is the tax due after closing
Capital gains tax is due when you file your federal tax return for the year of the sale. If the sale creates a large tax liability that exceeds your withholding, you may need to make an estimated tax payment during the year to avoid an underpayment penalty. You can avoid the penalty if you owe less than $1,000 after withholding, or if you paid at least 90% of your current-year tax or 100% of your prior-year tax. If your prior-year adjusted gross income exceeded $150,000 or exceeded $75,000 for married filing separately, the prior-year safe harbor is 110%.
Data and Methodology
Tax brackets in this guide come from IRS Revenue Procedure 2025-32, Section 4.03, which sets the 2026 inflation-adjusted long-term capital gains thresholds under IRC Section 1. Section 121 exclusion rules, reporting requirements, basis and improvement definitions, partial exclusion calculations, Military suspension rules, surviving spouse rules, and divorce rules come from IRS Publication 523 and IRS Topic 701. Short-term and long-term holding period definitions and unrecaptured Section 1250 gain rules come from IRS Topic 409. Net Investment Income Tax rules come from the IRS NIIT guidance page, which reflects IRC Section 1411. Estimated tax rules, including the high-income safe harbor exception, come from the IRS estimated taxes page and IRS underpayment penalty guidance. Like-kind exchange rules, including the exchange-period deadline, come from the IRS like-kind exchange guidance page and IRS Publication 544. Qualified Opportunity Zone deferral rules come from the IRS QOZ fund guidance page. The Texas constitutional prohibition on individual income and capital gains taxes comes from the Texas Constitution Article VIII, Sections 24-a and 24-b, published by the Texas Legislature Online. No figures from commercial tax-preparation sites, real estate portals, news aggregators, or AI-generated content are used as sources in this guide.
