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S795 • 2025

Modify Taxation of 1031 Exchanges.

Modify Taxation of 1031 Exchanges.

Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Burgin, Applewhite, Blue, Bradley
Last action
2026-04-22
Official status
Ref To Com On Rules and Operations of the Senate
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Modify Taxation of 1031 Exchanges.

Modify Taxation of 1031 Exchanges.

What This Bill Does

  • Modify Taxation of 1031 Exchanges.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-04-22 Senate

    Ref To Com On Rules and Operations of the Senate

  2. 2026-04-22 Senate

    Passed 1st Reading

  3. 2026-04-21 Senate

    Filed

Official Summary Text

Modify Taxation of 1031 Exchanges.

Current Bill Text

Read the full stored bill text 
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 795

Short Title: Modify Taxation of 1031 Exchanges. (Public)
Sponsors: Senator Burgin (Primary Sponsor).
Referred to: Rules and Operations of the Senate
April 22, 2026
*S795-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO MODIFY THE TAXATION OF CERTAIN AMOUNTS OF GAIN IN A 1031 2
EXCHANGE. 3
The General Assembly of North Carolina enacts: 4
SECTION 1. G.S. 105-130.5(b) reads as rewritten: 5
"(b) The following deductions from federal taxable income shall be made in determining 6
State net income: 7
… 8
(33) Any amount included in federal taxable income as non -like-kind property 9
received in an exchange under section 1031 of the Code to the extent it does 10
not exceed the taxpayer's basis in the property sold." 11
SECTION 2. G.S. 105-153.5(b) reads as rewritten: 12
"(b) Other Deductions. – In calculating North Carolina taxable income, a taxpayer may 13
deduct from the taxpayer's adjusted gross income any of the following items that are included in 14
the taxpayer's adjusted gross income: 15
… 16
(17) Any amount included in federal taxable income as non -like-kind property 17
received in an exchange under section 1031 of the Code to the extent it does 18
not exceed the taxpayer's basis in the property sold." 19
SECTION 3. This act is effective for taxable years beginning on or after January 1, 20
2026. 21