Is this a like-kind exchange? It depends.
When you sold your property, did you physically take possession of the sales proceeds, i.e. deposit it into your personal bank account? If you did, then no, you did not do an IRS Section 1031 Like-kind exchange.
You can choose which property to sell (exchange) and identify replacement properties, but you may not control or have access to the monies in between the sale and the purchase of those properties. For that reason, the use of a qualified intermediary (third party administrator) is necessary. Because you won't be able to physically have the sales proceeds in your "hand", you aren't able to do a like-kind exchange without a qualified intermediary.
Also, like-kind exchanges carry limits on how long you have to identify and acquire a replacement property to the IRS:
• 45 days from the date you sell to identify potential replacement property and notify the seller of the replacement property or your intermediary
• 180 days after the sale to complete the acquisition of the replacement property
Failing to meet these deadlines may cause the sale of the property to be recognized in the current tax year.
Does my wife need to file anything with Texas? I can only speak to income taxes however, the Texas franchise tax is a privilege tax imposed on each taxable entity formed or organized in Texas or doing business in Texas. For general information, see the Franchise Tax Overview.
Related information:
