Nebraska
Nebraska taxes both deeds in a 1031 exchange, with one narrow exception.
Nebraska's Department of Revenue tells registers of deeds that a typical exchange does not change the documentary stamp tax, and the only exemption it describes is for transfers to and from an accommodation titleholder in a reverse exchange.
Nebraska does not waive its documentary stamp tax for an exchange. In a delayed exchange the register of deeds collects the tax on both the sale deed and the purchase deed. In a reverse exchange, the deeds into and out of an exchange accommodation titleholder can be exempt, but only if the agreement, the deed filing and Form 521 meet the Department of Revenue's three conditions.
onezero3one acts as qualified intermediary for exchanges of Nebraska property, subject to a review of each file before an exchange agreement is signed. We work with your closing agent and tax advisor; we do not give tax or legal advice.
What is specific to this state
The federal rules in IRC §1031 decide whether an exchange qualifies. The items below are state requirements that sit alongside them at closing or on the return. Each links to the official source it was checked against; confirm the current version with your closing agent and tax advisor before relying on it.
| Issue | What applies | Usually handled by | Source |
|---|---|---|---|
| Documentary stamp tax on both deeds | Nebraska's documentary stamp tax is not waived for a 1031 exchange. In a forward (delayed) exchange the register of deeds collects it on the relinquished-property deed and on the replacement-property deed. Every deed in a delayed exchange of Nebraska real property. | Closing agent, under the contract's allocation | Nebraska Department of Revenue, Directive 25-2 Section 1031 Like-Kind Exchanges of Real Property (July 8, 2025; supersedes 22-4) Checked September 30, 2026 |
| Reverse exchange: titleholder deeds exempt if conditions met | In a reverse exchange, the deed to and the deed from an accommodation titleholder are exempt from documentary stamp tax if the titleholder agreement says it acts solely as the exchanger's agent for all purposes except federal income tax, the transfer is to or from the titleholder, and exemption #4 is claimed on Form 521. A copy of the exchange agreement and a disclosure of the parties should go to the recording office. Reverse exchanges with parked relinquished or replacement property. | Closing agent and QI/titleholder, with the register of deeds | Nebraska Department of Revenue, Directive 25-2 Section 1031 Like-Kind Exchanges of Real Property (July 8, 2025; supersedes 22-4) Checked September 30, 2026 |
| Rate and who owes it | The documentary stamp tax is imposed on the grantor and collected by the county register of deeds. The rate is $3.32 per $1,000 of value (or fraction) as of July 18, 2026; it was $2.32 before that date. All taxable deeds. | Closing agent, under the contract's allocation | Nebraska Department of Revenue, Documentary Stamp Tax page (accessed 2026-09-30); Form 521 instructions Checked September 30, 2026 |
| Form 521 asks whether the transfer is a 1031 exchange | Form 521, the Real Estate Transfer Statement filed with the register of deeds, asks at item 9 whether the transfer was part of a 1031 exchange by buyer or seller, and item 25 for the exemption number if the transfer is exempt. The deed will not be recorded unless the statement is signed and items 1-27 are completed. Every Nebraska deed. | Closing agent | Nebraska Department of Revenue, Form 521 Real Estate Transfer Statement (current, accessed 2026-09-30) Checked September 30, 2026 |
Documentary stamp tax applies to each deed
Nebraska's documentary stamp tax is imposed on the grantor, the person signing the deed, and collected by the county register of deeds when the deed is recorded. The rate is $3.32 for each $1,000 of value, or fraction of $1,000, as of July 18, 2026, up from $2.32 before that date.
The Department of Revenue's guidance to registers of deeds (Directive 25-2, July 8, 2025) says a typical 1031 exchange does not affect the duty to collect the tax. For a forward, delayed exchange through an intermediary, the register collects on the sale of the relinquished property and again on the purchase of the replacement property. The intermediary's role does not turn either deed into an exempt transfer. Who pays each tax is a matter for your contracts; confirm the allocation with your closing agent.
Reverse exchanges: the accommodation titleholder exemption
In a reverse exchange, title is parked with an accommodation titleholder (an AT or EAT). The Department treats the replacement purchase and the final sale to the outside buyer as taxable, but treats the deed to the titleholder, and the deed from the titleholder to the exchanger, as exempt, if all three of these are present for each transfer:
- the agreement with the titleholder says the titleholder "is acting solely as [the exchanger]'s agent for all purposes, except for federal income tax purposes";
- the transfer is to or from the accommodation titleholder; and
- the exchanger and the titleholder claim exemption #4 on the Real Estate Transfer Statement, Form 521.
The directive also says a copy of the exchange agreement and a disclosure of the parties should go to the recording office, and that the register should not presume that every reverse exchange qualifies. If you are planning a reverse exchange on Nebraska property, have the titleholder agreement drafted with the agency language and raise the exemption with the closing agent and the register of deeds before the deed is presented.
Say it is an exchange on Form 521
Form 521 is filed with the register of deeds, and the deed will not be recorded unless it is signed and completed. Item 9 asks: "Was transfer part of IRS like-kind exchange (I.R.C. § 1031 Exchange) by buyer or seller?" with boxes for Buyer, Seller or No. Item 25 is where an exemption number goes if the transfer is exempt from the tax. The closing agent should complete both items consistently with the exchange documents.
What this page does not cover
This page covers the deed tax only. It does not state a Nebraska rule on withholding from nonresident sellers or on state income tax treatment of an exchange, because we have not confirmed one from an official Nebraska source. Ask your tax advisor how Nebraska income tax applies to your gain, and use the deadline calculator for your 45-day and 180-day dates.
Questions Nebraska sellers ask
Is Nebraska documentary stamp tax waived for a 1031 exchange?
No. For a delayed exchange, the register of deeds collects it on both the relinquished-property deed and the replacement-property deed. A limited exemption exists for transfers to or from an accommodation titleholder in a reverse exchange.
What is the Nebraska documentary stamp tax rate?
$3.32 for each $1,000 of value or fraction thereof, as of July 18, 2026. The Department's page describes it as a tax on the grantor.
What does a reverse exchange need in Nebraska to claim the exemption?
Agency language in the titleholder agreement, a transfer to or from the titleholder, and exemption #4 claimed on Form 521. Provide the exchange agreement and party disclosure to the recording office.
Where do I say the sale is part of an exchange?
On Form 521, item 9, filed with the register of deeds.
Related
Sources
- Nebraska Department of Revenue, Directive 25-2 Section 1031 Like-Kind Exchanges of Real Property (July 8, 2025; supersedes 22-4) (checked September 30, 2026)
- Nebraska DOR, Documentary Stamp Tax (checked September 30, 2026)
- Nebraska DOR, Form 521 (checked September 30, 2026)
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