The Franchise Tax Board (FTB) has created a new annual filing requirement taxpayers who exchange property located in California for like-kind replacement properties located outside California, which takes effect for tax years beginning on or after January 1, 2014. The new information return, referred to as a California 1031 Information Return, remains in development; but the FTB has indicated that it intends to track the following information: the California sourced portion for the taxpayer’s previously-deferred gain or loss when the non-California replacement property is ultimately sold, and such California sourced gain or loss that remains to be recognized by such taxpayers.
New 1031 Exchange Filing Requirements for California
About the Author: Yulia Petrovskaya
Yulia is a Manager at Bregante + Company LLP providing tax and audit services to a diverse client base composed of closely held companies, high net worth individuals, and non-profit organizations.