2011 California Tax Free Exchange for property in Nevada for Nevada Resident

Log in to Post

Message Board 2011 California Tax Free Exchange for property in Nevada for Nevada Resident

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 1 week, 3 days ago.

  • Author
    Posts
  • #124471
    Lynn Ferro-Mills
    Participant

    11/30/18
    Scenario:
    A Nevada resident taxpayer exchanged California property for Nevada property in 2011 and wants to exchange the Nevada property for another Nevada property in 2018.

    Question:
    Does the exchange basis of the conversion property need to be reduced?
    If the property was in California it would have been reduced by depreciation, however, there is no state income tax in Nevada. No depreciation has been taken on the Nevada replacement property since the 2011 exchange.

    Thank you!

  • #124595
    Lynn Freer
    Participant

    Yes I believe it does as the depreciation is allowed or allowable. However, it is just the deferred original gain on the CA property should not be affected by depreciation on the new property.