California 1031 out of state exchange - Spidell

California 1031 out of state exchange

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Message Board California 1031 out of state exchange

  • This topic has 4 replies, 3 voices, and was last updated 1 week ago by Lynn Freer.
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    • #266875
      David Ellis
      Participant

      Client  is  doing  a  1031  exchange  from property located in Calif, for  property located  in Az. He  wants  to do  the  10031 for  federal  purposes, but opt out of it  for  Calif and  just  pay the tax on the gain  and  be done  with  it.  Does  anybody  know  if  this is possible?  Thank you.

    • #267014
      Lynn Freer
      Participant

      1031 is not an election so there is no opting out. If it qualified as an exchange it is an exchange for both federal and CA

    • #267024
      David Ellis
      Participant

      Thanks  Lynn!

       

    • #267139
      Eric Johnson
      Participant

      Where in the CA tax code does it say that a 1031 exchange for US purposes can not be treated as a sale for CA purposes. Wouldn’t the FTB want the tax money now rather than waiting indefinitely or even never for the tax money. There are articles on the web talking about this issue but they don’t specify the legal process.

    • #267143
      Lynn Freer
      Participant

      R&TC sec 17024.5 provides conformity to federal. The only nonconformity in 1031 we have is for some sales on tangible personal property nonconformity for taxpayers with less than $250k of federal AGI. We fully conform for real property

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