Assembly Bill 92 - 1031 Exchange changes in California
by Stacey May
on Monday, March 31st, 2014 at 7:54pm.
California Assembly Bill 92 - A new tax law that may give 1031-exchange buyers a good reason to buy an up leg property in California, instead of another state. For a 1031 exchange occuring on or after January 1st, 2014, a taxpayer who acquires a "like kind" property in an exchange that is located outside of California must file an information return with the Franchise Tax Board (FTB) for that taxable year and every year thereafter until the capital gain or loss from the 1031 exchange is recognized. If a taxpayer fails to file the required information return and tax returns, the FTB may propose to assess the amount of tax, interest, and penalties due by estimating net income, including gain, from any available information. The FTB will draft and make available the required information return, which will first come due in the 2015 filing season.