California 1031 Exchange

Forum|Forum|4 years ago
March 31, 2022
1 reply
7 views

I have a client who did a 1031 exchange of a property in CA and acquired 4 properties in WA,

In 2021 he sold one of those properties so we have to pay CA the tax on the portion of the deferred gain that applies to that property.

Not sure how to do that

I have been filing Form 3840 annually and think I need to check the Amended FTB 3840 box as well

So any help would be much appreciated

Lacerte Tax

This topic has been closed for replies.

T

Taxlady16

Level 2

I have that same situation, but property in another state.

Having a hard time getting the CA state return to balance because the deferred gain is less

than the gain on the sale because it has been many years. I know we have to redo the 3840 form and add a statement for the change.

I have posted this same question to the community again today. I will be watching to see if they answer your post as well as my post.

S

safcpaAuthor

Level 3

I have not heard anything.

I've been attempting to get the amended box on the Form 3840 to be checked without success.

Perhaps I need to prepare a CA amended return for 2017 (the year of the exchange), reflect the deferred gain that needs to be taxed and manually change the Form 3840 but have not tried this yet

I would be happy to hear if you receive or figure out a solution

Thank you

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