Starting January 1, 2014, all taxpayers who sell California property in a 1031 exchange and purchase a non-California replacement property will now be required to file the new “1031 Information Return” to the California Franchise Tax Board. This filing must be completed annually until the deferred gain is recognized. In June 2013, the California Legislature passed Assembly Bill 92 (AB 92) which added Sections 18032 and 24953 to the California Revenue and Taxation Code, creating the new filing requirement. With this new law in place, the Franchise Tax Board will be able to track gains from California-based 1031 exchanges. More info…
