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Updated almost 7 years ago on . Most recent reply

User Stats

60
Posts
29
Votes
Edward Burke
  • Rental Property Investor
  • San Diego, CA
29
Votes |
60
Posts

California Clawback - 1031 Exchange Out of State

Edward Burke
  • Rental Property Investor
  • San Diego, CA
Posted

I have property in California that I will be selling this year, and will be re-investing the funds outside the state of California via a 1031 exchange (Investing in St. Louis, Missouri).  I understand that California will claw-back the gain should you subsequently complete a final sale (without performing another 1031 exchange).  This results in double taxation as you will pay taxes in both states.  Having said that, I believe that the benefits still outweigh the risks for me.  

As such, I want to understand how burdensome the annual information return required by California is.  Anyone have experience with this?  

Anything else I should consider?

I will also need a reliable intermediary, and I am happy to take recommendations.  

Thanks!

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