1031 exchange CA to FL

[Jason Rowlett]

Hello,

I'm seeing a condo in California this summer and set to profit about $120k. I would like to put this in a 1031 exchange so that I can avoid the CA 40% cap gains. BUT I would like to invest in a different state, probably Florida (Tampa Bay). 

Do I need a 1031 agent in California to sell or a 1031 agent in Florida to buy? Or both?

Also, if I sell in Florida in the future, do I still pay California cap gains then? (Preferably with a larger pool of cash than I have now with which to pay it.)

Thanks!

[Dave Foster]

@Jason Rowlett, You'll use one "agent" or qualified intermediary who will handle the 1031 exchange portion of your closings on both the sale and purchase.  They interface and work directly with the regular closing entity whether title company or attorney as you choose.

California (and more states every day) does have a provision commonly called a "claw back" that involves some additional documentation with your Acct.  This is designed for CA to not lose track of your deferred gain so that if you ever recognize the gain they can get the associated tax from the time you owned there.  Florida does not have that and it is unlikely that it is  coming there anytime soon.  Florida also does not have a state income tax which is a beautiful thing.

Come on down!