Latest / North Star Tax and Legal Briefing
Section 1031 Exchanges in California: The Form 3840 Clawback That Follows You Out of State
Exchanging California investment property for out-of-state property defers the tax but not California's claim: Form 3840 must be filed every year until the deferred gain is recognized, or the FTB can assess it with penalties. We walk the deadlines, the withholding trap, and a Riverside fourplex example. Full analysis with citations: https://ca-legal.net/california-1031-exchange-form-3840-clawback-out-of-state-replacement-property/
The skinny
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