Friday, March 14, 2014

1031 Tax Exchanges ~ Franchise Tax Board is Cracking Down

Brief explanation of the 1031 Tax Exchange is where an investor sells a piece of property and instead of paying capital gains taxes it is reinvested in a like-type property to defer those monies being paid to the IRS and the FTB.

Well, California is watching you would be 1031 Exchangers. And, they are really cracking down if you're not following it to the T letter of the Tax Exchange law.

So, while it's a great way to defer tax payments, be careful. Make sure you are doing everything as legally as you are supposed to. Utilize a 1031 expert to complete the exchange for you.

Since California pretty much follows the Federal guidelines on 1031's, read here from the IRS:

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