wexeter

The California Legislative Analyst's Office (LAO) has issued a proposed change to California's treatment of 1031 exchanges. The proposed change would disallow 1031 exchanges of California real property into out-of-state "commercial" property (commercial property has not been adequately defined at this point in time).

Federal Taxes Still Deferred; but California State Income Taxes Would Be Recognized

This proposed change would mean that an investor could still complete a 1031 exchange and the Federal income tax consequences would continue to be tax deferred, but any California state income tax liabilities would be realized and recognized unless the like-kind replacement property was also acquired within the state of California.

We will provide you with updated information as it becomes available.

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EXETER 1031 EXCHANGE SERVICES, LLC

William L. Exeter
President and Chief Executive Officer

National Corporate Headquarters
402 West Broadway, Suite 400
San Diego, California 92101

(619) 615-4210 Office
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Web site: http://www.exeter1031.com
National Branch Office Locations: http://www.exeter1031.com/ContactUs.aspx