Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

ENTER LIKE-KIND EXCHANGE IN ITO

lnunez
Level 1

I have a 1031 deferred exchanged. I sold a property in California and replaced it with a property in Illinois.  How do i record this transaction in pro connect tax online?

I entered the like-kind exchange information about the replacement property.  where else do I enter the information on the relinquished property?

greatly appreciate assistance. 

Labels (1)
0 Cheers
1 Solution

Accepted Solutions
George4Tacks
Level 15

https://accountants-community.intuit.com/articles/1628244-how-do-i-enter-a-like-kind-exchange-in-the...

OR

https://accountants-community.intuit.com/articles/1606871-how-do-i-enter-a-like-kind-exchange-in-the...

Don't forget to file the 3840 with CA for every year in the future! 

 "All taxpayers, regardless of residence status or commercial domicile, who exchange real property located in California for like-kind property located outside of California, must file form FTB 3840 with their California tax return. Taxpayers who exchange multiple assets involving both real and personal property located in California for like-kind property located outside of California are also subject to this requirement. Taxpayers who exchange only personal property assets are not required to file form FTB 3840. If the taxpayer is not otherwise required to file a California tax return, the taxpayer must complete the entire form FTB 3840, including the signature area at the bottom of Side 1, and file form FTB 3840 at the address shown in General Information D, Where to File. For purposes of the California filing requirement, the term “taxpayer” or “taxpayers” includes all individuals, estates, trusts, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and corporations."


ex-AllStar

View solution in original post

0 Cheers
6 Replies 6
George4Tacks
Level 15

https://accountants-community.intuit.com/articles/1628244-how-do-i-enter-a-like-kind-exchange-in-the...

OR

https://accountants-community.intuit.com/articles/1606871-how-do-i-enter-a-like-kind-exchange-in-the...

Don't forget to file the 3840 with CA for every year in the future! 

 "All taxpayers, regardless of residence status or commercial domicile, who exchange real property located in California for like-kind property located outside of California, must file form FTB 3840 with their California tax return. Taxpayers who exchange multiple assets involving both real and personal property located in California for like-kind property located outside of California are also subject to this requirement. Taxpayers who exchange only personal property assets are not required to file form FTB 3840. If the taxpayer is not otherwise required to file a California tax return, the taxpayer must complete the entire form FTB 3840, including the signature area at the bottom of Side 1, and file form FTB 3840 at the address shown in General Information D, Where to File. For purposes of the California filing requirement, the term “taxpayer” or “taxpayers” includes all individuals, estates, trusts, general partnerships, limited partnerships, limited liability partnerships, limited liability companies, and corporations."


ex-AllStar

View solution in original post

0 Cheers
lnunez
Level 1
Great! thank you so very much for your guidance
0 Cheers
lnunez
Level 1
George, do you know if i can generate the California FTB 3840 in the ITO pro-connect system even if I am not filing a california return since i was not any kind of resident of the state? thank you very much in advance
0 Cheers
George4Tacks
Level 15
If you have a CA property that is part of a 1031 sale, then you do need to file a 540NR in the year of sale. That will include the 3840.
In subsequent years you would probably mail a 3840 as a separate form, since there is no requirement to file. I would probably just use the pdf version available on the ftb.ca.gov website.

ex-AllStar
0 Cheers
lnunez
Level 1
Hi George4Tacks, Thank you so very much for your guidance.  May I ask a final question? I added the Calif form in ITO Proconnect and I see form 3840. I am just wondering if I need to input the numbers I calculate offline or if it calculates the numbers on Part II and III?  Can I link the form to the like kind exchange entry on the main form?
thank you very much in advance.
0 Cheers
George4Tacks
Level 15
@lnunez Do you have a CA Form 540NR? If the sale was in 2019, then it should be linked to CA, which would create the 3840 as part of the return. Coding to each of the two states can be difficult, but Source to CA. Maybe Chat can help to get the coding done correctly so you don't have to do anything "offline".

ex-AllStar
0 Cheers