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Moving your 1031 out of California? California still follows you.

Enter the sale and where the new property is. See what California withholds at closing, the form you file every year, and the state tax still waiting on your gain.

$
$
$
%
California tax still waiting on your gain
$0
Form 593 withholding at closing $0
Who withholds—
FTB Form 3840 every year until the California gain is taxed—
California tax this year boot (or all the gain if it fails) × your CA rate (estimate)$0
CA tax later, when you sell for cash deferred CA gain × your CA rate (estimate)$0
Withholding is a prepayment, not an extra tax. It is credited on your California return. The "tax later" number uses today's rate on today's gain; the real amount depends on the year you sell. Estimate only, not tax advice.

Paperwork checklist

Common mistake: "I moved to Texas and the new property is in Texas, so California is done with me." No. California tracks the gain you built here. Form 3840 is due every year, even if you live out of state, and even after later exchanges out-of-state to out-of-state. Skip it and FTB can assess the deferred gain plus penalties and interest.

Next steps

  1. Run your real gain and boot in the 1031 calculator (T27).
  2. Tell your QI early that the new property is out of state. The QI handles the Form 593 exchange certification. Check your QI with T226.
  3. Put the 45/180 days and the yearly 3840 on your calendar with the dated checklist (T227).
  4. Thinking of a DST instead of a house out of state? See which kind of 1031 fits (T228).
Ask Ken Watch 15-sec video

Email this California summary to yourself

Ken will reply with the forms and a few CPAs who handle out-of-state 1031s. No spam.

Or text: 408-666-2825