Posted by W R. Pentecost on August 29, 2003 at 11:04:13:
Sorry for the confusion .The 1031 exchange was for a rental property in Pensacola, Fl. I live in another residence in Pensacola, Fl which is not associated with the 1031 exchange.
Calififornia nonresident 1031 exchange tax - Posted by W.R.Pentecost
Posted by W.R.Pentecost on August 27, 2003 at 13:20:39:
In July, 2003 I received a notice from the Calif. Franchise Tax Board for real estate withholding tax on the 2001 sale of a rental house in Highland, Calif.The property was my primary residence until 1984 when I was transferred by the military and put it into service as a rental. In 2001 I did a 1031 exchange for a rental house in Pensacola, Fl which is also my legal residence.I did a legal 1031 transfer through an intermediary and no taxes were withheld IAW, “The Revenue and Taxation Code” Section 18662 paragraph(E).The FTB indicates that I owe approx.$7000 in taxes and that I cannot file past Calif. nonresident tax forms to capture depreciation or form a realistic basis for the $135500 sale of the property. Can anyone please give me some advice on what I perceive to be a very unfair tax since the IRS deferrs taxes and I have received no financial benefit from the property.
Re: Calififornia nonresident 1031 exchange tax - Posted by William L. Exeter
Posted by William L. Exeter on August 28, 2003 at 23:22:55:
You indicate that the house in Florida is also your legal residence. If it is in fact your legal residence, then it does not qualify as like-kind replacement property for your 1031 exchange transaction and the FTB is correct in assessing you back taxes.
Bill Exeter
Diversified Exchange Corporation