1031 Exchange from California to Florida
Sell in California, reinvest in Florida, and defer the capital-gains tax — with a Qualified Intermediary who handles the interstate paperwork.
A 1031 exchange works fine across state lines. Section 1031 is a federal rule, and “like-kind” is broad enough that California investment real estate can be exchanged for Florida investment real estate. The 45-day identification and 180-day closing clocks are the same no matter which states are involved.
Florida has no state personal income tax, so once your gain is out of California’s reach there is no Florida state income tax on the eventual sale.
The California clawback
Moving the money out of California does not make California's share of the gain disappear. California “claws back” the state tax on gain you deferred out of state — you keep the federal deferral, but California expects to be paid its share when you eventually sell the Florida property in a taxable sale.
- You must file California FTB Form 3840 with your California return for the year of the exchange, and again every year afterward, until the deferred gain is recognized.
- Form 3840 is an information return — it reports the deferred California-source gain, it does not pay tax by itself.
- Skip the annual filing and the Franchise Tax Board can estimate the deferred gain and assess the California tax.
- Florida itself: Florida has no state personal income tax, so once your gain is out of California’s reach there is no Florida state income tax on the eventual sale.
Reference: Cal. Rev. & Tax. Code §18032 (FTB Form 3840). State rules change — confirm your filing obligations with a California CPA or tax attorney.
Your 45 & 180-day clocks
Both clocks start the day your California sale closes (Day 0): 45 calendar days to identify your Florida replacement in writing, then 180 calendar days to close on it (or your tax-return due date, whichever is earlier).
45 & 180-day deadlines
Both clocks start the day your sale closes.
Pick a closing date to see your two deadlines and a timeline.
Do it from California to Florida
We hold your proceeds in FDIC-insured escrow, track both deadlines, and handle the interstate details.
This tool is a workflow and record-keeping aid for administering IRC §1031 like-kind exchanges. It is not legal or tax advice, and it does not determine whether any specific transaction qualifies for like-kind exchange treatment. Deadlines, gain estimates, and compliance flags shown here are calculated from the data entered and known simplifying assumptions - they require review by a qualified CPA or tax attorney before being relied upon.