California's automatic extensions and like-kind exchange.

• Position: FTB - Property tax - Brief article

The FTB has offered the below clarification of the impact of California's automatic extension and the technical requirements of like-kind exchanges.

IRC Sec. 1031(a)(3)(B) requires that property received by a taxpayer will be treated as property which is nonlike-kind property if the property is received after the earlier of 180 days from the transfer of the relinquished property or the due date (determined with regard to extensions] of the taxpayer's federal tax return. Therefore, the federal extended due date should be used in determining whether the property is disqualified under IRC Sec. 1031(a)(3)(B).

California incorporates the provisions of IRC Sec. 1031 by reference in Revenue and Taxation Code Sec. 18031 and R&TC Sec. 24941, including IRC Sec. 1031(a)(3)(B)...