Beginning January 1, 2014, taxpayers who complete a like-kind exchange of California property for property located out of state will be required to file an information return with the FTB. The information return must be filed for the year in which the exchange is completed and each subsequent year that the gain or loss is deferred.
If the taxpayer fails to file an information return, and a required tax return is not filed, the FTB may estimate net income and assess tax, interest, and penalties.
(R&TC §18032, 24953 added by AB 92)
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