California Section 1031 Exchange & Capital Gains Deferral Calculator
Institutional tax deferral model for California commercial property owners factoring federal Section 1250 recapture and California state tax rates.
California Commercial Property Parameters
Calculate capital gains deferral for commercial real estate in California.
Mandatory Clawback Notice: California (FTB Form 3840)
California mandates annual tracking of deferred gains when exchanging into out-of-state property. Taxpayers must submit FTB Form 3840 annually to certify the replacement asset until final liquidation.
California Tax Savings Breakdown
Total Tax Deferred with 1031
$706,350
Tax Drag Avoided: 28.25% of Gross Sale
Federal Taxes Deferred
$460,300
California State Tax Deferred
$246,050
Statutory Compliance Deadlines
45 Days: Identify replacement property in writing.
180 Days: Acquire replacement property and complete exchange.
180 Days: Acquire replacement property and complete exchange.
California Commercial Asset Sale Cohorts (2026-2027 Projections)
| Asset Sale Price | Federal Tax Avoided | California State Tax Avoided | Total Tax Deferred | Effective Rate |
|---|---|---|---|---|
| $1,000,000 | $175,600 | $93,100 | $268,700 | 26.87% |
| $2,500,000 | $439,000 | $232,750 | $671,750 | 26.87% |
| $5,000,000 | $878,000 | $465,500 | $1,343,500 | 26.87% |
| $10,000,000 | $1,756,000 | $931,000 | $2,687,000 | 26.87% |
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The Exeter 1031 Exchange
Nationwide qualified intermediary, exchange accommodation titleholder, and reverse exchange specialist.