Instructions For Form Ftb 3840 - 2016 (Page 2 of 3) in pdf

When the due date falls on a weekend or holiday, the deadline to file is

Amended FTB 3840 – Check this box if correcting a previously filed form

extended to the next business day.

FTB 3840. Complete both sides of form FTB 3840. Attach a statement to the

back of the amended FTB 3840 that explains the changes made.

Due to the federal Emancipation Day holiday observed on April 17, 2017, tax

returns filed and payments mailed or submitted on April 18, 2017, will be

Annual FTB 3840 – Check this box only if you previously filed form FTB 3840

considered timely.

reporting the like-kind exchange of property located in California for property

located out of state, and have not sold or otherwise disposed of the property

Where to File

received. Enter the taxable year that the like-kind exchange occurred.

For taxpayers who are required to file a California tax return, attach form

For example, a taxpayer exchanged like-kind California property for property

FTB 3840 to the tax return and file using the address for that tax return.

located outside of California in July 2015. The taxpayer filed their initial

FTB 3840 with their 2015 income tax return. In the 2016 taxable year, the

For taxpayers with no other California filing requirement, sign and mail form

taxpayer does not sell or dispose of the property received. Under California

FTB 3840 to:

law, the taxpayer has an annual reporting requirement. The taxpayer files a

FRANCHISE TAX BOARD

form FTB 3840 for the 2016 taxable year. The taxpayer checks the “Annual

PO BOX 1998

FTB 3840” box and enters 2015 as the taxable year the exchange occurred.

RANCHO CORDOVA, CA 95741-1998

Annual filers complete both sides of form FTB 3840. Enter the same

Signature

information as reported on the initial or most recently amended

form FTB 3840.

If form FTB 3840 is attached to a California tax return, no signature is needed.

Final FTB 3840 – Check this box if this is the last form FTB 3840 that will be

If form FTB 3840 is filed separately, sign and complete the signature area on

filed because the property received in the exchange was sold or otherwise

Side 1 of this form.

disposed of. Enter the taxable year that the like-kind exchange occurred.

Complete both sides of form FTB 3840 with same information from the

Failure to File

previously filed form(s) FTB 3840.

For taxpayers who fail to file form FTB 3840 for any year in which the gain or

Attach a statement to the back of form FTB 3840 that explains how the

loss is deferred from the exchange, the FTB may issue a Notice of Proposed

property received was disposed.

Assessment to adjust the income for the California source deferred gain and

Question C – Check each box as applicable to indicate the type of property that

assess tax plus any applicable penalties and interest.

was involved in the exchange. If the exchange involved both real and personal

Multiple Exchanges

property, check both boxes.

If the exchange involved a related party, also check the “related party” box.

If the taxpayer reported more than one like-kind exchange for federal purposes

Enter the name of the related party and the related party’s social security

in which the taxpayer gave up California property and acquired out of state

number (SSN), individual taxpayer identification number (ITIN), or federal

like-kind property, file a separate form FTB 3840 for each such exchange.

employer identification number (FEIN) in the space provided.

Multiple Asset Exchanges

A related party includes your spouse, child, grandchild, parent, grandparent,

brother, sister, or a related corporation, S corporation, partnership, trust,

A multi-asset exchange involves the transfer and receipt of more than one

or estate. For special rules for exchanges between related parties, see

group of like-kind properties. For example, an exchange of land, vehicles, and

IRC Section 1031(f) for more information.

cash for land and vehicles is a multi-asset exchange. An exchange of land,

vehicles, and cash for land only is not a multi-asset exchange. The transfer or

Part I – Information on Like-Kind Exchange

receipt of multiple properties within one like-kind group is also a multi-asset

exchange. Special rules apply when figuring the amount of gain recognized

When completing Part I and Part II, see the instructions below and refer to

and basis in properties received in a multi-asset exchange. For details, see

federal Form 8824 instructions.

Treas. Reg. Section 1.1031(j)-1. For more information, see instructions for

If the “Annual FTB 3840” or “Final FTB 3840” box is checked on Question B,

federal Form 8824.

enter the information reported on the initial or amended form FTB 3840 on

For California purposes, taxpayers must file form FTB 3840 if a multiple

Parts I and II, line 1 through line 20. See the instructions under Question B for

asset exchange contains both real and personal property located in California

more information.

exchanged for like-kind property located outside of California. See the

Line 1 through Line 6 – Enter the like-kind property descriptions and dates as

instructions under Schedule A, Part I, Properties Given Up, line 1, and Part II,

shown on federal Form 8824, Part I, line 1 through line 6.

Properties Received, line 9, for information on how to report both real and

Part II – Realized Gain or (Loss), Recognized Gain,

personal property.

and Basis of Like-Kind Property Received

Specific Instructions

Line 7 through Line 20 – Enter the federal amounts from federal Form 8824,

Part III, line 12 through line 25, on form FTB 3840, Part II, line 7 through

Using black or blue ink, print the taxpayer’s name, taxpayer identification

line 20, respectively. For more information, see Specific Instructions for federal

number, and street address in the spaces provided at the top of the form.

Form 8824.

Additional Information

Schedule A – Properties Given Up and Received

Use the additional information field for “In-Care-Of” name,

“Owner/Representative/Attention” name, and other supplemental address

If the “Annual FTB 3840” or “Final FTB 3840” box is checked on Question B,

information only.

enter the information reported on the initial or amended form FTB 3840 on

Foreign Address

Schedule A. See the instructions under Question B for more information.

If the taxpayer has a foreign address, follow the country’s practice for entering

Part I – Properties Given Up

the city, county, province, state, country, and postal code, as applicable, in the

appropriate boxes. Do not abbreviate the country name.

Line 1 – List each property given up in the exchange. Indicate if the property

General Question A through Question C

was located in California and the taxpayer’s percentage of ownership.

Question A – Check the box indicating whether the taxpayer is, for tax reporting

Enter the full address where the property given up was located. If the property

purposes, an individual, estate, trust, C corporation, S corporation, partnership,

given up does not have a street address, then provide the assessor’s parcel

limited liability company, or an exempt organization.

number, the county, and the state in which the property is located.

Question B – Check the box to indicate whether this form FTB 3840 is:

If more than three properties were given up, enter those properties on another

Schedule A (Side 2 of form FTB 3840). Attach each Schedule A to form

Initial FTB 3840 – Check this box if the like-kind exchange occurred in the

FTB 3840.

current taxable year. Complete both sides of form FTB 3840.

Page 2 FTB 3840 Instructions 2016

Instructions For Form Ftb 3840 - 2016 Page 2

Related Articles

Related forms

Related Categories