Does California apply one flat capital gains tax rate?
Variable: capital gains are taxed as ordinary income. No single taxpayer-independent rate.
1031 EXCHANGE / CALIFORNIA
California: compare the rules before choosing an intermediary.
California tax rules: Variable: capital gains are taxed as ordinary income. No single taxpayer-independent rate.
Clawback reporting notice: FTB 3840 may remain required when California property is exchanged for out-of-state replacement property.
- California taxes capital gains as ordinary income; the applicable rate depends on taxable income and filing status.
- Exchanging California real property for out-of-state property can preserve California-source deferred gain. Annual FTB 3840 reporting may continue through subsequent exchanges until recognition.
- State conformity, residency, basis differences and applicable filing exceptions require review. This reporting obligation does not mean an immediate tax is due.
Editorial baseline review: . Status: baseline. Updates are not automatic legal verification.
Qualified intermediary candidates serving California
Unknown means no verified term in this dataset. Parent groups are shown to expose shared ownership; confirm current ownership directly.
| Intermediary | Coverage / group | Bonding / escrow | Services / fee | Intake |
|---|---|---|---|---|
| Accruit Baseline candidate | National Inspira Financial | Unknown Escrow terms unknown | Services unverified Fee unknown | Request Intake |
| Asset Preservation, Inc. Baseline candidate | National Stewart | Unknown Escrow terms unknown | Services unverified Fee unknown | Request Intake |
| Exeter 1031 Exchange Services Baseline candidate | National Parent group unknown | Unknown Escrow terms unknown | Services unverified Fee unknown | Request Intake |
| First American Exchange Baseline candidate | National First American Financial | Unknown Escrow terms unknown | Services unverified Fee unknown | Request Intake |
| IPX1031 Baseline candidate | National Fidelity National Financial | Unknown Escrow terms unknown | Services unverified Fee unknown | Request Intake |
Estimate the excess-basis depreciation scenario
Illustrative excess-basis scenario only. Purchase price does not establish tax basis. Enter an excess basis already excluding land, confirmed by your CPA. Carryover basis is excluded from this estimate.
Estimated Year 1 depreciation on excess basis
$26,829
Baseline without reclassification: $12,286. Estimated incremental depreciation: $14,543.
Assumed short-life basis: $100,000. Bonus component: $0. These are deductions, not cash savings.
Model: 80% of reclassified basis uses 5-year property at a 20% first-year half-year MACRS rate; 20% uses 15-year property at 5%. Remaining building basis uses 39-year straight-line depreciation with a mid-month convention. Allocation and bonus rate are user assumptions; default bonus is 0%. Mid-quarter convention, ADS, elections, used-property acquisition rules, state conformity, passive-loss limits, recapture and carryover-basis treatment are excluded.
Questions answered
What happens when replacement property is outside the state?
California-source deferred gain can remain reportable. Review FTB 3840 annual reporting and recognition rules with your tax adviser.
Are the listed intermediaries verified partners?
No. These are baseline provider candidates. Fees, bonding, escrow protections and service availability must be confirmed directly. National coverage does not establish suitability.