3840: California Like-Kind Exchanges (2024)
California · FTB · Used for tax years 2024
California Form 3840 reports like-kind exchanges, including the properties given up and received, realized and recognized gains, deferred gain or loss, and the basis of property received. It also reports California-sourced deferred gain and its allocation to the properties receiv
What you'll need
Have the following information available to complete the form:
- Federal Form 8824. Part II directs you to enter amounts from this form.
- Taxpayer details. Your name as shown on your state tax return, applicable tax identification numbers, and address.
- Exchange details. Descriptions of the properties given up and received, the original acquisition date, the transfer date, the written identification date, and the date you received the replacement property.
- Property and financial information for Schedule A. Property addresses, ownership percentages, sales prices, selling expenses, and California adjusted basis. If a property has no street address, provide its assessor’s parcel number and county.
- Related-party details, if applicable. The related party’s name and SSN, ITIN, or FEIN.
How to file
The form refers to filing it with a tax return or separately. If you file it separately, complete the signature area. If filing jointly, both spouses or registered domestic partners must sign.
The supplied text does not provide a mailing address or e-file directions.
Common mistakes
- Leaving out the exchange year. If you check “Annual FTB 3840” or “Final FTB 3840,” enter the taxable year the exchange occurred.
- Not attaching enough Schedule A pages. Attach additional copies if you gave up more than three properties or received more than three properties.
- Missing signatures when filing separately. Complete the signature area. For a joint filing, both spouses or registered domestic partners must sign. The form warns that forging a spouse’s or registered domestic partner’s signature is unlawful.
- Overlooking California adjustments. If all property given up was real property in California, Schedule A, line 8 directs you to use Side 1, line 19, adjusted for differences between federal and California law.
Questions people ask
What filing types can I select?
The form has boxes for Initial, Amended, Annual, and Final FTB 3840. If you select Annual or Final, also enter the taxable year the exchange occurred.
What if the exchange involves a related party?
Check the “Related party” box and enter that party’s name and SSN, ITIN, or FEIN.
What if a property does not have a street address?
Schedule A asks for the assessor’s parcel number and county instead.
How do I allocate California sourced deferred gain if I received only one property?
Schedule A, Part III directs you to enter the amount from Part I, line 8, in column D of line 10.