3840: California Like-Kind Exchanges (2025)
California · FTB · Used for tax years 2025
California Form 3840 reports like-kind exchanges, including the properties given up and received, gains or losses, and the basis of property received. Its Schedule A reports property details and allocates California sourced deferred gain to the properties received.
Who files this form
Form FTB 3840 reports like-kind exchanges and tracks California-sourced deferred gain. It includes filer categories for individuals, estates, trusts, C corporations, S corporations, partnerships, limited liability companies, and exempt organizations.
The form notes that exceptions apply to individuals based on adjusted gross income (AGI) limitations. It refers readers to the instructions and R&TC Section 18031.5, but does not state those limits. The supplied form alone does not establish the full filing requirements.
What you'll need
Have these forms and details available to complete FTB 3840:
- Federal Form 8824: Part II directs you to enter amounts from this form.
- Taxpayer information: Names as shown on your state tax return, applicable identification numbers, and address.
- Exchange details: Descriptions of property given up and received, the original acquisition date, transfer date, written identification date, and date the replacement property was received.
- Property and financial records: Property addresses, ownership percentages, sales prices, selling expenses, California adjusted basis, fair market values, cash received, liabilities assumed by the other party, and exchange expenses.
- Related-party information, if applicable: The related party’s name and SSN, ITIN, or FEIN.
If a property has no street address, Schedule A asks for its assessor’s parcel number and county.
How to file
The form provides for filing 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-filing 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 partner’s signature is unlawful.
- Overlooking California adjustments: If all property given up was real property in California, Schedule A, Part I, line 8 requires the deferred gain from Side 1, line 19, adjusted for differences between federal and California law.
Questions people ask
Which filing-status boxes appear on Form 3840?
The form lists Initial, Amended, Annual, and Final FTB 3840. If you select Annual or Final, enter the taxable year the exchange occurred.
What if my exchange involved a related party?
Check the related-party box and enter that party’s name and SSN, ITIN, or FEIN.
What if I exchanged more than three properties?
Attach additional copies of Schedule A if you gave up more than three properties or received more than three properties.
How do I allocate California-sourced deferred gain if I received only one property?
Schedule A directs you to enter the amount from Part I, line 8, in Part III, line 10, column D.