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Level 1
posted Feb 12, 2024 10:27:16 AM

I am trying to get the California 3840, for informational purposes, to migrate from last year to this year. It has done so in the past. How can I get it to migrate?

I sold property in California, and purchased out-of-state as a replacement, in 2019 in a like-kind exchange. TurboTax has migrated this information to subsequent years for me to file the Informational CA form 3840. So far this year, that migration hasn't happened. Any help on this will be appreciated.

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2 Replies
Expert Alumni
Feb 13, 2024 4:02:41 PM

First, check to determine whether you have already reported the deferred gain or loss on the exchange, in which case the form is no longer required.

 

To get to CA Form 3840 and include it with your 2023 return, go to the California state return interview. When you get to the screen, "Here's the income that California handles differently", scroll down to the section labeled Investments and select "Like-Kind Exchanges for Property Located Outside California", then Yes to complete the form.

 

For Question B, select the radio button for Annual FTB 3840 since this is not the year of the exchange.

 

All taxpayers, regardless of residence status or commercial domicile, who exchange real property located in California for like-kind property located outside of California, must file form FTB 3840 with their California tax return. TurboTax will prepare the form and include it with the California return.

 

Form FTB 3840 must be filed for the taxable year of the exchange and for each subsequent taxable year, generally until the California source deferred gain or loss is recognized on a California tax return. 

 

See here for California information and instructions for the completion of Form 3840.

Level 1
Feb 14, 2024 11:44:40 AM

Thank you so much for the wonderful step-by-step instructions. It worked!