Reference no: EM132668544

Problem 1: Effective January 1, 2014, all taxpayers who defer gain or loss under Section 1031 by selling relinquished property in California and acquiring replacement property outside of California must do which of the following?

Select one:

a. Place the estimated tax liability from the transaction into an escrow account that is to be held for a minimum of 10 years.
b. File an information return with the FTB for the year of the exchange and for each subsequent year in which the gain or loss from that exchange has not been recognized.
c. Do nothing at the time of the sale but comply with any requests from the FTB received via a Notice of Proposed Assessment.
d. None of the above are correct actions that must be taken.