California State Capital
The California legislator are attempting to eliminate the 1031 & 1033 Tax deferred exchanges in AB 2640. A bill currently working it’s way through the process in Sacramento could have a serious effect on the real estate market and investor profits if passed into law. To make matters worse the bill would be retroactively effective to 1/1/2010.
The IRC Sec. 1031 Tax Deferred Exchange has been around in the federal tax code since 1921 and there is no indication that there is going to be any change there. There has been several modification’s to the law over the years, usually for the best as far as the investor is concerned, but occasionally some State Government will get a dumb idea and try to generate revenue from this source.
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