California Clawback - 1031 Exchange Out of State
I have property in California that I will be selling this year, and will be re-investing the funds outside the state of California via a 1031 exchange (Investing in St. Louis, Missouri). I understand that California will claw-back the gain should you subsequently complete a final sale (without performing another 1031 exchange). This results in double taxation as you will pay taxes in both states. Having said that, I believe that the benefits still outweigh the risks for me.
As such, I want to understand how burdensome the annual information return required by California is. Anyone have experience with this?
Anything else I should consider?
I will also need a reliable intermediary, and I am happy to take recommendations.
Thanks!