Forms and Publications
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Revision Date 2005 Revision Details
09/13/06 Publication 1001, instructions under Dividend Income, column 3
  • The column is (as referenced) an addition to income for California tax calculation. The above quantity should be a subtraction (column B) in line 9 of Schedule CA.

It currently reads:

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column C.

It should read:

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column B.

The revision needs to be noted in printed products 2005 Publication 1001, booklet page 3, and 2005 Package X, page 13. The Internet version of Publication 1001 is available for download.


03/29/06  2005 Publication 1001, 2005 Supplemental Guidelines to California Adjustments
  • Page 4, Column 2, second row from bottom - Depreciation of qualified leasehold improvements and qualified restaurant property acquired before1/1/2006 currently shows the recovery period as 7 years:

It should read:

Federal law requires a 15-year recovery period. For California
purposes, qualified leasehold improvements and qualified
restaurant property must be recovered over a 39 year recovery
period.

This revision is required in the 2005 Package X, page 14. The internet version of the Publication 1001, page 4, will be available for download on 03/29/06.


03/08/06  Publication 1001, Supplemental Guidelines to California Adjustments
  • FTB conformed by date change to AJCA Act Section 840 as explained on page 4 of our Legislative Change Notice for AB 115 (Stats. 2005, Ch. 691) regarding IRC Section 121(d)(10); property acquired in a like-kind exchange.

It should read:

Publication 1001, page 8, on the Gain on sale of personal residence bullet:

For sale or exchanges after 5/6/97, federal law allows an exclusion of gain on the sale of a personal residence in the amount of $250,000 ($500,000 if married filing jointly). The taxpayer must have owned and occupied the residence as a principal residence for at least 2 of the 5 years before the sale. California conforms to this provision. However, California taxpayers who served in the Peace Corps during the 5 year period ending on the date of the sale may reduce the 2 year period by the period of service, not to exceed 18 months.

If there is a difference between the amounts excluded (or depreciated, if recapture applies) for federal and California, complete California Schedule D (540 or 540NR). Transfer the amount from California Schedule D, line 12a, to Schedule CA (540 or 540NR), line 13, column B (if gain is less than federal). Transfer the amount from California Schedule D, line 12b, to Schedule CA (540 or 540NR), line 13, column C (if gain is more than federal).

This change must be made in 2005 Package X, page 18; and the Publication 1001 page 8. A revised internet version is available for download as of 3/9/06.


1/19/06 Publication 1001, page 12, second column revised.
  • Current instructions read:

Column two: California law conforms to federal law in the tax treatment of expenses for reservists, performing artists, and fee-based Government officials.

It should read:

Column two: California law conforms to federal law in the tax treatment of expenses for reservists, performing artists, and fee-basis government officials.

This revision needs to be noted in printed products of 2005 Publication 1001 and 2005 Package X, page 22 only. Revised internet versions are available for download as of 1/13/06.


12/31/2005 Publication 1001, Supplemental Guidelines to California Adjustments

Publication 1001, Page 12, bulleted item regarding certain business expenses of reservists, performing artists, and fee-basis governmental officials.

  • Column 2 (DIFFERENCES BETWEEN FEDERAL AND CALIFORNIA LAW) reads:

Federal law allows a deduction. California conforms to deductions regarding certain expenses of reservists and fee-basis governmental officials. California has not conformed to deductions of performing artists

It should read:

California has conforms to federal law in the tax treatment of expenses for reservists, performing artists, and fee-basis Governmental officials.

However, there could be continuing differences in the depreciation deduction such as IRC Section 179 or bonus depreciation.

  • Column 3 (WHAT TO DO FOR CALIFORNIA) reads:

    Enter the amount of expenses claimed for performing artists on Schedule CA (540 or 540NR), line 24, column B.

    It should read:

If the federal depreciation deduction is more than the California depreciation deduction, enter the difference on line 24, column B. If the federal depreciation deduction is less than the California depreciation, enter the difference in column C.

Revised copies of the publication are available for download as of 01/04/05.

Revision Date 2004 Revision Details
09/13/2006 Publication 1001, instructions under Dividend Income, column 3
  • The column is (as referenced) an addition to income for California tax calculation. The above quantity should be a subtraction (column B) in line 9 of Schedule CA.

It currently reads:

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column C.

It should read:

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column B.

The revision needs to be noted in printed products 2004 Publication 1001, booklet page 3, and 2004 Package X, page 13. The Internet version of Publication 1001 is available for download.

12/30/2004 Publication 1001, Supplemental Guidelines to California Adjustments

Revisions are required on page 12 of the publication explaining that due to California's conformity to the reservist and performing artist, the instructions for Schedule CA were revised. Since Publication 1001 supports Schedule CA, the text heading has to be revised as well. This has been updated in the Package X and on the Internet.

  • Page 12

It should read: 

"Certain business expenses of fee-basis government officials"

Revision Date 2003 Revision Details
09/17/2004 Publication 1001, Supplemental Guidelines to California Adjustments 

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 2003 Publication 1001, page 1and 2; Package X page 11.

It should read, under What’s Changed?, page 1:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

It should read, under Differences Between Federal and California Law, page 1:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

It should read, under Earnings of American Indians, page 2:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

Revision Date 2002 Revision Details
09/13/2006
  • The column is (as referenced) an addition to income for California tax calculation. The above quantity should be a subtraction (column B) in line 9 of Schedule CA.

It currently reads:

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column C.

It should read,

If the value of U.S. and California state or municipal obligations is at least 50% of the fund’s total assets, enter the amount of exempt interest dividends that are attributed to U.S. obligations included in federal income on Schedule CA (540 or 540NR), line 9, column B.

The revision needs to be noted in the printed 2002 Publication 1001, booklet page 2. The Internet version of Publication 1001 is available for download.

09/17/2004

Publication 1001, Supplemental Guidelines to California Adjustments

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 2002 Publication 1001, page 1and 2.

It should read, under What’s Changed?, page 1:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

It should read, under Differences Between Federal and California Law, page 1:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

It should read, under Earnings of American Indians, page 2:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

Revision Date 2001 Revision Details
09/17/2004

Publication 1001, Supplemental Guidelines to California Adjustments 

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 2001 Publication 1001, page 1and 2; and Package X, page 3.

It should read, under What’s Changed?, page 1:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

It should read, under Differences Between Federal and California Law, page 1:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

It should read, under Earnings of American Indians, page 2:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

Revision Date 2000 Revision Details
09/17/2004

Publication 1001, Supplemental Guidelines to California Adjustments

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 2000 Publication 1001, page 1and 2 and Package X, page 3.

It should read, under What’s Changed?, page 1:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

It should read, under Differences Between Federal and California Law, page 1:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

It should read, under Earnings of American Indians, page 2:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

 

Revision Date 1999 Revision Details
09/17/2004

Publication 1001, Supplemental Guidelines to California Adjustments

The Internet version of the form has been revised. A revised copy is available to download on the Internet. This revision is due to the California Legislature enactment of SB 615 (Stats. 2004 CH 388), which makes California law compatible with the Servicemembers Civil Relief Act (Public Law 108-189). ). Income exclusion may decrease total tax liability.

  • The revision is required on the 1999 Publication 1001, page 1and Package X, page 3.

It should read, under What’s Changed?, page 1:

The California legislature enacted SB 615 (Stats. 2004 CH. 688), which makes California law compatible with Servicemembers Civil Relief Act (Public Law 108-189). This means that servicemembers domiciled outside of California, and their spouses, may exclude the member’s military compensation from gross income when computing the tax rate on nonmilitary income.

Requirements for military servicemembers domiciled in California remain unchanged. Military servicemembers domiciled in California must include their military pay in total income. In addition, they must include their military pay in California source income when stationed in California. However, military pay is not California source income when a servicemember is permanently stationed outside of California.

It should read, under Differences Between Federal and California Law, page 1:

Special rules apply to active duty military pay. Native Americans with military pay also see "Earning of American Indians" on this page.

It should read, under Earnings of American Indians, page 1:

Federal law taxes income received by Indians from reservation sources.

California does not tax income earned by tribal members who live in Indian country affiliated with their tribe and receive earning from the same tribal source of which they are members. Military compensation is considered income from tribal sources. For more information get FTB 674, Frequently Asked Questions about the Income Taxation of American Indians.

Native Americans who receive military compensation must re-figure any AGI percentage calculation(s) by first subtracting military compensation from Federal AGI.

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Last modified: 09/19/2006