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Changes to 2004 Forms

2004 Updates to Schedule D-1 - Sales of Business Property

The revised Internet version is available for download as of 03/03/2008

Revision Details:This revision corrects the Schedule CA (540 and 540NR) California Adjustments line reference instructions. The same revision was made to 2004 – 2007 Schedule D-1’s.

  • The Schedule D-1 line reference instructions to Schedule CA, (540 and 540NR) California Adjustments is incorrect, page 2, third column, Line 18a and page 721-722 of the Package X

Previously read:

enter the difference on Schedule CA (540 or 540NR), California Adjustments, line 38.

Revised to:

enter the difference on Schedule CA (540 or 540NR), California Adjustments, line 40.

The Schedule D-1 incorrectly instructs taxpayers to enter the California casualty and theft loss differences on the incorrect line of the Schedule CA. This could cause some taxpayers to increase their tax liability and others to decrease it.


2004 Updates to Schedule D-1

Revision Date: 01/21/2005
Revision Details: Sales of Business Property

These revisions were made to the Schedule D-1 Instructions. These revisions are required in the flat pages 1 and 2 of the instructions and pages 720 and 721 of the Package X.

  • Page 1 of the flat and Page 720 of Package X

It should read:

"Taxpayers will need to complete two sets of Schedule D-1 and Schedule D (100S). One set of Schedule D-1 and Schedule D (100S) will include the sale or disposition of both IRC Section 179 assets, with the amount reported on Form 100S, Side 1, line 4."

"The second set of Schedule D-1 and Schedule D (100S) will include the sale or disposition of non-Section 179 business assets only, with the amounts reported on the Schedule K (100S) and K-1 (100S)."

  • Page 1, bottom of column 3, Page 2, top of column 1 of the flat and Page 720, bottom of column 3, Page 721, top of column 1 of Package X

It should read:

"Gain on property subject to the IRC Section 179 expense deduction recapture must be included in the taxable income of the S corporation. To accomplish this, the S corporation should complete two sets of Schedule D-1 and Schedule D (100S). One set of Schedule D-1 and Schedule D (100S) will include the gain or loss from the sale or disposition of IRC Section 179 assets as well as gain or loss from non-Section 179 business assets, and will be reported on the Form 100S. Indicate at the top of this Schedule D-1 and Schedule D (100S) "IRC Sec. 179 and Bus. Assets". When completing Schedule D-1 and Schedule D (100S) for the 100S, skip any instruction to report the gain or loss on Schedule K (100S) or Schedule K-1 (100S)." "The second set of Schedule D-1 and Schedule D (100S) is to report the gain or loss on non-Section 179 business assets for use on the Schedule K (100S) and K-1 (100S). To accomplish this, the S corporation should complete a Schedule D-1 and Schedule D (100S) with the gain or loss for the non-Section 179 Business assets only. The amounts from this Schedule D-1 and Schedule D (100S) will be reported on the Schedule K (100S) and Schedule K-1 (100S). Indicate at the top of this Schedule D-1 and Schedule D (100S) set, "Non-Section 179 Business Assets Only"."

The revised internet version is available for download.

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