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Changes to 2005 Forms

2005 Update to Form 3526 Instructions - Investment Interest Expense Deduction

Revision Date: 01/18/2007

Revision Details: To report the Investment Interest Expense Deduction on the correct line. Line 39 is used to adjust State Disability Insurance and state and local income tax, or General Sales Tax.

  • Page 2, third column, second and third paragraph, under Line 10 - California Investment Interest Expense Deduction Adjustment:

It should read:

If line 8 is more than line 9, subtract line 9 from line 8. Enter the result as a positive amount on line 10 and on Schedule CA (540 or 540NR), line 41. Be sure to write "FTB3526" on Schedule CA (540 or 540NR), line 41.

If line 9 is more than line 8, subtract line 8 from line 9, Enter the result as a negative amount on line 10 and on Schedule CA (540 or 540NR), line 41. Be sure to write "FTB3526" on Schedule CA (540 or 540NR), line 41.

These revisions do not have tax impact. These revisions are required in printed products 2005 FTB 3526 Booklet, page 2 and 2005 Package X, page 529.

If a taxpayer followed the instructions, they would have reported the correct adjustment, albeit on the wrong line.
The revised internet version is available for download.

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