Changes to 2008 Forms
Updates to the Schedule D (540NR) on 03/04/2013 –– California Capital Gain or Loss Adjustment
We replaced text on Side 1 on:
- Line 1a
- Line 1b
- Line 4
- Line 5
- Total 2008 gains from all sources. Add column (e) amounts of line 1a, line 1b, line 2, and line 3.
- 2008 loss. Add column (d) amounts of line 1a, line 1b, and line 2.
- Note: text deleted.
- Total 2008 gains from all sources. Add column (e) amounts of line 1, line 2, and line 3.
- 2008 loss. Add column (d) amounts of line 1 and line 2.
Reason for the changes
The Court of Appeal’s held in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247, that the qualified small business stock exclusion and deferral statutes under California Revenue and Taxation Code (R&TC) Sections 18152.5 and 18038.5 are unconstitutional. These sections are now invalid and unenforceable.
This revision increases the tax liability for taxpayers who reported a qualified small business stock exclusion or deferral for taxable years beginning on or after January 1, 2008.