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Changes to 2009 Forms

Updates to the Schedule K-1 (100S) Instructions on 03/12/2014 –– Instructions for 100S Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc.

We replaced text on Page 3, Column 2, Line 10b, Bullet 9.

Previous Version

Note: new text added.

Revised Version

Eligible gain from the sale or exchange of qualified small business stock (as defined in R&TC Section 18152.5). The S corporation should also give you the name of the corporation that issued the stock and your pro-rata share of the basis of that stock.

Reason for the changes

AB 1412 (Stats. 2013, ch. 546), signed by the Governor on October 4, 2013, retroactively allows the Qualified Small Business Stock (QSBS) deferral and 50 percent gain exclusion for tax years 2008 through 2012.

Impact

This revision may decrease the tax liability for taxpayers who did not report a QSBS exclusion or deferral for taxable years beginning on or after January 1, 2008.

Back to Tax Form Changes for 2009


Updates to the Schedule K-1 (100S) Instructions on 02/20/2013 –– Instructions for 100S Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc.

We replaced text on Page 3, Column 2, Line 10b, Bullet 9.

Previous Version

Eligible gain from the sale or exchange of qualified small business stock (as defined in R&TC Section 18152.5). The S corporation should also give you the name of the corporation that issued the stock and your pro-rata share of the basis of that stock.

Revised Version

Note: text deleted.

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.

Impact

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.

Back to Tax Form Changes for 2009