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Changes to 2009 Forms

Updates to the 3806 Booklet on 01/22/2010 – – Los Angeles Revitalization Zone Business Booklet

We replaced text on the 3806 Booklet on Page 7, Los Angeles Revitalization Zone Business Booklet instructions, Instructions for Worksheet II, Net Operating Loss (NOL) Carryover and Carryover Limitations.

Previous Version:

Individuals use the California Schedules CA (540) or CA (540NR) line 12 and line 18; the federal Schedule E, line 26, line 32, and line 40; and the federal Form 4797, line 9.

Revised Version:

Individuals use the California Schedules CA (540) or CA (540NR) line 12, line 14, and line 18; the federal Schedule E, line 26, line 32, and line 40; and the federal Form 4797, line 9.

Reason for the changes

Net business income includes recapture amounts resulting from the sale of business property. We added line 14 to include the recapture amounts from the sale of depreciable business assets.

Impact

This change includes recapture amounts in the net business income computation. This may result in an increased tax liability if the taxpayer meets the criteria for a NOL carryover suspension and credit limitation.

Back to Tax Form Changes for 2009