Chat with an FTB Representative

Changes to 2011 Forms

Updates to the Schedule K-1 (100S) Instructions on 02/12/2013 –– Instructions for 100S Schedule K-1, Shareholder's Share of Income, Deductions, Credits, etc.

We replaced text on Page 3, Column 1, 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.


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 2011