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Changes to 2011 Forms

Updates to the Schedule P (540NR) on 03/06/2014 –– Alternative Minimum Tax and Credit Limitations - Nonresidents and Part-Year Residents

We replaced text on:

  1. Side 1, Line 13
  2. Side 1, after Line 13j, Pollution control facilities
  3. Side 1, Line 13k
  4. Side 1, Line 13l
  5. Side 1, after Line 13l
  6. Side 2, after Line 29o, Pollution control facilities
  7. Side 2, Line 29p
  8. Side 2, Line 29q
  9. Side 2, Line 29r
  10. Side 2, after Line 29r

Previous Version

  1. 13 Other. Enter the amount, if any, for each item, a through l and enter the total on line 13. See instructions.
  2. Note: new text added.
  3. k Tax shelter farm activities. . . . . . . . . . . . . . . . k
  4. l Related adjustments. . . . . . . . . . . . . . . . l
  5. Add amounts on line a through line l
  6. Note: new text added.
  7. p Research and experimental costs
  8. q Tax shelter farm activities
  9. r Related adjustments
  10. Add line a through line r

Revised Version

  1. 13 Other. Enter the amount, if any, for each item, a through m and enter the total on line 13. See instructions.
  2. j Qualified small business stock.......................... j _______| 00
  3. l Tax shelter farm activities. . . . . . . . . . . . . . . . l
  4. m Related adjustments. . . . . . . . . . . . . . . . m
  5. Add amounts on line a through line m
  6. p Qualified small business stock... _______| 00
  7. q Research and experimental costs
  8. r Tax shelter farm activities
  9. s Related adjustments
  10. Add line a through line s

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 2011


Updates to the Schedule P (540 NR) on 02/07/2013 –– Alternative Minimum Tax and Credit Limitations - Nonresidents and Part-Year Residents

We replaced text on:

  1. Side 1, Line 13i
  2. Side 2, Line 29o

Previous Version

Qualified small business stock

Revised Version

Pollution control facilities

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.

The Pollution control facilities adjustment line was erroneously deleted in the 2011 tax year and is therefore, being added back this year.

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.

By adding back the Pollution control facilities adjustment, the tax liability for taxpayers may increase.

Back to Tax Form Changes for 2011