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Changes to 2007 Form

Update to the 2007 Schedule D-1 Instructions – Sales of Business Property

The revised Internet version is available for download as of 03/04/2008

Revision Details: This revision corrects the Schedule CA (540 and 540NR) California Adjustments line reference instructions, and the Schedules K and K-1 (565, 568, and 100S) line reference instructions.

The same Schedule CA line reference revision was made to the 2004 – 2007 Schedule D-1"s.

  • The Schedule D-1 line reference instructions to Schedule CA, (540 and 540NR) California Adjustments is incorrect. The Schedule D-1 instructions have some incorrect line references to Schedules K and K-1 (565, 568, and 100S).

1) Page 2, third column, Line 18a
2) Page 2, third column, Partnerships and Limited Liability Companies
3) Page 3, first column, 4th paragraph
4) Page 3, first column, 5th paragraph
5) Page 3, third column, Partnerships or Limited Liability Companies and page 690-691 of the Package X

Previously read:

1) enter the difference on Schedule CA (540 or 540NR), California Adjustments, line 39.
2) See instructions for Schedule K and Schedule K-1 (565 or 568), line 10 and line 11.
3) Enter any IRC Section 179 and R&TC Sections 17267.2, 17267.6, and 17268 expenses on Schedule K-1 (565 or 568), line 21.
4) Enter any IRC Section 179 and R&TC Sections 17267.2, 17267.6, and 17268 expenses on Schedule K-1 (100S), line 19.
5) Schedule K (565 or 568) and K-1 (565 or 568), line 11 or line 13f.

Revised to:

1) enter the difference on Schedule CA (540 or 540NR), California Adjustments, line 41.
2) See instructions for Schedule K and Schedule K-1 (565 or 568), lines 10a and 10b, and lines 11b and 11c.
3) Enter any IRC Section 179 and R&TC Sections 17267.2, 17267.6, and 17268 expenses on Schedule K-1 (565 or 568), line 12.
4) Enter any IRC Section 179 and R&TC Sections 17267.2, 17267.6, and 17268 expenses on Schedule K-1 (100S), line 11.
5) Schedule K (565 or 568) and K-1 (565 or 568), lines 11b and 11c or line 13e.

(1) The Schedule D-1 incorrectly instructs taxpayers to enter the California casualty and theft loss differences on the incorrect line of the Schedule CA. This could cause some taxpayers to increase their tax liability and others to decrease it.
(2, 3, 4, and 5) Instructions incorrectly instruct taxpayers to enter amounts on Schedules K and K-1 (565, 568, and 100S) in the incorrect lines and possibly decrease their tax liability.

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