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Changes to 2008 Forms

Updates to the Schedule D (540NR) on 02/12/2013 –– California Capital Gain or Loss Adjustment

We replaced text on Side 1 on:

  1. Line 1
  2. Line 1
  3. Line 4
  4. Line 5

Previous Version

  1. 1
  2. Note: new text added.
  3. Total 2008 gains from all sources. Add column (e) amounts of line 1, line 2, and line 3.
  4. 2008 loss. Add column (d) amounts of line 1 and line 2.

Revised Version

  1. 1a
  2. 1b
  3. Total 2008 gains from all sources. Add column (e) amounts of line 1a, line 1b, line 2, and line 3.
  4. 2008 loss. Add column (d) amounts of line 1a, line 1b, and line 2.

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 2008


Updates to the Schedule D (540NR) on 03/04/2013 –– California Capital Gain or Loss Adjustment

We replaced text on Side 1 on:

  1. Line 1a
  2. Line 1b
  3. Line 4
  4. Line 5

Previous Version

  1. 1a
  2. 1b
  3. Total 2008 gains from all sources. Add column (e) amounts of line 1a, line 1b, line 2, and line 3.
  4. 2008 loss. Add column (d) amounts of line 1a, line 1b, and line 2.

Revised Version

  1. 1
  2. Note: text deleted.
  3. Total 2008 gains from all sources. Add column (e) amounts of line 1, line 2, and line 3.
  4. 2008 loss. Add column (d) amounts of line 1 and line 2.

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 2008