Changes to 2010 Forms
Updates to the 3809 Booklet on 02/13/2013 –– Targeted Tax Area Deduction and Credit Summary
We replaced text on Page 16, Worksheet V, Section A, Line 6.
Enter the amount from form FTB 3805V, Part 1, Section A, Line 20
Enter the amount from form FTB 3805V, Part 1, Section A, Line 18
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 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.