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Changes to 2010 Forms

Updates to the Form 541 on 03/11/2014 –– California Fiduciary Income Tax Return

We replaced text on:

Revision 1: Side 1, Line 13

Revision 2: Side 2, Schedule A, Line 5

Revision 3: Side 3, Schedule B, Line 4

Previous Version

Revision 1:

13 Charitable deduction. Enter the amount from Side 2, Schedule A, line 5 13 | 00

Revision 2:

5 Charitable deduction. Add line 3 and line 4. Enter here and on Side 1, line 13...
5

| 00
Note: new text added.
Note: new text added.

Revision 3:

4 Enter the amount from Schedule A, line 4 4 | 00

Revised Version

Revision 1:

13 Charitable deduction. Enter the amount from Side 2, Schedule A, line 7 13 | 00

Revision 2:

5 Add line 3 and line 4. 5 | 00
6 R&TC Section 18152.5 exclusion allocable to capital gains paid or permanently set aside for charitable purposes...
6

| 00
7 Charitable deduction. Subtract line 6 from line 5. Enter here and on Side 1, line 13...
7

| 00

Revision 3:

4 Enter the amount from Schedule A, line 4 (reduced by any allocable R&TC Section 18152.5 exclusion)
4

| 00

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 2010


Updates to the Form 541 on 02/15/2013 –– California Fiduciary Income Tax Return

We replaced text on:

Revision 1: Side 1, Line 13

Revision 2: Side 2, Schedule A, Lines 5 through 7

Revision 3: Side 3, Schedule B, Line 4

Previous Version

Revision 1:

13 Charitable deduction. Enter the amount from Side 2, Schedule A, line 7 13 | 00

Revision 2:

5 Add line 3 and line 4. 5 | 00
6 R&TC Section 18152.5 exclusion allocable to capital gains paid or permanently set aside for charitable purposes...
6

| 00
7 Charitable deduction. Subtract line 6 from line 5. Enter here and on Side 1, line 13...
7

| 00

Revision 3:

4 Enter the amount from Schedule A, line 4 (reduced by any allocable R&TC Section 18152.5 exclusion)
4

| 00

Revised Version

Revision 1:

13 Charitable deduction. Enter the amount from Side 2, Schedule A, line 5 13 | 00

Revision 2:

5 Charitable deduction. Add line 3 and line 4. Enter here and on Side 1, line 13...
5

| 00
Note: text deleted.
Note: text deleted.

Revision 3:

4 Enter the amount from Schedule A, line 4 4 | 00

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 2010