Changes to 2012 Forms
Updates to the Form 540/540A Instructions on 03/02/2014 ––Instructions for Forms 540/540A, California Resident Income Tax Return
We replaced text on: Page 11, Column 2, Box A, last bullet
Note: New text added.
Excluded gain on the sale of qualified small business stock.
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.
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.