Changes to 2012 Forms
Updates to the Form 541 Instructions on 03/10/2014 –– Instructions for 541 Form, California Fiduciary Income Tax Return
We replaced text on:
Revision 1: Page 7, Line 13
Revision 2: Page 9, Column 3, Line 23,question 2(c), last bullet
Revision 3: Page 13, Schedule A, Paragraph 1
Revision 4: Page 13, Schedule B, Line 3, Paragraph 2
Enter the amount from Form 541, Side 2, Schedule A, line 5.
Note: new text added.
California law generally follows federal law, however, California does not conform to IRC Section 1045 and IRC Section 1202.
California does not conform to qualified small business stock gain exclusion under IRC 1202.
Enter the amount from Form 541, Side 2, Schedule A, line 7.
Excluded gain on the sale of qualified small business stock (see R&TC Section 18152.5)
California law generally follows federal law.
If the estate or trust excluded gain from the sale of qualified small business stock pursuant to R&TC Section 18152.5, be sure to add back the amount of the exclusion. (R&TC Section 17750)
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.