Accounting Periods and Methods of Accounting
Cal. RTC § 17561
California Statutes
(
a) Section 469(c)(7) of the Internal Revenue Code, relating to special rules for taxpayers in real property business, shall not apply. (
b) Section 469(d)(2) of the Internal Revenue Code, relating to passive activity credits, is modified to refer to the following credits:
(1) The credit for research expenses allowed by
Section 17052.12.
(2) The credit for certain wages paid (targeted jobs) allowed by
Section 17053.7.
(3) The credit allowed by former
Section 17057 (relating to clinical testing expenses).
(4) The credit for low-income housing allowed by
Section 17058. (
c) Section 469(g)(1)(
A) of the Internal Revenue Code is modified to provide that if all gain or loss realized on the disposition of the taxpayer’s entire interest in any passive activity (or former passive activity) is recognized, the excess of—
(1) The sum of— (
A) Any loss from that activity for that taxable year (determined after application of
Section 469(
b) of the Internal Revenue Code), plus (
B) Any loss realized on that disposition, over
(2) Net income or gain for the taxable year from all passive activities (determined without regard to losses described in paragraph (1)), shall be treated as a loss which is not from a passive activity. (d)
(1) For purposes of applying the provisions of
Section 469(
i) of the Internal Revenue Code, relating to the twenty-five thousand dollars ($25,000) offset for rental real estate activities, the dollar limitation specified in
Section 469(i)(2) of the Internal Revenue Code, relating to dollar limitation, for the credit allowed under
Section 17058, relating to low-income housing, shall not apply.
(2) The amendments made to this subdivision by the act adding this paragraph shall apply to each taxable year beginning on or after January 1, 2020. (
e) Section of the Tax Reform Act of 1986 (P.L. 99-514) shall apply. (
f) For taxable years beginning on or after January 1, 1987, the provisions of