reglab/statecodes huggingface dataset:
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 13 - Accounting Periods and Methods of Accounting › Article 3 - Year of Inclusion › Section 24676(e) - Definitions and Other Rules. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
						without regulatory effect repealing Section
						24676(e) filed
						9-19-88 (Register 88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24676,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 13 - Accounting Periods and Methods of Accounting › Article 3 - Year of Inclusion › Section 24676(f) - Time and Manner of Making Election. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
						without regulatory effect repealing Section
						24676(f) filed
						9-19-88 (Register 88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24676,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 13 - Accounting Periods and Methods of Accounting › Article 4 - Year of Deduction [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
					 without regulatory effect repealing article 4 (sections
					 24681-24684(b))
					 filed 9-19-88 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 88, No. 40).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 13 - Accounting Periods and Methods of Accounting › Article 5 - Inventories [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
					 without regulatory effect repealing article 5 (sections
					 24701(a)
					 --24721-24724(f)) filed 9-30-97 pursuant to section
					 100, title 1, California Code of
					 Regulations (Register 97, No. 40). For prior history, see Register 82, No. 49
					 and Register 88, No. 40.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 14 - Natural Resources [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
				  without regulatory effect repealing subchapter 14 (sections
				  24831(a)
				  --24837(e)) filed 9-30-97 pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 97, No. 40). For prior history, see Register 82, No.
				  49.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 1 - Computation of Gain or Loss [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of article 1 (sections
					 24901(a) -
					 24915) filed 11-30-82; effective
					 12-30-82 (Register 82, No. 49). For prior history, see Register 61, No. 9 and
					 Register 73, No. 4.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 2 - Basis for Computation of Gain or Loss [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of article 2 (sections
					 24916(a) -
					 24919) filed 11-30-82; effective
					 12-30-82 (Register 82, No. 49). For prior history, see Register 69, No.
					 52.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 3 - Nontaxable Exchanges [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of article 3 (sections
					 24941(a) -
					 24951) filed 7-5-83; effective
					 8-4-83 (Register 83, No. 28). For prior history, see Register 82, No.
					 49.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24961 - [FN*] Basis of Property Acquired During Affiliation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The basis of property acquired by a corporation during a
						period of affiliation from a corporation with which it was affiliated shall be
						the same as it would be in the hands of the corporation from which acquired.
						This rule is applicable if the basis of the property is material in determining
						tax liability for any year, whether a separate return or a consolidated return
						is made in respect of such year. For the purpose of this regulation, the term
						"period of affiliation" means the period during which such corporations were
						affiliated (determined in accordance with the law applicable thereto), but does
						not include any income year beginning on or after January 1, 1935, unless a
						consolidated return was made.
EXAMPLE.
The X Corporation, the Y Corporation, and the Z
						Corporation were affiliated for the income year 1920. During that year the X
						Corporation transferred assets to the Y Corporation for $120,000 cash, and the
						Y Corporation in turn transferred the assets during the same year to the Z
						Corporation for $130,000 cash. The assets were acquired by the X Corporation in
						1916 at a cost of $100,000. The basis of the assets in the hands of the Z
						Corporation is $100,000.
The basis of property acquired by a corporation during
						any period, in the income year 1929 or any subsequent income year, in respect
						of which a consolidated return was made or was required under Reg.
						23361-23364a, or subsequent regulations relating to consolidated returns, shall
						be determined in accordance with such regulations. The basis in the case of
						property held by a corporation during any period, in the income year 1929 or
						any subsequent income year, in respect of which a consolidated return is made
						or is required under Reg. 23361-23364a, or subsequent regulations relating to
						consolidated returns, shall be adjusted in respect of any items relating to
						such period in accordance with such regulations.
The basis of property after a consolidated return period
						shall be the same as immediately prior to the close of such period.
This regulation applies to all members of an affiliated
						group, which filed consolidated returns for income years prior to January 1,
						1935. After that date, only affiliated railroads meeting the requirements of
						Section 23361 have the privilege of filing
						a consolidated report. Section
						24961 does not apply to
						corporations filing a consolidated report under Section
						25104.[FN*]
This regulation is the same as Title 18, California
						Administrative Code, Chapter 3, Subchapter 3, Section
						25071 i.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24962(a) - Basis of Property Established by Revenue Act of 1932. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24962(b) - Basis of Property Established by Revenue Act of 1934. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24962(d) - Basis of Stock Rights Acquired Before January 1, 1955. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24963 - Property Acquired Before March 1, 1913. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24965 - Certain Stock of Federal National Mortgage Association. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 12-22-69; effective thirtieth day thereafter (Register 69, No.
						52).
2. Repealer filed 11-30-82; effective thirtieth day thereafter
						(Register 82, No. 49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24971(a) - Gain from Sale or Exchange to Effectuate Policies of Federal Communications Commission. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24971(b) - Nature and Effect of Election. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24971(c) - Reduction of Basis of Property Pursuant to Election Under Section 24971. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24971(d) - Manner of Election. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 4 - Special Rule for Basis › Section 24981-24988 - Distributions Pursuant to Order of the Federal Securities Exchange Commission. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 11-30-82; effective thirtieth day thereafter (Register 82, No.
						49).
Note: Authority cited and Reference: Section
						  26422,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 5 - Wash Sales of Stock or Securities [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of article 5 (sections
					 24998(a) -
					 24998(b)) filed
					 11-30-82; effective 12-30-82 (Register 82, No. 49).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 15 - Gain or Loss on Disposition of Property › Article 6 - Distributions Pursuant to Bank Holding Company Act of 1956 [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Repealer
					 of article 6 (sections
					 24999(a) -
					 24999.1(c)) filed
					 11-30-82; effective 12-30-82 (Register 82, No. 49).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 16 - War Loss Recoveries [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
				  without regulatory effect repealing subchapter 16 (sections
				  25001-25011) filed 5-30-97
				  pursuant to section
				  100, title 1, California Code of
				  Regulations (Register 97, No. 22). For prior history, see Register 82, No.
				  49.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25101.3 - Air Transportation Companies - Property Factor for Allocation and Apportionment of Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The
					 calculation of the "time" and "arrivals and departures" elements of the
					 property factor formula for aircraft operated by members of a unitary group
					 that are engaged in a unitary business of providing air transportation is made
					 by grouping certificated aircraft by model, as defined in subsection (c) of
					 this regulation. A separate allocation ratio is computed for each aircraft
					 model that established a taxable situs within the state during the taxable
					 year. Aircraft models that have not established a taxable situs within the
					 state will not have property assigned to California for the year. Each
					 allocation ratio is then applied to the total value of the carrier's aircraft
					 of each model to which the allocation ratio applies, excluding those models
					 that have not established a tax situs within the state.
(b) The allocation ratio is the amount
					 computed pursuant to subdivisions (a), (b), (c), and (d) of Revenue and
					 Taxation Code section
					 25101.3.
(c) A "model" of aircraft is defined as all
					 aircraft that can be assigned to a group utilizing the following rules:
(1) All aircraft are grouped with other
					 aircraft of the same manufacturer model, as determined by the manufacturer's
					 designation system.
(2) If a
					 taxpayer operates more than one series of an aircraft model, all series of that
					 aircraft model are assigned to a single model group based on the aircraft
					 manufacturer's designation system.
(3) If a taxpayer operates an aircraft that
					 is part of an aircraft model series or version that is designated by the
					 aircraft manufacturer for freight transportation, this aircraft is assigned to
					 a model group separate from the group of aircraft of the same model that the
					 aircraft manufacturer designates for passenger transportation.
(4) If a taxpayer operates an aircraft that
					 can be configured either for freight transportation or passenger
					 transportation, the aircraft is assigned to a group based on the aircraft model
					 and the aircraft configuration.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-0 - Table of Contents

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Regulation Sections
						25106.5 through
						25106.5-11
§ 25106.5
(a) Combined Reporting, In General
(b) Definitions
(1) Combined Report
(2) Combined Reporting Method
(3) Combined Reporting Group
(4) Business Income
(5) Combined Report Business Income
(6) Total Group Combined Report Business
					 Income
(7) Nonbusiness
					 Income
(8) Apportionment
(9) Taxpayer Member's California
					 Apportionment Percentage (Reserved)
(10) Member
(11) Taxpayer Member
(12) Principal Member
(A) Corporations Described
(B) Election to Designate Principal
					 Member
(C) Inconsistent Principal
					 Member
(13) Group
					 Return
(14) Key
					 Corporation
(15)
					 Fiscalization
(16) California
					 Source Carryover Item
(17)
					 Income
(18) Total Separate Net
					 Income
(19)
					 Corporation
(c) Steps In
					 Determining California Source Income From the Business Income of a Combined
					 Reporting Group
(1) Determination of Separate
					 Net Income
(A) Intercompany
					 Transactions
(B) Capital, etc.,
					 Gains and Losses
(C) Net Operating
					 Loss Deductions
(2)
					 Accounting Methods and Elections
(3) Adjustment for Nonbusiness Income,
					 etc.
(4) Assignment of Expenses to
					 Business and Nonbusiness Income (Reserved)
(5) Fiscalization to Principal Member's
					 Year
(6) Alignment of Business
					 Income to Principal Member's Accounting Period
(7) Apportionment of Combined Income, In
					 General
(A) Double or Single Weighted Sales
					 Factor
(B) Taxpayer Member's
					 Property, Payroll, and Sales Factors
(C) Taxpayer Member's California
					 Apportionment Percentage
(D)
					 California Source Apportioned Combined Report Business
					 Income
(8) Fiscalization
					 to Taxpayer Member's Income Year
(d) Steps In Determining A Taxpayer Member's
					 Income From Sources Within This State, for Imposition of Tax
(1) Total California Business Income
(A) California Combined Report Business
					 Income
(B) California Combined
					 Report Business Income, Other Groups
(C) Income from Business Wholly Conducted in
					 California
(2) Other
					 California Source Items
(A) California Source
					 Carryover Items
(B) California
					 Capital, etc., Income
(C)
					 California Source Nonbusiness Income
(3) California Source Net Operating Loss
					 Deduction
(4) Adjustment for
					 Charitable Contributions (Reserved)
(5) Taxpayer Member's California Source
					 Income
(e) California
					 Source Net Operating Loss
(f) Tax
					 on Taxpayer Member's California Source Income
(g) Years to Which this Regulation
					 Applies
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-3 - Accounting Methods and Elections

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as otherwise provided by this
					 regulation or other regulations under Section
					 25106.5
					 of the Revenue and Taxation Code, the taxpayer members of a combined reporting
					 group may elect to determine the total separate net income of each member of
					 the group under accounting methods and other elections as authorized by
					 Division 2, Part 11 of the Revenue and Taxation Code, independently of the
					 total separate net income of other members of the combined reporting group.
(1) Once an accounting method or other
					 election is made for each member, that member's net income must be consistently
					 treated in all combined reports which characterize that income as combined
					 report business income. In the event that the taxpayer members do not file in a
					 consistent manner, the Franchise Tax Board may, in its discretion, resolve the
					 inconsistency as it deems necessary or appropriate, taking into account the
					 totality of facts and circumstances relating to the applicable accounting
					 methods or elections.
Example: Corporations A, B, and C are members of a
						combined reporting group. Corporations A and B are taxpayer members of the
						group. Corporations A and B do not elect to file a group return. In the
						combined report which Corporation A attaches to its return, Corporation A
						computes Corporation C's income by electing to expense research and development
						expenditures. However, in the combined report which Corporation B attaches to
						its return, Corporation B computes Corporation C's income by electing to
						capitalize research and development expenditures. Because Corporations A and B
						did not determine Corporation C's income consistently, in an audit examination,
						the Franchise Tax Board may resolve the consistency in any manner which it
						deems appropriate, taking into account the totality of facts and circumstances
						of the election.
(2) Once an
					 accounting method or election is applied to income included in a combined
					 report, the election is irrevocable (unless expressly revocable under the
					 applicable provisions of Division 2, Part 11 of the Revenue and Taxation Code).
					 If, under the provisions of Division 2, Part 11, an accounting method or
					 election must continue to be applied in a subsequent tax period, the accounting
					 method or election made in the tax period of the election shall apply to the
					 net income of that member in such subsequent period. This subsection shall also
					 apply with respect to that member if it joins another combined reporting group
					 or later becomes a taxpayer which is not a member of a combined reporting
					 group.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-5 - Interest Offset

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Nothing in the regulations promulgated under this section
						shall be applied in a manner as to supersede final judicial interpretations
						regarding the application of the interest offset (Section
						24344(b)
						of the Revenue and Taxation Code) with respect to members of a combined
						reporting group.
1. New
						section filed 7-13-99; operative 8-12-99 (Register 99, No.
						29).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25106.5,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-6 - California Source Carryover Items (Reserved)

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25106.5,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-7 - Charitable Contributions (Reserved)

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25106.5,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-8 - Alternative Minimum Tax (Reserved)

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25106.5,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-10

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General.
(1) Unitary Business. A taxpayer is engaged
					 in a unitary business (or a single business within the meaning of Reg.
					 25120(b)) when its activities within the state contribute to or are dependent
					 upon its activities without the state. A unitary business exists when there is
					 unity of ownership, unity of operation and unity of use.
(2) Translation Method for Determining
					 Income. The translation method to be used for determining income shall be the
					 "profit and loss method" as set forth in this regulation. This method excludes
					 unrealized exchange rate gain or loss resulting from the restatement of assets
					 or liabilities, while taking into account exchange gains or losses attributable
					 to income transactions.
(3) General
					 Applicability of UDITPA Regulations. The general regulations for UDITPA, Regs.
					 25120--25139, inclusive, shall be applicable except as otherwise provided in
					 this regulation.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25106.5-11 - Election to File a Group Return

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) General. Every taxpayer subject to the
					 California Corporation Tax Law is required to file its own tax return,
					 including taxpayers that are members of a combined reporting group. Taxpayers
					 subject to the California Corporation Tax Law that are members of a combined
					 reporting group are required to attach a combined report to their tax returns.
					 Notwithstanding these requirements, taxpayers subject to the California
					 Corporation Tax Law that are members of a combined reporting group that
					 includes another taxpayer that is also subject to the California Corporation
					 Tax Law may annually elect to be included in a "group return" as provided for
					 in this regulation. (See Regulation section
					 25106.5, subsections (b)(1), (3)
					 and (13)).
(b) Requirements.
(1) In order to be eligible to make the
					 election provided under this section, the electing key corporation must meet
					 the definition of a "key corporation" as defined in Regulation section
					 25106.5, subsection (b)(14) in
					 addition to meeting the following requirements, by either being:
(A) the parent corporation of the combined
					 reporting group as defined in Regulation section
					 25106.5(b)(12)(A)(1),
					 or
(B) if the parent corporation of
					 the combined reporting group is not a taxpayer member, the taxpayer member with
					 the largest California property factor numerator, and
(C) the key corporation's powers, rights and
					 privileges must not be forfeited or suspended by the California Secretary of
					 State and it must not have a petition with the United States Bankruptcy Court
					 pending on the last day of the taxable year.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25110 - Water's-Edge Group

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 General. Revenue and Taxation Code section
					 25110
					 allows qualified taxpayers to elect, subject to the provisions of Revenue and
					 Taxation Code section
					 25111,
					 to account for and determine their income derived from or attributable to
					 California sources by considering only the income and apportionment factors of
					 those entities specified in Revenue and Taxation Code section
					 25110,
					 subdivision (a). The election may be made by a single corporation engaged in
					 one or several businesses or by a group of affiliated corporations.
(b) Definitions.
(1) Corporation. Unless otherwise specified,
					 a "corporation" is defined by Revenue and Taxation Code section
					 23038.
(2) Affiliated corporation. Effective for
					 taxable years beginning on or after January 1, 1995, an "affiliated
					 corporation" is a corporation that is a member of a commonly controlled group
					 as defined by Revenue and Taxation Code section
					 25105.
(3) Business income. "Business income" is
					 defined by Revenue and Taxation Code section
					 25120,
					 subdivision (a), and the regulations adopted pursuant thereto. Business income
					 is subject to apportionment by formula among California and the other
					 jurisdictions where the taxpayer has a taxable presence.
(4) Nonbusiness income. "Nonbusiness income"
					 is defined by Revenue and Taxation Code section
					 25120,
					 subdivision (d), and the regulations adopted pursuant thereto. Nonbusiness
					 income is allocated to a specific jurisdiction.
(5) Unitary business. A "unitary business"
					 consists of those activities required to be included in a combined report
					 pursuant to Revenue and Taxation Code section
					 25101
					 and the cases decided thereunder by the United States Supreme Court, the courts
					 of this State, and the California State Board of Equalization. Activities
					 constitute a "unitary business" if unity of ownership, unity of operation, and
					 unity of use are present, or if the activities carried on within the state
					 contribute to or are dependent upon the activities carried on without the
					 state, or if there is a flow of value between the activities. California Code
					 of Regulations, title 18, section
					 25120, subsection (b), sets forth
					 certain indicia and standards for determining whether activities constitute a
					 single trade or business and are therefore unitary.
(6) Water's-Edge Group. "Water's-edge group"
					 means all corporations or other entities whose income and apportionment factors
					 are considered pursuant to Revenue and Taxation Code Section
					 25110
					 in computing the income of the individual taxpayer for the current taxable year
					 which is derived from or attributable to sources within this
					 state.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25111-1 - Water's-Edge Election and Changes for Income Years Beginning Prior to January 1, 1994. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
						without regulatory effect adding new section filed 6-16-94 pursuant to section
						100, title 1, California Code of
						Regulations (Register 94, No. 24).
2. Amendment filed 10-1-98;
						operative 10-31-98 (Register 98, No. 40).
3. Change without
						regulatory effect renumbering former section
						25111-1 to section
						25111 filed 4-2-2002 pursuant to
						section 100, title 1, California Code of
						Regulations (Register 2002, No. 14).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25111,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25111.1 - Rescission of Existing Water's-Edge Elections. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 9-20-95; operative 10-20-95 (Register 95, No. 38).
2.
						Change without regulatory effect repealing section filed 3-12-2002 pursuant to
						section 100, title 1, California Code of
						Regulations (Register 2002, No. 11).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25111.1,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25114 - Presumptions Arising from Federal Audits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Examinations.
(1) In general. The Franchise Tax Board shall
					 examine the tax returns of all taxpayers that have made an election pursuant to
					 Revenue and Taxation Code section
					 25110.
					 In those cases in which such review or inspection reveals that there may be
					 potential noncompliance with arm's-length standards involving the transfer of
					 goods, services or intangibles, or the lending of money between those entities
					 whose income and apportionment factors are required to be considered pursuant
					 to Revenue and Taxation Code section
					 25110
					 and other affiliated corporations, an examination of such transactions may be
					 conducted unless the taxpayer has been, or is currently, under examination by
					 the Internal Revenue Service with respect to the same year on the same
					 issue.
(2) Principles under which a
					 transfer pricing examination is to be conducted. The Franchise Tax Board shall
					 use the principles and procedures followed by the Internal Revenue Service in
					 conducting examinations under Internal Revenue Code section
					 482 to prevent the evasion of
					 taxes or to clearly reflect the income of two or more organizations, trades, or
					 businesses.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 1 - General Provisions › Section 25115 - Election Fee. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 1-3-89; operative 1-3-89 (Register 89, No. 4).
2.
						Amendment of subsections (a)(1), (a)(3)-(4), (a)(5)(A)-(B), (b)(4)-(5),
						(c)(1)(A), (c)(4)(A)-(B), (d)(1)(A)-(B), (d)(2)(A)(ii), (d)(2)(B)(ii),
						(d)(2)(C), (d)(2)(C)(ii), (d)(2)(E), (d)(2)(G), (e)(1), (f)(1)(B) and
						(h)(1)-(3), new subsections (d)(2)(H), (d)(3)(A)(ii) and (f)(3)-(4), repealer
						of subsection (d)(2)(A)(iii) filed 11-3-92; operative 12-3-92 (Register 92, No.
						45).
3. Change without regulatory effect amending subsections
						(a)(1), (a)(5), (b)(4), (c)(4)(A) and NOTE and new subsection (j) filed 6-16-94
						pursuant to section
						100, title 1, California Code of
						Regulations (Register 94, No. 24).
4. Change without regulatory
						effect repealing section filed 2-28-2002 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2002, No. 9).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  25115,
						  Revenue and Taxation Code.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2 - Uniform Division of Income for Tax Purposes Act [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Change
					 without regulatory effect repealing Article 2 (sections
					 25120-25139) (Register 87, No.
					 15).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25121 - Application of the Uniform Division of Income for Tax Purposes Act

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Definitions.
(1) "Taxpayer." The word "taxpayer" as used
					 in these regulations is the same as defined in Section
					 23037 and the regulations
					 thereunder.
(2) ";Apportionment"
					 refers to the division of business income between states by the use of a
					 formula containing apportionment factors.
(3) "Allocation" refers to the assignment of
					 nonbusiness income to a particular state.
(4) "Business activity" refers to the
					 transactions and activity occurring in the regular course of a particular trade
					 or business of a taxpayer.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25122 - When Taxpayer is Taxable in Another State

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Taxable in Another State. In General.
					 Under Section
					 25121, the taxpayer is subject to
					 the allocation and apportionment of its income if it has income from business
					 activity that is taxable both within and without this state. A taxpayer's
					 income from business activity is taxable without this state if such taxpayer,
					 by reason of such business activity (i.e., the transactions and activity
					 occurring in the regular course of a particular trade or business), is taxable
					 in another state within the meaning of Section
					 25122. A taxpayer is taxable
					 within another state if it meets either one of two tests:
(1) If by reason of business activity in
					 another state the taxpayer is subject to one of the types of taxes specified in
					 Section 25122(a), namely:
					 A net income tax, a franchise tax measured by net income, a franchise tax for
					 the privilege of doing business, or a corporate stock tax; or
(2) If by reason of such business activity
					 another state has jurisdiction to subject the taxpayer to a net income tax,
					 regardless of whether or not the state imposes such a tax on the taxpayer.
A taxpayer is not taxable in another state with respect
						to a particular trade or business merely because the taxpayer conducts
						activities in such other state pertaining to the production of nonbusiness
						income or business activities relating to a separate trade or
						business.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25131 - Property Factor. Averaging Property Values

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
As a general rule the average value of property owned by
						the taxpayer shall be determined by averaging the values at the beginning and
						ending of the income year. However, the Franchise Tax Board may require or
						allow averaging by monthly values if such method of averaging is required to
						properly reflect the average value of the taxpayer's property for the tax
						period.
Averaging by monthly values will generally be applied if
						substantial fluctuations in the values of the property exist during the income
						year or where property is acquired after the beginning of the income year or
						disposed of before the end of the income year.
EXAMPLE:
The monthly value of the taxpayer's property was as
						follows:
Total
January............................
........................$2,000
July.......................................
.......................$15,000
February..........................
..........................2,000
August.................................
..........................17,000
March...............................
..........................3,000
September..........................
..........................23,000
April..................................
..........................3,500
October...............................
..........................25,000
May...................................
..........................4,500
November...........................
..........................13,000
June..................................
..........................10,000
December...........................
.......................... 2,000
$25,000
..................................
$95,000
$120,000
The average value of the taxpayer's property includible
						in the property factor for the income year is determined as follows:
$120,000 / 12 = $10,000
Averaging with respect to rented property is achieved
						automatically by the method of determining the net annual rental rate of such
						property as set forth in Reg. 25130(b).
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25133 - Payroll Factor. Compensation Paid in this State

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Compensation is paid in this state if any one of the
						following tests, applied consecutively, are met:
(1) The employee's service is performed
					 entirely within the state.
(2) The
					 employee's service is performed both within and without the state, but the
					 service performed without the state is incidental to the employee's service
					 within the state. The word "incidental" means any service which is temporary or
					 transitory in nature, or which is rendered in connection with an isolated
					 transaction.
(3) If the employee's
					 services are performed both within and without this state, the employee's
					 compensation will be attributed to this state:
(A) if the employee's base of operations is
					 in this state; or
(B) if there is
					 no base of operations in any state in which some part of the service is
					 performed, but the place from which the service is directed or controlled is in
					 this state; or
(C) if the base of
					 operations or the place from which the service is directed or controlled is not
					 in any state in which some part of the service is performed but the employee's
					 residence is in this state.
The term "base of operations" is the place of more or
						less permanent nature from which the employee starts his work and to which he
						customarily returns in order to receive instructions from the taxpayer or
						communications from his customers or other persons or to replenish stock or
						other materials, repair equipment, or perform any other functions necessary to
						the exercise of his trade or profession at some other point or points. The term
						"place from which the service is directed or controlled" refers to the place
						from which the power to direct or control is exercised by the
						taxpayer.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25134 - Sales Factor

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Sales Factor. In General.
(1) Section
					 25120(e) defines
					 the term "sales" to mean all gross receipts of the taxpayer not allocates under
					 sections 24124 to
					 25127, inclusive. Thus, for the
					 purposes of the sales factor of the apportionment formula for each trade or
					 business of the taxpayer, the term "sales" means all gross receipts derived by
					 the taxpayer from transactions and activity in the regular course of such trade
					 or business. The following are rules for determining "sales" in various
					 situations:
(A) In the case of a taxpayer
					 engaged in manufacturing and selling or purchasing and reselling goods or
					 products, "sales" includes all gross receipts from the sales of such goods or
					 products (or other property of a kind which would properly be included in the
					 inventory of the taxpayer if on hand at the close of the income year) held be
					 the taxpayer primarily for sale to customers in the ordinary course of its
					 trade or business. Gross receipts for this purpose means gross sales, less
					 returns and allowances and includes all interest income, service charges,
					 carrying charges, or time-price differential charges incidental to such sales.
					 Federal and state excise taxes (including sales taxes) shall be included as
					 part of such receipts if such taxes are passed on to the buyer or included as
					 part of the selling price of the product.
(B) In the case of cost plus fixed fee
					 contracts, such as the operation of a government-owned plant for a fee, "sales"
					 includes the entire reimbursed cost, plus the fee.
(C) In the case of a taxpayer engaged in
					 providing services, such as the operation of an advertising agency, or the
					 performance of equipment service contracts, research and development contracts,
					 "sales" includes the gross receipts from the performance of such services
					 including fees, commissions, and similar items.
(D) In the case of a taxpayer engaged in
					 renting real or tangible property, "sales" includes the gross receipts from the
					 rental, lease, or licensing the use of the property.
(E) In the case of a taxpayer engaged in the
					 sale, assignment, or licensing of intangible personal property such are patents
					 and copyrights, "sales" includes the gross receipts therefrom.
(F) If a taxpayer derives receipts from the
					 sale of equipment used in its business, such receipts constitute "sales." For
					 example, a truck express company owns a fleet of trucks and sells its trucks
					 under a regular replacement program. The gross receipts from the sales of the
					 trucks are included in the sales factor.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 17 - Allocation of Income › Article 2.5 - Uniform Division of Income for Tax Purposes Act › Section 25135 - Sales Factor. Sales of Tangible Personal Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Sales Factor: Sales of Tangible Personal
					 Property in this State.
(1) Gross receipts
					 from sales of tangible personal property (except sales to the United States
					 Government; see subsection (b) of this regulation) are in this state:
(A) if the property is delivered or shipped
					 to a purchaser within this state regardless of the f.o.b. point or other
					 conditions of sale; or
(B) if the
					 property is shipped form an office, store, warehouse, factory, or other place
					 of storage in this state and the taxpayer is not taxable in the state of the
					 purchaser.