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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23732-2 - Definition Applicable to Taxable Years Beginning Before December 13, 1967. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Renumbering and amendment of Section
						23732(a)(2) to
						Section 23732-1 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
2. Change without
						regulatory effect repealing Section
						23732-2 filed 9-19-88 (Register
						88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23732,
						  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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23732-3 - Modifications. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Renumbering and amendment of Section
						23732(b)(1) to
						Section 23732-3 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
2. Change without
						regulatory effect repealing Section
						23732-3 filed 9-19-88 (Register
						88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  23732,
						  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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23733 - Special Rules Applicable to Partnerships. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23734-23734a(1) - Definition of Unrelated Trade or Business. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23734-23734a(2) - Definition of Unrelated Trade or Business Applicable to Taxable Years Beginning Before December 13, 1967. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(a)(1) - Unrelated Debt-Financed Income and Deductions. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-22-74; effective thirtieth day thereafter (Register 74, No.
						8).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(a)(2) - Article 2 Lease Rents and Deductions for Taxable Years Beginning Before January 1, 1971. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(b)(1) - Definition of Debt-Financed Property. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-22-74; effective thirtieth day thereafter (Register 74, No.
						8).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(c)(1) - Acquisition Indebtedness. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-22-74; effective thirtieth day thereafter (Register 74, No.
						8).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(d)(1) - Basis of Debt-Financed Property Acquired in Corporate Liquidation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-22-74; effective thirtieth day thereafter (Register 74, No.
						8).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(e)(1) - Allocation Rules. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-22-74; effective thirtieth day thereafter (Register 74, No.
						8).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(f)(1) - Definition of Article 2 (Business Lease). [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23735(g)(1) - Article 2 Lease Indebtedness. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23736-23736.4(a) - Denial of Exemption to Organizations Engaged in Prohibited Transactions. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23736-23736.4b - Future Status of Organization Denied Exemption. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 2 - Taxation of Business Income of Most Exempt Organizations › Section 23736-23736.4c - Disallowances of Certain Charitable, Etc., Deductions. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23771 - Unrelated Business Income Returns-Exempt Organizations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Every organization or trust which is
					 otherwise exempt under Section
					 23701, except quasi-governmental
					 organizations which are controlled by the state, shall make a return on Form
					 109 for each taxable year if it has gross income, including in computing
					 unrelated business taxable income for such taxable year, of $1,000 or more. The
					 filing of a return of unrelated business income does not relieve the
					 organization of the duty of filing other required returns.
(b) For calendar years prior to 1971
					 subdivision (a) is only applicable to organizations described in Sections
					 23701 a, 23701d, 23701e, 23701n
					 and 23701h (where income is payable to an organization which is subject to the
					 tax or to a church or to a convention or association of churches).
(c) Subdivision (a) is applicable to churches
					 only for calendar year 1970, and subsequent years.
(d) Deferred compensation plans exempt under
					 Section 17631 which have unrelated
					 business income of $1,000 or more are required to file Form 109 for accounting
					 periods ending December 1971, and subsequent.
1. New
						Article 3 (Regs. 23771 and 23772.5) filed 12-14-64; effective thirtieth day
						thereafter (Register 64, No. 25).
2. Repealer of Article 3 (Regs.
						23771 and 23772.5) and new Article 3 (Regs. 23771, 23772-23774, 23775-23778)
						filed 7-13-73; effective thirtieth day thereafter (Register 73, No.
						28).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Sections
						  23701,
						  23701a,
						  23732-
						  23734,
						  23734a,
						  23735,
						  23771,
						  23772,
						  23774-
						  23778,
						  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 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23772 - Information Returns and Statements

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Exempt Organizations.
(a) For income years ending December 31,
					 1971, and subsequent years, all exempt organizations or trusts and nonexempt
					 trusts treated as a private foundation because of Internal Revenue Code section
					 4947(a)(1) must
					 file a Form 199 (Exempt Organization Annual Information Return).
(1) A completed Form 199 is required from any
					 organization, except:
(A) A church, an
					 interchurch organization of local units of a church, a convention or
					 association of churches, or an integrated auxiliary of a church such as a men's
					 or women's organization, religious school, mission society, or youth
					 group;
(B) An exclusively religious
					 activity of any religious order;
(C) An organization (other than a private
					 foundation) the gross receipts of which in each taxable year are normally not
					 more than $25,000 (as described in subsection (i));
(D) A mission society sponsored by or
					 affiliated with one or more churches or church denominations, more than
					 one-half of the activities of which society are conducted in, or directed at
					 persons in, foreign countries;
(E)
					 Nonprofit exempt quasi-governmental organizations formed to carry out a
					 function of the State or a public body, that are carrying out that function and
					 are controlled by the State or a public body. Such an organization must have
					 been formed to support a function of the State, county, city or other political
					 body, it must be operating for this purpose and the majority of the directors
					 must be under the control of the State or appropriate political body. Upon
					 dissolution, the assets must be turned over to the State, county, city, or
					 other political body.
NOTE: A stock bonus, pension or profit-sharing trust
						exempt under Revenue and Taxation Code section
						17631
						is not required to file Form 199. However, unrelated business income of $1,000
						or more requires the filing of Form 109. (See Revenue and Taxation Code section
						18506.)
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23775 - Suspension of Exempt Corporate Status

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The corporate powers, rights and
					 privileges of an exempt domestic corporation may be suspended and the exercise
					 of corporate powers, rights and privileges of a foreign exempt corporation in
					 this state may be forfeited if the organization fails to--
(1) File an annual return (Form 199) required
					 under Section
					 23772 on or before the close of
					 the last day of the 12th month following the close of the income
					 year.
(2) Pay any amount due under
					 Section 23703 or
					 23772 on or before the close of
					 the last day of the 12th month following the close of the income
					 year.
(3) File a return or notify
					 the Franchise Tax Board of its annual accounting period within nine months
					 after its date of incorporation or qualification.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23776 - Relief from Suspension Imposed Under Section 23775

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Any corporation that was suspended under
					 the provisions of Section
					 23775 may be relieved therefrom
					 upon the filing of:
(1) A new application for
					 exemption and payment of the ten-dollar ($10) application fee; and
(2) An application for revivor; and
(3) Any information returns, notifications,
					 or amounts due under Sections
					 23772 or
					 23775 which was not previously
					 submitted or paid and which resulted in the suspension or forfeiture;
					 and
(4) Any information return and
					 amounts specified under Section
					 23772 for each year or part
					 thereof during the period of suspension in which the organization conducted any
					 activities or received income, grants, gifts, or other assets. Where the
					 exemption of the corporation was also revoked the minimum franchise tax will be
					 due under Section
					 23303, unless there was reasonable
					 cause for the deficiency which resulted in the revocation.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23777 - Revocation of Exempt Status

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The exemption granted to any organization
					 or trust under Section
					 23701 may be revoked if the
					 organization fails to:
(1) File an annual
					 return (Form 199) required under Section
					 23772 on or before the close of
					 the last day of the 12th month following the close of the income
					 year.
(2) Pay any amount due under
					 Section 23703 or
					 23772 on or before the close of
					 the last day of the 12th month following the close of the income
					 year.
(3) Confine its activities to
					 those permitted by the section under which the exemption was
					 granted.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 4 - Exempt Corporations › Article 3 - Returns, Revocation and Suspension of Exempt Organizations › Section 23778 - Relief from Revocation of Exempt Status

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An organization whose exemption was
					 revoked under Section
					 23777 may reestablish itself as an
					 exempt organization upon the filing of:
(1) A
					 new application for exemption and payment of the twenty-five dollar ($25)
					 filing fee required under Section
					 23701; and
(2) Any information returns, statements,
					 notifications, or amounts due under Section
					 23772,
					 23774 or
					 23775 which were not previously
					 submitted or paid which resulted in the revocation; and
(3) When revocation occurred because of the
					 conduct of improper activities of the organization, satisfactory proof must be
					 furnished that the improper activities have ceased and that the organization
					 will operate in an exempt manner in the future and the payment of any tax due
					 for the period it operated as a taxable organization.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 5 - Computation of Tax when Law Changed [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. Regular and
				  new Reg. 24251 filed 12-14-64; effective thirtieth day thereafter (Register 64,
				  No. 25).
2. Repealer of Group 5 (Section
				  24251) filed 9-3-82; effective
				  thirtieth day thereafter (Register 82, No. 37).
Note: Authority and reference cited: 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 6 - Gross Income › Article 1 - Definitions › Section 24271(a) - Gross Income. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						Article 1 (Regs. 24271(a)-24271(h), 24273(a), 24273(b), 24273.5) filed
						12-14-64; effective thirtieth day thereafter (Register 64, No.
						25).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 6 - Gross Income › Article 1 - Definitions › Section 24271(b) - Gross Income Derived from Business. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 6 - Gross Income › Article 1 - Definitions › Section 24271(c) - Gross Income of Farming Corporations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 6 - Gross Income › Article 1 - Definitions › Section 24271(e) - Interest

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
[FN**]
(1) In
					 General. As a general rule, interest received by or credited to the taxpayer
					 constitutes gross income and is fully taxable. Interest income includes
					 interest on savings or other bank deposits; interest on coupon bonds; interest
					 on an open account, a promissory note, a mortgage, or a corporate bond or
					 debenture; the interest portion of a condemnation award; usurious interest
					 (unless by State law it is automatically converted to a payment on the
					 principal); interest on legacies; interest on life insurance proceeds held
					 under an agreement to pay interest thereon; and interest on refunds of State or
					 Federal taxes. For rules determining the income year in which interest,
					 including interest accrued or constructively received, is included in gross
					 income, see Section
					 24661 and the regulations
					 thereunder.
(2)
(A) Interest on Governmental
					 Obligations--Chapter 2. Interest received from federal, state, municipal or
					 other bonds is includible in the gross income of taxpayers taxable under
					 Chapter 2. Since the tax imposed under Chapter 2 is a privilege tax for the
					 right to exercise the corporate franchise, it is not a tax upon such income,
					 but merely uses such income of the preceding year as a measure of the tax for
					 the privilege of exercising the corporate franchise during the taxable year.
					 See Section
					 24272.
(B) Interest on Government
					 Obligations--Chapter 3. Interest on bonds and other obligations of the United
					 States, the District of Columbia, and territories of the United States is
					 exempt from state taxation under the Constitution and the laws of the United
					 States. Interest upon bonds of this State or its political subdivisions issued
					 after November 4, 1902 is exempt from state taxation under the State
					 Constitution.
Interest received or accrued on warrants, judgments,
						claims for refund, etc., and similar obligations of California, its
						subdivisions, or the United States and its territories is not exempt from tax.
						Interest on all bonds and obligations of other states and foreign countries,
						including those of the Philippines, the commonwealth of the Philippines or the
						political subdivisions thereof issued on or after March 24, 1934, is also
						subject to tax.
Although interest on bonds and obligations of the United
						States is exempt from taxation, gains and profits from the sale or other
						disposition of such bonds and obligations are taxable to the same extent as
						gains and profits from the sale or exchange of other
						property.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 6 - Gross Income › Article 1 - Definitions › Section 24271(f) - Rents and Royalties. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 6 - Gross Income › Article 1 - Definitions › Section 24271(g) - Dividends. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 6 - Gross Income › Article 1 - Definitions › Section 24272 - Gross Income-Chapter 2. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Renumbered from Reg. 23851 in Subchapter 3 (Register 71, No. 2).
2.
						Repealer filed 9-3-82; effective thirtieth day thereafter (Register 82, No.
						37).
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 6 - Gross Income › Article 1 - Definitions › Section 24273(a) - * Election to Consider Commodity Credit Corporation Loans as Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
A taxpayer who receives a loan from the Commodity Credit
						Corporation may, at its election, include the amount of such loan in its gross
						income for the income year in which the loan is received. If a taxpayer makes
						such an election (or has made such an election under Sections
						23854 and
						23854.1 of the Bank and
						Corporation Tax Law of 1954), then for subsequent income years it shall include
						in its gross income all amounts received during those years as loans from the
						Commodity Credit Corporation, unless it secures the permission of the Franchise
						Tax Board to change to a different method of accounting. Application for
						permission to change such method of accounting and the basis upon which the
						return is made shall be filed with the Franchise Tax Board, 1025 P Street,
						Sacramento, California, within 90 days after the beginning of the income year
						to be covered by the return.
__________
* This regulation is substantially the same as Section
						26 CFR
						1.77-1.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 6 - Gross Income › Article 1 - Definitions › Section 24273(b) - ** Effect of Election to Consider Commodity Credit Loans as Income

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) If a taxpayer
					 elects or has elected under Section
					 23854 and
					 23854.1 of the Bank and
					 Corporation Tax Law of 1954, to include in its gross income the amount of a
					 loan from the Commodity Credit Corporation for the income year in which it is
					 received, then--
(A) No part of the amount
					 realized by the Commodity Credit Corporation upon the sale or other disposition
					 of the commodity pledged for such loan shall be recognized as income to the
					 taxpayer, unless the taxpayer receives an amount in addition to that advanced
					 to it as the loan, in which event such additional amount shall be included in
					 the gross income of the taxpayer for the income year in which it is received,
					 and
(B) No deductible loss to the
					 taxpayer shall be recognized on account of any deficiency realized by the
					 Commodity Credit Corporation on such loan if the taxpayer was relieved from
					 liability for such deficiency.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 6 - Gross Income › Article 2 - Exclusions › Section 24302 - Life Insurance Payments Made Other than by Reason of Death of Insured. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Renumbered from Reg. 23881b in Subchapter 3 (Register 71, No. 2).
2.
						Repealer filed 2-21-79; effective thirtieth day thereafter (Register 79, No.
						7).
Note: Authority cited: 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 6 - Gross Income › Article 2 - Exclusions › Section 24305 - Life Insurance Payments Made by Reason of Death of Insured

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The proceeds of life insurance policies, paid by reason
						of the death of the insured to any corporate beneficiary, directly or in trust,
						shall be excluded from the gross income of the beneficiary. It is immaterial
						whether the proceeds are received in a single sum or in installments. If,
						however, such proceeds are held by the insurer under an agreement to pay
						interest thereon, the interest payments must be included in gross
						income.
1.
						Renumbered from Reg. 23881a in Subchapter 3 (Register 71, No.
						2).[FN*]
Compare Section
						29.22(b)(1) -
						1, Fed. Reg.
						III.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 6 - Gross Income › Article 2 - Exclusions › Section 24307(a) - Income from Discharge of Indebtedness. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Amendment filed 9-19-69; effective thirtieth day thereafter (Register 69, No.
						38).
2. Change without regulatory effect repealing Section
						24307(a) filed
						9-19-88 (Register 88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24307,
						  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 6 - Gross Income › Article 2 - Exclusions › Section 24307(b) - Making and Filing of Consent. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Amendment filed 9-19-69; effective thirtieth day thereafter (Register 69, No.
						38).
2. Change without regulatory effect repealing Section
						24307(b) filed
						9-19-88 (Register 88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24307,
						  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 6 - Gross Income › Article 2 - Exclusions › Section 24307(c) - Income from Discharge of Indebtedness of Railroad Corporations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Amendment filed 9-19-69; effective thirtieth day thereafter (Register 69, No.
						38).
2. Change without regulatory effect repealing Section
						24307(c) filed
						9-19-88 (Register 88, No. 40).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24307,
						  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 6 - Gross Income › Article 2 - Exclusions › Section 24308 - Cancellation of Indebtedness by Stockholder. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						Reg. 24308 filed 12-14-64; effective thirtieth day thereafter (Register 64, No.
						25).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 6 - Gross Income › Article 2 - Exclusions › Section 24309 - Exclusion from Gross Income of Lessor of Real Property of Value of Improvements Erected by Lessee. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 1-6-69; effective thirtieth day thereafter (Register 69, No.
						2).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 6 - Gross Income › Article 2 - Exclusions › Section 24310 - Recovery of Certain Items Previously Deducted or Credited. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 9-19-69; effective thirtieth day thereafter (Register 69, No.
						38).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 7 - Net Income › Article 1 - Deductions › Section 24343 - Disallowance of Expenses Incurred at Private Clubs Which Discriminate. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 9-1-87; operative 10-1-87 (Register 87, No. 37).
2.
						Change without regulatory effect repealing section filed 5-8-97 pursuant to
						section 100, title 1, California Code of
						Regulations (Register 97, No. 19).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Sections
						  24343
						  and
						  24443-
						  24446,
						  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 7 - Net Income › Article 1 - Deductions › Section 24344(a) - Interest Deduction in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) Except as limited by Section
					 24344(b) and as
					 otherwise provided in Sections
					 24424 to
					 24430, inclusive, interest paid or
					 accrued within the income year on indebtedness shall be allowed as a deduction
					 in computing net income.
(2)
					 Section 24344(b) provides
					 that if the income of the taxpayer is determined by the allocation formula
					 contained in Section
					 25101, the interest deductible
					 shall be an amount equal to interest income subject to allocation by formula,
					 plus the amount, if any, by which the balance of interest expense exceeds
					 interest and dividend income (except dividends deductible under the provisions
					 of Section
					 24402) not subject to allocation
					 by formula. Interest expense not included in the preceding sentence shall be
					 directly offset against interest and dividend income (except dividends
					 deductible under the provisions of Section
					 24402) not subject to allocation
					 by formula.
(3) Interest calculated
					 for costkeeping or other purposes on account of capital or surplus invested in
					 the business which does not represent a charge arising under an
					 interest-bearing obligation, is not an allowable deduction from gross income.
					 Interest paid by a corporation on scrip dividends is an allowable deduction.
					 So-called interest on preferred stock, which is in reality a dividend thereon,
					 cannot be deducted in computing net income. In the case of banks and loan or
					 trust companies, interest paid within the year on deposits, such as interest
					 paid on moneys received for investment and secured by interest-bearing
					 certificates of indebtedness issued by such bank or loan or trust company, may
					 be deducted from gross income.
1. New
						section filed 5-5-72; effective thirtieth day thereafter (Register 72, No.
						19).[FN*]
Compare Section
						26 CFR
						1.163-1.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 7 - Net Income › Article 1 - Deductions › Section 24344(b) - Deduction for Bond Discount. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 5-5-72; effective thirtieth day thereafter (Register 72, No.
						19).
2. Repealer filed 9-3-82; effective thirtieth day thereafter
						(Register 82, No. 37).
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 7 - Net Income › Article 1 - Deductions › Section 24344(c) - Offset of Interest Expense Incurred for Foreign Investment

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) General.
					 Revenue and Taxation Code section
					 24344
					 relates generally to the deductibility of interest expense. Revenue and
					 Taxation Code section
					 24344,
					 subdivision (c)(1), provides that interest expense allowable pursuant to
					 Internal Revenue Code section
					 163 that is incurred for purposes
					 of foreign investment may be offset against dividends deductible pursuant to
					 Revenue and Taxation Code section
					 24411.
					 Because all business activities require funds, and common ownership allows a
					 business's management substantial flexibility both as to the source of funds
					 and as to the use of funds, it is difficult if not impossible to specifically
					 assign the cost of funds to specific activities. Normally, creditors of a
					 taxpayer subject the money advanced to the taxpayer to the risk of the
					 taxpayer's entire activities and look to the general credit of the taxpayer for
					 payment of the debt. When money is borrowed for a specific purpose, such
					 borrowing will generally free other funds for other purposes, and it is
					 reasonable to attribute part of the cost of borrowing to such other purposes.
					 Interest expense shall therefore be attributed to foreign investment pursuant
					 to the rules set forth in subsection (3) of this regulation.
(2) Definitions.
(A) Foreign investment.
1. Except as provided in subsection (2)(A)3.
					 of this regulation, for purposes of this regulation foreign investment means
					 stock or other equity investment, regardless of when it was made, in:
a. an entity whose dividends would be
					 qualifying dividends for purposes of Revenue and Taxation Code section
					 24411,
					 or
b. a nonaffiliated corporation
					 which is organized under the laws of a country or political subdivision of a
					 country other than the United States.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 7 - Net Income › Article 1 - Deductions › Section 24345-1 - Deduction for Taxes or Licenses in General

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Taxes or licenses which may be deducted
					 include ad valorem property taxes (but see Regulation 24345-2, respecting
					 special assessments), automobile registration fees, city license fees, import
					 or customs duties paid to federal customs officers, liquor or alcoholic
					 beverage license fees, and other business, privilege or excise taxes paid to
					 the United States or to a state. Postage is not a tax and may be deducted only
					 insofar as it constitutes a business expense.
(b) Double deductions are not permitted.
					 Accordingly, if taxes are deducted as a business expense or are added to the
					 cost of the property with respect to which they are imposed, they may not be
					 deducted separately as taxes.
(c)
					 For income years beginning before January 1, 1961, taxes on property could be
					 deducted only by the one owning the property, or in possession of the property
					 under a contract to purchase at the time the taxes became a lien.
Generally, taxes on property in California become a lien
						on the first Monday in March of each year. An exception exists in the case of
						taxes of certain cities having a lien date other than the first Monday in
						March.
Although a purchaser of property may not deduct taxes
						which become a lien on the property prior to the time it was purchased, even
						though paid by the purchaser, the purchaser may add any such taxes paid by it
						to the cost of the property, and thus increase the basis of the property for
						the purpose of computing depreciation, gain or loss, etc.
See Section
						24346 for apportionment of taxes
						on real property between seller and purchaser for income years beginning after
						December 31, 1960.
1. New
						Reg. 24345(a) filed 12-14-64; effective thirtieth day thereafter (Register 64,
						No. 25).
2. Renumbering and amendment of Section
						24345(a) to
						Section 24345-1 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37.)
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24345,
						  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 7 - Net Income › Article 1 - Deductions › Section 24345-2 - Taxes for Local Benefits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Except as provided in subsection (b) of
					 this regulation, so-called taxes, more properly assessments, paid for local
					 benefits, such as street, sidewalk, and other like improvements, imposed
					 because of and measured by some benefit inuring directly to the property
					 against which the assessment is levied do not constitute an allowable deduction
					 from gross income. A tax is considered assessed against local benefits when the
					 property subject to the tax is limited to property benefited. Special
					 assessments such as flood control district assessments are not deductible, even
					 though an incidental benefit may inure to the public welfare. The real property
					 taxes deductible are those levied for the general public welfare by the proper
					 taxing authorities at a like rate against all property in the territory over
					 which such authorities have jurisdiction. For treatment of assessments for
					 local benefits as adjustments to the basis of property see Section
					 24916(a).
(b)
(1)
					 Insofar as assessments against local benefits are made for the purpose of
					 maintenance or repair or for the purpose of meeting interest charges with
					 respect to such benefits, they are deductible. In such cases the burden is on
					 the taxpayer to show the allocation of the amounts assessed to the different
					 purposes. If the allocation cannot be made, none of the amount so paid is
					 deductible.
(2) Taxes or
					 assessments levied by an irrigation or other water district are deductible if
					 such taxes or assessments are levied at a uniform rate upon all property within
					 the district.
California Code of Regulations › Title 18 - Public Revenues › Division 3 - Franchise Tax Board › Chapter 3.5 - Bank and Corporation Tax › Subchapter 7 - Net Income › Article 1 - Deductions › Section 24345-3 - Federal Stamp Taxes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
No deduction is allowed under Section
						24345 for Federal stamp taxes (not
						described in Section
						24345-1(b) or
						(c)), paid or accrued within the income year.
						The fact that any such tax is not deductible as a tax under Section
						24345 does not prevent its
						deduction under Section
						24343, provided it represents an
						ordinary and necessary expense paid or incurred during the income year by a
						corporation in the conduct of any trade or business or, its being taken into
						account during the income year as a part of the cost of acquiring or producing
						property in the trade or business.
1. New
						Reg. 24345(c) filed 12-14-64; effective thirtieth day thereafter (Register 64,
						No. 25).
2. Renumbering and amendment of Section
						24345(c) to
						Section 24345-3 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24345,
						  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 7 - Net Income › Article 1 - Deductions › Section 24345-4 - Sales and Gasoline Taxes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Amounts representing gasoline and sales taxes paid by a
						purchaser of services or tangible personal property are deductible by such
						purchaser as taxes, provided they are not paid in connection with its trade or
						business. The fact that, under the law imposing it, the incidence of the
						gasoline or sales tax does not fall on the purchaser is immaterial.
As used in this regulation the term "gasoline or sales
						tax" means a tax imposed by any state, territory, district, or possession of
						the United States, or any political subdivision thereof upon persons engaged in
						selling tangible personal property at retail, which is measured by the gross
						sales price or the gross receipts from the sale, or which is a stated sum per
						unit of such property sold. The term also includes a tax imposed by such
						authorities upon persons engaged in furnishing services at retail, which is
						measured by the gross receipts for furnishing such services.
1. New
						Reg. 24345(d) filed 12-14-64; effective thirtieth day thereafter (Register 64,
						No. 25).
2. Renumbering of Section
						24345(d) to
						Section 24345-4 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect amending first paragraph and NOTE filed 8-7-2003 pursuant to
						section 100, title 1, California Code of
						Regulations (Register 2003, No. 32).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  24345,
						  Revenue and Taxation Code.