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 7 - Net Income › Article 1 - Deductions › Section 24345-5 - Federal Social Security Taxes and State Unemployment Insurance Contributions

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Taxes on, according to or measured by income or profits,
						imposed by the Government of the United States or any foreign country or any
						state, territory, or political subdivision thereof, including all taxes paid or
						accrued to this State under this part, are not deductible.
Taxes and contributions paid by employers pursuant to the
						Federal Social Security Act or the California Unemployment Insurance Act are
						deductible from gross income in computing the employer's net
						income.
1. New
						Reg. 24345(e) filed 12-14-64; effective thirtieth day thereafter (Register 64,
						No. 25).
2. Renumbering of Section
						24345(e) to
						Section 24345-5 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 24345-6 - Taxes of Shareholder Paid by Corporation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Banks and other corporations paying taxes assessed
						against their shareholders on account of their ownership of the shares of stock
						issued by such corporations without reimbursement from such shareholders may
						deduct the amount of taxes so paid. In such cases no deduction shall be allowed
						to the shareholders for such taxes. The amount so paid should not be included
						in the gross income of the shareholder.
1. New
						Reg. 24345(f) filed 12-14-64; effective thirtieth day thereafter (Register 64,
						No. 25).
2. Renumbering of Section
						24345(f) to
						Section 24345-6 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 24345-7 - Foreign Taxes

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Definitions, as used in this regulation;
(1)
					 "Income tax" means a tax on or according to or measured by gross or net income
					 or profits paid or accrued within the income year imposed by the authority of
					 any foreign country.
(2) "Foreign
					 tax" means a compulsory payment imposed by and pursuant to the authority of a
					 foreign country to levy taxes. A penalty, fine, interest or customs duty is not
					 a tax. Whether a foreign tax requires a compulsory payment pursuant to a
					 foreign country's authority to levy taxes is determined by principles of United
					 States law and not by principles of law of the foreign country.
(3) "Foreign country" means any jurisdiction
					 other than one embraced within the United States, including a political
					 subdivision of such jurisdiction.
(4) "Dual capacity tax" means a tax which is
					 paid to a foreign country or to an agency or instrumentality of a foreign
					 country which is all or in part an income tax and which is also for receipt of
					 or future receipt of, directly or indirectly, a specific economic benefit from
					 a foreign country or from an agency or instrumentality of a foreign
					 country.
(5) "Specific economic
					 benefit" means an economic benefit that is not made available on substantially
					 the same terms to substantially all persons who are subject to an income tax
					 that is generally imposed by the foreign country, or, if there is no such
					 generally imposed income tax, an economic benefit that is not made available on
					 substantially the same terms to the population of the country in
					 general.
(6) "Paid" means "paid or
					 accrued"; the term "payment" means "payment or accrual"; and the term "paid by"
					 means "paid or accrued by or on behalf of."
(7) "Entity" means a corporation,
					 partnership, bank, association, business trust or organization of any
					 kind.
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 24347-1 - Losses. [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. Renumbering and amendment of Section
						24347(a) to
						Section 24347-1 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-2 - Obsolescence of Nondepreciable Property. [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. Renumbering and amendment of Section
						24347(b) to
						Section 24347-2 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-3 - Demolition of Buildings. [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. Renumbering and amendment of Section
						24347(c) to
						Section 24347-3 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-4 - Decline in Value of Stock. [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. Renumbering and amendment of Section
						24347(d) to
						Section 24347-4 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-5 - Worthless Securities. [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. Renumbering and amendment of Section
						24347(e) to
						Section 24347-5 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-6 - Losses of Farming Corporations. [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. Renumbering and amendment of Section
						24347(f) to
						Section 24347-6 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-7 - Casualty Losses. [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. Renumbering and amendment of Section
						24347(g) to
						Section 24347-7 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 11-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 45).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24347-8 - Theft Losses. [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. Renumbering and amendment of Section
						24347(h) to
						Section 24347-8 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
3. Change without
						regulatory effect repealing section filed 7-5-2000 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2000, No. 27).
Note: Authority cited: Section
						  26422,
						  Revenue and Taxation Code. Reference: Section
						  24347,
						  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 24348(a) - Bad Debt Deduction for Building and Loan Associations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Amendment filed 12-24-71; effective thirtieth day thereafter (Register 71, No.
						52). For prior history, see Register 63, No. 24.
2. Amendment filed
						11-27-74; effective thirtieth day thereafter (Register 74, No.
						48).
3. Change without regulatory effect amending subsection
						(3)(ii), repealing old NOTE, and adopting new NOTE filed 7-30-97 pursuant to
						section 100, title 1, California Code of
						Regulations (Register 97, No. 31).
4. Change without regulatory
						effect repealing section filed 12-4-2003 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2003, No. 49).[FN**]
See Section
						50500, Title 18, for Income
						Eligibility Trusts established by Department of Housing and Community
						Development.
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  24348,
						  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 24348(b) - Bad Debt Deduction for Banks and Savings and Loan Associations. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Amendment filed 6-3-77; effective thirtieth day thereafter (Register 77, No.
						23). For prior history, see Register 74, No. 48.
2. Amendment of
						subsections (3) and (5) filed 2-7-86 as an emergency; effective upon filing
						(Register 86, No. 6). A Certificate of Compliance must be transmitted to OAL
						within 120 days or emergency language will be repealed on 6-9-86.
3.
						Certificate of Compliance transmitted to OAL 6-4-86 and filed 7-2-86 (Register
						86, No. 27).
4. Change without regulatory effect amending subsection
						(3)(E) and NOTE filed 7-30-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 31).
5. Change without regulatory
						effect repealing section filed 12-2-2002 pursuant to section
						100, title 1, California Code of
						Regulations (Register 2002, No. 49).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  24348,
						  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 24348(d) - Bad Debts. [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 24348(e) - Evidence of Worthlessness. [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 24348(f) - Partial or Total Worthlessness. [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 24348(g) - Reserve for Bad Debts. [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 24348(h) - Sale of Mortgaged or Pledged Property. [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 24349(b) - * Tangible Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The depreciation allowance in the case of tangible
						property applies only to that part of the property which is subject to wear and
						tear, to decay or decline from natural causes, to exhaustion, and to
						obsolescence. The allowance does not apply to inventories or stock in trade, or
						to land apart from the improvements or physical development added to it. The
						allowance does not apply to natural resources which are subject to the
						allowance for depletion provided in Chapter 14.
__________
* This regulation is similar to Section
						26 CFR
						1.167(a)-2.
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 24349(c) - ** Intangibles

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
If an intangible asset is known from experience or other
						factors to be of use in the business for only a limited period, the length of
						which can be estimated with reasonable accuracy, such an intangible asset may
						be the subject of a depreciation allowance. Examples are patents and
						copyrights. An intangible asset, the useful life of which is not limited, is
						not subject to the allowance for depreciation. No allowance will be permitted
						merely because, in the unsupported opinion of the taxpayer, the intangible
						asset has a limited useful life. No deduction for depreciation is allowable
						with respect to goodwill.
__________
** Except for the deletion of the last sentence of the
						federal regulation, this regulation is the same as section
						26 CFR
						1.167(a)(3).
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 24349(d) - *** Leased Property

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Capital expenditures made by a lessee for the erection of
						buildings or the construction of other permanent improvements on leased
						property are recoverable through allowances for depreciation or amortization.
						If the useful life of such improvements in the hands of the taxpayer is equal
						to or shorter than the remaining period of the lease, the allowances shall take
						the form of depreciation under Section
						24349. If, on the other hand, the
						estimated useful life of such property in the hands of the taxpayer, determined
						without regard to the terms of the lease, would be longer than the remaining
						period of such lease, the allowances shall take the form of annual deductions
						from gross income in an amount equal to the unrecovered cost of such capital
						expenditures divided by the number of years remaining of the term of the lease.
						Such deductions shall be in lieu of allowances for depreciation. See Section
						24343 and the regulations
						thereunder. Capital expenditures made by a lessor for the erection of buildings
						or other improvements shall, if subject to depreciation allowances, be
						recovered by him over the estimated life of the improvements without regard to
						the period of the lease.
__________
*** This regulation is substantially the same as Section
						26 CFR
						1.167(a)(4).
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 24349(e) - **** Apportionment of Basis

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
In the case of the acquisition on or after March 1, 1913,
						of a combination of depreciable and nondepreciable property for a lump sum, as
						for example, buildings and land, the basis for depreciation cannot exceed an
						amount which bears the same proportion to the lump sum as the value of the
						depreciable property at the time of acquisition bears to the value of the
						entire property at that time. In the case of property which is subject to both
						the allowance for depreciation and amortization, depreciation is allowable only
						with respect to the portion of the depreciable property which is not subject to
						the allowance for amortization and may be taken concurrently with the allowance
						for amortization. After the close of the amortization period or after
						amortization deductions have been discontinued with respect to any such
						property, the unrecovered cost or other basis of the depreciable portion of
						such property will be subject to depreciation. For adjustments to basis, see
						Section 24916 and other applicable
						provisions of the law.
__________
**** This regulation is substantially the same as Section
						26 CFR
						1.167(a)(5).
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 24349(f) - ***** Depreciation in Special Cases

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Depreciation of Patents or Copyrights.
The cost or other basis of a patent or copyright shall be
						depreciated over its remaining useful life. Its cost to the patentee includes
						the various government fees, cost of drawings, models, attorney's fees, and
						similar expenditures. If a patent or copyright becomes valueless in any year
						before its expiration the unrecovered cost or other basis may be deducted in
						that year.
(b) Depreciation
					 in Case of Farmers. A reasonable allowance for depreciation may be claimed on
					 farm buildings, farm machinery, and other physical property but not including
					 land. Livestock acquired for work, breeding, or dairy purposes may be
					 depreciated unless included in an inventory used to determine profits in
					 accordance with Section
					 24271 and the regulations
					 thereunder. Such depreciation should be determined with reference to the cost
					 or other basis, salvage value, and the estimated useful life of the livestock.
					 See also Section
					 24343 and the regulations
					 thereunder relating to trade or business expenses, Section
					 24347 and the regulations
					 thereunder relating to losses of farmers and Section
					 24369 and the regulations
					 thereunder relating to soil or water conservation expenditures.
__________
***** This regulation is substantially the same as
						Section 26 CFR
						1.167(a)-6.
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 24349(i) - * Obsolescence

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The depreciation allowance includes an allowable for
						normal obsolescence which should be taken into account to the extent that the
						expected useful life of property will be shortened by reason thereof.
						Obsolescence may render an asset economically useless to the taxpayer
						regardless of its physical condition. Obsolescence is attributable to many
						causes, including technological improvements and reasonable foreseeable
						economic changes. Among these causes are normal progress of the arts and
						sciences, supercession or inadequacy brought about by developments in the
						industry, products, methods, markets, sources of supply, and other like
						changes, and legislative or regulatory action. In any case in which the
						taxpayer shows that the estimated useful life previously used should be
						shortened by reason of obsolescence greater than had been assumed in computing
						such estimated useful life, a change to a new and shorter estimated useful life
						computed in accordance with such showing will be permitted. No such change will
						be permitted merely because in the unsupported opinion of the taxpayer the
						property may become obsolete. For rules governing the allowance of a loss when
						the usefulness of an asset is suddenly terminated, see Section
						24347 and the regulations
						thereunder.
__________
* This regulation is substantially the same as Section
						26 CFR
						1.167(a)-9.
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 24349(j) - ** when Depreciation Deduction is Allowable

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1) A taxpayer should deduct the proper
					 depreciation allowance each year and may not increase its depreciation
					 allowances in later years by reason of its failure to deduct any depreciation
					 allowance or of its action in deducting an allowance plainly inadequate under
					 the known facts in prior years. The inadequacy of the depreciation allowance
					 for property in prior years shall be determined on the basis of the straight
					 line method if no allowance has ever been claimed for such property. For rules
					 relating to adjustments to basis, see Sections
					 24916 and
					 24917 and the regulations
					 thereunder.
(2) The period for
					 depreciation of an asset shall begin when the asset is placed in service and
					 shall end when the asset is retired from service. A proportionate part of one
					 year's depreciation is allowable for that part of the first and last year
					 during which the asset was in service. However, in the case of a multiple asset
					 account, the amount of depreciation may be determined by using what is commonly
					 described as an "averaging convention," that is, by using an assumed timing of
					 additions and retirements. For example, it might be assumed that all additions
					 and retirements to the asset account occur uniformly throughout the income
					 year, in which case depreciation is computed on the average of the beginning
					 and ending balances of the asset account for the income year. Among still other
					 averaging conventions which may be used is the one under which it is assumed
					 that all additions and retirements during the first half of a given year were
					 made on the first day of that year and that all additions and retirements
					 during the second half of the year were made on the first day of the following
					 year. Thus, a full year's depreciation would be taken on additions in the first
					 half of the year and no depreciation would be taken on additions in the second
					 half. Moreover, under this convention, no depreciation would be taken on
					 retirements in the first half of the year and a full year's depreciation would
					 be taken on the retirements in the second half. An averaging convention, if
					 used, must be consistently followed as to the account or accounts for which it
					 is adopted, and must be applied to both additions and retirements. In any year
					 in which an averaging convention substantially distorts the depreciation
					 allowance for the income year, it may not be used.
__________
** Except for the deletion of provisions relating to new
						methods of computing depreciation this regulation is substantially the same as
						Section 26 CFR
						1.167(a)-10.
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 24349(k)(1) - Adjustment for Federal Investment Credit. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 1-6-77; effective thirtieth day thereafter (Register 77, No.
						2).
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 24349(l) - Depreciation Based on Class Lives

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1)
Depreciation based on class lives
					 for property placed in service after December 31, 1970.
Federal Asset
					 Depreciation Range (ADR) Regulation 1.167(a)(11) adopted by T.D. 7128 on June
					 23, 1971 as amended by T.D. 7272, April 20, 1973 and T.D. 7315, June 6, 1974 is
					 hereby adopted by reference as though set out in full herein, subject to the
					 following exceptions:
(A) The permissible
					 asset depreciation period for any asset guideline class shall be the asset
					 guideline period without any range or variance.
(B) Special rules with respect to the
					 normalization of depreciation on public utility property are not applicable
					 where they are at variance with provisions of the Revenue and Taxation
					 Code.
(C) An election to apply this
					 subsection to eligible property shall be made with the return filed for the
					 income year in which the property is first placed in service by the taxpayer.
					 An election to compute the allowance for depreciation under this subsection is
					 a method of accounting but consent of the Franchise Tax Board will be deemed
					 granted to make an annual election. The election may be made with an amended
					 return only if such amended return is filed no later than the time prescribed
					 by law (including extensions thereof) for filing the return for the income year
					 of election. In the case of an income year ending on or before December 31,
					 1975 (with respect to which the statute of limitations for assessment of
					 deficiencies has not expired), the election may be made with an amended return
					 only if such amended return is filed on or before March 15, 1977. If an
					 election is not made within the time and manner prescribed in this
					 subparagraph, no election may be made for such income year (by the filing of an
					 amended return or any other manner) with respect to any eligible property
					 placed in service in the income year.
(D) Form FTB 3888 will be provided for the
					 submission of required information to the Franchise Tax
					 Board.
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 24349(m) - Change in Method. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1.
						Repealer filed 1-6-77; effective thirtieth day thereafter (Register 77, No.
						2).
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 24349(n) - * Basis for Depreciation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
The basis upon which the allowance for depreciation is to
						be computed with respect to any property shall be the adjusted basis provided
						in Article 2 of Chapter 15 for the purpose of determining gain on the sale or
						other disposition of such property.
__________
* Except for the deletion of the last sentence of the
						federal regulation this regulation is substantially the same as Section
						26 CFR
						1.167(g)-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 24349(o) - ** Depreciation of Improvements in the Case of Mines, Etc

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
Property used in the trade or business which is subject
						to the allowance for depreciation provided in Section
						24835 shall be treated for all
						purposes of this part as if it were property subject to the allowance for
						depreciation under Section
						24349.
__________
** This regulation is substantially the same as Section
						26 CFR
						1.167(h)-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 24351 - Agreement as to Useful Life and Rates of Depreciation. [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 24355(a) - Amortization of Emergency Facilities. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 3-31-70; effective thirtieth day thereafter (Register 70, No.
						14).
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 24355(b) - Amortization of Grain Storage Facilities. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 3-31-70; effective thirtieth day thereafter (Register 70, No.
						14).
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 24356-1 - Dollar Limitation

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Maximum Amount Subject to election.
(1) In
					 any one income year the maximum amount of the cost of Section
					 24356 property with respect to
					 which the taxpayer may elect to take an allowance under Section
					 24356 is $10,000. If the Section
					 24356 property purchased by the
					 taxpayer exceeds the $10,000 limitation, the taxpayer may select the cost or
					 portion of the cost of Section
					 24356 property to which its
					 election is to apply. For example, Corporation X purchased five new delivery
					 trucks in February 1959 at a cost of $5,000 each. The trucks qualify as Section
					 24356 property. X may select
					 $2,000 of the cost of each truck to be subject to the allowance, or the total
					 cost of $5,000 for each of any two trucks, or X may allocate the $10,000
					 maximum cost among some or all of the trucks in any other manner it chooses.
					 The selection of property made by X is irrevocable unless X obtains consent of
					 the Franchise Tax Board to change. See subsection (2) of Reg.
					 24356(d).
(2) The dollar
					 limitations of Section
					 24356 apply to each taxpayer and
					 not to each trade or business in which the taxpayer has an interest. For
					 example, Corporation G makes its tax returns on the calendar year basis. G
					 operates two separate businesses on its own account and is a member of a
					 partnership engaged in business. During 1960, G purchased Section
					 24356 property costing $8,000 for
					 one of its businesses and Section
					 24356 property costing $6,000 for
					 the other. In addition, G's distributive share of the partnership's Section
					 24356 allowance for 1959 is $300.
					 The maximum allowance available to G under Section
					 24356 for 1960, including its $300
					 distributive share from the partnership is $2,000 (20 percent of
					 $10,000).
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 24356.1(a) - Change from Retirement to Straight-Line Method of Computing Depreciation. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-20-64; effective thirtieth day thereafter (Register 64, No.
						4).
2. Change without regulatory effect repealing section filed
						8-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 32).[FN*]
Except for provisions
						relating to elections this regulation is substantially the same as Section
						26 CFR
						1.9001-1.
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 24356.1(b) - Basis Adjustments for Taxable Years Beginning on or After 1959 Adjustment Dates. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-20-64; effective thirtieth day thereafter (Register 64, No.
						4).
2. Change without regulatory effect repealing section filed
						8-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 32).[FN*]
Except for differences in
						dates this regulation is substantially the same as Section
						26 CFR
						1.9001-2.
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 24356.1(c) - Basis Adjustments for Taxable Years Between Changeover Date and 1959 Adjustment Date. [Repealed]

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
1. New
						section filed 2-20-64; effective thirtieth day thereafter (Register 64, No.
						4).
2. Change without regulatory effect repealing section filed
						8-4-97 pursuant to section
						100, title 1, California Code of
						Regulations (Register 97, No. 32).[FN*]
This regulation is
						substantially the same as Section
						26 CFR
						1.9001-3.
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 24356.7-1 - Recapture of Deduction for Qualified Property Previously Used in an Enterprise Zone

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In
					 General. Section
					 24356.7
					 of the Revenue and Taxation Code allows a taxpayer to elect to expense a
					 portion of the cost of Section
					 24356.7 property (as defined in
					 Section 24356.7(c)(1))
					 for the income year in which the property is placed in service. If an item of
					 the taxpayer's Section
					 24356.7 property ceases to be used
					 exclusively in the taxpayer's trade or business in the enterprise zone before
					 the close of the second income year after the property was placed in service,
					 the taxpayer is required to recapture the amount previously expensed for that
					 item. This amount shall be included in income in the income year in which the
					 property ceases to be so used.
(b)
					 Basis Adjustment. As of the first day of the income year in which the recapture
					 event occurs, the basis of the Section
					 24356.7 property shall be
					 increased by the recapture amount. For an item of Section
					 24356.7 property that is subject
					 to an allowance for depreciation under Section
					 24349
					 of the Revenue and Taxation Code, the increase in basis is depreciated over the
					 remaining useful life of the Section
					 24356.7 property beginning on the
					 first day of the income year in which the recapture event occurs.
1. New
						section filed 2-26-2001; operative 3-28-2001 (Register 2001, No.
						9).
Note: Authority cited: Section
						  19503,
						  Revenue and Taxation Code. Reference: Section
						  24356.7,
						  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 24357-2 - Contributions or Gifts by Banks and Corporations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General. The deduction by a bank or
					 corporation in any income year for charitable contributions, as defined in
					 Section 24359, is limited to 5 per cent of
					 its net income for the year, computed without regard to:
(1) The deduction for charitable
					 contributions.
(2) The special
					 deductions for banks and corporations allowed under Article 2 (commencing at
					 Section 24401) of Chapter 7 (except
					 Sections 24407 to
					 24409, inclusive). A contribution
					 by a bank or corporation to a trust, chest, fund, or foundation organized and
					 operated exclusively for religious, charitable, scientific, literary, or
					 educational purposes or for the prevention of cruelty to children or animals is
					 deductible only if the contribution is to be used in the United States or its
					 possessions for those purposes. See Section
					 24359(b).
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 24360-24363(a) - Amortizable Bond Premium

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(1)
					 In General. Under Section
					 24360, bond premium is amortizable
					 by the owner of the bond (as defined in Reg. 24360-24363(d)) in accordance with
					 paragraph (A) or (B) of this subsection as follows:
(A) Amortization of bond premium is mandatory
					 with respect to--
(i) Fully tax-exempt bonds
					 (the interest on which is excludable from gross income under Chapter
					 3).
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 24360-1 - Election with Respect to Taxable Bonds

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) In General. In the case of a bank or
					 corporation, the election provided in Section
					 24362 may be made with respect to
					 bonds the interest of which is not excludable from gross income. Such election
					 shall be made by the taxpayer by claiming a deduction for the bond premium in
					 its return for the first income year to which it desires the election to be
					 applicable. No other method of making such election will be recognized. If the
					 election is so made, the taxpayer should attach to its return a statement
					 showing the computation of deduction. The election shall apply to all the bonds
					 in respect of which it was made owned by the taxpayer at the beginning of the
					 first income year to which the election applies and also to all the bonds of
					 such class (or classes) thereafter acquired by it, and shall be binding for all
					 subsequent income years. Upon application by the taxpayer, the Franchise Tax
					 Board may permit it to revoke the election, subject to such conditions as the
					 Franchise Tax Board deems necessary.
(b) Special Rule for Transition Period. For
					 income years beginning after December 31, 1954, and ending after June 6, 1955,
					 the election to deduct amortizable bond premium applies to premiums on both the
					 following type bonds:
(1) Those with interest
					 coupons or in registered form, and
(2) Those without interest coupons and not in
					 registered form, including those commonly referred to as "corporate
					 mortgages."
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 24360-24363(d) - Definition

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. Renumbering and amendment of Section
						24360-24363(d) to
						subsections (c) and (d) of Section
						24360-1 filed 9-3-82; effective
						thirtieth day thereafter (Register 82, No. 37).
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 7 - Net Income › Article 1 - Deductions › Section 24364 - Circulation Expenditures

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
					 Allowance of Deduction. Section
					 2464 provides for the deduction
					 from gross income of all expenditures to establish, maintain, or increase the
					 circulation of a newspaper, magazine, or other periodical, subject to the
					 following limitations:
(1) No deduction shall
					 be allowed for expenditures for the purchase of land or depreciable property or
					 for the acquisition of circulation through the purchase of any part of the
					 business of another publisher of a newspaper, magazine, or other
					 periodical;
(2) The deduction shall
					 be allowed only to the publisher making the circulation expenditures;
					 and
(3) The deduction shall be
					 allowed only for the income year in which such expenditures are paid or
					 incurred. Subject to the provisions of paragraph (c) of this regulation, the
					 deduction permitted under Section
					 24364 and this paragraph shall be
					 allowed without regard to the method of accounting used by the taxpayer and
					 notwithstanding the provisions of Section
					 24422 and the regulations
					 thereunder, relating to capital expenditures.