A number of important things happened in California recently. In this flash e-mail from Spidell Publishing Inc, they have listed each item they think you will want to know about. Visit the Hot News and Notes section of www.caltax.com where you’ll find details on all of these items.
Cancelation of Debt (COD) relief conformity: The Governor vetoed the conformity bill, which would have partially conformed California to the federal COD exclusion for principal residences. Plan to extend California returns until we get conformity. So, no conformity for now.
California State Board Of Eqalization (BOE) use tax update: The BOE will not allow an automatic one-month extension to file use tax returns due April 15. However, you will be granted an extension if you request it when you file the 2009 return on or before May 15.
New home credits: California now has a credit for first-time homebuyers and one for taxpayers purchasing new (previously unoccupied) homes. The credits are for purchases on or after May 1.
New Jobs Credit: It appears the FTB will continue to allow tax returns claiming the New Jobs Credit at least until June 30, 2010, as we are way below the $400 million allocated to this credit.
More nonconformity: California does not conform to any of the tax provisions in the federal HIRE bill or the Health Care Act. So there is no payroll tax holiday or increased §179 expensing.