§ 24692. — 24692. (Amended by Stats. 2019, Ch. 159, Sec. 27.)

California § 24692.

• Jurisdiction: California
• Code RTC: Revenue and Taxation Code - RTC
• Div. 2.: DIVISION 2. OTHER TAXES
• Part 11.: PART 11. CORPORATION TAX LAW
• Ch. 13.: CHAPTER 13. Accounting Periods and Methods of Accounting
• Art. 4.: ARTICLE 4. Year of Deduction

Text

(a)
Section 469 of the Internal Revenue Code, relating to passive activity losses and credits limited, shall apply, except as otherwise provided.
(b)
Section 469(c)(7) of the Internal Revenue Code, relating to special rules for taxpayers in real property business, shall not apply.
(c)
Section 469(d)(2) of the Internal Revenue Code, relating to passive activity credits, is modified to refer to the following credits:
(1)
The credit for research expenses allowed by Section 23609.
(2)
The credit for clinical testing expenses allowed by Section 23609.5.
(3)
The credit for low-income housing allowed by Section 23610.5.
(4)
The credit for certain wages paid (targeted jobs) allowed by Section 23621.
(d)
Section 469(g)(1)(A) of the Internal Revenue Code is modified to provide that if all gain or loss realized on the disposition of the taxpayer’s entire interest in any passive activity (or former passive activity) is recognized, the excess of—
(1)
The sum of—
(A)
Any loss from that activity for that taxable year (determined after application of Section 469(b) of the Internal Revenue Code), plus
(B)
Any loss realized on that disposition, over
(2)
Net income or gain for the taxable year from all passive activities (determined without regard to losses described in paragraph (1)), shall be treated as a loss which is not from a passive activity.
(e)
(1)
For purposes of applying Section 469(i) of the Internal Revenue Code, relating to the twenty-five thousand dollars ($25,000) offset for rental real estate activities, the dollar limitation specified in Section 469(i)(2) of the Internal Revenue Code, relating to
dollar limitation, for the credit allowed under Section 23610.5, relating to low-income housing, shall not apply.
(2)
The amendments made to this subdivision by the act adding this paragraph shall apply to each taxable year beginning on or after January 1, 2020.
(f)
Section 502 of the Tax Reform Act of 1986 (Public Law 99-514) shall apply.
(g)
For each taxable year beginning on or after January 1, 1987, Section 10212 of Public Law 100-203, relating to treatment of publicly traded partnerships under Section 469 of the Internal Revenue Code, shall apply, except as otherwise provided.
(h)
The amendments to Section 469(k) of the Internal Revenue Code made by Section 2004 of Public Law 100-647, relating to separate application of section in case of publicly
traded partnerships, shall apply to each taxable year beginning on or after January 1, 1990, except as otherwise provided.

Legislative History

Amended by Stats. 2019, Ch. 159, Sec. 27. (AB 101) Effective July 31, 2019.