BlackletterCalifornia law

CHAPTER 7. Net Income [24341. - 24449.]

Chapter 7 added by Stats. 1955, Ch. 938.

§§ 24341–24449 · 126 sections

  1. ARTICLE 1. Deductions §§ 24341–24383 · 77 sections
    • § 24341 “Net income” means the gross income, computed under Chapter 6 (commencing with Section 24271), less the deductions allowed under this article and Article 2…
    • § 24343 (a) Section 162 of the Internal Revenue Code, relating to trade or business expenses, shall apply, except as otherwise provided. (b) For purposes of applying…
    • § 24343.1 (a) The amendments made by Section 13531(a) of the Tax Cuts and Jobs Act (Public Law 115-97) to add Section 162(r) to the Internal Revenue Code, relating to…
    • § 24343.2 Whereas, the people of the State of California desire to promote and achieve tax equity and fairness among all the state’s citizens and further desire to…
    • § 24343.3 Any employer contribution to a medical savings account, as defined in Section 220 of the Internal Revenue Code, relating to medical savings accounts, if…
    • § 24343.5 (a) In addition to the deduction allowed by Section 24343, a deduction shall be allowed to an employer as an ordinary and necessary expense paid or incurred…
    • § 24343.7 Section 162(k)(2)(A)(ii) of the Internal Revenue Code shall not apply.
    • § 24343.8 For taxable years beginning on or after January 1, 2014, a deduction shall not be allowed for the amount of any fine or penalty paid or incurred by an owner of…
    • § 24344 (a) Section 163 of the Internal Revenue Code, relating to interest, shall apply, except as otherwise provided. (b) If income of the taxpayer which is derived…
    • § 24344.5 (a) A deduction, determined in accordance with Section 163(e) of the Internal Revenue Code, shall be allowed to the issuer of an original issue discount bond.…
    • § 24344.7 The amendments to Section 163 of the Internal Revenue Code made by Section 13228 of the Revenue Reconciliation Act of 1993 (P.L. 103-66), relating to…
    • § 24345 A deduction shall be allowed for taxes or licenses paid or accrued during the taxable year, except: (a) Taxes paid to the state under this part. (b) Taxes on…
    • § 24345.5 A deduction shall not be allowed for the fee imposed by subsection (a) of Section 9008 of the Patient Protection and Affordable Care Act (Public Law 111-148).
    • § 24345.6 A deduction shall not be allowed for the excise tax imposed by Section 4501 of the Internal Revenue Code, relating to repurchase of corporate stock.
    • § 24345.7 A deduction shall not be allowed for the excise tax imposed by Section 5000D of the Internal Revenue Code, relating to designated drugs during noncompliance…
    • § 24346 (a) For purposes of subdivision (a) of Section 24345, if real property is sold during any real property tax year, then— (1) So much of the real property tax as…
    • § 24347 For taxable years beginning on or after January 1, 1990, all of the following shall apply: (a) Section 165 of the Internal Revenue Code, relating to losses.…
    • § 24347.4 (a) Section 165(i) of the Internal Revenue Code, relating to disaster losses, is modified to additionally provide that an appraisal for the purpose of…
    • § 24347.5 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.6 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.7 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.8 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.9 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.10 (a) An excess disaster loss, as defined in subdivision (c), shall be carried to other taxable years as provided in subdivision (b), with respect to losses…
    • § 24347.11 (a) Section 165(i) of the Internal Revenue Code shall be applicable to any losses sustained in the County of Santa Cruz as a result of the severe storms that…
    • § 24347.12 (a) Section 165(i) of the Internal Revenue Code shall be applicable to any losses sustained in the Counties of Los Angeles and San Bernardino as a result of…
    • § 24347.13 (a) Section 165(i) of the Internal Revenue Code shall be applicable to any losses sustained in the County of San Diego as a result of the wildfires that…
    • § 24347.14 (a) For taxable years beginning on or after January 1, 2014, and before January 1, 2029, Section 165(i) of the Internal Revenue Code, relating to disaster…
    • § 24348 (a) There shall be allowed as a deduction either of the following: (1) Debts which become worthless within the taxable year in an amount not in excess of the…
    • § 24349 (a) There shall be allowed as a depreciation deduction a reasonable allowance for the exhaustion, wear and tear (including a reasonable allowance for…
    • § 24349.1 (a) Section 280F of the Internal Revenue Code, relating to limitations on depreciation for luxury automobiles and certain property used for personal purposes,…
    • § 24349.2 Section 280G of the Internal Revenue Code, relating to golden parachute payments, shall apply, except as otherwise provided.
    • § 24350 Paragraphs (2), (3), and (4) of Section 24349(b) shall apply only in the case of property (other than intangible property) described in Section 24349(a) with a…
    • § 24351 Where, under regulations prescribed by the Franchise Tax Board, the taxpayer and the Franchise Tax Board have, after the date of enactment of this section,…
    • § 24352 In the absence of an agreement under Section 24351 containing a provision to the contrary, a taxpayer may at any time elect in accordance with regulations…
    • § 24352.5 (a) Under regulations prescribed by the Franchise Tax Board, a taxpayer may, for purposes of computing the allowance under Section 24349 with respect to…
    • § 24353 (a) The basis on which exhaustion, wear and tear, and obsolescence are to be allowed in respect of any property shall be the adjusted basis provided in Section…
    • § 24354 In the case of property held by one person for life with remainder to another person, the deduction shall be computed as if the life tenant were the absolute…
    • § 24354.1 (a) Except as provided in subdivisions (b) and (c) of this section, in the case of property of the type defined in Section 1250(c) of the Internal Revenue…
    • § 24355 Section 167(f) of the Internal Revenue Code, relating to treatment of property excluded from Section 197, shall apply, except as otherwise provided.
    • § 24355.3 For purposes of computing the depreciation deduction pursuant to Section 24349, the useful life of any Alaska natural gas pipeline, as defined in Section…
    • § 24355.4 For purposes of computing the depreciation deduction under Section 24349, a class life of four years shall be used for any qualified rent-to-own property as…
    • § 24355.5 Section 197 of the Internal Revenue Code, relating to amortization of goodwill and certain other intangibles, shall apply.
    • § 24356 (a) (1) In the case of Section 24356 property, the term “reasonable allowance” as used in subdivision (a) of Section 24349, may, at the election of the…
    • § 24356.1 (a) The amendments made by Section 124 of the Consolidated Appropriations Act, 2016 (Public Law 114-113) to Section 179 of the Internal Revenue Code, relating…
    • § 24357 (a) There shall be allowed as a deduction any charitable contribution, as defined in Section 24359, the payment of which is made within the taxable year. A…
    • § 24357.1 (a) The amount of any charitable contribution of property otherwise taken into account under Section 24357 shall be reduced by the amount of gain that would…
    • § 24357.2 (a) In the case of a contribution (not made by a transfer in trust) of an interest in property which consists of less than the taxpayer’s entire interest in…
    • § 24357.3 For purposes of Section 24357, in determining the value of a remainder interest in real property, depreciation (computed on the straight line method) and…
    • § 24357.4 If, in connection with any charitable contribution, a liability is assumed by the recipient or by any other person, or if a charitable contribution is of…
    • § 24357.5 No deduction shall be allowed under Section 24357 for a contribution to or for the use of an organization or trust described in Section 4948(c)(4) of the…
    • § 24357.6 No deduction shall be allowed under this part for an out-of-pocket expenditure made on behalf of an organization described in Section 24359 (other than an…
    • § 24357.7 (a) (1) For purposes of paragraph (3) of subdivision (b) of Section 24357.2, the term “qualified conservation contribution” means a contribution— (A) Of a…
    • § 24357.8 (a) In the case of a qualified research contribution, the amount otherwise allowed as a deduction under Section 24357, shall be reduced by that amount of the…
    • § 24357.9 (a) In the case of a qualified computer contribution, the amount otherwise allowed as a deduction under Section 24357 shall be reduced by that amount of the…
    • § 24357.10 (a) For purposes of Section 24357, 80 percent of any amount described in subdivision (b) shall be treated as a charitable contribution. (b) For purposes of…
    • § 24358 (a) In the case of a corporation, the total deductions under Section 24357 for any taxable year, other than for contributions to which subdivision (b) applies,…
    • § 24359 For purposes of Sections 24357 to 24359, inclusive, the term “charitable contribution” means a contribution or gift to or for the use of— (a) A state, a…
    • § 24359.1 Notwithstanding any other provision of law, any credit or deduction allowed by Section 23606 or 24357.8 shall not be disallowed on the basis that the…
    • § 24360 In the case of any bond, as defined in Section 24363, the following rules shall apply to the amortizable bond premium (determined under Section 24361 on the…
    • § 24361 (a) For purposes of subsection (b), the amount of bond premium, in the case of the holder of any bond, shall be determined— (1) With reference to the amount of…
    • § 24362 (a) Sections 24360 to 24363.5, inclusive, shall apply to the bonds only if the taxpayer has elected to have these sections apply; in the case of any taxpayer,…
    • § 24363 For purposes of Sections 24360 to 24363.5, inclusive, the term “bond” means any bond, debenture, note, or certificate or other evidence of indebtedness, but…
    • § 24363.5 (a) Except as provided in regulations, in the case of any taxable bond each of the following shall apply: (1) The amount of any bond premium shall be allocated…
    • § 24364 Notwithstanding Article 3 (commencing with Section 24421), all expenditures (other than expenditures for the purchase of land or depreciable property or for…
    • § 24365 (a) Section 174 of the Internal Revenue Code, relating to research and experimental expenditures, shall apply, except as otherwise provided. (b) Section 174(b)…
    • § 24368.1 (a) Section 167(e) of the Internal Revenue Code, relating to certain term interests not depreciable, shall apply. (b) The provisions of Section 7622(b) of…
    • § 24369 Section 175 of the Internal Revenue Code, relating to soil and water conservation expenditures, shall apply, except as otherwise provided.
    • § 24369.4 (a) Section 198 of the Internal Revenue Code, relating to expensing of environmental remediation costs, shall apply, except as otherwise provided. (b) Section…
    • § 24370 There shall also be allowed as a deduction, under Chapter 2 of this part, in the case of a mutual savings bank, the entire amount of interest paid to…
    • § 24372.3 (a) Section 169 of the Internal Revenue Code, relating to amortization of pollution control facilities, shall apply, except as otherwise provided. (b) The…
    • § 24372.5 (a) Section 194 of the Internal Revenue Code, relating to amortization of reforestation expenditures, shall apply, except as otherwise provided. (b) The…
    • § 24373 Section 178 of the Internal Revenue Code, relating to the amortization of cost of acquiring a lease, shall apply.
    • § 24377 (a) A taxpayer engaged in the business of farming may elect to treat as expenses which are not chargeable to capital account expenditures (otherwise chargeable…
    • § 24379 Section 83 of the Internal Revenue Code, relating to property transferred in connection with performance of services, shall apply, except as otherwise provided.
    • § 24382 (a) Section 216 of the Internal Revenue Code, relating to deduction of taxes, interest, and business depreciation by cooperative housing corporation…
    • § 24383 (a) Every taxpayer, at the election of the taxpayer, shall be entitled to a deduction of the cost of repairing or remodeling any building, facility or…
  2. ARTICLE 2. Special Deductions §§ 24401–24416.24 · 24 sections
    • § 24401 In addition to the deductions provided in Article 1 (commencing with Section 24341), there shall be allowed as deductions in computing taxable income the items…
    • § 24402 (a) A portion of the dividends received during the taxable year declared from income which has been included in the measure of the taxes imposed under Chapter…
    • § 24403 In the case of a building and loan association, organized and operating wholly or partly on a mutual plan, or a federal savings and loan association, organized…
    • § 24404 In the case of farmers, fruit growers, or like associations organized and operated in whole or in part on a cooperative or mutual basis, (a) for the purpose of…
    • § 24405 (a) In the case of other associations organized and operated in whole or in part on a cooperative or a mutual basis, all income resulting from or arising out…
    • § 24406 In the case of other associations organized and operated as co-operative corporations pursuant to Part 2 (commencing with Section 12200), Division 3, Title 1…
    • § 24406.5 (a) In the case of gas producers’ cooperative associations organized and operated as cooperative corporations pursuant to Chapter 1 (commencing with Section…
    • § 24406.6 For purposes of Section 24373.5, and Sections 24404 to 24406.5, inclusive, net earnings shall not be reduced by amounts paid during the year as dividends on…
    • § 24407 (a) The organizational expenditures of a corporation may, at the election of the corporation (made in accordance with regulations prescribed by the Franchise…
    • § 24408 The term “organizational expenditures” means any expenditure that meets all of the following requirements: (a) Is incident to the creation of the corporation.…
    • § 24409 The election provided by Section 24407 may be made for any taxable year beginning after December 31, 1960, but only if made not later than the time prescribed…
    • § 24410 (a) For taxable years commencing on or after January 1, 2004, the allowable dividends received deduction with respect to qualified dividends received by a…
    • § 24411 (a) For purposes of those taxpayers electing to compute income under Section 25110, 100 percent of the qualifying dividends described in subdivision (c) and 75…
    • § 24414 (a) Section 195 of the Internal Revenue Code, relating to startup expenditures, shall apply, except as otherwise provided. (b) References to Sections 163(a),…
    • § 24415 (a) To the extent specified in subdivision (b), there shall be allowed as a deduction to a taxpayer those payments of the taxpayer which are made pursuant to…
    • § 24416 Except as provided in Sections 24416.1, 24416.4, and 24416.7, or Sections 24416.2, 24416.5, and 24416.6, as those sections read on November 30, 2014, a net…
    • § 24416.1 (a) A qualified taxpayer, as defined in Section 24416.4 or 24416.7, or Section 24416.2, 24416.5, or 24416.6, as those sections read on November 30, 2014, may…
    • § 24416.3 (a) Notwithstanding Sections 24416, 24416.1, 24416.4, and 24416.7, or Sections 24416.2, 24416.5, and 24416.6, as those sections read on November 30, 2014, and…
    • § 24416.4 (a) The term “qualified taxpayer” as used in Section 24416.1 includes a corporation engaged in the conduct of a trade or business within the Los Angeles… see note
    • § 24416.7 (a) The term “qualified taxpayer” as used in Section 24416.1 includes a corporation that conducts a farming business that is directly affected by Pierce’s…
    • § 24416.21 (a) Notwithstanding Sections 24416, 24416.1, 24416.4, and 24416.7, Sections 24416.2, 24416.5, and 24416.6, as those sections read on November 30, 2014, and…
    • § 24416.22 Notwithstanding Section 24416.1, 24416.4, or 22416.7, or Section 24416.2, 24416.5, or 24416.6, as those sections read on November 30, 2014, to the contrary, a…
    • § 24416.23 (a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the…
    • § 24416.24 (a) Notwithstanding Sections 24416, 24416.1, 24416.4, 24416.7, and 24416.22, former Sections 24416.2, 24416.5, 24416.6, and 24416.20, and Section 172 of the…
  3. ARTICLE 3. Items Not Deductible §§ 24421–24449 · 25 sections
    • § 24421 In computing “net income” of taxpayers under this part, no deduction shall be allowed for the items specified in this article.
    • § 24422 No deduction shall be allowed for both of the following: (a) Any amount paid out for new buildings or for permanent improvements or betterments made to…
    • § 24422.3 (a) Section 263A of the Internal Revenue Code, relating to capitalization and inclusion in inventory costs of certain expenses, shall apply, except as…
    • § 24424 Section 264 of the Internal Revenue Code, relating to certain amounts paid in connection with insurance contracts, shall apply, except as otherwise provided.
    • § 24425 (a) No deduction shall be allowed for any amount otherwise allowable as a deduction which is allocable to one or more classes of income not included in the…
    • § 24426 Amounts paid or accrued for such taxes and carrying charges as, under regulations prescribed by the Franchise Tax Board, are chargeable to capital account with…
    • § 24427 Section 267 of the Internal Revenue Code, relating to losses, expenses, and interest with respect to transactions between related taxpayers, shall apply,…
    • § 24428 Section 267A of the Internal Revenue Code, relating to certain related party amounts paid or accrued in hybrid transactions or with hybrid entities, shall…
    • § 24429 Section 276 of the Internal Revenue Code, relating to certain indirect contributions to political parties, shall apply, except as otherwise provided.
    • § 24430 The amendments made by Section 13304 of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97) to Section 274 of the Internal Revenue Code, relating to limitation…
    • § 24431 (a) If— (1) Any person or persons acquire, or acquired on or after October 8, 1940, directly or indirectly, control of a corporation; or (2) Any corporation…
    • § 24434 (a) In the case of a taxpayer (other than a bank as defined in Section 23039) no deduction shall be allowed under Section 24347 or 24348 by reason of the…
    • § 24436.1 (a) In computing net income, deductions, including deductions for cost of goods sold, shall not be allowed to any taxpayer from any of its gross income…
    • § 24436.5 (a) No deduction shall be allowed for interest, depreciation, taxes, or amortization paid or incurred in the taxable year under Section 24343, 24344, 24345, or…
    • § 24437 Section 277 of the Internal Revenue Code, relating to deductions incurred by certain membership organizations in transactions with members, shall apply, except…
    • § 24438 (a) No deduction shall be allowed for any interest paid or incurred by a taxpayer during the taxable year with respect to its corporate acquisition…
    • § 24439 (a) No deduction shall be allowed to the issuing corporation for any premium paid or incurred upon the repurchase of a bond, debenture, note, or certificate or…
    • § 24440 (a) Section 280C(b) of the Internal Revenue Code, relating to credit for qualified clinical testing expenses for certain drugs, shall apply, except as…
    • § 24441 In computing net income no deduction shall be allowed for (a) abandonment fees paid in respect of property on which the open-space easement is terminated under…
    • § 24442 In the case of the demolition of any structure— (1) No deduction otherwise allowable under this part shall be allowed to the owner or lessee of such structure…
    • § 24442.5 Section 280H of the Internal Revenue Code, relating to limitation on certain amounts paid to employee-owners by personal service corporations electing…
    • § 24443 Section 274 of the Internal Revenue Code, relating to the disallowance of certain entertainment, gift, travel, etc., expenses, shall apply, except as otherwise…
    • § 24447 The Franchise Tax Board may disallow a deduction under this part to an individual or entity for amounts paid as remuneration for personal services if that…
    • § 24448 (a) Notwithstanding any other provisions in this part, in the case of a taxpayer who owns real property and has either failed to provide the information…
    • § 24449 (a) Section 291 of the Internal Revenue Code, relating to special rules relating to corporate preference items, shall apply, except as otherwise provided. (b)…