CHAPTER 13. Accounting Periods and Methods of Accounting [24631. - 24726.]

Chapter 13 added by Stats. 1955, Ch. 938.

§§ 24631–24726 · 47 sections

1. ARTICLE 1. Accounting Periods §§ 24631–24637 · 7 sections

   • § 24631 (a) (1) For taxable years beginning prior to January 1, 2000, income shall be computed on the basis of the taxpayer’s income year. (2) For taxable years…
   • § 24632 The taxable year of a taxpayer may not be different than the taxable year used for purposes of the Internal Revenue Code, unless initiated or approved by the…
   • § 24633 If a taxpayer changes its annual accounting period, the new accounting period shall become the taxpayer’s taxable year only if the change is approved by the…
   • § 24633.5 (a) In the case of any “S corporation” or personal service corporation required to change its accounting period by the federal Tax Reform Act of 1986 (Public…
   • § 24634 (a) A return for a period of less than 12 months (referred to in this article as “short period”) shall be made under any of the following circumstances: (1)…
   • § 24636 (a) If a separate return is made by a taxpayer subject to the tax imposed by Chapter 2, under Section 24634 on account of a change in the accounting period the…
   • § 24637 For taxable years beginning on or after January 1, 1987, Section 444 of the Internal Revenue Code, relating to election of taxable year other than required…
2. ARTICLE 2. Methods of Accounting §§ 24651–24654 · 5 sections

   • § 24651 (a) Income shall be computed under the method of accounting on the basis of which the taxpayer regularly computes its income in keeping its books. (b) If no…
   • § 24652 (a) Section 447 of the Internal Revenue Code, relating to method of accounting for corporations engaged in farming, shall apply, except as otherwise provided.…
   • § 24652.5 (a) (1) Section 447(i)(3) of the Internal Revenue Code, relating to reduction in account if farming business contracts, shall not apply. (2) Section 447(i)(4)…
   • § 24652.6 (a) For taxable years beginning on or after January 1, 2019, amendments made by Section 13102(e)(2) of the Tax Cuts and Jobs Act (Public Law 115-97), relating…
   • § 24654 (a) Section 448 of the Internal Revenue Code, relating to limitation on use of cash method of accounting, shall apply, except as otherwise provided. (b) For…
3. ARTICLE 3. Year of Inclusion §§ 24661–24679 · 18 sections

   • § 24661 Section 451 of the Internal Revenue Code, relating to the general rule for taxable year of inclusion, shall apply, except as otherwise provided.
   • § 24661.3 (a) (1) The options under Sections 112(d)(2) and 112(d)(3) of the Federal Agriculture Improvement and Reform Act of 1996 (7 U.S.C. Sec. 7212(d)(2) and (3)), as…
   • § 24661.4 Section 451(b) of the Internal Revenue Code, relating to inclusion not later than for financial accounting purposes, shall not apply to specified credit card…
   • § 24661.5 Section 451(g)(3) of the Internal Revenue Code, relating to special election rule, is modified by substituting the phrase “subdivision (b) of Section 24949.1”…
   • § 24661.6 Section 451(k) of the Internal Revenue Code, relating to special rule for sales or dispositions to implement Federal Energy Regulatory Commission or state…
   • § 24667 (a) (1) Sections 453, 453A, and 453B of the Internal Revenue Code, relating to installment method, special rules for nondealers, and gain or loss on…
   • § 24668.1 Any taxpayer who disposes of property as a result of the exercise of the power of requisition or condemnation may, at his or her election, have the income…
   • § 24670 The amendments to Section 453B(e) of the Internal Revenue Code as enacted by Section 13512(b)(1) of the Tax Cuts and Jobs Act, 2017 (Public Law 115-97),…
   • § 24672 (a) Where a taxpayer reports income arising from the sale or other disposition of property as provided in this article, and the entire income therefrom has not…
   • § 24673 Where a corporation subject to the tax imposed by Chapter 2 is engaged in the performance of a contract in this State which will require more than a year to…
   • § 24673.2 (a) Section 460 of the Internal Revenue Code, relating to special rules for long-term contracts, shall apply, except as otherwise provided. (b) (1) Section…
   • § 24674 (a) If, in the case of a taxpayer owning any non-interest-bearing obligation issued at a discount and redeemable for fixed amounts increasing at stated…
   • § 24675 If an amount representing compensatory damages is received or accrued by a taxpayer during a taxable year as the result of an award in a civil action for…
   • § 24676 (a) Prepaid subscription income to which this section applies shall be included in gross income for the taxable years during which the liability described in…
   • § 24676.5 (a) A taxpayer who is on an accrual method of accounting may elect not to include in the gross income for the taxable year the income attributable to the…
   • § 24677 (a) If an amount representing damages is received or accrued by a corporation during a taxable year as a result of an award in a civil action for breach of…
   • § 24678 (a) If an amount representing damages is received or accrued during a taxable year as a result of an award in, or settlement of, a civil action brought under…
   • § 24679 For purposes of Sections 24675 through 24678, a fractional part of a month shall be disregarded unless it amounts to more than half a month, in which case it…
4. ARTICLE 4. Year of Deduction §§ 24681–24694 · 11 sections

   • § 24681 Section 461 of the Internal Revenue Code, relating to the general rule for taxable year of deduction, shall apply, except as otherwise provided.
   • § 24682 Section 464 of the Internal Revenue Code, relating to limitations on deductions for certain farming expenses, shall apply, except as otherwise provided.
   • § 24685 (a) In the case of any taxpayer who elected to have former Section 24685 apply for that taxpayer’s last taxable year beginning prior to January 1, 1990, and…
   • § 24685.5 (a) The amendment made by Section 7001(a) of the Internal Revenue Service Restructuring and Reform Act of 1998 (Public Law 105-206) to Section 404(a)(11) of…
   • § 24688 Section 467 of the Internal Revenue Code, relating to certain payments for the use of property or services, shall apply, except as otherwise provided.
   • § 24689 Section 468 of the Internal Revenue Code, relating to special rules for mining and solid waste reclamation and closing costs, shall apply, except as otherwise…
   • § 24690 (a) The provisions of Section 468A of the Internal Revenue Code, relating to special rules for nuclear decommissioning costs, shall be applicable, except as…
   • § 24691 Section 465 of the Internal Revenue Code, relating to limitations of deductions to the amount at risk, shall apply.
   • § 24692 (a) Section 469 of the Internal Revenue Code, relating to passive activity losses and credits limited, shall apply, except as otherwise provided. (b) Section…
   • § 24693 (a) Section 468B of the Internal Revenue Code, relating to special rules for designated settlement funds, shall apply, except as otherwise provided. (b)…
   • § 24694 Section 470 of the Internal Revenue Code, relating to limitation on deductions allocable to property used by governments or other tax-exempt entities, shall…
5. ARTICLE 5. Inventories §§ 24701–24710 · 3 sections

   • § 24701 (a) Section 471 of the Internal Revenue Code, relating to the general rule for inventories, shall apply, except as otherwise provided. (b) (1) For taxable…
   • § 24708 Section 474 of the Internal Revenue Code, relating to simplified dollar-value LIFO method for certain small businesses, shall apply, except as otherwise…
   • § 24710 (a) For each taxable year beginning on or after January 1, 1997, Section 475 of the Internal Revenue Code, relating to mark to market accounting method for…
6. ARTICLE 6. Adjustments Required by Changes in Method §§ 24721–24726 · 3 sections

   • § 24721 (a) Section 481 of the Internal Revenue Code, relating to adjustments required by changes in method of accounting, shall apply, except as otherwise provided.…
   • § 24725 The provisions of Section 482 of the Internal Revenue Code, relating to allocation of income and deductions among taxpayers, shall be applicable, except as…
   • § 24726 Section 483 of the Internal Revenue Code, relating to interest on certain deferred payments, shall apply, except as otherwise provided.