AB 1651, as amended, Donnelly. Income taxes: deductions: loss of fair market value.
The Personal Income Tax Law and the Corporation Tax Law authorize various deductions in computing income that is subject to tax under those laws.
This bill would allow as a deduction, under both of those laws for taxable years beginning on or after January 1, 2015, the amount of any loss of the fair market value of any tangible personal propertybegin insert located in Californiaend insert that is attributable to a rule, regulation, or statute that took effect in the taxable year in which the deduction is claimed, as provided.
This bill would take effect immediately as a tax levy.
Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no.
The people of the State of California do enact as follows:
Section 17239 is added to the Revenue and
2Taxation Code, to read:
begin insert(a)end insertbegin insert end insertFor taxable years beginning on or after January 1,
22014, there shall be allowed as a deduction the amount of any loss
3of the fair market valuebegin insert, as determined by the taxpayer,end insert of any
4tangible personal propertybegin insert located in Californiaend insert attributable to a
5rule or regulation promulgated by a California state agency or a
6statute enacted by the California Legislature that took effect in the
7taxable year in which the deduction is claimed.
8(b) For purposes of this section:
end insertbegin insert
9(1) “Fair market value” means “full cash value” or “fair market
10value” as defined in Section 110.
11(2) “Tangible personal property” means privately owned
12property that has physical substance and can be touched.
13(c) This section shall apply only to a rule or regulation
14promulgated by a California state agency or a statute enacted by
15the California Legislature promulgated or enacted on or after the
16effective date of the act adding this section.
17(d) The deduction allowed by this section is in lieu of any other
18deduction which the taxpayer may otherwise claim pursuant to
19this part with respect to the depreciation of tangible personal
20property.
Section 24356.9 is added to the Revenue and Taxation
22Code, to read:
begin insert(a)end insertbegin insert end insertFor taxable years beginning on or after January
241, 2014, there shall be allowed as a deduction the amount of any
25loss of the fair market valuebegin insert, as determined by the taxpayer,end insert of
26any tangible personal propertybegin insert located in Californiaend insert attributable
27to a rule or regulation promulgated by a California state agency
28or a statute enacted by the California Legislature that took effect
29in the taxable year in which the deduction is claimed.
30(b) For purposes of this section:
end insertbegin insert
31(1) “Fair market value” means “full cash value” or “fair market
32value” as defined in Section 110.
33(2) “Tangible personal property” means privately owned
34property that has physical substance and can be touched.
35(c) This section shall apply only to a rule or regulation
36promulgated by a California state agency or a statute enacted by
37the California Legislature promulgated or enacted on or after the
38effective date of the act adding this section.
39(d) The deduction allowed by this section is in lieu of any other
40deduction which the taxpayer may otherwise claim pursuant to
P3 1this part with respect to the depreciation of tangible personal
2property.
This act provides for a tax levy within the meaning of
4Article IV of the Constitution and shall go into immediate effect.
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