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Category: California

California Additions to Income

Federal NOL

Enter the amount of Federal NOL (Net Operating Loss) included on your Federal Return as Addition to Income.

Please click here for form FTB 3805V to calculate allowable California NOL and enter as Subtraction from Income. Enter the amount of Federal Foreign Earned Income or housing exclusion included on your Federal Return as Addition to Income. (For 2013 NOL must be carried back to the two previous tax years.)

Original Issue Discount (OID) for debt instruments issued in 1985 and 1986

In the year of sale or other disposition, you must recognize the difference between the amount reported on your federal return and amount reported for California purpose.

OID Holders: Enter the difference between the amount included in Federal Gross Income and the amount included for California purposes as Addition to Income.

OID Issuers: Enter the difference between the federal deductible amount and the California Deductible amount as a Subtraction to Income.

Foreign Income of NonResident Aliens

  • Adjust federal income to reflect worldwide income computed under California Law.
  • Enter losses from foreign sources as a Subtraction to Income
  • Enter foreign source income as Addition to Income

Foreign Income

If you excluded income exempted by US tax treaties on your Federal Form 1040 (unless specifically exempt for state purposes), enter the excluded amount as Addition to Income

Mortgage relief upon sale or other disposition of principal residence

California law does not conform to federal law regarding the discharge of indebtedness from the disposition of your principal residence occurring on or after January 1, 2013.

For taxable years 2007 through 2012, federal law allows an exclusion of income from discharge of indebtedness from the disposition of your principal residence.. Federal limits the amount of qualified principal residence indebtedness to $2,000,000 ($1,000,000 for married filed separate). California partially conforms to the federal provisions. California allows debt relief for discharges of indebtedness occurring on or after January 1, 2009. Also, California limits the amount of qualified principal residence indebtedness to $800,000 ($400,000 for married/RDP filing separate) and debt relief to $500,000 ($250,000 for married/RDP filing separate). If the amount of debt relief for federal purposes is more than the California limit, include the amount in excess of the California limit as Addition to Income.