California Revenue and Taxation Code

§ 17049

RTC § 17049 Effective Jan 1, 2006Div. 2 · Part 10 · Ch. 2

Statute text

(a)If an item of income was included in the gross income of an individual for a preceding taxable year or years because it appeared that the individual had an unrestricted right to that item, a deduction is allowable for the taxable year based on the repayment of the item by the individual during the taxable year, and the amount of that deduction exceeds three thousand dollars ($3,000), then the tax imposed by this part for the taxable year on that individual shall be the lesser of the following:

(1)The tax for the taxable year computed with that deduction.

(2)An amount equal to (A) the tax for the taxable year computed without that deduction, minus (B) the decrease in tax under this part for the preceding taxable year or years which would result solely from the exclusion of the item or portion thereof from the gross income required to be shown on the California return of that individual for the preceding taxable year or years.

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Legislative history

Amended by Stats. 2005, Ch. 349, Sec. 1. Effective January 1, 2006.