California Revenue and Taxation Code

§ 24348

RTC § 24348 Effective Sep 12, 2002Div. 2 · Part 11 · Ch. 7 · Art. 1

Statute text

(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 part charged off within that taxable year.

(2)In the case of a bank (as defined in Section 581 of the Internal Revenue Code), in lieu of any deduction under paragraph (1), in the discretion of the Franchise Tax Board, a reasonable addition to a reserve for bad debts determined in accordance with Section 585 of the Internal Revenue Code, relating to reserves for losses on loans of banks, except as otherwise provided.

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Legislative history

Amended by Stats. 2002, Ch. 488, Sec. 9. Effective September 12, 2002.