Instructions For Schedule Ca (540) - State Of California Franchise Tax Board (Page 7 of 7) in pdf

Carryover Deduction Appreciated Stock Contributed to a Private

Itemized Deductions Worksheet

Foundation prior to 1/1/02. If you are deducting a charitable contribu-

1. Amount from Schedule CA (540), line 41 . . . . . . . . . . . 1 _______

tion carryover of appreciated stock donated to a private operating

2. Using California amounts, add the amounts on federal

foundation prior to 1/1/02, and the fair market value allowed for federal

Form 1040, Schedule A, line 4, line 13, and line 19

purposes is larger than the basis allowed for California purposes, enter

plus any gambling losses included on line 27 . . . . . . . 2 _______

the difference as a negative number on line 40.

3. Subtract line 2 from line 1 . . . . . . . . . . . . . . . . . . . . . . 3 _______

Interest on loans from utility companies. Taxpayers are allowed a tax

Note: If -0-, stop. Enter the amount from line 1 on

deduction for interest paid or incurred on a public utility company

Schedule CA (540), line 42.

financed loan that is used to purchase and install energy efficient

4. Multiply line 3 by 80% (.80) . . . . . . . . . . . . . . . . . . . . . 4 _______

equipment or products, including zone-heating products for a qualified

5. Amount from Form 540, line 13 . . . . . . . . . . . . . . . . . . 5 _______

residence located in California. Federal law has no equivalent

6. Enter the amount shown above for your filing status . . 6 _______

deduction. Enter the amount as a positive number on line 40.

7. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . 7 _______

Medical benefits paid on behalf of registered domestic partners.

Note: If -0- or less, stop. Enter the amount from line 1

Taxpayer benefits are extended to include the taxpayer's registered

on Schedule CA (540), line 42.

domestic partner and their dependent(s) for medical expenses and

8. Multiply line 7 by 6% (.06) . . . . . . . . . . . . . . . . . . . . . . 8 _______

health insurance benefits that occur on or after January 1, 2002.

9. Compare line 4 and line 8. Enter the smaller

Federal law does not include this provision. Enter the amount as a

amount here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 _______

positive number on line 40.

10. Total itemized deductions. Subtract line 9 from line 1.

Enter here and on Schedule CA (540), line 42 . . . . . . . 10 _______

Claim of Right. If you claimed a credit for the repayment on your

federal return and are deducting the repayment for California, enter the

allowable deduction, as a positive amount on Schedule CA, line 40.

Deductions of $3,000 or less are subject to the 2% federal AGI limit. If

you deducted the repayment on your federal return and are taking a

credit for California, enter the amount of the federal deduction as a

negative amount on Schedule CA, line 40.

To help you determine whether to take a credit or deduction, see the

Repayment section of federal Pub 525, Taxable and Nontaxable Income.

Remember to use the California tax rate in your computations. If you

choose to take the credit instead of the deduction for California, add the

credit amount on line 46, the total payment line of Form 540. To the left

of the total, write "IRC 1341" and the amount of the credit.

Line 42 – California Itemized Deductions

Is the amount on Form 540, line 13 more than the amount shown

below for your filing status?

Single or married filing separately . . . . . . . . . . . . . . . . . . . . . $139,921

Married filing jointly or qualifying widow(er) . . . . . . . . . . . . . $279,846

Head of household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $209,885

NO Transfer the amount from line 41 to line 42. Do not complete the

worksheet.

YES Complete the Itemized Deductions Worksheet.

Note:

• If you are married and filing a separate return, you and your spouse

must either both itemize your deductions or both take the standard

deduction.

• Also, if someone else can claim you as a dependent, you may claim

the greater of the standard deduction or your itemized deductions.

See instructions for the “California Standard Deduction Worksheet

for Dependents” to figure your standard deduction.

Schedule CA (540) Instructions 2004 Page 7

Instructions For Schedule Ca (540) - State Of California Franchise Tax Board Page 7

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