Looking for a California Ftb Form 540 Templates? Download it for free!

deductions by the same amount. Enter the amount of your federal mortgage

Carryover Deduction Appreciated Stock Contributed to a Private Foundation

interest credit as a positive number on line 41.

prior to //02 – If deducting a charitable contribution carryover of

appreciated stock donated to a private operating foundation made prior to

Nontaxable Income Expenses – If, on federal Schedule A, you claim

1/1/02, and the fair market value allowed for federal purposes is larger than

expenses related to producing income taxed under federal law but not taxed

the basis allowed for California purposes, enter the difference as a negative

by California, enter the amount as a negative number on line 41.

number on line 41.

You may claim expenses related to producing income taxed by California law

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

but not taxed under federal law by entering the amount as a positive number

deduction for interest paid or incurred on a public utility company financed

on line 41.

loan that is used to purchase and install energy efficient equipment or

Employee Business Expense – If you completed federal Form 2106,

products, including zone-heating products for a qualified residence located

Employee Business Expense, or Form 2106-EZ, Unreimbursed Employee

in California. Federal law has no equivalent deduction. Enter the amount as a

Business Expense, prepare a second set of forms reflecting your employee

positive number on line 41.

business expense using California amounts (i.e., following California law).

Claim of Right – If you had to repay an amount that you included in your

Generally, California law conforms with federal law and no adjustment is

income in an earlier year, because at the time you thought you had an

needed. However, differences occur when:

unrestricted right to it, you may be able to deduct the amount repaid from

•

Assets (requiring depreciation) were placed in service before 1/1/87.

your income for the year in which you repaid it. Or, if the amount you repaid

Figure the depreciation based on California law.

is more than $3,000, you may take a credit against your tax for the year in

•

Federal employees were on temporary duty status. California does not

which you repaid it, whichever results in the least tax.

conform to the federal provision that expanded temporary duties to

If the amount repaid was not taxed by California, then no deduction or credit

include prosecutive duties, in addition to investigative duties.

is allowed.

Therefore, travel expenses paid or incurred in connection with temporary

If you claimed a credit for the repayment on your federal return and are

duty status (exceeding one year), involving the prosecution (or support of

deducting the repayment for California, enter the allowable deduction as a

the prosecution) of a federal crime, should not be included in the California

positive amount on Schedule CA (540NR), line 41. Deductions of $3,000 or

amount.

less are subject to the 2% federal AGI limit.

Compare line 10 on the federal form and the form completed using California

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

amounts. If the federal amount is larger, enter the difference as a negative

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

number on line 41 (bracket the number). If the California amount is larger,

on Schedule CA (540NR), line 41. To help you determine whether to take a

enter the difference as a positive number on line 41.

credit or deduction, see the Repayment section of federal Publication 525,

Investment Interest Expense – Your California deduction for investment

Taxable and Nontaxable Income. Remember to use the California tax rate in

interest expense may be different from your federal deduction. Use form FTB

your computations. If you choose to take the credit instead of the deduction

3526, Investment Interest Expense Deduction, to figure the amount to enter

for California, add the credit amount on line 51, the total payment line, of the

on line 41.

Long Form 540NR. To the left of the total, write “IRC 1341” and the amount

of the credit.

Interest Expense Deduction – Your California interest expense deduction may

be different from your federal deduction. A deduction is allowed for interest

Line 3 – California Itemized Deductions

paid on any loan or financed indebtedness from a utility company to purchase

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

energy efficient equipment and products for California residences. Enter as a

below for your filing status?

positive number on line 41.

Single or married/RDP filing separately . . . . . . . . . . . . . . . . . . . . . . $155,416

Gambling Losses – California Lottery losses are not deductible for California.

Married/RDP filing jointly or qualifying widow(er) . . . . . . . . . . . . . . $310,837

Enter the amount of California Lottery losses shown on federal Schedule A as

Head of household . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $233,129

a negative number on line 41.

Transfer the amount from line 42 to line 43. Do not complete the

Federal Estate Tax – Federal estate tax paid on income in respect of a

worksheet on the following page.

decedent is not deductible for California. Enter the amount of federal estate

YES

Complete the Itemized Deductions Worksheet on the following page.

tax shown on federal Schedule A as a negative number on line 41.

Note:

Generation Skipping Transfer Tax – Tax paid on generation skipping transfers

• If you are married/RDP and file a separate return, you and your spouse/

is not deductible under California law. Enter the amount of expenses shown

RDP must either both itemize your deductions or both take the standard

on federal Schedule A as a negative number on line 41.

deduction.

• Also, if someone else can claim you as a dependent, claim the greater of

State Legislator’s Travel Expenses – Under California law, deductible travel

the standard deduction or your itemized deductions. See the “California

expenses for state legislators include only those incurred while away from

Standard Deduction Worksheet for Dependents” on page 16 of your 2007

their places of residence overnight. Figure the difference between the amount

California 540NR Booklet to figure your standard deduction.

allowed using federal law and the amount allowed using California law. Enter

• Military pay of a servicemember domiciled outside of California cannot be

the difference as a negative number on line 41.

used to reduce the amount of this deduction. Modify your federal adjusted

Charitable Qualified Contributions – Your California deduction may be

gross income used to compute this limitation by subtracting your military

different from your federal deduction. California limits the amount of your

pay from federal adjusted gross income.

deduction to 50% of your federal adjusted gross income.

Specific Line Instructions for Part IV California

Charitable Contribution Carryover Deduction – If deducting a prior year

charitable contribution carryover, and the California carryover is larger than

Taxable Income

the federal carryover, enter the additional amount as a positive number on line

41.

Line 7 – Deduction Percentage

Health Savings Account (HSA) Distributions – If you received a tax-free HSA

Divide line 37, column E by line 37, column D. Carry the decimal to four

distribution for qualified medical expenses, enter the qualified expenses paid

places. This number may not be greater than 1.0000. If the result is greater

that exceed 7.5% of federal AGI as an adjustment to itemized deductions. To

than 1.0000, enter 1.0000.

determine the amount of the itemized deduction adjustment:

Line 9 – California Taxable Income

• Calculate the medical expense deduction for California.

Subtract line 48 from line 45. If less than zero, enter -0-. Enter this amount on

• Calculate the medical expense deduction for federal.

Long Form 540NR, line 22.

• Subtract the federal amount from the California amount. Enter the amount

on line 41, as a positive amount.

Schedule CA (540NR) Instructions 2007 (REV 01-08) Page 9

Instructions For Schedule Ca (540nr) - California Adjustments - Nonresidents Or Part-Year Residents - 2007 Page 9

Related Articles

Related forms

Related Categories