Bill Text: CA AB876 | 2009-2010 | Regular Session | Amended

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Income and corporation taxes: capital gains: exclusion.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB876 Detail]

Download: California-2009-AB876-Amended.html

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BILL NUMBER: AB 876	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 14, 2009

INTRODUCED BY   Assembly Member Harkey

                        FEBRUARY 26, 2009

    An act to amend Section 18155 of the Revenue and Taxation
Code, relating to taxation.   An act to add Sections
18154 and 24996 to the Revenue and Taxation Code, relating to
taxation, to take effect immediately, tax levy. 


	LEGISLATIVE COUNSEL'S DIGEST


   AB 876, as amended, Harkey.  Capital gains and losses.
  Income and corporation taxes: capital gains:
exclusion.  
   The Personal Income Tax Law and the Corporation Tax Law provide
that gain or loss upon the disposition of a capital asset is
determined by reference to the adjusted basis of that asset. 

   This bill would, for taxable years beginning on or after January
1, 2009, provide that gross income does not include any gain from the
sale or exchange of a capital asset, as defined, that is purchased
during the 2009 calendar year, and is held for more than one year.
 
   This bill would take effect immediately as a tax levy. 

   Existing income tax law, in modified conformity to federal income
laws, provides for the specified treatment of capital gains and
losses, but does not allow capital loss carrybacks. 

   This bill would make a technical, nonsubstantive change to those
provisions. 
   Vote: majority. Appropriation: no. Fiscal committee:  no
 yes  . State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

   SECTION 1.    Section 18154 is added to the 
 Revenue and Taxation Code   , to read:  
   18154.  For each taxable year beginning on or after January 1,
2009, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2009 calendar
year, and is held for more than one year. 
   SEC. 2.    Section 24996 is added to the  
Revenue and Taxation Code   , to read:  
   24996.  For each taxable year beginning on or after January 1,
2009, gross income shall not include any gain from the sale or
exchange of a capital asset, as defined by Section 1221 of the
Internal Revenue Code, that is purchased during the 2009 calendar
year, and is held for more than one year. 
   SEC. 3.    This act provides for a tax levy within
the meaning of Article IV of the Constitution and shall go into
immediate effect.  
  SECTION 1.    Section 18155 of the Revenue and
Taxation Code is amended to read:
   18155.  No deduction shall be allowed for any capital loss
carrybacks provided by Section 1212 of the Internal Revenue Code.