CA Conformity Regarding Uniform Capitalization Rules - Spidell

CA Conformity Regarding Uniform Capitalization Rules

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Message Board CA Conformity Regarding Uniform Capitalization Rules

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 2 months, 1 week ago.

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  • #171647
    John Bianchi
    Participant

    CA conformed to the TCJA accounting method simplification requirements for businesses with under $25 million gross receipts for uniform capitalization rules. For federal purposes, taxpayers are allowed to make an IRC 481 adjustment, change in accounting method, and the adjustment can go back to years prior to 2018. This is done via a Form 3115.

    Does CA conformity allow taxpayers to make a change in accounting method and go back to years prior to 2018? Or, is CA conformity limited to 2018 and future years?

  • #171651
    Lynn Freer
    Participant

    CA conforms to the TCJA changes in accounting methods. You can elect to have them apply for 2018. We don’t have the info on how to elect but if you subscribe to our podcast, when we have that info we’ll let you know.