2019-19: Partial TCJA conformity legislation sent to Governor - Spidell

2019-19: Partial TCJA conformity legislation sent to Governor


The Legislature has passed AB 91, which conforms to several provisions in the TCJA, generally effective beginning with the 2019 taxable year. The Governor is expected to sign the bill.

California will conform to the provisions providing small business accounting method reform and simplification as well as the repeal of technical terminations for partnerships. Taxpayers may elect to apply these provisions retroactively to the 2018 tax year.

Also included in the bill, among other provisions, is conformity to:

  • The repeal of the NOL carryback;
  • Like-kind exchanges (with modifications); and
  • Limitation on losses for noncorporate taxpayers (with modifications).

Absent from the bill is any conformity to the limitation on fringe benefit deductions, or the incentives available under the Qualified Opportunity Zone Program.

The bill can be found at:

http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml

More details concerning this legislation will be provided in the July issue of Spidell’s California Taxletter. Click here and subscribe today.