California vs Fed: Spot the Difference
$89.00
2 CA Tax Law Hours
Program Description
California starts with the federal return, but it does not follow all of federal law. The state conforms to the Internal Revenue Code as of January 1, 2025, so the OB3 Act changes enacted later in 2025 do not apply, and California still rejects many older federal provisions. This course covers the differences California preparers run into most often: depreciation and other business deductions, the suspension of net operating loss deductions, individual income items such as health savings accounts and Social Security, capital gains and like-kind exchanges, and income earned abroad. A case study applies several of these items to an S corporation and its owner. You’ll learn where each adjustment goes on Schedule CA and the related FTB forms, and which California records your clients need to keep after the return is filed.
Learning Objectives
Upon completion of this course, participants will be able to:
1. Identify how California’s fixed-date conformity to the Internal Revenue Code works, including the January 1, 2025 conformity date, the federal provisions California never follows, and the role of Schedule CA.
2. Determine the California treatment of bonus depreciation, §179 expensing, qualified improvement property, the §163(j) business interest limitation, and net operating losses, including the current NOL suspension.
3. Identify the California adjustments for health savings accounts, Social Security and Tier 1 railroad retirement benefits, unemployment compensation, and Paid Family Leave.
4. Recognize the California treatment of qualified small business stock, qualified opportunity zone investments, and like-kind exchanges, including the annual FTB 3840 filing requirement.
5. Identify the California treatment of a resident working abroad, including the denial of the foreign earned income exclusion and the foreign tax credit, and the 546-day residency safe harbor.
Course ID 1008-CE-01214
