17071. Section 61 of the Internal Revenue Code, relating to gross
income defined, shall apply, except as otherwise provided.
17072. (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.
17073. (a) Section 63 of the Internal Revenue Code, relating to
taxable income defined, shall apply, except as otherwise provided.
(b) The deduction allowed by Section 17208.1, relating to interest
on loans or financed indebtedness obtained from a publicly owned
utility for the purchase and installation of energy efficient
products or equipment, may not be treated as a miscellaneous itemized
deduction under Section 67(a) of the Internal Revenue Code, relating
to the 2-percent floor on miscellaneous deductions.
(c) For individuals who do not itemize deductions, the standard
deduction computed in accordance with Section 17073.5 shall be
allowed as a deduction in computing taxable income.
17073.5. (a) A taxpayer may elect to take a standard deduction as
follows:
(1) In the case of a taxpayer, other than a head of a household or
a surviving spouse (as defined in Section 17046) or a married couple
filing a joint return, the standard deduction shall be one thousand
eight hundred eighty dollars ($1,880).
(2) In the case of a head of household or a surviving spouse (as
defined in Section 17046) or a married couple filing a joint return,
the standard deduction shall be three thousand seven hundred sixty
dollars ($3,760).
(b) The standard deduction provided for in subdivision (a) shall
be in lieu of all deductions other than those which are to be
subtracted from gross income in computing adjusted gross income under
Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of
the provisions of Sections 63(c) and 63(f) of the Internal Revenue
Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the
Internal Revenue Code, relating to limitations on the standard
deduction of certain dependents, and Section 63(c)(6)of the Internal
Revenue Code, relating to certain individuals not eligible for the
standard deduction, shall apply, except as otherwise provided. For
purposes of this paragraph, the amount specified in Section 63(c)(5)
of the Internal Revenue Code shall be adjusted for inflation in
accordance with the provisions of Section 63(c)(4) of the Internal
Revenue Code.
(d) For each taxable year beginning on or after January 1, 1988,
the Franchise Tax Board shall recompute the standard deduction
amounts prescribed in subdivision (a). That computation shall be made
as follows:
(1) The California Department of Industrial Relations shall
transmit annually to the Franchise Tax Board the percentage change in
the California Consumer Price Index for all items from June of the
prior calendar year to June of the current calendar year, no later
than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to that portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction
amounts in the preceding taxable year by the inflation adjustment
factor determined in paragraph (2), and round off the resulting
products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this
subdivision, the amount provided in paragraph (2) of subdivision (a)
shall be twice the amount provided in paragraph (1) of subdivision
(a).
17074. Section 64 of the Internal Revenue Code, relating to
ordinary income defined, shall apply, except as otherwise provided.
17075. Section 65 of the Internal Revenue Code, relating to
ordinary loss defined, shall apply, except as otherwise provided.
17076. (a) Section 67 of the Internal Revenue Code, relating to the
2-percent floor on miscellaneous itemized deductions, shall apply,
except as otherwise provided.
(b) A deduction allowable under this part that exceeds three
thousand dollars ($3,000) and is described in Section 17049, relating
to computation of tax where taxpayer restores a substantial amount
held under claim of right, may not be treated as a miscellaneous
itemized deduction under Section 67 of the Internal Revenue Code, as
applicable for purposes of this part.
17077. Section 68 of the Internal Revenue Code, relating to overall
limitation on itemized deductions, shall apply, except as otherwise
provided.
(a) "Six percent" shall be substituted for "3 percent" in Section
68(a)(1) of the Internal Revenue Code.
(b) Section 68(b)(1) of the Internal Revenue Code shall not apply
and in lieu thereof the term "applicable amount" in each place it
appears in Section 68(a) of the Internal Revenue Code means one
hundred thousand dollars ($100,000) in the case of a single
individual or a married individual filing a separate return, one
hundred fifty thousand dollars ($150,000) in the case of a head of
household, and two hundred thousand dollars ($200,000) in the case of
a surviving spouse or a husband and wife filing a joint return.
(c) Section 68(b)(2) of the Internal Revenue Code, relating to
inflation adjustments, shall not apply. However, for any taxable year
beginning on or after January 1, 1992, the applicable amounts
specified in subdivision (b) shall be recomputed annually in the same
manner as the recomputation of income tax brackets under subdivision
(h) of Section 17041.
(d) Section 68(f) of the Internal Revenue Code, relating to
phaseout of limitation, shall not apply.
(e) Section 68(g) of the Internal Revenue Code, relating to
termination, shall not apply.
17078. (a) Section 988 of the Internal Revenue Code, relating to
treatment of certain foreign currency transactions, shall apply,
except as otherwise provided.
(b) Section 988(a)(3) of the Internal Revenue Code, relating to
source, shall not apply.
17071. Section 61 of the Internal Revenue Code, relating to gross
income defined, shall apply, except as otherwise provided.
17072. (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.
17073. (a) Section 63 of the Internal Revenue Code, relating to
taxable income defined, shall apply, except as otherwise provided.
(b) The deduction allowed by Section 17208.1, relating to interest
on loans or financed indebtedness obtained from a publicly owned
utility for the purchase and installation of energy efficient
products or equipment, may not be treated as a miscellaneous itemized
deduction under Section 67(a) of the Internal Revenue Code, relating
to the 2-percent floor on miscellaneous deductions.
(c) For individuals who do not itemize deductions, the standard
deduction computed in accordance with Section 17073.5 shall be
allowed as a deduction in computing taxable income.
17073.5. (a) A taxpayer may elect to take a standard deduction as
follows:
(1) In the case of a taxpayer, other than a head of a household or
a surviving spouse (as defined in Section 17046) or a married couple
filing a joint return, the standard deduction shall be one thousand
eight hundred eighty dollars ($1,880).
(2) In the case of a head of household or a surviving spouse (as
defined in Section 17046) or a married couple filing a joint return,
the standard deduction shall be three thousand seven hundred sixty
dollars ($3,760).
(b) The standard deduction provided for in subdivision (a) shall
be in lieu of all deductions other than those which are to be
subtracted from gross income in computing adjusted gross income under
Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of
the provisions of Sections 63(c) and 63(f) of the Internal Revenue
Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the
Internal Revenue Code, relating to limitations on the standard
deduction of certain dependents, and Section 63(c)(6)of the Internal
Revenue Code, relating to certain individuals not eligible for the
standard deduction, shall apply, except as otherwise provided. For
purposes of this paragraph, the amount specified in Section 63(c)(5)
of the Internal Revenue Code shall be adjusted for inflation in
accordance with the provisions of Section 63(c)(4) of the Internal
Revenue Code.
(d) For each taxable year beginning on or after January 1, 1988,
the Franchise Tax Board shall recompute the standard deduction
amounts prescribed in subdivision (a). That computation shall be made
as follows:
(1) The California Department of Industrial Relations shall
transmit annually to the Franchise Tax Board the percentage change in
the California Consumer Price Index for all items from June of the
prior calendar year to June of the current calendar year, no later
than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to that portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction
amounts in the preceding taxable year by the inflation adjustment
factor determined in paragraph (2), and round off the resulting
products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this
subdivision, the amount provided in paragraph (2) of subdivision (a)
shall be twice the amount provided in paragraph (1) of subdivision
(a).
17074. Section 64 of the Internal Revenue Code, relating to
ordinary income defined, shall apply, except as otherwise provided.
17075. Section 65 of the Internal Revenue Code, relating to
ordinary loss defined, shall apply, except as otherwise provided.
17076. (a) Section 67 of the Internal Revenue Code, relating to the
2-percent floor on miscellaneous itemized deductions, shall apply,
except as otherwise provided.
(b) A deduction allowable under this part that exceeds three
thousand dollars ($3,000) and is described in Section 17049, relating
to computation of tax where taxpayer restores a substantial amount
held under claim of right, may not be treated as a miscellaneous
itemized deduction under Section 67 of the Internal Revenue Code, as
applicable for purposes of this part.
17077. Section 68 of the Internal Revenue Code, relating to overall
limitation on itemized deductions, shall apply, except as otherwise
provided.
(a) "Six percent" shall be substituted for "3 percent" in Section
68(a)(1) of the Internal Revenue Code.
(b) Section 68(b)(1) of the Internal Revenue Code shall not apply
and in lieu thereof the term "applicable amount" in each place it
appears in Section 68(a) of the Internal Revenue Code means one
hundred thousand dollars ($100,000) in the case of a single
individual or a married individual filing a separate return, one
hundred fifty thousand dollars ($150,000) in the case of a head of
household, and two hundred thousand dollars ($200,000) in the case of
a surviving spouse or a husband and wife filing a joint return.
(c) Section 68(b)(2) of the Internal Revenue Code, relating to
inflation adjustments, shall not apply. However, for any taxable year
beginning on or after January 1, 1992, the applicable amounts
specified in subdivision (b) shall be recomputed annually in the same
manner as the recomputation of income tax brackets under subdivision
(h) of Section 17041.
(d) Section 68(f) of the Internal Revenue Code, relating to
phaseout of limitation, shall not apply.
(e) Section 68(g) of the Internal Revenue Code, relating to
termination, shall not apply.
17078. (a) Section 988 of the Internal Revenue Code, relating to
treatment of certain foreign currency transactions, shall apply,
except as otherwise provided.
(b) Section 988(a)(3) of the Internal Revenue Code, relating to
source, shall not apply.
17071. Section 61 of the Internal Revenue Code, relating to gross
income defined, shall apply, except as otherwise provided.
17072. (a) Section 62 of the Internal Revenue Code, relating to
adjusted gross income defined, shall apply, except as otherwise
provided.
(b) Section 62(a)(2)(D) of the Internal Revenue Code, relating to
certain expenses of elementary and secondary school teachers, shall
not apply.
(c) Section 62(a)(21) of the Internal Revenue Code, relating to
attorneys fees relating to awards to whistleblowers, shall not apply.
17073. (a) Section 63 of the Internal Revenue Code, relating to
taxable income defined, shall apply, except as otherwise provided.
(b) The deduction allowed by Section 17208.1, relating to interest
on loans or financed indebtedness obtained from a publicly owned
utility for the purchase and installation of energy efficient
products or equipment, may not be treated as a miscellaneous itemized
deduction under Section 67(a) of the Internal Revenue Code, relating
to the 2-percent floor on miscellaneous deductions.
(c) For individuals who do not itemize deductions, the standard
deduction computed in accordance with Section 17073.5 shall be
allowed as a deduction in computing taxable income.
17073.5. (a) A taxpayer may elect to take a standard deduction as
follows:
(1) In the case of a taxpayer, other than a head of a household or
a surviving spouse (as defined in Section 17046) or a married couple
filing a joint return, the standard deduction shall be one thousand
eight hundred eighty dollars ($1,880).
(2) In the case of a head of household or a surviving spouse (as
defined in Section 17046) or a married couple filing a joint return,
the standard deduction shall be three thousand seven hundred sixty
dollars ($3,760).
(b) The standard deduction provided for in subdivision (a) shall
be in lieu of all deductions other than those which are to be
subtracted from gross income in computing adjusted gross income under
Section 17072.
(c) (1) The provisions of this section shall be applied in lieu of
the provisions of Sections 63(c) and 63(f) of the Internal Revenue
Code, relating to standard deductions.
(2) Notwithstanding paragraph (1), Section 63(c)(5) of the
Internal Revenue Code, relating to limitations on the standard
deduction of certain dependents, and Section 63(c)(6)of the Internal
Revenue Code, relating to certain individuals not eligible for the
standard deduction, shall apply, except as otherwise provided. For
purposes of this paragraph, the amount specified in Section 63(c)(5)
of the Internal Revenue Code shall be adjusted for inflation in
accordance with the provisions of Section 63(c)(4) of the Internal
Revenue Code.
(d) For each taxable year beginning on or after January 1, 1988,
the Franchise Tax Board shall recompute the standard deduction
amounts prescribed in subdivision (a). That computation shall be made
as follows:
(1) The California Department of Industrial Relations shall
transmit annually to the Franchise Tax Board the percentage change in
the California Consumer Price Index for all items from June of the
prior calendar year to June of the current calendar year, no later
than August 1 of the current calendar year.
(2) The Franchise Tax Board shall compute an inflation adjustment
factor by adding 100 percent to that portion of the percentage change
figure which is furnished pursuant to paragraph (1) and dividing the
result by 100.
(3) The Franchise Tax Board shall multiply the standard deduction
amounts in the preceding taxable year by the inflation adjustment
factor determined in paragraph (2), and round off the resulting
products to the nearest one dollar ($1).
(4) In computing the standard deduction amounts pursuant to this
subdivision, the amount provided in paragraph (2) of subdivision (a)
shall be twice the amount provided in paragraph (1) of subdivision
(a).
17074. Section 64 of the Internal Revenue Code, relating to
ordinary income defined, shall apply, except as otherwise provided.
17075. Section 65 of the Internal Revenue Code, relating to
ordinary loss defined, shall apply, except as otherwise provided.
17076. (a) Section 67 of the Internal Revenue Code, relating to the
2-percent floor on miscellaneous itemized deductions, shall apply,
except as otherwise provided.
(b) A deduction allowable under this part that exceeds three
thousand dollars ($3,000) and is described in Section 17049, relating
to computation of tax where taxpayer restores a substantial amount
held under claim of right, may not be treated as a miscellaneous
itemized deduction under Section 67 of the Internal Revenue Code, as
applicable for purposes of this part.
17077. Section 68 of the Internal Revenue Code, relating to overall
limitation on itemized deductions, shall apply, except as otherwise
provided.
(a) "Six percent" shall be substituted for "3 percent" in Section
68(a)(1) of the Internal Revenue Code.
(b) Section 68(b)(1) of the Internal Revenue Code shall not apply
and in lieu thereof the term "applicable amount" in each place it
appears in Section 68(a) of the Internal Revenue Code means one
hundred thousand dollars ($100,000) in the case of a single
individual or a married individual filing a separate return, one
hundred fifty thousand dollars ($150,000) in the case of a head of
household, and two hundred thousand dollars ($200,000) in the case of
a surviving spouse or a husband and wife filing a joint return.
(c) Section 68(b)(2) of the Internal Revenue Code, relating to
inflation adjustments, shall not apply. However, for any taxable year
beginning on or after January 1, 1992, the applicable amounts
specified in subdivision (b) shall be recomputed annually in the same
manner as the recomputation of income tax brackets under subdivision
(h) of Section 17041.
(d) Section 68(f) of the Internal Revenue Code, relating to
phaseout of limitation, shall not apply.
(e) Section 68(g) of the Internal Revenue Code, relating to
termination, shall not apply.
17078. (a) Section 988 of the Internal Revenue Code, relating to
treatment of certain foreign currency transactions, shall apply,
except as otherwise provided.
(b) Section 988(a)(3) of the Internal Revenue Code, relating to
source, shall not apply.
