2005 California Revenue and Taxation Code Sections 24271-24276 Article 1. Definitions

24271.  (a) Section 61 of the Internal Revenue Code, relating to
gross income defined, shall apply, except as otherwise provided.
   (b) A distributive share of partnership gross income shall be
determined in accordance with Part 10 (commencing with Section
17001).
   (c) Income from an interest in an estate or trust shall be
determined in accordance with Part 10 (commencing with Section
17001).
24272.  For the purposes of the tax imposed under Chapter 2
(commencing with Section 23101), "gross income" includes all interest
received from federal, state, municipal or other bonds.
24272.2.  The provisions of Section 72(u) of the Internal Revenue
Code, relating to the treatment of annuity contracts not held by
natural persons, shall be  applicable.
24272.5.  (a) Section 7518 of the Internal Revenue Code, relating to
tax incentives relating to merchant marine capital construction
funds, shall apply, except as otherwise provided.
   (b) Section 7518(d)(2)(C) of the Internal Revenue Code is modified
as follows:
   (1) By substituting "70 percent" in lieu of the reference to "the
percentage applicable under Section 243(a)(1)."
   (2) To refer to Section 24402 in lieu of Section 243 of the
Internal Revenue Code.
   (c) Section 7518(d)(2)(D) of the Internal Revenue Code is modified
to refer to "interest income exempt from  taxation" under this part
in lieu of "interest income exempt from taxation under Section 103."
   (d) Section 7518(g)(3) of the Internal Revenue Code is modified as
follows:
   (1) To refer to Article 6 (commencing with Section 19101) of
Chapter 4 of Part 10.2 in lieu of Section 6601 of the Internal
Revenue Code.
   (2) To refer to Article 7 (commencing with Section 19131) of
Chapter 4 of Part 10.2 in lieu of Section 6651 of the Internal
Revenue Code.
   (e) Section 7518(g)(6) of the Internal Revenue Code is modified as
follows:
   (1) By substituting a reference to "this part" in lieu of "Chapter
1" in each place in which it appears.
   (2) To refer to Section 23151 in lieu of Section 11 of the
Internal Revenue Code.
   (3) The last sentence in Section 7518(g)(6)(A) of the Internal
Revenue Code shall not apply.
24273.  (a) Amounts received as loans from the Commodity Credit
Corporation shall, at the election of the taxpayer, be considered as
income and shall be included in gross income for the taxable year in
which received.
   (b) If a taxpayer exercises the election provided for in
subsection (a) for any taxable year, then the method of computing
income so adopted shall be adhered to with respect to all subsequent
taxable years unless with the approval of the Franchise Tax Board a
change to a different method is authorized.
24273.5.  (a) Noncash patronage allocations from farmers'
cooperative and mutual associations (whether paid in capital stock,
revolving fund certificates, retain certificates, certificates of
indebtedness, letters of advice or in some other manner that
discloses the dollar amount of such noncash patronage allocations)
may, at the election of the taxpayer, be considered as income and
included in gross income for the taxable year in which received.
   (b) If a taxpayer exercises the election provided for in
subdivision (a), the amount included in gross income shall be the
face amount of such allocations.
   (c) If a taxpayer elects to exclude noncash patronage allocations
from gross income for the taxable year in which received, such
allocations shall be included in gross income in the year that they
are redeemed or realized upon.
   (d) If a taxpayer exercises the election provided for in
subdivision (c), the face amount of such noncash patronage
allocations shall be disclosed in the return made for the taxable
year in which such noncash patronage allocations were received.
   (e) If a taxpayer exercises the election provided for in
subdivision (a) or (c) for any taxable year, then the method of
computing income so adopted shall be adhered to with respect to all
subsequent taxable years unless with the approval of the Franchise
Tax Board a change to a different method is authorized.
   (f) If a taxpayer has made the election provided for in
subdivision (c), then (1) the statutory period for the assessment of
a deficiency for any taxable year in which the amount of any noncash
patronage allocations are realized shall not expire prior to the
expiration of four years from the date the Franchise Tax Board is
notified by the taxpayer (in any manner as the Franchise Tax Board
may by regulation prescribe) of the realization of gain on such
allocations; and (2) that deficiency may be assessed prior to the
expiration of the four-year period, notwithstanding the provisions of
Section 19057 or the provisions of any other law or rule of law
which would otherwise prevent such assessment.
24275.  In the case of any taxpayer who is required to include the
amount of any nuclear decommissioning costs in the taxpayer's cost of
service for ratemaking purposes, there shall be includable in the
gross income of that taxpayer the amount so included for any taxable
year.
24276.  Section 90 of the Internal Revenue Code, relating to illegal
federal irrigation subsidies, shall apply to water delivered to the
taxpayer on or after January 1, 1988, in taxable years beginning on
or after January 1, 1989, except as otherwise provided.