2009 California Revenue and Taxation Code - Section 24990-24995 :: Article 4.5. Capital Gains And Losses

24990.  Subchapter P of Chapter 1 of Subtitle A of the Internal
Revenue Code, relating to capital gains and losses, shall apply,
except as otherwise provided.

24990.4.  For taxable years beginning on or after January 1, 1997:
   (a) Section 1237(a) of the Internal Revenue Code, relating to real
property subdivided for sale, is modified to provide that the term
"other than a corporation" in the material preceding Section 1237(a)
(1) of the Internal Revenue Code shall instead mean "other than a C
corporation."
   (b) Section 1237(a)(2)(A) of the Internal Revenue Code, relating
to real property subdivided for sale, is modified to provide that an
improvement shall be deemed to be made by the taxpayer if that
improvement was made by an "S corporation" that included the taxpayer
as a shareholder.

24990.5.  (a) Section 1201 of the Internal Revenue Code, relating to
alternative tax for corporations, shall not be applicable.
   (b)  The provisions of Section 1212 of the Internal Revenue Code,
relating to capital loss carrybacks and carryovers, are modified as
follows:
   (1) Section 1212(a)(1)(A) of the Internal Revenue Code, relating
to capital loss carrybacks, shall not apply.
   (2) Section 1212(a)(3) of the Internal Revenue Code, relating to
special rules on carrybacks, shall not apply.
   (3) Sections 1212(b) and 1212(c) of the Internal Revenue Code,
relating to taxpayers other than a corporation, shall not apply.

24990.6.  Section 1245(a)(2)(C) of the Internal Revenue Code,
relating to certain deductions treated as amortization, is modified
to also refer to Sections 24356.2, 24356.3, and 24356.4.

24990.7.  The provisions of Section 1248 of the Internal Revenue
Code, relating to gain from certain sales or exchanges of stock in
certain foreign corporations, shall not apply to transactions
occurring after August 20, 1990, in taxable years beginning on or
after January 1, 1990.

24991.  Section 1275(a)(3) of the Internal Revenue Code, relating to
the definition of tax-exempt obligation, does not apply but instead
the term "tax-exempt obligation" means an obligation the interest on
which is exempt from tax under this part.

24993.  Section 7872 of the Internal Revenue Code, relating to the
treatment of loans with below market interest rates, shall apply,
except as otherwise provided.

24995.  The provisions of Part VI of Subchapter P of Chapter 1 of
Subtitle A of the Internal Revenue Code, relating to treatment of
certain passive foreign investment companies, shall not be
applicable.