Income Tax Law And Practice.pdf
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Please be sure that you have attached all documents listed in the instructions. The information in these instructions is general in nature and is not intended to cover all tax situations or all possible interpretations of the Internal Revenue Code or applicable regulations. It is your responsibility to determine the applicability of any federal and state tax laws and procedures with respect to your particular situation.
This California source code and instructions are for information purposes only. You may be required to file an amended return or amended Form 540 in accordance with the instructions and provisions of the California Revenue and Taxation Code and the applicable provisions of California and federal law.
If you pay more tax than expected, file a revised Form 540 and attach Schedule X, California Amended Tax Assessment, to correct your previously filed tax return. Get Schedule X at ftb.ca.gov/forms or call 800-338-0505, follow the recorded instructions and enter code 908 when instructed.
If you paid less tax than you expected, file a corrected Form 540 and attach Schedule X, California Amended Tax Assessment, to correct your previously filed tax return. Get Schedule X at ftb.ca.gov/forms or call 800-338-0505, follow the recorded instructions and enter code 908 when instructed.
If you do not pay the use tax on property purchased for use in California, the cost to you of that property will be treated as a business expense and may be deductible on your federal income tax return. It will be taxable income to you.
If you receive taxable services from a qualified provider you must pay the use tax on the property and services purchased for use in California. The use tax paid on out-of-state property is not deductible on a federal income tax return. However, if you itemize your deductions on the federal income tax return, the use tax paid on out-of-state property is deductible as a miscellaneous itemized deduction.
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