Thursday, August 25, 2011

Parcel number required for property tax deductions

From Spidell Publishing Inc.®

The California Franchise Tax Board is planning to add a line to Schedule CA of Form 540 asking taxpayers who deducted property tax to list the address and parcel number of the property. There will apparently be language cautioning taxpayers that certain payments, such as Mello Roos, are not deductible property tax payments.

Interestingly, Schedule CA is used to adjust federal income for California nonconformity items and California conforms to federal law as it pertains to individuals who claim deductions for property tax.