DIVISION 2. OTHER TAXES 6001-61050›PART 11. CORPORATION TAX LAW 23001-25141›CHAPTER 13. Accounting Periods and Methods of Accounting 24631-24726›ARTICLE 4. Year of Deduction 24681-24694
§ 24685
California Revenue and Taxation Code · 2020-11 edition · updated 2026-10-04 · California
(a) In the case of any taxpayer who elected to have former Section 24685 apply for that taxpayer’s last taxable year beginning prior to January 1, 1990, and who is required to change its method of accounting by reason of the amendments made by the act adding this section, each of the following shall apply:
(1) The change shall be treated as initiated by the taxpayer.
(2) The change shall be treated as having been made with the consent of the Franchise Tax Board.
(3) The net amount of adjustments required by Chapter 13 (commencing with Section 24631) to be taken into account by the taxpayer:
(A) Shall be reduced by the balance in the suspense account, under former Section 24685 as of the close of the last taxable year beginning before January 1, 1990, and
(B) Shall be taken into account over the two taxable year period beginning with the taxable year following that last taxable year, as follows:
| The percentage to be | |
|---|---|
| In the case of the: | taken into account is: |
| 1st Year | 50 |
| 2nd Year | 50 |
(b) Notwithstanding subparagraph (B) of paragraph (3) of subdivision (a), if the period during which the adjustments are required to be taken into account under Chapter 13 (commencing with Section 24631) is less than two years, those adjustments shall be taken into account ratably over the shorter period.
(Amended by Stats. 2000, Ch. 862, Sec. 190. Effective January 1, 2001.)
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