BulldogTom Posted January 9, 2010 Report Posted January 9, 2010 I was at Spidell yesterday. CA is calling the Cash For Clunkers a sale of a personal asset for the amount of the voucher (I agree - no issues there for me). Fed law clearly says it is non-taxable income. CA says it is a disposition of a personal asset. How are you going to enter on the return? I think I am going to omit from 1040 and add a CA Sch. D to CA return. Any comments or suggestions? Tom Lodi, CA Quote
JRS Posted January 9, 2010 Report Posted January 9, 2010 I am going to assume (!) the client's basis is more than the amount received and not report it. This would seem to follow the guide lines issued by the FTB back in September. http://www.ftb.ca.gov/professionals/taxnews/2009/September/Article_1.shtml Quote
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