TAX NEWS FLASH

Each year FTB makes changes to the forms for the upcoming filing season. One of this year’s changes involved adding additional lines and information to the Schedule CA to allow for enhanced real estate tax deduction reporting requirements. We received many comments and suggestions from stakeholders and practitioners as we moved forward with this change. As a result of your feedback, FTB has decided to delay implementation and will not be requesting information about the deductible portion of real property tax this year. Instead, we will move forward with education and outreach and include information about this issue in the 2011 tax return instructions and what to expect for 2012. We will also direct taxpayers to our website for more information about deductible and non-deductible real estate taxes and the importance of reviewing the real estate tax bill. We expect to implement the new reporting requirements for the 2012 tax year.