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California clarifies post-apportioned excluded cancellation-of-debt income used to reduce tax attributes

The California Franchise Tax Board has issued a technical advice memorandum addressing the reduction of certain tax attributes in instances when cancellation-of-debt income (CODI) is excluded from gross income for California purposes. The guidance clarifies that post-apportioned, rather than pre-apportioned, excluded CODI should be used to reduce the tax attributes.

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