The California governor signed law AB 91, also known as the “Loophole Closure and Small Business and Working Families Tax Relief Act of 2019” which partially conforms to certain provisions of the Federal Tax Cuts and Jobs Act, some of the significant items are as follows:
- Small business accounting method reform and simplification
- Allow businesses with average gross receipts less than $25 million to adopt the cash method of accounting
- Net operating losses
- Only allow net operating loss carryforwards
The new California law does not conform to:
- Opportunity zone gain deferrals and capital gain exclusions
- Fringe benefit federal deduction limitations
- Convenience of employer meals
- Entertainment
- Parking and transportation
Although the law goes into effect for many of the provisions starting in 2019, certain provisions can be elected to apply to 2018.
To discuss how best to apply these changes to your situation, please contact a WFY tax expert at (949) 910-2727 or info@cpa-wfy.com.
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