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§ 25131. Property Factor. Averaging Property Values.

18 CA ADC § 25131Barclays Official California Code of Regulations

Barclays California Code of Regulations
Title 18. Public Revenues
Division 3. Franchise Tax Board
Chapter 3.5. Bank and Corporation Tax (Refs & Annos)
Subchapter 17. Allocation of Income
Article 2.5. Uniform Division of Income for Tax Purposes Act
18 CCR § 25131
§ 25131. Property Factor. Averaging Property Values.
Currentness
As a general rule the average value of property owned by the taxpayer shall be determined by averaging the values at the beginning and ending of the income year. However, the Franchise Tax Board may require or allow averaging by monthly values if such method of averaging is required to properly reflect the average value of the taxpayer's property for the tax period.
Averaging by monthly values will generally be applied if substantial fluctuations in the values of the property exist during the income year or where property is acquired after the beginning of the income year or disposed of before the end of the income year.
EXAMPLE:
The monthly value of the taxpayer's property was as follows:
Total
January
 
 
$2,000
July
 
 
$15,000
February
 
 
2,000
August
 
 
17,000
March
 
 
3,000
September
 
 
23,000
April
 
 
3,500
October
 
 
25,000
May
 
 
4,500
November
 
 
13,000
June
 
 
10,000
December
 
 
2,000
$25,000
 
 
$95,000
$120,000
The average value of the taxpayer's property includible in the property factor for the income year is determined as follows:
$120,000 / 12 = $10,000
Averaging with respect to rented property is achieved automatically by the method of determining the net annual rental rate of such property as set forth in Reg. 25130(b).
This database is current through 5/24/24 Register 2024, No. 21.
Cal. Admin. Code tit. 18, § 25131, 18 CA ADC § 25131
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