13386
The following diagnostic is generating:
Federal law allows an election to defer the discharge of indebtedness income in connection with the reacquisition of an applicable debt instrument occurring in 2009 and 2010. California does not conform to this provision. The FTB requires deferred COD income to be reported by the entity type on Schedule CA (540 or 540NR), line 12, 17, or line 18, column C. COD income entered in "Amount deferred in 2009" (screen 62, code 51) is not included as an adjustment on the California return. Instead enter the amounts in the section titled "IRC Section 108(i)" (Screen 51.011, codes 17, 18, and/or 19) to include the income adjustment on Schedule CA (540 or 540NR). (ref. #13386)
Solution:
