California generally adopts the Internal Revenue Code as of January 1, 2015, as modified, which means that it does not conform to many federal tax law changes since that time, including those in the Tax Cuts and Jobs Act (TCJA) of 2017. As a result, tax planning opportunities can arise. In certain cases, California allows taxpayers to make a federal income tax election for California income tax purposes only, and conversely, California also allows taxpayers to decouple from a federal income tax election for California income tax purposes only.

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