Rev. & Tax. Code, § 18042 · Chapter 13. Gain or Loss on Disposition of Property
Rev. & Tax. Code, § 18042
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) Section 1042 of the Internal Revenue Code, relating to sales of stock to employee stock ownership plans or certain cooperatives, shall apply to taxable years beginning on or after January 1, 1995.
(b) For taxable years beginning on or after January 1, 1998, and before January 1, 2028, Section 1042 of the Internal Revenue Code, relating to sales of stock to employee stock ownership plans or certain cooperatives, is modified to provide that the term “domestic corporation” shall instead mean “domestic C corporation.”
(c) For taxable years beginning on or after January 1, 2028, Section 1042(h) of the Internal Revenue Code, relating to application of section to sale of stock in S corporation, shall apply.
(d) Section 1042(g) of the Internal Revenue Code, relating to application of section to sales of stock in agricultural refiners and processors to eligible farm cooperatives, shall not apply.
Notes and commentary — not statutory text
History
Amended by Stats. 2025, Ch. 231, Sec. 60. (SB 711) Effective October 1, 2025. Applicable from January 1, 1995, as prescribed by Sec. 106 of Stats. 1998, Ch. 322.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=18042.
- Text hash
- sha256 c79f92302bfca1148bd01ef241401b39782b8ac3d941fbb8c65eb7ad1ddb8403
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.