1993 TurboTax Personal/California for Windows Read Me:
January 14, 1994


WHAT'S NEW THIS YEAR

  We have added new forms and increased the automation of many calculations 
in order to help make your state tax preparation faster and easier than 
ever!  A partial list of these enhancements include:

- Form 3510, Credit for Prior Year Alternative Minimum Tax
- Form 3805P, Tax on Early Distributions
- Tax Carryover Worksheet
- Form 540X, Amended Tax Return
- Form G-1, Tax on Lump-Sum Distributions (Available in Taxpayer and
  Spouse copies)
- Additional worksheets to allow for more capital gain and loss
  transactions 
- Greater automation of Passive activities and Underpayment Penalty forms.  

PRINTING - DOT MATRIX FORMS

  At the time of this release, the dot matrix forms 540 and 540A have not 
been approved to be filed with the Franchise Tax Board.  We do expect them 
to be approved by the Franchise Tax Board in mid-January.  When you are 
ready to print your tax return, please call the ChipSoft technical support 
number listed in your user manual to find out the status of those forms.

TRANSFERS
  If using the "transfer" command, you should wait until the federal return 
finishes calculating before attempting to "transfer".  Otherwise, the data 
will not be transferred properly.

  When using the "transfer" command to transfer federal information to a 
state return the checkbox "transfer all fields" has no effect on the 
transferring process.  It is only used when transferring federal information 
from 1992 to 1993.

GENERAL

  Because of the strict guidelines required by the Franchise Tax Boards 
image processing technology, it is required that any of the Taxpayer name 
and address information be entered on the Taxpayer Information Worksheet 
that we have provided for you. You will not be able to enter your name and 
address directly on the front page of your tax return.  You can access the 
Taxpayer Information Worksheet by either using the "Open Forms" menu or by 
highlighting the word "Taxpayer Info Worksheet" at the top of the form, and 
double-clicking to the right of the arrow and inside of the highlighted area. 

FTB MAILING ADDRESS

  The Franchise Tax Board has a different address for computer generated tax 
returns than it does for the tax forms that are sent to your home each year. 
You should only use the address that is provided on your computer generated 
tax forms to mail your tax return to. 


REVENUE RECONCILIATION ACT OF 1993

  TurboTax/California for Windows has been prepared using California tax 
laws AS OF THE DATE OF RELEASE of this program.  The California legislature 
will meet in January 1994 and may RETROACTIVELY CONFORM to some or all of 
the following sections included in the federal Revenue Reconciliation Act of 
1993.  This readme identifies (a) the law under the 1993 federal act, (b) 
the adjustment you may need to make for current California law, and (c) the 
adjustment you may need to make if California conforms to federal law:


1.  SEC 13114: ROLLOVER OF GAIN FROM SALE OF PUBLICLY TRADED SECURITIES

(a) 1993 FEDERAL ACT - Individuals can rollover without payment of tax, any 
capital gain realized, on the sale of publicly traded securities (on or 
after 8/10/93) if the proceeds are used to buy common stock or a partnership 
interest in a 'specialized small business investment company (SSBIC)'.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - 
TurboTax/California will transfer Schedule D transactions as reported in the 
TurboTax/1040 program.  You will need to adjust the Sales Price and/or Basis 
to report the gain on sale of publicly traded securities for California 
purposes.

(c) IF CALIFORNIA CONFORMS - No adjustment required.


2.  SEC 13116: SECTION 179 EXPENSE

(a) 1993 FEDERAL ACT - Maximum that may be expensed increased from $10,000 
to $17,500 for tax years beginning after 12/31/92.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - 
TurboTax/California for Windows will automatically limit Section 179 expense 
on the California Depreciation Worksheet to $10,000.

(c) IF CALIFORNIA CONFORMS - Go to the California Depreciation Worksheet to 
manually change the Section 179 expense (maximum $17,500).


3.  SEC 13150: DISCHARGE OF INDEBTEDNESS

(a) 1993 FEDERAL ACT - Taxpayers can exclude from income the discharge of 
qualified real property business debt for discharges after 12/31/92.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - Go to Schedule CA Worksheet 
and enter, as an addition to California income, the amount of indebtedness 
excluded from federal gross income.

(c) IF CALIFORNIA CONFORMS - No adjustment required.


4.  SEC 13151: NONRESIDENTIAL REAL PROPERTY RECOVERY PERIOD

(a) 1993 FEDERAL ACT - Number of years to depreciate nonresidential real 
property lengthened from 31.5 years to 39 years for property placed in 
service on or after 5/13/93.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - 
TurboTax/California for Windows will find federal nonresidential real 
property placed in service after 5/13/93 and will automatically change 
the number of years to depreciate from 39 to 31.5 on the California 
Depreciation Worksheet and will warn you of this difference.

(c) IF CALIFORNIA CONFORMS - Go to the California Depreciation Worksheets 
and manually change the number of years to depreciate to 39.


5.  SEC 13171: CONTRIBUTIONS OF APPRECIATED PROPERTY

(a) 1993 FEDERAL ACT - Generally, the difference between fair market value 
of donated appreciated property and basis is an AMT preference item.  The 
'93 Act repeals this treatment for contributions made after 6/30/92.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - Go to California Schedule P 
and enter the amount of tax preference on line 13a.

(c) IF CALIFORNIA CONFORMS - No adjustment required.


6.  SEC 13233: MARK-TO-MARKET ACCOUNTING FOR DEALERS

(a) 1993 FEDERAL ACT - Dealers in securities must treat noninventory 
securities as sold on the last business day of the tax year, and the gain 
or loss is included in the dealer's gross income.  This rule applies for 
taxable years ending on or after 12/31/93.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - TurboTax/California for Windows 
will transfer Schedule D transactions as reported in the TurboTax/1040 
program.  Use the override command to adjust the Sales Price and/or Basis 
to zero for California purposes or delete the entire transaction.

(c) IF CALIFORNIA CONFORMS - No adjustment required.


7.  SEC 13261: AMORTIZATION OF GOODWILL AND OTHER INTANGIBLES

(a) 1993 FEDERAL ACT - Allows 15-year amortization of goodwill and other 
intangible assets acquired after 8/10/93 (section 197 intangibles).

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - TurboTax/California for Windows 
will identify all federal amortized assets placed in service after 8/10/93 
with a recovery period of 15 years and will automatically blank the 
recovery period.  If any of these assets are not section 197 intangibles, 
you will need to manually reenter '15' as the number of years to amortize 
the asset.

(c) IF CALIFORNIA CONFORMS - Go to the California Depreciation Worksheet 
and manually enter '15' as the recovery period.


8.  SEC 13262: PAYMENTS TO RETIRING OR DECEASED PARTNERS

(a) 1993 FEDERAL ACT - Payments made in liquidation of a retiring or 
deceased partner's interest in goodwill and unrealized receivables is 
treated as made in exchange for the partner's interest in partnership 
property.  This rule applies for partners retired or deceased on or after 
1/4/93.

(b) ADJUSTMENT FOR CURRENT CALIFORNIA LAW - Contact the partnership 
regarding any adjustments to be made on the California tax return, if any.

(c) IF CALIFORNIA CONFORMS - No adjustment required.

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