Multistate Audit Technique Manual

CALIFORNIA FRANCHISE TAX BOARD Internal Procedures Manual Rev.: July 2007Multistate Audit Technique Manual _______________________________________________________________________________ MATM 4000 NONBUSINESS INCOME ................................................................................. 2 4010 TEST FOR DETERMINING BUSINESS OR NONBUSINESS TREATMENT ....................3 4012 Earmarking ....................................................................................................................10 4013 Tax-Motivated Investment Vehicles...............................................................................13 4014 Preproductive Assets.....................................................................................................16 4015 CONVERSION FROM BUSINESS TO NONBUSINESS INCOME...................................20 4020 DIVIDEND INCOME..........................................................................................................23 4025 INTEREST .........................................................................................................26 4030 GAIN OR LOSS FROM SALE OF STOCK....................................................................34 4035 GAIN OR LOSS FROM SALE OF ASSETS OTHER THAN STOCK...............................36 4040 PARTNERSHIP INTERESTS ...........................................................................................38 4045 RENTS AND ROYALTIES FROM REAL AND TANGIBLE ...