The Tax Cuts and Jobs Act (TCJA) eliminated the rule of technical terminations for partnerships for taxable years beginning after December 31, 2017. At the time the TCJA was passed, California did not conform to the TCJA’s repeal of technical termination rule. However, as part of Assembly Bill 91 passed on July 1, 2019, California Revenue and Taxation Code (R&TC) Section 17859 conformed to the TCJA’s repeal of technical termination rule for partnerships. R&TC Section 17859 is effective for taxable years beginning on or after January 1, 2019, but an election can be made to apply R&TC Section 17859 for taxable years beginning on or after January 1, 2018 and before January 1, 2019. For more information click here.