California does not have capital gains rates and all such income is taxed at the regular tax rates.

California does not conform to the TCJA amendment to IRC Sec 1221 that excludes a patent, invention, model or design (whether or not patented), and a secret formula or process held by the taxpayer who created the property (and certain other taxpayers) from the definition of a capital asset. Sales of these assets should be reported as capital assets on Schedule D (540), California Capital Gain or Loss Adjustment.

California does not conform to the deferral and exclusion of capital gains reinvested or invested in qualified opportunity zone funds under IRC Sections 1400Z-1 and 1400Z-2.