[quote=bearishgurl]
Is that just for the 2012 tax year, until further notice … or forever?[/quote]
Until further notice. More complete quote from the FTB:
The letter [from the IRS to the FTB] goes on to state that appropriate revisions to the IRS forms and publications on the subject will be recommended.
Under current law, the deductibility of real property taxes is generally a matter of federal law to which California conforms. As such, the FTB will be waiting to review the revisions to the IRS forms and publications to provide comparable revisions to California tax form instructions. The FTB does not anticipate that these revisions will be made prior to the due date for 2011 tax returns (April 17, 2012). We have removed material from our website that limits the deductibility of real property taxes to taxes imposed on an ad valorem basis. Once the IRS forms and instructions are revised, we will provide revised California forms and instructions that are consistent with the revisions made by the IRS.
I can find no indication any update has been done by the IRS, nor has the FTB issued any new guidance that I can find.
