Instructions For Form 100-Es Corporation Estimated Tax - 2017

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2017 Instructions for Form 100-ES
Corporation Estimated Tax
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2015, and to the California Revenue and Taxation Code (R&TC).
General Information
B Who Must Pay Estimated Tax
Due to the federal Emancipation Day holiday observed
on April 17, 2017, tax returns filed and payments
Use Revenue and Taxation Code (R&TC)
One or more payments of estimated tax are required
mailed or submitted on April 18, 2017, will be
Section 19011, Sections 19021 19023, 19025
annually from each:
considered timely.
through 19027, and Sections 19142 through 19161
• Corporation incorporated or qualified under the
Corporations may pay any estimated tax installment
to determine the estimated tax requirement for
laws of California or doing business in California,
before the due date.
California.
whether active, inactive, or having income from
sources within California, unless otherwise
The amount of each installment is the applicable
Use Form 100-ES, Corporation Estimated Tax, for
provided by the Corporation Tax Law.
percentage of the total estimated tax due (estimated
the calendar year ending December 31, 2017, or
• LLC or LP electing to be treated as a corporation
income multiplied by the appropriate tax rate).
fiscal years ending in 2018. Complete Form 100-ES
for tax purposes.
Corporations are required to pay the following
using black or blue ink. Check only one box on
• Bank and national banking association doing
percentages of the estimated tax liability during the
Form 100-ES to indicate if the estimate payment
business in California.
taxable year:
is for Form 100, California Corporation
• Exempt organization or trust with unrelated
• 30% for the first required installment
Franchise or Income Tax Return; Form 100W,
business income.
• 40% for the second required installment
California Corporation Franchise or Income Tax
• Exempt homeowners’ association with
• No estimated tax payment is required for the third
Return – Water’s-Edge Filers; Form 100S, California
non-exempt function income.
installment
S Corporation Franchise or Income Tax Return; or
• 30% for the fourth required installment
Form 109, California Exempt Organization Business
An S corporation that is a parent of a Qualified
Income Tax Return.
Subchapter S Subsidiary (QSub) is required to pay
Franchise Tax Filers. If the amount of estimated
the $800 annual tax for each QSub that is:
tax does not exceed the minimum franchise tax plus
If the business entity does not owe any tax, do not
• Incorporated in California.
any QSub annual tax (if applicable), then the entire
mail this form with a zero balance. If a business
• Qualified to do business in California.
amount of the minimum tax and the QSub annual tax
entity pays electronically, do not mail this form.
• Doing business in California.
is due as an estimate on or before the 15th day of
Corporations – Unless stated otherwise, the term
the 4th month of the corporation’s taxable year.
The QSub annual tax is due and payable when the
“corporations,” as used in Form 100-ES and
S corporation’s first estimated tax payment is due.
If the amount of estimated tax exceeds the minimum
in these instructions, includes banks, financial
If the QSub is acquired during the taxable year, the
franchise and the QSub annual tax (if applicable),
corporations, certain associations, regulated
QSub annual tax is due with the S corporation’s
then the estimated tax is payable in four installments.
investment companies, real estate investment trusts,
next estimated tax payment after the date of the
However, to avoid the imposition of an estimated tax
exempt organizations with unrelated business
QSub election or acquisition. The QSub annual tax is
penalty, at least the minimum franchise tax and QSub
taxable income, exempt homeowners’ associations
subject to the estimated tax rules and penalties.
annual tax (if applicable) must be paid by the due
with non-exempt function income, limited liability
date of the first installment.
companies (LLCs) and limited partnerships (LPs)
Enter the total amount of QSub annual tax paid in
that have elected to be taxed as corporations for
the space for QSub Tax Amount. Enter the estimated
Income Tax Filers. The amount of the estimated
federal tax purposes, and S corporations.
installment payment amount in the space for
tax is payable in four installments. Refer to General
Estimated Tax Amount. Combine the two amounts
Information Section C, Estimated Tax and Tax Rates,
LLC Election – If an LLC elects to be taxed as
and enter the total payment of both QSub annual
for the applicable tax rates.
a corporation for federal tax purposes, the LLC
tax and regular estimated tax in the space for Total
must file Form 100-ES and enter the California
Short-Period Filers. A corporation with an
Installment Amount.
corporation number, federal employer identification
accounting period of less than 12 months (short
Real estate mortgage investment conduits (REMICs)
number (FEIN), and California Secretary of State
period) must pay estimated tax in the number of
are not required to pay estimated tax. However, use
(CA SOS) file number, if applicable, in the space
installments shown in the, “Accounting Period Less
this form to remit the minimum franchise tax due by
provided. The Franchise Tax Board (FTB) will assign
Than 12 Months (Short Period)” table on page 4.
the 15th day of the 4th month of the taxable year.
an identification number upon receipt of the first
Overpayments From Prior Year Returns. The
estimated tax payment, first tax payment, or the first
Financial asset securitization investment trusts
overpayment from a prior year return is credited as
tax return. The LLC will be subject to the applicable
(FASITs) are subject to the $800 minimum tax.
of the first estimate installment due date or the date
provisions of the Corporation Tax Law and should
Get Form 100, Corporation Tax Booklet, for more
of payment, whichever is later.
be considered a corporation for the purpose of all
information.
For more information, get federal Rev. Rul. 99 -40,
instructions unless otherwise indicated.
C Estimated Tax and Tax Rates
Internal Revenue Code Section 6513(b)(1) and (2),
Single-Sales Factor Formula – For taxable years
and the IRS Internal Revenue Manual 20.2.4.3
beginning on or after January 1, 2013, R&TC
R&TC Section 19023 defines tax, for purposes
(03-05-2015).
Section 25128.7 requires all business income
of California estimate payments, to include
E Minimum Franchise Tax
of an apportioning trade or business, other than
alternative minimum tax, S corporation taxes from
an apportioning trade or business under R&TC
Schedule D (100S), S Corporation Capital Gains
All corporations subject to the franchise tax must
Section 25128(b), to apportion its business income
and Losses and Built-In Gains, excess net passive
pay at least the minimum franchise tax shown below,
to California using the single-sales factor formula.
income, the QSub annual tax, credit recapture, and
whether they are active, inactive, operate at a loss, or
Get Schedule R, Apportionment and Allocation
the minimum franchise tax. This definition of tax
file a tax return for a short period.
of Income, or R&TC Section 25128.7 for more
does not conform to the federal definition of tax.
• Corporations subject to franchise tax . . . . . . .$800
information.
Also, taxable income for S corporations includes
• Qualified inactive gold or
the R&TC Section 23802(e) deduction for passive
Market Assignment – For taxable years beginning
quicksilver mining operation . . . . . . . . . . . . . .$25
investment income and built-in gains.
on or after January 1, 2013, R&TC Section 25136
Entities subject to the corporation minimum
requires all taxpayers to assign sales, other than
To compute estimated tax liability, multiply the
franchise tax include all corporations that meet any
sales of tangible personal property, based on the
estimated net income for tax purposes by the
of the following:
market assignment rule. For more information,
applicable rate:
• Incorporated or organized in California.
get Schedule R, or go to ftb.ca.gov and search for
• Corporations, use 8.84%.
• Qualified or registered to do business in
market assignment.
• S corporations, use 1.5%.
California.
• Banks and financial corporations, use 10.84%.
Doing Business – For taxable years beginning on
• Doing business in California, whether or not
• Financial S corporations, use 3.5%.
or after January 1, 2011, the definition for doing
incorporated, organized, qualified, or registered
• Exempt trusts, use personal income tax rate
business in California has been expanded. For more
under California law.
Schedule X (single) inside California 540 Personal
information, get Form 100, 100W, 100S, or 109 Tax
A combined group filing a single tax return must pay at
Income Tax Booklet.
Booklets.
least the minimum franchise tax for each corporation
D Installment Due Dates and
Private Mail Box (PMB) – Include the PMB in
in the group that is subject to franchise tax.
the address field. Write “PMB” first, then the box
Amounts
There is no minimum franchise tax for:
number. Example: 111 Main Street PMB 123.
• Corporations that are subject only to income tax
Estimated tax is payable in four installments. The
if they are not “doing business” in California, and
A Purpose
installments are due and payable by the 15th day of
are not incorporated or qualified under the laws of
the 4th, 6th, 9th, and 12th month of the taxable year.
California, but derive income from sources within
Use Form 100-ES to figure and pay estimated tax for
When the due date falls on a weekend or holiday, the
California. However, if corporations meet the sale,
a corporation. Estimated tax is the amount of tax the
deadline to file and pay without a penalty is extended
property, or payroll threshold for “doing business”
corporation expects to owe for the taxable year.
to the next business day.
under R&TC Section 23101(b), corporations may
be subject to the minimum franchise tax.
Form 100-ES Instructions 2016 Page 1

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