2015 Instructions For Form Ftb 3801 Passive Activity Loss Limitations (Page 4 of 4) in pdf

• If the Total column (e) amount is

Completing the Form the Second Time –

Enter the result in column (f) of the

negative, you have a California

Full-Year Nonresidents

California Passive Activity Worksheet on form

subtraction. Enter this amount on

FTB 3801, Side 2.

• Complete the form and worksheets a

Schedule CA (540 or 540NR) as follows:

second time by following the General

When completing column (c), of Worksheets

California Adjustment

Schedule CA

Instructions beginning on page 2. Complete

1 and 2 on form FTB 3801, Side 3, for non-

Worksheet

(540 or 540NR)

only Step 1 through Step 3.

California source activities, use the same

• Include only your passive income and

formula noted on this page in column 2.

Total, column 1(e) –

line 12, column B.

losses from California sources.

Total, column 2(e) –

line 17, column B.

Useful Publications:

• Partners, members of a limited liability

Total, column 3(e) –

line 18, column B.

• FTB Pub. 1031, Guidelines for Determining

company (LLC), or shareholders of an

Enter all amounts on Schedule CA (540 or

Resident Status. This publication provides

S corporation – The note in Step 1 instructs

540NR) as positive amounts.

information on determining residency

you to use the amount from Schedule K-1

and whether your income or loss has a

S Corporations

(565, 568, or 100S), column (d). Instead of

California source.

the amount in column (d), use the amount

1. Add the column (c) amounts and enter the

• FTB Pub. 1100, Taxation of Nonresidents

from Schedule K-1 (565, 568, or 100S),

results on the Total line for column (c).

and Individuals Who Change Residency.

column (e).

2. Add the column (d) amounts and enter the

This publication discusses the rules for

• Worksheets 1 and 2, column (c) – The

results on the Total line for column (d).

calculating loss carryovers and includes

amount of prior year unallowed losses is

passive activity loss examples.

3. Subtract the Total amount of column (d)

the amount of prior year unallowed losses

from the Total amount of column (c) and

from California sources only as if you had

enter the difference on the Total line for

been a nonresident in all prior years.

column (e).

Completing the Form the Second Time –

4. Net the column (e) Total amounts [the sum

Part-Year Residents

of line 1(e), line 2(e), and line 3(e)].

• Complete the form and worksheets a

• If the result is positive, enter the result

second time by following the General

on Form 100S, line 7.

Instructions beginning on page 2. Complete

• If the result is negative, enter the result

only Step 1 through Step 3.

on Form 100S, line 12 as a positive

• Include your passive income and losses

amount.

from all sources for the part of the year you

were a resident, plus your California source

Nonresident and Part-Year Resident

passive income and losses for the part of

Instructions

the year you were a nonresident.

Nonresidents and part-year residents must

• For an interest in a non-California source

complete form FTB 3801 and the worksheets

passive activity, you must prorate the

twice:

income or loss from such activity to be

• First, to determine the amounts to enter on

reported during the period you were a

Schedule CA (540NR), columns B and C.

resident, unless you have information that

• Second, to determine the amounts to enter

specifies when the income or loss was

on Schedule CA (540NR), column E.

realized. Figure the prorated income or loss

Completing the Form the First Time –

as follows:

Full-Year Nonresidents and Part-Year

Number of days

Amount of

Residents

you were a

income or

• Follow the General Instructions beginning

California Resident*

loss from

on page 2.

365 days

your

• Complete the form and worksheets as if

Passive

you were a California resident for the entire

Activity

year even though you were a nonresident

* If your passive activity is from a fiscal year

for all or part of the year. A resident is

pass-through entity, enter the number of

taxable on all income from all sources,

days you were a California resident during

including income from sources outside

the pass-through entity’s fiscal year ending

of California. When completing the forms

in 2015.

and worksheets the first time, include your

passive activity income and losses from all

sources for the entire year.

• Worksheets 1 and 2, column (c) – The

amount of prior year unallowed losses is

the amount of unallowed losses generated

as if you had been a California resident in

all prior years.

Page 4 FTB 3801 Instructions 2015

2015 Instructions For Form Ftb 3801 Passive Activity Loss Limitations Page 4

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