Instructions For Form 199 - 1998 (Page 3 of 4) in pdf

Note: Do not include amounts for gross dues

make limited expenditures to influence legislation

nursing service, laboratory construction, fellow-

and assessments from members and affiliates or

within the limitations set by R&TC

ships or assistance to indigent families should be

amounts from gross contributions, gifts, grants

Section 23704.5. Organizations making this elec-

so identified.

and similar amounts received. These amounts

tion must complete form FTB 3509, Political or

Private foundations making contributions, etc., to

are reported on Part I, line 2 and line 3.

Legislative Activities by R&TC Section 23701d

a trust, association or corporation shall also indi-

Organizations and attach it to Form 199.

Line 3 – Gross Contributions, Gifts, Grants

cate the organizational status of each donee;

and Similar Amounts Received

such as private foundation, operating private

Side 2, Part II

foundation or other public charity, etc.

Attach an itemized schedule if money, securities,

Exempt organizations must either:

or other property aggregating $5,000 or more is

•

When the fair market value of the property at the

Complete Part II of Form 199;

received directly or indirectly from one person in

•

time of disbursement is used to measure a con-

Attach a completed copy of Form CT-2,

one or more transactions during the year. The

tribution, the schedule must also show the:

Registry of Charitable Trusts Report (in-

•

schedule must show the name, address, date

Description of the contributed property;

cluding federal Form 990); or

received, and the total amount received from

•

Book value of the contributed property;

Attach a completed copy of federal

•

each person.

Method used to determine the book value;

Form 990-PF for private foundations, includ-

In determining whether a person has contributed

and

ing all appropriate schedules.

•

$5,000 or more, organizations must aggregate

Date of the gift.

Note: Labor organizations exempt under R&TC

gifts of $1,000 or more from that person.

In such a case, the difference between fair mar-

Section 23701a, attach a copy of the Department

Separate and independent gifts need not be

ket value and book value should be reflected in

of Labor Form LM-2 or LM-3, Labor Organization

aggregated if less than $1,000. Also, if a contri-

the books of account.

Annual Report, as appropriate, in lieu of complet-

bution is in the form of property (other than secu-

ing Part II.

Line 11 – Compensation of Officers, Directors

rities), the organization must furnish a description

and Trustees

Line 1 – Gross Sales or Receipts from All

of the property. If the property consists of securi-

Business Activities

All organizations must attach a schedule of offi-

ties for which market quotations are readily avail-

cers, directors, trustees or individuals having

able, the description and fair market value of the

See General Instruction E for the definition of

similar responsibilities. The schedule must show

securities must be submitted.

gross receipts. Homeowners’ associations see

for each: name, address, social security number,

General Instruction D.

Person means individuals, fiduciaries, partner-

position, compensation and time devoted to the

ships, corporations, associations, trusts and

Note: Do not include amounts for gross dues

position.

exempt organizations.

and assessments from members and affiliates or

Line 16 – Depreciation and Depletion

amounts from gross contributions, gifts, grants

Organizations that are not private foundations

Corporations and Associations — California

and similar amounts received. Report these

must report the name and address of the contrib-

law is generally the same as federal law.

amounts on Side 1, Part I, line 2 and line 3

utor who gave more than $5,000 in money, secu-

respectively.

rities, or other property during the year only if it

California differences.

Line 6 – Gross Amount Received from Sale of

has actual knowledge of the contributor. For

1. California has not adopted the federal

Assets

example, an organization need not require an

Modified Accelerated Cost Recovery System

employer who withholds contributions from the

Attach a schedule showing for each asset

(MACRS).

compensation of employees and pays over to the

(whether or not depreciable) sold or exchanged:

2. California prohibits the use of the 20% Asset

•

organization periodically the total amounts with-

Depreciation Range (ADR). Only the mid-

The date acquired, manner of acquisition,

held, to specify the amounts paid over with

range asset guideline period is allowed.

date sold, and to whom sold;

•

respect to a particular employee. In such case,

3. California allows the special additional first-

The gross sales price;

•

unless the organization has actual knowledge

year depreciation. (R&TC Section 24356, not

The cost or other basis, or value at time of

that a particular employee gave more than

IRC Section 179.)

acquisition if received by donation (state how

$5,000, the organization must report only the

received);

Complete form FTB 3885, Corporation

•

name and address of the employer and the total

The expense of sale and cost of improve-

Depreciation and Amortization, to figure the dif-

amount paid over by the employer.

ments subsequent to acquisition; and

ference between state and federal depreciation.

•

Organizations described in R&TC

If depreciable property, depreciation since

Exempt corporations claiming depreciation

Sections 23701b, 23701g, and 23701l that

acquisition.

deductions must attach a schedule showing:

receive contributions or gifts to be used exclu-

•

Enter the gross sales price on Side 2, Part II,

Description of property;

sively for the purposes described in IRC

•

line 6 and total and enter the cost or other basis,

Date acquired;

Section 170 must attach a statement with respect

•

expenses, etc. (less depreciation if applicable),

Cost or other basis (exclude land);

to all gifts which aggregate $1,000 from any one

•

on Side 1, Part I, line 6.

Depreciation allowed or allowable in prior

person showing:

Line 8 – Total Gross Sales or Receipts from

•

years;

The name of the donor;

•

Other Sources

•

Method of computation;

The amount of the contribution;

•

Add line 1 through line 7. Enter on line 8 and on

Rate (%) or life (years); and

The specific purpose of the contribution; and

•

Side 1, Part I, line 1.

Depreciation this year (total additional first-

The specific use of the contribution.

year depreciation claimed must be shown on

Line 9 – Contributions, Gifts, Grants, and

If the contribution or gift is transferred to another

a separate line of the depreciation schedule).

Similar Amounts Paid

organization, the statement must include:

Trusts — In 1987, California changed the rules

Private foundations, regardless of gross receipts,

•

The name of the transferee organization;

for depreciation by conforming to the federal

and other organizations required to file Form 199,

•

A description of the nature of the transferee

MACRS. Estates and trusts are not eligible to

must attach a schedule to support contributions,

organization; and

take the IRC Section 179 deduction. The

gifts, grants, scholarships, etc., showing:

•

A description of the relationship between the

•

California MACRS applies to assets placed in

Each class of activity;

transferee and transferor organizations. Such

•

service on or after 1/1/87.

Separate totals for each activity;

organizations must also attach a statement

•

Complete form FTB 3885F, Depreciation and

Name and address of the donee and the

showing the total dollar amount of

Amortization, to figure the difference between

amount of the distribution to the donee; and

contributions and gifts received.

•

state and federal depreciation.

Relationship of the donee, if related by blood,

Line 4 – Total Gross Receipts

marriage, adoption, or employment (including

Enter the total from form FTB 3885F, line 6, on

Add line 1 through line 3. See General

children of employees) to any person or cor-

Form 199, Side 2, Part II, line 16 and attach form

Instruction E for the definition of gross receipts.

poration having an interest in the organization

FTB 3885F to Form 199.

Line 14 – Influencing Legislation

(such as creator, donor, director, trustee,

Schedule L – Balance Sheets

officer, etc.).

An organization that is exempt under R&TC

The balance sheets should agree with the books

Section 23701d is prohibited from supporting or

Classify activities according to purpose in greater

of account. Any difference should be reconciled

opposing candidates for public office. However, a

detail than merely charitable, educational, reli-

on Schedule M-1 of Form 199.

R&TC Section 23701d organization may elect to

gious, or scientific. For example, payments for

Form 199 Instructions 1998

Page 3

Instructions For Form 199 - 1998 Page 3

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