Instructions For Form Ftb 3534 - California (Page 2 of 2) in pdf

Line 5, column (d) – Add the amounts in column (d). Enter the result

Shareholders, beneficiaries, partners, and members of S corporations,

in Part II, Section B, line 6, column (d). Note: The total amount in

estates, trusts, and partnerships must recapture the portion of the JSF

column (d) should equal the amount on Part II, Section A, line 3.

Property Credit that was previously claimed. S corporations, estates,

trusts, and partnerships must show the recapture amount for each

Section C Credit Recapture

shareholder, beneficiary, partner, or member on Schedules K-1 (100S,

Any JSF Property Credit amounts previously claimed must be added

541, 565, or 568) as provided above.

back to your tax liability if any of the events listed below have occurred

Note: For an S corporation, the recapture amount for the shareholder(s)

within one year of the date the qualified property was placed in service

will differ from the amount recaptured by the S corporation on

in California. The recapture codes listed to the left of each event that

Form 100S, Schedule J, line 5, since S corporations can only claim 1/3 of

caused recapture of the JSF Property Credit should be used to complete

the JSF Property Credit.

Section C, line 1, column (b), for each item of qualified property for

which the credit must be recaptured.

Where to Get Tax Forms and Publications

By Internet – You can download, view, and print California tax forms and

Recapture

publications from our Website at

Code

Event Causing Recapture

Information about other state agencies can be accessed through the State

Qualified property is physically moved out of California.

Agency Index located on the California State Website at

Qualified property is primarily used in a non-qualified activ-

By phone – To order California tax forms and publications, call our

ity. See Part II, A, Qualified Property, for more information

automated telephone service. To order a form:

on qualified activities.

• Refer to the list in your tax booklet and find the code number for the

Qualified property is sold or otherwise transferred to an

form you want to order.

unrelated party as defined in IRC Section 267, 318, or 707.

• Call (800) 338-0505 and follow the instructions.

Qualified leased property is acquired by the lessee-user

Please allow two weeks to receive your order. If you live outside

(or party related to the lessee-user) who claimed the JSF

California, please allow three weeks to receive your order.

Property Credit for such leased property prior to acquiring

In person – Many post offices provide free California tax booklets during

the property.

the filing season. Most libraries have forms and schedules for you to

photocopy (a nominal fee may apply). Note: Employees at libraries and

post offices cannot provide tax information or assistance.

Line , column (a) – List each item of qualified property that caused

By mail – Write to:

recapture.

TAX FORMS REQUEST UNIT

Line , column (b) – Enter the recapture reason code from the list in the

FRANCHISE TAX BOARD

previous column that corresponds to the event that caused recapture of

PO BOX 307

the JSF Property Credit.

RANCHO CORDOVA CA 95741-0307

Line , column (c) – Enter the amount of recapture for each item of

property entered in column (a).

Any JSF Property Credit carryover should first be reduced to the full

extent before adding any recaptured credit to the current year tax liability.

Any recapture amount remaining after the reduction of the carryover

should be added to tax and reported here (Section C, line 1, column (c)).

See the instructions for line 2 below for where to report the recapture

amount(s) on your California tax return.

Line 2, column (c) – Add the amounts in column (c). Enter the total here

and on your California tax return or schedule as follows:

• Form 100, Schedule J, line 5;

• Form 100S, Schedule J, line 5 and Schedule K-1 (100S), line 23. See

note following;

• Form 100W, Schedule J, line 5;

• Form 109, Schedule K, line 4;

• Form 540, line 33;

• Form 540NR, line 41;

• Form 541, line 21b and Schedule K-1 (541), line 11e;

• Schedule K (565), line 22 and Schedule K-1 (565), line 22; or

• Schedule K (568), line 22 and Schedule K-1 (568), line 22.

Indicate that you included the JSF Property Credit recapture on the tax

return by writing “FTB 3534” in the space to the left of the amount on the

schedule or form.

Page 2 FTB 3534 Instructions 2006

Instructions For Form Ftb 3534 - California Page 2

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