Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations

Line 27 – Figure the tax attributable to the

Credits from Publicly Traded Partnerships

PTP in which you acquired your interest before

amount on line 26 as follows:

(PTPs)

1990 (regardless of the date placed in service)

allowed under the $75,000 special allowance are

A credit from a passive activity held through a

A. Taxable income . . . . . . . A ______

the smaller of the total credits from Step 3 or the

PTP is allowed to the extent of the tax attribut-

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

amount figured in Step 4. If Step 4 is smaller

able to net passive income from that partner-

C. Enter the amount

than Step 3, allocate the amount in Step 4 pro

ship. In addition, low-income housing credits

from line A above . . . . . C ______

rata to the credits from each PTP in Step 3.

from rental real estate activities held through

D. Enter amount from

PTPs are allowed to the extent of the remaining

form FTB 3801-CR,

Complete Step 6 through Step 8 only if you have

$75,000 special allowance. Before the credits

line 26 . . . . . . . . . . . . . . D ______

low-income housing credits for property placed in

may be applied to the $75,000 (or less, if

E. Subtract line D from

service after 1989 from a PTP in which you also

applicable) special allowance, the special

line C . . . . . . . . . . . . . . . E ______

acquired your interest after 1989.

allowance must be reduced by the amount used

F. Tax on line E . . . . . . . . . . . . . . . . . . F ______

Step 6 — Reduce low-income housing credits

under the passive loss rules and the amount

G. Subtract line F from line B and

for property placed in service after 1989 from a

used for credits which were not from a PTP.

enter the result on form

PTP in which you also acquired your interest

FTB 3801-CR, line 27 . . . . . . . . . . G ______

Do not enter credits from PTPs on the

after 1989 to the extent of the tax attributable to

worksheets or on form FTB 3801-CR. Instead,

Note: When using taxable income in the above

net passive income from that PTP, which was

use the following steps to compute the allowed

computation, it is not necessary to refigure

figured in Step 1.

and unallowed credits from passive activities

items that are based on a percentage of

Step 7 — Before beginning this step, you must

held through PTPs.

adjusted gross income.

complete form FTB 3801-CR if you have any

Computation of Passive Activity Credits

passive credits that are not from PTPs. Subtract

Part IV

Allowed for PTPs

the sum of the credits allowed in Step 5 above

Complete Step 1 and Step 2 only if you have net

and line 36 of form FTB 3801-CR from the

Special Allowance for Low-Income Housing

passive income from a PTP with passive activity

amount on line 35 of form FTB 3801-CR to figure

Credits for Property Placed in Service After 1989

credits.

the tax attributable to the $75,000 special

Line 35 – Figure the tax on the remaining special

allowance available for the credits in Step 6.

Note: In the following instructions, the term

allowance as follows:

“credits” includes current year credits and prior

If your only passive credits are from PTPs,

A. Taxable income . . . . . . . A ______

year unallowed credits.

complete the steps shown in the worksheet in

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

the line 35 instructions. Subtract the credits

Step 1 — Figure the tax attributable to net

C. Enter $75,000 ($37,500

allowed in Step 5 above from the tax figured on

passive income from each PTP with passive

if married filing a separate

line J of that worksheet. The result is the tax

activity credits by following the steps shown in

return and you lived

attributable to the $75,000 special allowance

the worksheet in the line 6 instructions.

apart the entire year) . . C ______

available for the credits in Step 6.

Complete a separate tax computation for each

D. Enter amount from

PTP with net passive income.

Step 8 — Low-income housing credits allowed

form FTB 3801,

under the $75,000 special allowance for

line 9 . . . . . . . . . . . . . . . D ______

Step 2 — Passive activity credits from each PTP

property placed in service after 1989 from a

are allowed to the extent of the tax attributable

E. Subtract line D from

PTP in which you also acquired your interest

to net passive income from that same PTP.

line C . . . . . . . . . . . . . . . E ______

after 1989, are the smaller of the total credits

Credits in excess of the tax attributable to net

F. Subtract line E from

from Step 6 or the amount figured in Step 7. If

passive income may be allowed under one or

line A . . . . . . . . . . . . . . . F ______

Step 7 is smaller than Step 6, allocate the

G. Tax on line F . . . . . . . . . . . . . . . . . G ______

more steps below.

amount in Step 7 pro rata to the credits from

Complete Step 3 through Step 5 only if you have

H. Subtract line G from line B . . . . . . H ______

each PTP in Step 6.

low-income housing credits for property placed

I. Enter the sum from form FTB

Step 9 — Add Steps 2, 5, and 8. These are the

in service before 1990 from a PTP, or low-

3801-CR, line 16 and line 30 . . . . . I ______

credits allowed from passive activities of PTPs.

income housing credits from a PTP in which

J. Subtract line I from line H. This

you acquired your interest before 1990

Step 10 — Figure the allowed and unallowed

is the amount of tax attributable

(regardless of the date placed in service).

credits from each PTP. Report the allowed

to the remaining special allowance.

credits on the appropriate credit form. Keep a

Enter the result on form

Step 3 — Reduce low-income housing credits

record of the unallowed credits for use in a

FTB 3801-CR, line 35 . . . . . . . . . . . J ______

for property placed in service before 1990 from

future year.

each PTP, and any low-income housing credits

Note: When using taxable income in the above

from each PTP in which you acquired your

computation, it is not necessary to refigure

Part VI

interest before 1990 (regardless of the date

items that are based on a percentage of

placed in service) to the extent of the tax

adjusted gross income.

Election to Increase Basis of Credit Property

attributable to net passive income from that

Complete Part VI if you disposed of your entire

Part V

PTP, which was figured in Step 1.

interest in a passive activity or former passive

Step 4 — Before beginning this step, you must

activity in a fully taxable transaction and you

assive Activity Credits Allowed

complete form FTB 3801-CR if you have any

elect to increase the basis of the credit property

Line 37 – If you have only one type of credit,

passive credits that are not from PTPs. Subtract

used in that activity by the unallowed credit that

the amount on line 37 is the credit allowed for

the sum of form FTB 3801-CR, line 16, line 30

reduced the property’s basis.

the year. Enter this amount on the appropriate

and line 36 (if any) from form FTB 3801-CR,

credit form. Your unallowed credit would be

line 27 to figure the tax attributable to the

line 5 minus line 37.

$75,000 special allowance available for the

If you have more than one type of credit, or

credits in Step 3.

credits from more than one activity, use

If your only passive credits are from PTPs,

Worksheet 5 through Worksheet 9 in the

complete form FTB 3801-CR, line 21 through

instructions for federal Form 8582-CR to

line 27 as a worksheet. The amount on line 27 is

allocate the allowed and unallowed credits. Keep

the tax attributable to the $75,000 special

a record of each unallowed amount and the

allowance available for the credits in Step 3.

activity to which it belongs so you can claim the

credit if it becomes allowable in a future year.

Step 5 — Low-income housing credits for

property placed in service before 1990 by each

PTP, and any low-income housing credits from a

FTB 3801-CR Instructions 2001 Page 3

Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2001 Page 3

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