Instructions For Form Ftb 3885l - Depreciation And Amortization

Line 7 – Enter the IRC Section 179 expense election amount from the following worksheet.

These limitations apply to the LLC and each member.

Election to Expense Certain Tangible Property (IRC Section 179)

Note: Follow the instructions on federal Form 4562 for listed property.

$ 16,000

1 Maximum dollar limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

2 Total cost of IRC Section 179 property placed in service during the tax year . . . . . . . . . . . . . . . . . . . . . . . . . . . .

$200,000

3 Threshold cost of IRC Section 179 property before reduction in limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Dollar limitation for tax year. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . .

(a) Property

(b) Cost

7 Listed property. Use federal Form 4562, Part V, line 27, making any adjustments for California law and basis differences . . .

8 Total elected cost of IRC Section 179 property. Add amounts in column (c), line 6 and line 7 . . . . . . . . . . . . . . . . . . .

9 Tentative deduction. Enter the smaller of line 5 or line 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10 Carryover of disallowed deduction from 1997. See instructions for line 9 through line 12 on the federal Form 4562 . . . . . .

11 Income limitation. Enter the smaller of line 5 or the aggregate of the LLC’s items of income and expense described in

IRC Section 702(a) from any business actively conducted by the LLC (other than credits, tax-exempt

IRC Section 179 expense deduction and guaranteed payments under IRC Section 707(c)) . . . . . . . . . . . . . . . . . . . .

12 IRC Section 179 expense deduction. Add line 9 and line 10, but do not enter more than line 11. Enter on Schedule K (568),

line 9 and on form FTB 3885L, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 Carryover of disallowed deduction to 1999. Add line 9 and line 10 and subtract line 12. Enter here and on line 8 of

form FTB 3885L. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Instructions for Schedule D (568)

Capital Gain or Loss

General Information

California Revenue and Taxation Code Section (R&TC)

18152.5 conforms to Internal Revenue (IRC) Section

1202 with modifications. In order to be eligible for the

Use Schedule D (568) to report the sale or exchange of

50% exclusion of gain on qualified small business stock

capital assets, except capital gains (losses) that are

for stock issued after August 10, 1993 and before

specially allocated to any members. Do not use this

January 1, 1999, the corporation issuing the stock must

form to report the sale of business property. For sales

meet the following conditions in addition to the

of business properties use California Schedule D-1,

conditions cited in IRC Section 1202:

Sale of Business Property.

•

80% of the corporation’s payroll, as measured by

Enter specially allocated capital gains (losses) received

total dollar value, is attributable to employment

from LLCs, partnerships, S corporations and fiduciaries

located in California; and

on Schedule D (568), line 3. Enter capital gains (losses)

•

80% (by value) of the assets of the corporation are

that are specially allocated to members on line 4d of

used by the corporation in the active conduct of a

Schedule K-1 (568). Do not include these amounts on

trade or business in California (R&TC Section

Schedule D (568). See the instructions for Schedule

18152.5).

K (568) and Schedule K-1 (568) for more information.

Also refer to the instructions for federal

Note: The limited liability company also must separately

Schedule D (1065).

state the amount of the gain that qualifies for the 50%

California law now conforms to federal law for the

exclusion under R&TC Section 18152.5 on Schedule K,

recognition of gain for a constructive sale of property in

line 7. Each member must determine if he or she

which the partnership held an appreciated interest.

qualifies for the gain at the member level.

Page 2 FTB 3885L/Schedule D (568) Instructions 1998

Instructions For Form Ftb 3885l - Depreciation And Amortization - 1998 Page 2

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