California Form 3526 - Investment Interest Expense Deduction - 2016
Download a blank fillable California Form 3526 - Investment Interest Expense Deduction - 2016 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete California Form 3526 - Investment Interest Expense Deduction - 2016 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2CALIFORNIA FORM
TAXABLE YEAR
Investment Interest Expense Deduction
3526
2016
Attach to Form 540, Long Form 540NR, or Form 541.
Name(s) as shown on tax return
SSN, ITIN, or FEIN
00
1
Investment interest expense paid or accrued in 2016. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1
00
2
Disallowed investment interest expense from 2015 form FTB 3526, line 7. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . .
2
00
3
Total investment interest expense. Add line 1 and line 2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4a Gross income from property held for investment (excluding any net gain from the disposition of property held for
00
investment). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a
00
4b Net gain from the disposition of property held for investment. See instructions . . . . . . . . . . .4b
00
4c Net capital gain from the disposition of property held for investment. See instructions. . . . . .4c
00
4d Subtract line 4c from line 4b. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4d
4e Enter all or part of the amount on line 4c that you elect to include in investment income. Do not include more
00
than the amount on line 4b. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4e
00
4f Investment income. Add line 4a, line 4d, and line 4e . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4f
00
5
Investment expenses. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
00
6
Net investment income. Subtract line 5 from line 4f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7
Disallowed investment interest expense to be carried forward to 2017. Subtract line 6 from line 3.
00
If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
8
Investment interest expense deduction. Enter the smaller of line 3 or line 6. Form 541 filers, stop here and
00
see instructions. All other filers, go to line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
00
9
Enter the amount from federal Form 4952, line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10
California investment interest expense deduction adjustment. Enter the difference between line 8 and line 9.
00
See instructions.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10
General Information
by an individual, estate, or trust on a loan
y Your investment interest expense is not
allocable to property held for investment may
more than your investment income.
In general, for taxable years beginning on or
not be fully deductible in the current year.
y You have no disallowed investment interest
after January 1, 2015, California law conforms
expense from 2015.
Net capital gain from the disposition of
to the Internal Revenue Code (IRC) as of
property held for investment is excluded
January 1, 2015. However, there are continuing
Specific Line Instructions
from investment income when figuring the
differences between California and federal
investment interest limitation. However,
law. When California conforms to federal tax
Generally, California law for the investment
taxpayers may elect to include in their
law changes, we do not always adopt all of
interest expense deduction follows federal law.
investment income as much of their net capital
the changes made at the federal level. For
Get the instructions for federal Form 4952,
gain investment income as they choose, if
more information, go to ftb.ca.gov and search
Investment Interest Expense Deduction, for
they also reduce the amount of net capital gain
for conformity. Additional information can
more information. Get federal Publication
eligible for the special federal capital gain tax
be found in FTB Pub. 1001, Supplemental
550, Investment Income and Expenses, to
rate.
Guidelines to California Adjustments, the
determine your investment interest expense
This form allows you to make a separate
instructions for California Schedule CA (540
deduction if you have interest income or
California election to include net capital gain
or 540NR), California Adjustments, and the
expense attributable to a working interest in
investment income in the calculation of the
Business Entity tax booklets.
oil or gas property or if you paid or accrued
investment interest limitation. However,
interest on a loan and you used the proceeds
The instructions provided with California tax
California taxes all income at the same rate.
forms are a summary of California tax law
of the loan for more than one purpose.
Consider the effect on your California tax
and are only intended to aid taxpayers in
Line 1 – Investment Interest Expense
before making a separate California election
preparing their state income tax returns. We
Enter the investment interest paid or accrued
or applying the federal election for California
include information that is most useful to the
during the taxable year, regardless of when you
purposes.
greatest number of taxpayers in the limited
incurred the indebtedness. Investment interest
space available. It is not possible to include
B
Who Must File
expense is interest paid or accrued on a loan
all requirements of the California Revenue
(or part of a loan) that is allocable to property
If you are an individual, estate, or trust and
and Taxation Code (R&TC) in the instructions.
held for investment.
you claim a deduction for investment interest
Taxpayers should not consider the instructions
Include investment interest expense reported
expense, you must complete and attach form
as authoritative law.
to you on Schedules K-1 (100S, 541, 565, or
FTB 3526 to your tax return.
568), Share of Income, Deductions, Credits,
A
Purpose
Exception: You do not have to file form
etc. Include amortization of bond premiums
FTB 3526 if all of the following apply:
Use form FTB 3526, Investment Interest
on taxable bonds purchased after October 22,
y Your only investment income was from
Expense Deduction, to figure the amount of
1986, but before January 1, 1988, unless you
investment interest expense deductible for the
interest or dividends.
elected to offset amortizable bond premiums
current year and the amount, if any, to carry
y You have no other deductible expenses
against the interest payments on the bond. A
forward to future years. Interest expense paid
connected with the production of interest or
taxable bond is a bond on which the interest is
dividends.
includible in gross income.
FTB 3526 2016
7321163
For Privacy Notice, get FTB 1131 ENG/SP.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial