Instructions For Form Ftb 3510 - Credit For Prior Year Alternative Minimum Tax - Individuals Or Fiduciaries - 2004

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Instructions for Form FTB 3510
Credit for Prior Year Alternative Minimum Tax — Individuals or Fiduciaries
References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2001, and to the California Revenue and Taxation Code (R&TC).
Line 1 – Estates and trusts: Skip line 1 through
line 22 Exemption Worksheet of the child’s 2003
General Information
line 3. Complete a second 2003 Schedule P (541),
Schedule P (540) or Schedule P (540NR).
Part I and Part II. Enter only exclusion items from
A Purpose
Line 10 – If line 10 is -0- and you paid 2003 AMT,
Schedule P (541), line 4a through line 4d and any
all of the 2003 AMT is attributable to the deferral
Use this form to figure your 2004 California credit
other exclusion items on Schedule P (541), line 4p
preferences. Enter -0- on line 13, then complete
for prior year alternative minimum tax (AMT)
and line 4q. If the amount on Schedule P (541),
Part I, Section B, if applicable and Part II to figure
incurred in a taxable year beginning after 1986.
Part I, line 10 is zero or less, enter -0- on line 4 of
the available credit for 2004.
form FTB 3510.
B Who Must File
Line 18 – Enter the adjustments and tax preference
Otherwise, enter on line 4 of form FTB 3510, the
To claim the credit for prior year AMT, individuals
items treated as exclusions. Combine your
amount from line 10 of Schedule P (541) adjusted
and fiduciaries must complete form FTB 3510.
Schedule P (540NR), Part II, lines 29a, 29h, and
for exclusion items that were allocated to the
Individuals and fiduciaries qualify for the credit if
29q. Do not include any amount from line 29f.
beneficiary.
they:
Instead, include the exclusion items from your 2003
Had an AMT credit carryover from 2003; or
Line 2 – Enter the adjustments and tax preference
Schedule K-1 (541), line 9d, column (e).
Paid AMT for 2003, and had 2003 adjustments
items treated as exclusions.
Line 28 – If you reduced your 2003 AMT by any
and tax preference items other than exclusions.
Schedule P (540) filers, combine your 2003
solar energy credit carryover or commercial solar
Corporations must use Schedule P (100 or 100W),
Schedule P (540), Part I, line 1 through line 7,
energy credit carryover from your 2003:
Part III.
line 13a, line 13c, and line 13l. Do not include any
Schedule P (540), Part III, line 24 and line 25,
amount from line 12 of your Schedule P (540).
column (b);
C Exclusions and Deferral
Instead, include the exclusion items from line 9d;
Schedule P (540NR), Part III, line 24 and
Preferences
column (d) of your Schedule K-1 (541) you received
line 25, column (b); or
for 2003.
Schedule P (541), Part IV, line 18 and line 19,
The 2003 AMT you paid is attributable to two types
column (b);
of adjustments and tax preferences, those called
Schedule P (540NR) filers, combine your 2003
exclusions and those called deferral preferences.
Schedule P (540NR), Part I, line 1 through line 7,
Reduce the amount on this line by the same amount
The amount of AMT attributable to the deferral
line 13a, line 13c, and line 13l. Do not include any
and enter the amount of the reduction in the space
preferences is available as a credit in 2004.
amount from line 12 of your Schedule P (540NR).
to the left of line 28.
Instead, include the exclusion items from line 9d;
Exclusions are those adjustments and preference
Line 31 – Enter the amount of any unused AMT
column (d) of your Schedule K-1 (541) you received
items that cause a permanent difference in the
credit carryover from your 2003:
for 2003.
amount of tax you pay. The adjustments and
Schedule P (540), Part III line 11, column (d);
preference items that are exclusions include:
Note: If you included any exclusions on a line other
Schedule P (540NR), Part III, line 11,
The standard deduction or itemized deductions;
than those listed above, add these exclusions to the
column (d); or
Charitable deduction for contributions of
total.
Schedule P (541), Part IV, line 10, column (d).
appreciated property;
Line 3 – For taxable years beginning in 2002 and
Line 32 – If line 32 is zero or less, you do not have
Depletion; and
2003, the net operating loss (NOL) carryover
a minimum tax credit or a minimum tax credit to
The exclusion for 50% of the gain on the sale of
deduction was suspended. Taxpayers may continue
carry over. Do not complete the rest of this form. If
qualified small business stock described in
to compute and carryover an NOL during the
line 32 is more than zero, enter here and in
R&TC Section 18152.5.
suspension period.
column (a) of your 2004:
Deferral preferences are those adjustments and tax
Schedule P (540), Part III, line 11;
The carryover period for suspended NOLs is
preference items that cause only a temporary
Schedule P (540NR), Part III, line 11; or
extended by two years for NOLs incurred before
difference in the amount of tax you pay. The
Schedule P (541), Part IV, line 10.
January 1, 2002, and by one year for NOLs
adjustments and tax preference items that are
incurred after January 1, 2002, and before
Line 34 – Exemption credits and credits that cannot
deferral preferences are all the other items listed on
January 1, 2003.
reduce regular tax below the tentative minimum tax.
your 2003 Schedule P (540, 540NR, or 541) that
See Schedule P (540, 540NR, or 541) for more
Line 4 – If line 4 is zero and you paid 2003 AMT, all
are not exclusions.
information.
of the 2003 AMT is attributable to the deferral
Use form FTB 3510, Part I, to figure the amount of
preferences. Enter -0- on line 13, then complete
Residents enter on line 34:
2003 AMT that was attributable to only the
Part I, Section B, if applicable and Part II to figure
The exemption credits from Form 540, line 21
exclusions.
the credit available for 2004.
(or Form 541, line 22); and
Use form FTB 3510, Part II, to figure the amount of
The amount of credits that are listed on your
Married taxpayers filing separate California tax
2003 AMT that was attributable to the deferral
2004 Schedule P (540 or 541), Section A1 and
returns: Complete the following computation if
preferences and the amount available as a credit in
Section A2, column (b).
line 4 is more than $257,861:
2004.
Nonresident or Part-Year Residents enter on
1.
Enter the amount from line 4 . . . . . . _______
In 1993, California conformed to the federal repeal
line 34:
2.
Maximum exemption amount . . . . . . $257,861
of the AMT depletion adjustment for independent oil
The exemption credits from Long Form 540NR,
and gas producers and royalty owners. As a result,
3.
Subtract line 2 from line 1 . . . . . . . . . _______
line 25b; and
depletion amounts deducted from income for
The amount of credits that are listed on your
4.
Multiply line 3 by 25% (.25) . . . . . . . _______
purposes of computing the regular tax must be
2004 Schedule P (540NR), Section A1 and
5.
Enter the smaller of line 4 or
adjusted for AMT purposes using the methods
Section A2, column (b).
$33,272 . . . . . . . . . . . . . . . . . . . . . . . _______
prescribed by the federal rules. Your California
Line 36 – Enter the tentative minimum tax from
depletion costs may continue to differ from the
6.
Add line 1 and line 5. Enter the
your 2004:
federal amounts because of prior differences in the
result here and replace the amount
Schedule P (540), Part II, line 24;
law and differences in bases.
on FTB 3510, line 4 with this amount _______
Schedule P (540NR), Part II, line 43; or
In 1994, California did not conform to the limit on
Line 9 – If you are completing this form for a child
Schedule P (541), Part III, line 8.
the benefit of the exclusion preference for intangible
who was under age 14 on January 1, 2005, and at
drilling costs.
least one of the child’s parents was alive on
December 31, 2004, do not follow the instructions
Specific Line Instructions
on this form for line 9. Instead, if line 8 is equal to
or more than line 5, enter -0- on line 9. Otherwise,
Complete Schedule P (540) through Part II, line 24;
enter the smaller of: (1) the amount by which line 5
Schedule P (540NR) through Part II, line 43; or
exceeds line 8; or (2) the amount from line 9 of the
Schedule P (541) through Part III, line 8, before
figuring this credit.
FTB 3510 Instructions 2004

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