California Form 3802 - Corporate Passive Activity Loss And Credit Limitations - 2011

Corporate Passive Activity Loss

TAXABLE YEAR

CALIFORNIA FORM

2011

and Credit Limitations

3802

Attach to Form 100 or Form 100W (personal service corporations and closely held C corporations only).

Corporation name

California corporation number

Part I 2011 Passive Activity Loss

Before completing Part I, complete federal Worksheet 1 and Worksheet 2 in the instructions for federal Form 8810 using California amounts.

1 a Current year income from federal Worksheet 2, column (a) . . . . . . . . . . . . . . . . . . . . . . . . 1a

00

b Current year deductions and losses from federal Worksheet 2, column (b) . . . . . . . . . . . . 1b (

) 00

c Prior year unallowed losses from federal Worksheet 2, column (c). . . . . . . . . . . . . . . . . . .

1c (

) 00

d Combine line 1a, line 1b, and line 1c. If the result is net income or zero, see instructions . . . . . . . . . . . . . . . . . . . . . . . . .

1d

00

2 Closely held C corporations, enter net active income. See instructions. Personal service corporations, enter -0- . . . . . . . . . .

2

00

3 Unallowed passive activity deductions and losses. Combine line 1d and line 2. If the result is net income or zero,

see the instructions for line 1d and line 3. Otherwise, go to line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

3

00

4 Total deductions and losses allowed. Add the income, if any, on line 1a and line 2. See instructions . . . . . . . . . . . . . . . . . .

4

00

Part II 2011 Passive Activity Credits

Before completing Part II, complete federal Worksheet 5 in the instructions for federal Form 8810 using California amounts.

5 a Current year passive activity credits from federal Worksheet 5, column (a) . . . . . . . . . . . . 5a

00

b Prior year unallowed credits from federal Worksheet 5, column (b) . . . . . . . . . . . . . . . . . . 5b

00

6 Combine line 5a and line 5b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

00

7 Enter the tax attributable to net active income and net passive income. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

00

8 Unallowed passive activity credit. Subtract line 7 from line 6. If zero or less, enter -0-. See instructions . . . . . . . . . . . . . . .

8

00

9 Allowed passive activity credit. Subtract line 8 from line 6. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

00

Part III Election to Increase Basis of Credit Property

10 If the corporation disposed of its entire interest in a passive activity or former passive activity in a fully taxable transaction, and it elects to increase the basis



of credit property used in that activity by the unallowed credit that reduced the property’s basis, check here . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 

11 Name of passive activity disposed of  ____________________________________________________________________________________________

12 Description of the credit property for which the election is being made  __________________________________________________________________

____________________________________________________________________________________________________________________________

00

13 Amount of unallowed credit that reduced the property’s basis for California purposes. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  $ __________________

General Information

unallowed losses) from all of the corporation’s

The following may affect the computation of the

corporation’s passive loss and credit limitation:

passive activities exceed the total income from all of

In general, for taxable years beginning on or after

the corporation’s passive activities. A closely held

•

Passive loss rules (IRC Section 469(c)(7)):

January 1, 2010, California law conforms to the

C corporation has a PAL for the taxable year if the

Beginning in 1994, and for federal purposes only,

Internal Revenue Code (IRC) as of January 1, 2009.

total losses (including prior year unallowed losses)

rental real estate activities of taxpayers engaged

However, there are continuing differences between

from all its passive activities exceed the sum of the

in a real property business are not automatically

California and federal law. When California conforms

total income from all its passive activities and its net

treated as passive activities. California did

to federal tax law changes, we do not always adopt

active income.

not conform to this provision. For California

all of the changes made at the federal level. For

purposes, all rental activities are passive

A personal service corporation has passive activity

more information, go to ftb.ca.gov and search for

credits if the passive activity credits (including prior

activities regardless of the level of participation.

conformity. Additional information can be found

year unallowed credits) exceed the tax attributable to

in FTB Pub. 1001, Supplemental Guidelines to

•

Amortization of certain intangibles (IRC

net passive income. A closely held C corporation has

California Adjustments, the instructions for California

Section 197): Property classified as IRC

a passive activity credit for the year if its credits from

Schedule CA (540 or 540NR), and the Business

Section 197 property under federal law is also

passive activities (including prior year unallowed

Entity tax booklets.

IRC Section 197 property for California purposes.

credits) exceed the sum of the tax attributable to net

California does not require or allow a separate

The instructions provided with California tax forms

passive income and the tax attributable to net active

election. However, for California purposes, in the

are a summary of California tax law and are only

income.

case of IRC Section 197 property acquired before

intended to aid taxpayers in preparing their state

January 1, 1994, the California adjusted basis as

Form FTB 3802 closely follows federal Form 8810.

income tax returns. We include information that is

In general, if the corporation completed federal

of January 1, 1994, must be amortized over the

most useful to the greatest number of taxpayers

remaining federal amortization period.

Form 8810 to determine the amount of the federal

in the limited space available. It is not possible to

PAL and credit limitations, the corporation must also

include all requirements of the California Revenue

A Purpose

complete form FTB 3802.

and Taxation Code (R&TC) in the tax booklets.

Personal service corporations and closely held

Taxpayers should not consider the tax booklets as

Using California amounts, complete federal

authoritative law.

C corporations use form FTB 3802, Corporate

Worksheet 1 through Worksheet 6 in the instructions

Passive Activity Loss and Credit Limitations, to figure

for federal Form 8810 to determine the amounts to

Disclosure Requirements for Groupings – For

the amount of any passive activity loss (PAL) or

enter on form FTB 3802. Keep both the California and

taxable years beginning on or after January 25, 2010,

credit for the current taxable year and the amount

federal worksheets for the corporation’s records.

Revenue Procedure 2010-13 regarding disclosure

of losses and credits from passive activities allowed

requirements for groupings is generally applicable

B Special Rules

on the corporation’s tax return. See the instructions

for California purposes. A separate disclosure

for federal Form 8810 for the definitions of personal

S Corporations

statement is not required if a disclosure statement is

service corporations and closely held C corporations.

S corporations must use form FTB 3801, Passive

filed with the Internal Revenue Service. Get federal

A personal service corporation has a PAL for the

Activity Loss Limitations, and form FTB 3801-CR,

Form 8810, Corporate Passive Activity Loss and

Passive Activity Credit Limitations, instead of

Credit Limitations, for more information.

taxable year if the total losses (including prior year

FTB 3802 2011 Side 1

7471113