Instructions For Schedule Eo (568) Draft - Pass-Through Entity Ownership

2015 Instructions for Schedule EO (568)

Pass-Through Entity Ownership

General Information

Specific Instructions

In general, for taxable years beginning on or after January 1, 2015,

Part I – Partial Ownership

California law conforms to the Internal Revenue Code (IRC) as of

January 1, 2015. However, there are continuing differences between

List the entities in which the taxpayer holds partial (less than 100%)

California and federal law. When California conforms to federal tax law

ownership interest.

changes, we do not always adopt all of the changes made at the federal

For each partnership and LLC taxable as a partnership, provide the

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

name, California SOS file number, and FEIN.

Additional information can be found in FTB Pub.1001, Supplemental

California Source Income

Guidelines to California Adjustments, the instructions for California

Enter a check mark in the column to indicate if the taxpayer received

Schedule CA (540 or 540NR), and the Business Entity tax booklets.

pass-through income derived from or attributable to California sources.

The instructions provided with California tax forms are a summary of

Profit and Loss Sharing Percentage

California tax law and are only intended to aid taxpayers in preparing

Enter the profit and loss sharing percentages for each partnership and

their state income tax returns. We include information that is most useful

LLC taxable as a partnership at the end of the year. This information

to the greatest number of taxpayers in the limited space available. It is

is found at Item D (ii) of your California Schedule K-1(565), Partner’s

not possible to include all requirements of the California Revenue and

Share of Income, Deductions, Credits, etc., or at Item C (ii) of your

Taxation Code (R&TC) in the tax booklets. Taxpayers should not consider

California Schedule K-1(568), Member’s Share of Income, Deduction,

the tax booklets as authoritative law.

Credits, etc.

Purpose

Part II – Full Ownership

Use Schedule EO (568), Pass-Through Entity Ownership, to report all

List the disregarded entities in which the taxpayer holds full ownership

partnership, limited liability company (LLC) taxable as partnerships, and

interest of 100%.

disregarded entity ownership interests held by the taxpayer.

For each disregarded entity provide the name, California SOS file

This schedule is completed by partnerships and LLCs taxable as

number, and FEIN.

partnerships that hold partial ownership interest in other partnerships,

California Source Income

LLCs taxable as partnerships, and/or own disregarded entities, including

Enter a check mark in the column to indicate if the disregarded entity

Single Member Limited Liability Companies (SMLLCs) that are

received income derived from or attributable to California sources.

disregarded.

This schedule should contain information regarding all partnerships,

LLCs taxable as partnerships, and all disregarded entities (including

SMLLCs) in which the taxpayer holds an interest, regardless of whether

the entities are required to file a tax return in California, or are subject to

California annual tax or LLC fee.

This schedule will not be completed by S corporations or to report

S corporation pass-through income.

Entities to include on this schedule are those that file federal Form 1065,

Partnership Return of Income, or are disregarded for federal tax

purposes.

When completing this form, provide the name, California Secretary of

State (SOS) file number, and federal employer identification number (FEIN)

for each entity listed. The FEIN is 9 digits long, and the SOS file number is

12 digits long and must begin with “19” or “20.”

Attach the completed Schedule EO (568) behind Side 7 of Form 568,

Limited Liability Company Return of Income, if applicable. Attach

additional Schedules EO (568) as necessary.

Schedule EO (568) Instructions 2015 Page 1

Instructions For Schedule Eo (568) Draft - Pass-Through Entity Ownership - 2015

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