Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations

Line 4a through Line 4c – Individuals should

If you are a military servicemember domiciled

Line 27 – Figure the tax attributable to the

include on line 4a and line 4b credits from

outside of California, subtract your military

amount on line 26 as follows:

passive activities which were not entered

pay from your modified federal adjusted gross

A. Taxable income . . . . . . A ______

on line 1a and line 1b, line 2a and line 2b,

income.

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

or line 3a and line 3b. Estates (other than

Line 15 – Figure the tax attributable to

C. Enter amount from

qualifying estates), trusts, and S corporations,

the amount on line 14 using the following

form FTB 3801-CR,

should include credits from all passive

worksheet.

line 26 . . . . . . . . . . . . . C ______

activities on line 4a and line 4b.

D. Subtract line C from

A. Taxable income . . . . . . . A______

Line 1, Line 2, Line 3, and Line 4 – If you are

line A . . . . . . . . . . . . . . D ______

B. Tax on line A . . . . . . . . . . . . . . . . . B______

using a different form to report credits from

E. Tax on line D . . . . . . . . . . . . . . . . . E ______

C. Enter amount from

the same activity, keep them separate by listing

F. Subtract line E from line B and

form FTB 3801-CR,

the activity each time for each credit.

enter the result on form

line 14 . . . . . . . . . . . . . C ______

FTB 3801-CR, line 27 . . . . . . . . . . F ______

Line 6 – If form FTB 3801, line 3, shows

D. Subtract line C from

net income or if you did not complete form

line A . . . . . . . . . . . . . . D ______

When using taxable income in the above

FTB 3801 because you had net passive income,

E. Tax on line D . . . . . . . . . . . . . . . . . E ______

computation, it is not necessary to refigure

you will have to figure the tax on the net

F. Subtract line E from line B and

items that are based on a percentage of

passive income. If you have an overall loss

enter the result on form

adjusted gross income.

on an entire disposition of your interest in a

FTB 3801-CR, line 15 . . . . . . . . . . F ______

Part IV

passive activity, reduce net passive income,

When using taxable income in the above

if any, on form FTB 3801, line 3, to the extent

computation, it is not necessary to refigure

Special Allowance for Low-Income Housing

of the loss (but not below zero) and use

items that are based on a percentage of

Credits for Property Placed in Service After

only the remaining net passive income in the

adjusted gross income.

1989

computation on the next page. If you had a net

Line 35 – Figure the tax on the remaining

Part III

passive activity loss, enter -0- on line 6, and go

special allowance as follows:

to line 7.

Special Allowance for Low-Income Housing

A. Taxable income . . . . . . A ______

Figure the tax on net passive income as follows:

Credits for Property Placed in Service

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

A. Taxable income

Before 1990 (or from Pass-Through Interests

C. Enter $75,000 ($37,500

including net

Acquired Before 1990)

if married/RDP filing a separate

passive income . . . . . . A ______

Married/RDP persons filing separate returns

return and you lived

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

who lived together at any time during the year

apart the entire year) . . C ______

C. Taxable income without

are not eligible to complete Part III.

D. Enter amount from

net passive income . . . C ______

form FTB 3801,

In computing the special allowance for rental

D. Tax on line C . . . . . . . . . . . . . . . . .D ______

line 9 . . . . . . . . . . . . . . D ______

real estate activities with active participation,

E. Subtract line D from line B

E. Subtract line D from

the dollar limitation for the low-income

and enter the result on form

line C . . . . . . . . . . . . . . E ______

housing credit is more than the amount

FTB 3801-CR, line 6 . . . . . . . . . . . E ______

F. Subtract line E from

allowed under federal law. The California

When using taxable income in the above

line A . . . . . . . . . . . . . . F ______

limitation is $75,000 ($37,500 if married/RDP

computation, it is not necessary to refigure

G. Tax on line F . . . . . . . . . . . . . . . . .G ______

filing a separate return and you lived apart for

items that are based on a percentage of

the entire year).

H. Subtract line G from line B . . . . . .H ______

adjusted gross income.

I. Enter the sum from form

Line 21 – The special allowance for low-

Line 7 – If line 7 is zero because the tax on

FTB 3801-CR, line 16

income housing credits for property placed

net passive income on line 6 is more than

and line 30 . . . . . . . . . . . . . . . . . . I ______

in service before 1990 (or from pass-through

your credits from passive activities on line 5,

J. Subtract line I from line H. This

interests acquired before 1990) is completely

all of your passive activity credits are allowed.

is the amount of tax attributable

phased out once federal modified adjusted

In this case, enter the amount from line 5 on

to the remaining special allowance.

gross income reaches $350,000 ($175,000

line 37. Report the credits on the related credit

Enter the result on form

if married/RDP filing a separate return and

forms. Do not complete Worksheet 5 through

FTB 3801-CR, line 35 . . . . . . . . . . J ______

you lived apart for the entire year). If you

Worksheet 9.

completed Part II of this form and your federal

When using taxable income in the above

modified adjusted gross income on line 10 was

computation, it is not necessary to refigure

Part II

$200,000 or less ($100,000 or less if married/

items that are based on a percentage of

Special Allowance for Credits from

RDP filing a separate return and you lived apart

adjusted gross income.

Rental Real Estate Activities with Active

for the entire year), enter $75,000 on line 24

Participation

($37,500 if married/RDP filing a separate

return and you lived apart for the entire year).

Line 9 – Married/RDP persons filing separate

returns who lived together at any time during

Line 22 – Enter your federal modified adjusted

the year are not eligible to complete Part II.

gross income from federal Form 8582-CR,

line 22.

Line 10 – Enter your federal modified adjusted

gross income from federal Form 8582-CR,

If you are a military servicemember domiciled

line 10. For RDPs, enter your federal

outside of California, subtract your military

modified adjusted gross income from your

pay from your modified federal adjusted gross

refigured federal Form 8582-CR, line 10. For

income.

S corporations, enter your net income for tax

purposes from Form 100S, line 20.

FTB 3801-CR Instructions 2016 Page 3

Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2016 Page 3

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