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

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

Line 15 – Figure the tax attributable to

Line 27 – Figure the tax attributable to the

using a different form to report credits from

the amount on line 14 using the following

amount on line 26 as follows:

the same activity, keep them separate by listing

worksheet.

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

the activity each time for each credit.

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

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

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

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

C. Enter the amount

net income or if you did not complete form

C. Enter amount from

from line A above. . . . . C ______

FTB 3801 because you had net passive income,

line A above . . . . . . . . . C ______

D. Enter amount from

you will have to figure the tax on the net

D. Enter amount from

form FTB 3801-CR,

passive income. If you have an overall loss

form FTB 3801-CR,

line 26 . . . . . . . . . . . . . D ______

on an entire disposition of your interest in a

line 14 . . . . . . . . . . . . . D ______

E. Subtract line D from

passive activity, reduce net passive income,

E. Subtract line D from

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

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

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

F. Tax on line E . . . . . . . . . . . . . . . . . F ______

of the loss (but not below zero) and use

F. Tax on line E . . . . . . . . . . . . . . . . . F ______

G. Subtract line F from line B and

only the remaining net passive income in the

G. Subtract line F from line B and

enter the result on form

computation below. If you had a net passive

enter the result on form

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

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

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

When using taxable income in the above

line 7.

When using taxable income in the above

computation, it is not necessary to refigure

Figure the tax on net passive income as

computation, it is not necessary to refigure

items that are based on a percentage of

follows:

items that are based on a percentage of

adjusted gross income.

A. Taxable income

Part IV

including net

Part III

passive income . . . . . . A ______

Special Allowance for Low-Income Housing

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

Special Allowance for Low-Income Housing

Credits for Property Placed in Service After

C. Taxable income without

Credits for Property Placed in Service

1989

net passive income . . . C ______

Before 1990 (or from Pass-Through Interests

Line 35 – Figure the tax on the remaining

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

Acquired Before 1990)

special allowance as follows:

E. Subtract line D from line B

Married/RDP persons filing separate returns

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

and enter the result on form

who lived together at any time during the year

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

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

are not eligible to complete Part III.

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

When using taxable income in the above

In computing the special allowance for rental

if married/RDP filing a separate

computation, it is not necessary to refigure

real estate activities with active participation,

return and you lived

items that are based on a percentage of

the dollar limitation for the low-income

apart the entire year) . . C ______

adjusted gross income.

housing credit is more than the amount

D. Enter amount from

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

allowed under federal law. The California

form FTB 3801,

net passive income on line 6 is more than

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

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

your credits from passive activities on line 5,

filing a separate return and you lived apart for

E. Subtract line D from

all of your passive activity credits are allowed.

the entire year).

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

In this case, enter the amount from line 5 on

F. Subtract line E from

Line 21 – The special allowance for low-

line 37. Report the credits on the related credit

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

income housing credits for property placed

forms. Do not complete Worksheet 5 through

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

in service before 1990 (or from pass-through

Worksheet 9.

interests acquired before 1990) is completely

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

phased out once federal modified adjusted

I. Enter the sum from form

Part II

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

FTB 3801-CR, line 16

Special Allowance for Credits from

if married/RDP filing a separate return and

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

Rental Real Estate Activities with Active

you lived apart for the entire year). If you

J. Subtract line I from line H. This

Participation

completed Part II of this form and your federal

is the amount of tax attributable

modified adjusted gross income on line 10 was

to the remaining special allowance.

Line 9 – Married/RDP persons filing separate

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

Enter the result on form

returns who lived together at any time during

RDP filing a separate return and you lived apart

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

the year are not eligible to complete Part II.

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

When using taxable income in the above

Line 10 – Enter your federal modified adjusted

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

computation, it is not necessary to refigure

gross income from federal Form 8582-CR,

return and you lived apart for the entire year).

items that are based on a percentage of

line 10. For RDPs, enter your federal

Line 22 – Enter your federal modified adjusted

adjusted gross income.

modified adjusted gross income from your

gross income from federal Form 8582-CR,

refigured federal Form 8582-CR, line 10. For

Part V

line 22.

S corporations, enter your net income for tax

purposes from Form 100S, line 21.

If you are a military servicemember domiciled

Passive Activity Credits Allowed

outside of California, subtract your military

Line 37 – If you have only one type of credit,

If you are a military servicemember domiciled

pay from your modified federal adjusted gross

the amount on line 37 is the credit allowed for

outside of California, subtract your military

income.

the year. Enter this amount on the appropriate

pay from your modified federal adjusted gross

credit form. Your unallowed credit would be

income.

line 5 minus line 37.

FTB 3801-CR Instructions 2013 Page 3

Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2013 Page 3

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