Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2013 Page 4
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4If you have more than one type of credit,
Step 3 — Reduce low-income housing credits
If your only passive credits are from PTPs,
or credits from more than one activity, use
for property placed in service before 1990
complete the steps shown in the worksheet in
Worksheet 5 through Worksheet 9 in the
from each PTP, and any low-income housing
the line 35 instructions. Subtract the credits
instructions for federal Form 8582-CR to
credits from each PTP in which you acquired
allowed in Step 5 above from the tax figured
allocate the allowed and unallowed credits.
your interest before 1990 (regardless of the
on line J of that worksheet. The result is the tax
Keep a record of each unallowed amount and
date placed in service) to the extent of the tax
attributable to the $75,000 special allowance
the activity to which it belongs so you can
attributable to net passive income from that
available for the credits in Step 6.
claim the credit if it becomes allowable in a
PTP, which was figured in Step 1.
Step 8 — Low-income housing credits allowed
future year.
Step 4 — Before beginning this step, you
under the $75,000 special allowance for
must complete form FTB 3801-CR if you have
property placed in service after 1989 from a
Credits from Publicly Traded Partnerships
any passive credits that are not from PTPs.
PTP in which you also acquired your interest
(PTPs)
Subtract the sum of form FTB 3801-CR,
after 1989, are the smaller of the total credits
A credit from a passive activity held through
line 16, line 30, and line 36 (if any) from
from Step 6 or the amount figured in Step 7.
a PTP is allowed to the extent of the tax
form FTB 3801-CR, line 27 to figure the tax
If Step 7 is smaller than Step 6, allocate the
attributable to net passive income from that
attributable to the $75,000 special allowance
amount in Step 7 pro rata to the credits from
partnership. In addition, low-income housing
available for the credits in Step 3.
each PTP in Step 6.
credits from rental real estate activities held
through PTPs are allowed to the extent of the
If your only passive credits are from PTPs,
Step 9 — Add Steps 2, 5, and 8. These are the
remaining $75,000 special allowance. Before
credits allowed from passive activities of PTPs.
complete form FTB 3801-CR, line 21 through
the credits may be applied to the $75,000
line 27 as a worksheet. The amount on line 27
Step 10 — Figure the allowed and unallowed
(or less, if applicable) special allowance, the
is the tax attributable to the $75,000 special
credits from each PTP. Report the allowed
special allowance must be reduced by the
allowance available for the credits in Step 3.
credits on the appropriate credit form. Keep
amount used under the passive loss rules and
Step 5 — Low-income housing credits for
a record of the unallowed credits for use in a
the amount used for credits which were not
property placed in service before 1990 by each
future year.
from a PTP.
PTP, and any low-income housing credits from
Part VI
Do not enter credits from PTPs on the
a PTP in which you acquired your interest
worksheets or on form FTB 3801-CR. Instead,
before 1990 (regardless of the date placed in
Election to Increase Basis of Credit Property
use the following steps to compute the allowed
service) allowed under the $75,000 special
Complete Part VI if you disposed of your
and unallowed credits from passive activities
allowance are the smaller of the total credits
entire interest in a passive activity or former
held through PTPs.
from Step 3 or the amount figured in Step 4.
passive activity in a fully taxable transaction
If Step 4 is smaller than Step 3, allocate the
Computation of Passive Activity Credits
and you elect to increase the basis of the credit
amount in Step 4 pro rata to the credits from
Allowed for PTPs
property used in that activity by the unallowed
each PTP in Step 3.
Complete Step 1 and Step 2 only if you have
credit that reduced the property’s basis.
net passive income from a PTP with passive
Complete Step 6 through Step 8 only if you
activity credits.
have low-income housing credits for property
placed in service after 1989 from a PTP in
In the following instructions, the term “credits”
which you also acquired your interest after
includes current year credits and prior year
1989.
unallowed credits.
Step 6 — Reduce low-income housing credits
Step 1 — Figure the tax attributable to net
for property placed in service after 1989 from
passive income from each PTP with passive
a PTP in which you also acquired your interest
activity credits by following the steps shown
after 1989 to the extent of the tax attributable
in the worksheet in the line 6 instructions.
to net passive income from that PTP, which
Complete a separate tax computation for each
was figured in Step 1.
PTP with net passive income.
Step 7 — Before beginning this step, you
Step 2 — Passive activity credits from
must complete form FTB 3801-CR if you
each PTP are allowed to the extent of the
have any passive credits that are not from
tax attributable to net passive income from
PTPs. Subtract the sum of the credits
that same PTP. Credits in excess of the tax
allowed in Step 5 above and line 36 of form
attributable to net passive income may be
FTB 3801-CR from the amount on line 35 of
allowed under one or more steps below.
form FTB 3801-CR to figure the tax attributable
Complete Step 3 through Step 5 only if you
to the $75,000 special allowance available for
have low-income housing credits for property
the credits in Step 6.
placed in service before 1990 from a PTP, or
low-income housing credits from a PTP in
which you acquired your interest before 1990
(regardless of the date placed in service).
Page 4 FTB 3801-CR Instructions 2013
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