Form 3811 - California Donated Fresh Fruits Or Vegetables Credit

Instructions

A taxpayer and spouse/RDP may claim only one credit. If separate

returns are filed, the credit may be taken by either spouse/RDP or

Part I – Information on Donated Fresh Fruits or

divided equally between them. If more than one taxpayer shares in the

expenses eligible for the credit, each taxpayer may claim the credit in

Vegetables

proportion to his or her share of the expenses paid or incurred. In the

Provide the date the products were donated, the type, the quantity, the

case of a partnership, the credit will be divided among the partners

county in which the products originated, and the estimated value/cost

according to the partnership agreement.

of the products.

S corporations may claim only 1/3 of the credit against the 1.5%

When completing the table, if additional space is necessary, use

entity-level tax (3.5% for financial S corporations). The remaining 2/3

additional forms FTB 3811 to report all products being donated and

must be disregarded and may not be used as carryover. S corporations

their respective information.

may pass through 100% of the credit to their shareholders.

If a taxpayer owns an interest in a disregarded business entity [a

Part II – Available Credit

single member limited liability company (SMLLC) not recognized by

Line 1 – Enter the estimated value/cost of the donated fruits or

California, and for tax purposes is treated as a sole proprietorship

vegetables included in inventory costs under IRC Section 263A,

owned by an individual or a branch owned by a corporation], the credit

without regard to the exception for farming businesses.

amount received from the disregarded entity that can be utilized is

limited to the difference between the taxpayer’s regular tax figured

Note: Generally, inventory costs include both the direct costs and the

with the income of the disregarded entity, and the taxpayer’s regular

allocated indirect costs required to produce the fruits or vegetables.

tax figured without the income of the disregarded entity.

Any deduction allowed for these same costs must be reduced by the

amount of credit figured for the current taxable year (the amount

For more information on SMLLC, get Form 568, Limited Liability

shown on line 5).

Company Tax Booklet.

Line 3 – If you received pass-through donated fresh fruits or

This credit cannot reduce the minimum franchise tax (corporations

vegetables credit(s) from S corporations, estates, trusts, partnerships,

and S corporations), annual tax (limited partnerships, limited liability

or LLCs classified as partnerships, add the amounts and enter the

partnerships, and LLCs classified as partnerships), the alternative

total.

minimum tax (corporations, exempt organizations, individuals, and

fiduciaries), the built-in gains tax (S corporations), or the excess net

Line 4 – Enter the carryover amount from the fresh fruits or vegetables

passive income tax (S corporations).

credit from the prior year.

This credit cannot reduce regular tax below tentative minimum tax. Get

Line 6a – Credit claimed

Schedule P (100, 100W, 540, 540NR, or 541), Alternative Minimum

Do not include assigned credits claimed on form FTB 3544A.

Tax and Credit Limitations, for more information.

This amount may be less than the amount on line 5 if your credit

This credit is not refundable.

is limited by your tax liability. For more information, see General

Information D, Limitations and refer to the credit instructions in your

E Assignment of Credits

tax booklet. Use credit code 224 when you claim this credit.

Assigned Credits to Affiliated Corporations – Credit earned by

Line 6b – Total credit assigned

members of a combined reporting group may be assigned to an

Corporations that assign credit to other corporations within combined

affiliated corporation that is a member of the same combined reporting

reporting group must complete form FTB 3544. Enter the total amount

group. A credit assigned may only be claimed by the affiliated

of credit assigned from form FTB 3544, column (g) on this line.

corporation against its tax liability. For more information, get form FTB

3544, Election to Assign Credit Within Combined Reporting Group, or

form FTB 3544A, List of Assigned Credit Received and/or Claimed by

Assignee or go to ftb.ca.gov and search for credit assignment.

F Carryover

If the available credit exceeds the current year tax liability or is limited

by tentative minimum tax, the unused credit may be carried over to

reduce the tax in the following year and for the six succeeding years

or until exhausted, whichever occurs first. Apply the carryover to the

earliest taxable year possible. In no event can the credit be carried

back and applied against a prior year’s tax.

If you have a carryover, retain all records that document this credit

and carryover used in prior years. The FTB may require access to

these records.

Page 2 FTB 3811 Instructions 2015

Form 3811 - California Donated Fresh Fruits Or Vegetables Credit - 2015 Page 2

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