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When to use an NOL carryover

*Corporations that elected to deduct the disaster

If the corporation elected to deduct the 2013

loss in the prior year under IRC Section 165(i),

disaster loss on the 2012 tax return, and the

Use the corporation’s NOLs and disaster losses

the final year to deduct the disaster loss carryover

corporation has an excess amount to be carried

in the order the losses were incurred. There is

was last year. Corporations that did not elect

over to 2013, enter the carryover amount in

no requirement to deduct NOL carryovers before

IRC Section 165(i), the final year to deduct the

Part II, line 2, column (e). Use the Prior Year NOL

disaster loss carryovers.

disaster loss carryover is this year.

instructions for column (a) through column (h)

Line 2 – Prior Year NOLs

except:

**Carryover period and percentage are limited to

Column (a) – Enter the year the loss was incurred.

the NOL rules. No special legislation was enacted.

• In column (a), enter 2013.

Column (b) – If the loss is due to a disaster,

• In column (b), enter the new disaster code.

***Note: The Santa Cruz County Severe

enter the disaster code from the following list.

• In column (d), enter the total disaster loss

Storms (occurred in March 2011) and the Los

If the loss is from a new business or eligible

incurred in 2013.

Angeles and San Bernardino County Severe

small business, enter the SIC Code for the new

Winds (occurred in November 2011) disaster

Part III – NOL carryback

business or eligible small business from the

loss deductions are allowed at 100% and can

Standard Industrial Classification Manual. Do not

be carried over for 20 years. Corporations can

Line 3

enter the code from the PBA Codes chart available

elect to deduct the disaster loss in the prior year

General rule: The 2013 NOL must be carried back

in the 2013 Form 100, Form 100W, or Form 100S

under IRC Section 165(i). Any provision of law

to the second taxable year before the loss year.

Tax Booklets.

that suspends, defers, reduces, or otherwise

Any loss not used in the second preceding taxable

List of events that have been declared disasters:

diminishes the deduction of a NOL does not apply

year is then carried to the first preceding taxable

to a NOL attributable to the Santa Cruz County

year. Any loss not applied in the two preceding

Year

Code Event

Severe Storms occurred in March 2011 and the

years is carried forward.

2011

Los Angeles and San Bernardino

Los Angeles and San Bernardino County Severe

***

County Severe Winds 11/11

Column (b) – If the loss is from a new business

Winds occurred in November 2011. Refer to

2011

Santa Cruz County Severe

or eligible small business, enter the SIC Code for

R&TC Sections 24347.11 and 24347.12 for more

***

Storms 03/11

the new business or eligible small business from

information.

the Standard Industrial Classification Manual.

2011

Mendocino County Tsunami

Column (c) – Enter the type of NOL: General

Wave Surge 03/11

Do not enter the code from the PBA Codes chart

(GEN), New Business (NB), Eligible Small

available in the 2013 Form 100, Form 100W, or

2011

Del Norte and Santa Cruz County

Business (ESB), or Disaster (DIS). For more

Tsunami Wave Surge 03/11

Form 100S Tax Booklets.

information see the table in General Information F,

2011

Severe Winter Storms, Flooding, Debris,

Column (d) – Enter 100% of the initial loss for the

Types of NOLs.

2010

and Mud Flows 12/10 to 01/11

year given in column (a).

2010

San Bruno Explosion

Using Pierce’s disease, or an EDA NOL, get the

Column (e) – Enter 50% of the initial loss shown

2010

Kern County Wildfires

applicable form for the NOL type.

in column (d).

2010

CA Winter Storms 01/10 to 02/10

Column (d) – Enter 100% of the initial loss for the

Column (f) – Enter the amount from line 3,

2009

Los Angeles, Monterey and Placer

year given in column (a).

column (e) or line 1, whichever is less. This is the

County Wildfires

Column (e) – Enter the NOL carryover amount

amount of 2013 NOL carryback used for 2011.

2010

Baja California (Imperial County)

from the 2012 form FTB 3805Q, Part II,

Also enter this amount on the 2011 Form 100X,

Earthquake 2010

column (h).

line 7, and on the amended 2011 tax return:

2010

41 Humboldt County Earthquake

Form 100, line 20; Form 100W, line 20; Form

Column (f) – Enter the smaller of the amount in

2009

40 Santa Barbara Wildfires

100S, line 18; or Form 109, line 7.

column (e) or the amount in column (g) of the

2008

Southern California Wildfires 10/08 to

previous line.

Column (g) – Subtract column (f) from

11/08

column (e).

Column (g) – Enter the result of subtracting

2008

38 Humboldt County Wildfires

column (f) from the balance in column (g) of the

Column (h) – Enter the amount from line 3,

2008

37 California Wildfires 2008

previous line.

column (g) or line 2, whichever is less. This

2007

36 Riverside County Winds

is the amount of 2013 NOL carryback used

Column (h) – Subtract the amount in column (f)

2008

35 Inyo Complex Fire

for 2012. Also enter this amount on the 2012

from the amount in column (e) and enter the

2007

Form 100X, line 7, and on the amended 2012 tax

result.

2007

34 Southern California Wildfires

return: Form 100, line 20; Form 100W, line 20;

Current Year NOLs

2007

Santa Barbara and Ventura County Fires

Form 100S, line 18; or Form 109, line 7.

If a disaster loss occurs between the date of the

2007

El Dorado County Wildfires

Column (i) – Subtract column (h) from

publication and the end of the taxable year, go to

2007

California Severe Freeze 01/07

column (g).

ftb.ca.gov for an updated version of this form,

2006

Riverside and Ventura County Wildfires

which will include information for any subsequent

2006

San Bernardino County Wildfires

disaster loss. Then follow the line 3 instructions.

(continued on Page 4)

2006

Northern California flooding, mudslides,

Line 3 – Current Year Disaster Loss

and landslides (03/06 to 04/06)

If the corporation did not elect to deduct the

2006

Northern California flooding, mudslides,

current year disaster loss in the prior year:

and landslides (12/05 to 01/06)

2005

2004

Shasta County Wildfires

• In column (d), enter your 2013 disaster loss

from Part I, line 2.

2005

Southern California flooding, debris

• In column (f), enter the disaster loss used

flows, and mudslides

2004

in 2013.

2004

San Joaquin Levee Break

• In column (h), enter column (d) less

2003

San Simeon earthquake

column (f).

2003

Southern California fires and other

related casualties

2000

Napa County earthquake

1999

19 Winter Freeze 98/99

1998

El Niño 98 (expired)*

FTB 3805Q Instructions 2013 Page 3

Instructions For Form Ftb 3805q - Net Operating Loss (Nol) Computation And Nol And Disaster Loss Limitations - Corporations - 2013 Page 3

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