Instructions For Schedule P (100) - 2013 printable pdf download

Instructions for Schedule P (100)

Alternative Minimum Tax and Credit Limitations — Corporations

References in these instructions are to the Internal Revenue Code (IRC) as of January 1, 2009, and to the California Revenue and Taxation Code (R&TC).

What’s New

to ftb.ca.gov and search for new jobs or get

Use this schedule to calculate AMT and to figure

form FTB 3527, New Jobs Credit. See Form 100

credits that are limited by the TMT or that may

Net Operating Loss (NOL) Carryback – NOLs

Tax Booklet, line 25 specific instructions for

reduce AMT.

incurred in taxable years beginning on or after

information on how to claim the new jobs credit.

See IRC Sections 55 through 59 for more

January 1, 2013, shall be carried back to each of

For taxable years beginning on or after

information on figuring AMT. Note that R&TC

the preceding two taxable years.

July 1, 2008, credit earned by members of a

Sections 23455, 23456, 23457, and 23459

The allowable NOL carryback percentage varies.

combined reporting group may be assigned to

modify IRC Sections 55 through 59.

For an NOL incurred in a taxable year beginning

an affiliated corporation that is a member of the

Who Must File

on or after:

same combined reporting group. A credit assigned

• Corporations should file Schedule P (100)

• January 1, 2013, and before January 1, 2014,

may only be claimed by the affiliated corporation

if the sum of: AMT adjustments, preference

the carryback amount shall not exceed 50% of

against their tax in taxable years beginning on or

items, loss denials, other items as specified

after January 1, 2010. For more information, get

the NOL.

under IRC Section 59, and state net income

• January 1, 2014, and before January 1, 2015,

form FTB 3544, Election to Assign Credit Within

exceeds $40,000.

the carryback amount shall not exceed 75% of

Combined Reporting Group or form FTB 3544A,

• Exempt organizations, other than exempt

the NOL.

List of Assigned Credit Received and/or Claimed

trusts with unrelated business income, should

• January 1, 2015, the carryback amount shall

by Assignee, or go to ftb.ca.gov and search for

file Schedule P (100) if the sum of: AMT

credit assignment.

be 100% of the NOL.

adjustments, preference items, loss denials,

The corporation computes the NOL carryback

California law conforms to federal law regarding:

items specified under IRC Section 59, and

• Large banks’ bad‑debt losses deduction, which

in Part III of form FTB 3805Q, Net Operating

state net unrelated business taxable income

Loss (NOL) Computation and NOL and Disaster

is limited to the actual losses rather than

exceeds $40,000.

Loss Limitations — Corporations. For more

contributions to a reserve for bad debts.

• Exempt trusts should use Schedule P (541),

• The removal of the adjusted current earnings

information, see Revenue and Taxation Code

Alternative Minimum Tax and Credit

(R&TC) Section 24416.20 and get FTB Legal

(ACE) depreciation adjustment.

Limitations — Fiduciaries.

Ruling 2011‑04 (see Situation 3).

• The use of the same depreciation recovery

In addition, if the corporation claims credits that

periods for regular tax and AMT for property

California Motion Picture and Television

are limited by TMT (Part I, line 17) or that reduce

placed in service after December 31, 1998.

Production Credit – For taxable years beginning

the AMT (Part I, line 19), the corporation must file

• The repeal of the installment method AMT

on or after January 1, 2011, the credit can reduce

Schedule P (100).

adjustment for farmers. Farmers are allowed

tax below the tentative minimum tax (TMT) for

Members of a Combined Report. Alternative

to use the installment method of accounting

corporations. For more information, see R&TC

minimum taxable income (AMTI) and ACE are

for purposes of AMT for payments received

Section 23036.

apportioned and allocated to California and to each

in taxable years beginning on or after

Important Information

taxpayer in the same manner as net income for

January 1, 1997, for installment sales related

purposes of regular tax. A separate AMT calculation

to the sale or disposition of farm property

In general, for taxable years beginning on or after

is required for each member of a combined report.

made in taxable years beginning on or after

January 1, 2010, California law conforms to the

January 1, 1988.

Complete a separate Schedule P (100) for each

Internal Revenue Code (IRC) as of January 1,

member included in the combined report. Attach the

• The treatment of merchant marine capital

2009. However, there are continuing differences

Schedule P (100) for each member in the combined

construction account funds as an adjustment

between California and federal law. When

report behind the combined Schedule P (100) for

item for AMT.

California conforms to federal tax law changes,

all members. See instructions for Part I, line 4b,

California law does not conform to federal law

we do not always adopt all of the changes

line 5a, line 5b, line 5e, line 7b, line 9, and line 10.

regarding:

made at the federal level. For more i nformation,

Short Period Tax Return. For a short‑period tax

• The election to claim additional research

go to ftb.ca.gov and search for conformity.

return, use the formula in IRC Section 443(d) to

and minimum tax credits in lieu of claiming

Additional information can be found in FTB

determine the AMTI and AMT.

additional first‑year depreciation of certain

Pub. 1001, Supplemental Guidelines to California

Credit for Prior Year AMT. If the corporation paid

qualified property.

Adjustments, the instructions for California

AMT for 2012 or has a carryover of credit for

• The 15% alternative tax with qualified timber

Schedule CA (540 or 540NR), and the Business

prior year AMT and has no AMT liability for 2013,

gains under IRC Section 1201(b).

Entity tax booklets.

• The elimination of AMT for small businesses.

the corporation may use this credit in 2013 to

The instructions provided with California tax

reduce its regular tax liability. Complete Part III to

These lists are not intended to be all‑inclusive of

forms are a summary of California tax law and are

figure this credit.

the federal and state conformities and differences.

only intended to aid taxpayers in preparing their

For more information, refer to the R&TC.

state income tax returns. We include information

Specific Line Instructions

that is most useful to the greatest number of

General Information

taxpayers in the limited space available. It is

Part I – Tentative Minimum Tax

not possible to include all requirements of the

Unless stated otherwise, the term “corporation”

(TMT) and Alternative Minimum

California R&TC in the tax booklets. Taxpayers

as used in Schedule P (100), Alternative Minimum

should not consider the tax booklets as

Tax (AMT) Computation

Tax and Credit Limitations — Corporations, and

authoritative law.

in these instructions, includes banks, financial

Line 1 – Net income (loss) after state

corporations, partnerships or limited liability

For taxable years beginning on or after January 1,

adjustments

2009, and before January 1, 2014, a new jobs

companies (LLCs) classified as corporations, and

Enter the amount from Form 100, line 18 or

credit in the amount of $3,000 is allowed for a

exempt organizations other than exempt trusts,

Form 109, the lesser of line 1 or line 2. If the

qualified employer for each increase in qualified

but not S corporations.

corporation filed a Schedule R, Apportionment

full‑time employees hired in the current taxable

California tax laws give special treatment to some

and Allocation of Income, with the tax return,

year. If the available credit exceeds the current

types of income and allow special deductions and

enter the amount from Schedule R, line 1c.

year tax liability, the excess credit may be carried

credits for some types of expenses. Corporations

over to reduce the tax in the following year, and

that benefit from these laws may have to pay AMT

succeeding seven years if necessary, until the

in addition to the minimum franchise tax.

credit is exhausted. For more information, go

Schedule P (100) Instructions 2013 Page 1

Instructions For Schedule P (100) - 2013

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