Form 3523 - California Research Credit - 2014 (Page 8 of 8) in pdf

Part III – Credit Allocation and Carryover Per

All pass‑through credit carryovers will be subject to the IRC

Section 41(g) limitation in each subsequent year.

Entity for Combined Report Filers

Line 44

Complete this part for taxpayers with multiple members in a combined

If any part of the amount on line 41 is from a passive activity, complete

return with Research Credits.

form FTB 3801‑CR, Passive Activity Credit Limitations, or form FTB 3802,

In some cases, the total credit as seen in column (e) and the total

Corporate Passive Activity Loss and Credit Limitations, to determine your

credit carryover in column (h) may not match the amounts on line 46

allowable credit. Complete form FTB 3801‑CR or form FTB 3802 (using

and line 49 if the amounts on these lines include the credit related to a

California amounts) before completing the rest of this form.

member of the Controlled Group that is not part of the combined report.

Line 45

Credit Generated and/or Assigned Per Entity

Enter any prior year research credit carryover from non-passive

Column (b) – Enter the corporate number for each entity generating,

activities only. Any prior year research credit carryover from passive

claiming, or assigning the Research Credits.

activities should have been included in the computation of allowable

credits from passive activities (form FTB 3801‑CR or form FTB 3802) on

Column (c) – Enter the total credit generated per taxpayer.

line 44.

Column (d) – Enter the amount of generated credit carryover from prior

Individuals, shareholders, beneficiaries, partners, and members:

years. Do not include any assigned credit.

If the non‑passive research credit carryover was generated from a

Column (f) – Enter the amount of generated credit claimed against tax

pass‑through entity, apply the IRC Section 41(g) limitation to the

for each entity. This does not include any credits reported or claimed on

credit carryover before entering the allowable carryover on line 45.

form 3544A.

See the instructions for line 40 above on how to compute the IRC

Column (g) – Enter the total credit assigned to other corporations within

Section41(g) limitation.

the combined reporting group as reported on form 3544. Also, enter the

total of this amount on line 48.

Part II – Carryover Computation

Note: Per R&TC 23663 credits assigned to a particular entity cannot

Complete Part II to compute the amount of credit carryover for a future

be reassigned.

year. Combined Report filers complete Part III before completing Part II.

Line 47

Enter the amount of credit on your current year tax return. Do not

include any assigned credits claimed from form FTB 3544A. The amount

of this credit claimed on your tax return may be limited further. See

General Information C, Limitations. Also refer to the credit instructions

in your tax booklet for more information. Use credit code 183 to claim

this credit.

Line 48

Total credit amount assigned in the current year to other corporations

within the combined reporting group. This is the total amount of

column (g), Part III and the amount on form FTB 3544. Taxpayers

assigning this credit must make the irrevocable election on

form FTB 3544. See form FTB 3544 for more information on

assigning credits.

Line 49

Enter the credit carryover that is available for use or assignment for

future years. This is the amount of credit that should be reported on

line 45 of the subsequent year form FTB 3523.

FTB 3523 Instructions 2014 Page 5

Form 3523 - California Research Credit - 2014 Page 8

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