Shareholder'S Instructions For Schedule K-1 (100s)

Line 10b – Other income (loss)

Line 13d – Other credits

Line 12b – Investment interest expense

Amounts on this line are other items of income, gain,

If applicable, the S corporation will use this line,

If the S corporation paid or accrued interest on debts

or loss not included on line 1 through line 10a. The

it incurred to buy or hold investment property, the

through an attached schedule, to give you the

S corporation should give you a description of your

information you need to compute credits related to a

amount of interest you can deduct may be limited.

share for each of these items.

trade or business activity.

For more information and the special provisions

Report income or gain items that are passive activity

Credits that may be reported on line 13c or line 13d

that apply to investment interest expense, get form

amounts to you as instructed below. If, in addition to

(depending on the type of activity they relate to)

FTB 3526, Investment Interest Expense Deduction,

this passive activity income or gain, you have passive

include but are not limited to the following:

and federal Publication 550, Investment Income

activity losses from any other source, also report the

and Expenses.

•

EZ hiring & sales or use tax credit (FTB 3805Z).

passive activity income or gain on form FTB 3801.

Enter the amount from column (d) or column (e)

•

LAMBRA hiring & sales or use tax credit

Line 10b items may include the following:

(FTB 3807).

on form FTB 3526 along with your investment

•

TTA hiring credit (FTB 3809).

interest expense from other sources. Form FTB 3526

•

S corporation gains from the disposition of farm

will help you determine how much of your total

•

Research credit (FTB 3523).

recapture property (refer to Schedule D-1) and

•

Manufacturing Enhancement Area (MEA) hiring

investment interest is deductible.

other items to which IRC Section 1252 applies.

credit (FTB 3808).

•

Recovery of bad debts, prior taxes, and

Line 12c 1 – Section 59(e)(2) expenditures

delinquency amounts (IRC Section 111). Report

The pass-through rules of IRC Section 1366, the

Amounts on line 12(c)(1) may not necessarily be

the amount from line 10b, column (c), on

at-risk limitations of IRC Section 465, and the

California source amount. However, enter the same

Schedule CA (540 or 540NR), line 21, whichever

passive activity limitations of IRC Section 469

amount in column (e) as entered in column (d).

column is applicable.

may limit the amount of credits that you may take.

Get the instructions for federal Schedule K-1 (1120S).

•

Gains and losses from gambling,

Credits on line 13d may be passive activity credits to

IRC Section 165(d).

Line 12d – Deductions-portfolio

shareholders who do not materially participate in the

•

Any income, gain, or loss to the S corporation

Amounts entered on this line are the expenses (other

activities of the S corporation.

under IRC Section 751(b) from a partnership.

than investment interest expense and expenses from

Passive activity credits are limited to tax attributable

Report this amount on Schedule D-1, line 10.

a real estate mortgage investment conduit (REMIC))

to passive activities income. If you do not materially

•

Specially allocated ordinary gain (loss)

paid or incurred to produce portfolio income. If you

participate in the activity of the S corporation, get

from a partnership. Report this amount on

have an amount on Schedule K-1 (100S), line 12d,

form FTB 3801-CR, to determine the amount of the

Schedule D-1, line 10.

column (c), enter this amount on the applicable line

credit you may take.

•

Net gain (loss) from involuntary conversions

of Schedule CA (540 or 540NR). However, if any

Line 14 – Total withholding

due to casualty or theft. The S corporation will

of the line 12d amount should not be reported on

Line 14 includes withholding from payments made

give you a schedule that shows the California

Schedule CA (540 or 540NR), the S corporation will

to the S corporation allocated to all shareholders

amounts to be entered on federal Form 4684,

identify that amount for you.

based on their stock ownership, payments

Casualties and Thefts, line 35, column (b)(i),

Line 12e – Other deductions

withheld on nonresident shareholders, and backup

column (b)(ii), and column (c).

Amounts on this line are other deductions not

withholding. S corporation shareholders must attach

•

Net short-term capital gain or loss, net long-

included on line 11, and line 12a through line 12d. If

Form 592-B, Resident and Nonresident Withholding

term capital gain or loss, gain or loss from

there is an amount on Schedule K-1 (100S), line 12e,

Tax Statement, to the front of their California tax

Schedule D (100S) that is not portfolio income

column (c), enter this amount on the applicable line

return to claim the withholding credit. Do not use

(e.g., gain or loss from the disposition of

of Schedule CA (540 or 540NR).

Schedule K-1 (100S) to claim the withholding credit.

nondepreciable personal property used in a trade

or business activity of the S corporation).

Credits

The total withholding credit entered on

•

Any new gain or loss from IRC Section 1256

Schedule K-1 (100S), line 14 should be reported

contracts.

The S corporation must provide the information you

under the Payments Section of Form 540, or Long

•

Gain (loss) from the disposition of an interest in

need to compute a credit allowable on your tax return.

Form 540NR. See instructions for Form 540, or Long

oil, gas, geothermal, or other mineral properties.

Form 540NR for more information.

Line 13a – Low-income housing credit

Your share of the S corporation’s low-income

Deductions

Alternative Minimum Tax (AMT)

housing credit is shown on line 13a, column (d) or

Items

column (e). Any available credit is entered on form

Line 11 – Expense deduction for recovery property

FTB 3521, Low-Income Housing Credit. To claim

The maximum amount of expense deduction for

this credit, attach a copy of form FTB 3521 to your

Line 15a through Line 15e

recovery property (IRC Section 179 deduction)

tax return.

Use the information reported on line 15a through

that you may claim from all sources is $25,000.

line 15e (as well as adjustments and tax preference

The S corporation will give you information on

You may not claim the low-income housing credit

items from other sources) to prepare Schedule P

your share of the cost of the S corporation’s IRC

on any qualified low-income housing project for

(540, 540NR, or 541), Alternative Minimum Tax and

Section 179 property so that you can compute this

which any person was allowed any benefit under

Credit Limitations.

limitation. Your IRC Section 179 deduction is also

Section 502 of the federal Tax Reform Act of 1986.

limited to your taxable income from all your trades or

Also, the passive activity credit limitations of IRC

For more information about the Alternative Minimum

businesses. Get form FTB 3885A, Depreciation and

Section 469 may limit the amount of credit you may

Tax (AMT) items, get the instructions for federal

Amortization Adjustments, federal Publication 534,

claim. Get form FTB 3801-CR, Passive Activity Credit

Schedule K-1 (1120S).

Depreciating Property Placed in Service Before 1987,

Limitations, to figure the amount of credit that may

Items Affecting Shareholder

and federal Publication 946, How to Depreciate

be limited under the passive activity rules.

Property, for more information.

For more information, see the instructions for line 13d.

Basis

If the S corporation reported an Enterprise Zone

Line 13b – Credits related to rental real estate

Amounts on line 16a through line 16e may not

(EZ) or Local Agency Military Base Recovery Area

activities

necessarily be California source amounts. However,

(LAMBRA) business expense deduction on this line

If applicable, the S corporation may use this line,

enter the same amount in column (e) as entered in

from R&TC Sections 17267.2 or 17268, complete

through an attached schedule, to give you the

column (d).

form FTB 3805Z, Enterprise Zone Deduction and

information you need to compute credits related to

Credit Summary or form FTB 3807, Local Agency

Line 16a through Line 16c

rental real estate activities other than the low-income

Military Base Recovery Area Deduction and Credit

Get the instructions for federal Schedule K-1 (1120S).

housing credit.

Summary to report your pro-rata share.

Line 16d – Total property distributions

For more information, see the instructions for line 13d.

Line 12a – Charitable contributions

(including cash)

The S corporation will give you a schedule that

Line 13c – Credits related to other rental activities

Reduce your basis in stock of the S corporation by

shows which contributions were subject to the

If applicable, the S corporation will use this line,

the fair market value of the distributions on line 16d.

50%, 30%, and 20% limitations. Get the federal

through an attached schedule, to give you the

If these distributions exceed your basis in stock, the

instructions for Form 1040, U.S. Individual Income

information you need to compute credits related to

excess is treated as gain from the sale or exchange

Tax Return, for more information.

rental activities other than rental real estate activities.

of property and is reported on Schedule D (540

or 540NR).

If there is an amount on Schedule K-1 (100S),

For more information, see the instructions for

line 12a, column (c), enter this amount on

line 13d.

Schedule CA (540 or 540NR), line 41.

Schedule K-1 (100S) Instructions 2013 Page 3

Shareholder'S Instructions For Schedule K-1 (100s) - 2013 Page 3

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