Looking for a California Franchise Tax Board Forms And Templates? Download it for free!

Line 2k – Merchant marine capital construction

done by transferring the amount from line 4a

Interest Income. For entities not subject to the

funds

to Schedule R, line 1c. Refigure the Schedule R

minimum franchise tax, interest income included

Amounts deposited in these funds are not

taking into account any AMT adjustments,

in E&P must not exceed the amount of interest

deductible for AMT. Earnings on these funds are

then transfer the refigured net income from

income included for regular tax purposes.

not excludable from gross income for AMT. If the

Schedule R, line 35 to Schedule P (100W), line 4b.

Appropriate adjustments must be made to

corporation deducted these amounts or excluded

For combined reports, each taxpayer’s

limit deductions from ACE for interest expense

them from income for regular tax, add them back

pre‑adjustment AMTI is the sum of (1) that

in accordance with the provisions of R&TC

on line 2k.

corporation’s apportioned share of combined

Sections 24344 and 24425.

Tax Preference Items

business pre‑adjustment AMTI and (2) any

Line 5b – Apportioned ACE

of that corporation’s nonbusiness California

For apportioning taxpayers and members of

Line 3a – Depletion

source pre‑adjustment AMTI. For additional

a combined report, ACE is apportioned and

In the case of mines, wells, and other natural

guidance in making these computations, get FTB

allocated to California in the same manner as net

deposits, enter the amount by which the

Pub. 1061, Guidelines for Corporations Filing a

income for purposes of the regular tax and AMTI

deduction for depletion under IRC Section 611 is

Combined Report.

(FTB Legal Ruling 94‑3). The method described

more than the adjusted basis of the property at

Line 5a – ACE

in the instructions for line 4b may be used to

the end of the corporation’s taxable year. Figure

If this schedule is for a regulated investment

compute the California ACE.

the adjusted basis without regard to the depletion

company or a real estate investment trust, skip

Line 5e – Excess of AMTI increases over AMTI

deduction and figure the excess separately for

this line.

reductions from prior year ACE adjustments

each property.

The ACE is the pre‑adjustment AMTI from line 4a

For combined reports, each taxpayer corporation

California conformed in 1993 to the federal repeal

with additional adjustments. California’s ACE

enters the excess of its prior year accumulated

of the AMT depletion adjustment for independent

adjustment generally follows the federal ACE

positive California ACE adjustments over its

oil and gas producers and royalty owners. Get

adjustment rules in IRC Section 56(g). To compute

prior year accumulated negative California

federal Form 4626 for more information. However,

the California ACE, the federal ACE worksheet

ACE adjustments.

the California depletion costs may continue to be

included in the instructions for the federal

Line 7a – Reduction for disaster loss carryover

different from the federal amounts because of

Form 4626 can be used by taking into account the

deduction

prior differences in law and differences in basis.

modifications of R&TC Sections 23456 (e) and (f),

If a disaster loss carryover is claimed in 2013,

See IRC Section 291(a)(2) for reduction in the

if applicable. For example:

enter the amount on this line.

amount allowable as a deduction in the case of

Taxes. Taxes on, according to, or measured by

Line 7b – AMT net operating loss (NOL)

iron ore and coal.

income are not deductible from earnings and

deduction

Line 3b – Intangible drilling costs

profits (E&P). Foreign taxes on, according to,

NOLs incurred in taxable years beginning on or

If the corporation elected the optional 60‑month

or measured by income are not deductible even

after January 1, 2013, shall be carried back to

write‑off under IRC Section 59(e) for all property

though a foreign tax credit is not taken for federal

each of the preceding two taxable years. For more

in this category, skip this line.

purposes. Environmental taxes imposed by IRC

information, see What’s New section.

Section 59A are not deductible from E&P.

Enter the amount by which excess intangible

Any corporation entitled to a carryback period

drilling costs exceed 65% of net income from oil,

Depreciation and Amortization. For property

pursuant to IRC Section 172(b)(3) may elect to

gas, and geothermal properties.

placed in service on or after January 1, 1987,

relinquish/waive the entire carryback period with

and before January 1, 1990, the amount

Figure excess intangible drilling costs as follows:

respect to an NOL incurred in the 2013 taxable

allowable as depreciation or amortization

From the intangible drilling and development

year. By making the election, the corporation

must be determined by using the state AMTI

costs allowable under IRC Section 263(c) or

is electing to carry an NOL forward instead of

depreciable basis as of the close of the taxable

291(b) (except costs in drilling a nonproductive

carrying it back in the previous two years. An

year beginning before January 1, 1990, and

well), subtract the amount that would have been

election under IRC Section 172(b)(3) to forgo

applying IRC Section 168(g). For property placed

allowable if these costs had been capitalized and

the carryback period for the regular tax also

in service in taxable years beginning on or after

either amortized over 120 months starting when

applies for the AMT. Get form FTB 3805Q for

January 1, 1990, and before January 1, 1998,

production began or treated according to an

more information.

use the ADS described in IRC Section 168(g).

election made under IRC Section 57(b)(2).

The AMT NOL is the NOL determined for regular

For property placed in service in taxable years

Net income from oil, gas, and geothermal properties

tax except for the following:

beginning on or after January 1, 1998, the ACE

is gross income from them, minus the deductions

1. For any taxable year beginning before 1988,

depreciation is the same as the AMT depreciation.

allocable to them, except for excess intangible

Therefore, no ACE depreciation adjustment is

reduce the NOL amount by any preference

drilling costs and nonproductive well costs.

items attributable to the deferred tax that has

necessary for those assets.

Figure the line 3b amount separately for oil

not been paid.

Dividends. Dividends deductible for regular

and gas properties that are not geothermal

2. In the case of a loss year beginning after

California tax purposes are deductible from E&P.

deposits and for oil and gas properties that are

1987, the NOL determined for regular tax for

The provision of IRC Section 56(g)(4)(C)(ii), for

geothermal deposits.

such year must be:

100% dividend, does not apply.

(a) Reduced by the positive AMT adjustments

California conformed in 1993 to the limited federal

The provisions of IRC Sections 56(g)(4)(C)(iii)

and increased by the negative AMT

repeal of intangible drilling costs preferences for

and (iv), for dividends from IRC Section 936

adjustments.

independent producers. California now conforms

companies and certain dividends received by

(b) Reduced by the tax preference items (but

to the limit on the benefit of the exclusion of

only to the extent they increased the NOL

certain cooperatives, do not apply.

the preference for intangible drilling costs of

as determined for regular tax).

40% of AMTI. See the instructions for federal

Certain Amortization Provisions. IRC

3. Reduce the AMT NOL by any expired losses.

Form 4626. Also, note that the intangible drilling

Section 56(g)(4)(D)(ii) was modified to specify that

4. The AMT NOL may not offset more than 90%

costs amounts may differ from federal amounts

circulation expenditures under IRC Section 173

of the AMTI, Part I, line 6. Enter on line 7b the

because of prior differences in the law.

(R&TC Section 24364) and organizational

smaller of the AMT NOL or 90% of the amount

expenditures under IRC Section 248 (R&TC

Line 4b – Apportioned pre-adjustment AMTI

on line 6.

Section 24407) do not apply to expenditures paid

For taxpayers required to apportion their income,

or incurred in taxable years beginning on or after

pre‑adjustment AMTI is apportioned and allocated

January 1, 1990, for E&P calculations.

to California in the same manner as net income

for purposes of the regular tax. This may be

Form 100W Booklet 2013 Page 33

Instructions For Schedule P (100w) - Alternative Minimum Tax And Credit Limitations-Water'S-Edge Filers - 2013 Page 3

Related Articles

Related forms

Related Categories