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2011 100 Booklet -- Corporation Tax Booklet - California Franchise

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2011 100 Booklet -- Corporation Tax Booklet - California Franchise Powered By Docstoc
					                                                                            California
                                                                                Forms & Instructions


                                                                                     100
                                                                                                      2011
                                                                                       Corporation Tax Booklet




                                                                               Members of the Franchise Tax Board
                                                                                                John Chiang, Chair
                                                                                         Jerome E. Horton, Member
                                                                                        Ana J. Matosantos, Member




                                                                      This booklet contains:
                                                                      Form 100, California Corporation
                                                                      Franchise or Income Tax Return
                                                                      Schedule H (100), Dividend Income
                                                                      Deduction
                                                                      Schedule P (100), Alternative Minimum
                                                                      Tax and Credit Limitations — Corporations
                                                                      FTB 3539, Payment for Automatic
                                                                      Extension for Corps and Exempt Orgs
                                                                      FTB 3565, Small Business Stock
                                                                      Questionnaire
                                                                      FTB 3805Q, Net Operating Loss (NOL)
For more information regarding business e-file, see page 2 or go to   Computation and NOL and Disaster Loss
ftb.ca.gov and search for business efile.                             Limitations — Corporations
                                                                      FTB 3885, Corporation Depreciation and
                                                                      Amortization




                                                                                State of California
                                                                                Franchise Tax Board
Table of Contents

Instructions for Form 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Form 100, California Corporation Franchise or Income Tax Return. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Credit Chart. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22
Schedule H (100), Dividend Income Deduction. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Instructions for Schedule H (100) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Schedule P (100), Alternative Minimum Tax and Credit Limitations — Corporations . . . . . . . . . . . . . . . . . . . . 25
Instructions for Schedule P (100) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
FTB 3539, Payment for Automatic Extension for Corps and Exempt Orgs . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Instructions for form FTB 3539 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
FTB 3565, Small Business Stock Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Instructions for form FTB 3565 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
FTB 3805Q, Net Operating Loss (NOL) Computation and NOL and
  Disaster Loss Limitations — Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Instructions for form FTB 3805Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38
FTB 3885, Corporation Depreciation and Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Instructions for form FTB 3885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Principal Business Activity Codes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44



                                Business e-file
                                Business e-file is available for the following returns:

                                • Form 100, California Corporation Franchise or Income Tax
                                  Return, including combined reports.
                                • Form 100W, California Corporation Franchise or Income Tax
                                  Return – Water’s-Edge Filers, including combined reports.
                                • Form 100S, California S Corporation Franchise or Income Tax
                                  Return.
                                • Form 100X, Amended Corporation Franchise or Income Tax
                                  Return for taxable years beginning on or after January 1, 2010.
                                • Form 199, California Exempt Organization Annual Information
                                  Return.
                                • Form 565, Partnership Return of Income.
                                • Form 568, Limited Liability Company Return of Income.

                                For more information, go to ftb.ca.gov and search for business
                                efile.



         The federal Small Business Health Care Tax Credit helps small businesses and small tax-exempt
         organizations afford the cost of covering their employees. For more information on this federal tax credit,
         go to irs.gov and search for affordable care act tax provisions.


Page      Form 100 Booklet 2011
Instructions for Form 100
California Corporation Franchise or Income Tax Return
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).

In general, for taxable years beginning on or after       January 1, 2012, and before January 1, 2017.              Market Assignment – For taxable years
January 1, 2010, California law conforms to the           Single-Sales Factor Formula – For taxable                 beginning on or after January 1, 2011, R&TC
Internal Revenue Code (IRC) as of January 1,              years beginning on or after January 1, 2011,              Section 25136(b) requires a taxpayer to assign
2009. However, there are continuing differences           any apportioning trade or business, other than            sales, other than sales of tangible personal
between California and federal law. When California       an apportioning trade or business under R&TC              property, based on market rather than costs of
conforms to federal tax law changes, we do not            Section 25128(b), may make an irrevocable                 performance when a single-sales factor formula
always adopt all of the changes made at the federal       annual election on an original timely filed return        election has been made.
level. For more information, go to ftb.ca.gov and         to apportion California business income using the         For more information regarding the Finnigan Rule
search for conformity. Additional information             single-sales factor formula. For more information,        or Market Assignment of Sales, get Schedule R or
can be found in FTB Pub. 1001, Supplemental               get Schedule R, Apportionment and Allocation of           go to ftb.ca.gov and search for law changes.
Guidelines to California Adjustments, the                 Income.
instructions for California Schedule CA (540 or                                                                     Benefit Corporation – Beginning on or after
540NR), and the Business Entity tax booklets.             Doing Business – For taxable years beginning              January 1, 2012, a new type of corporation
                                                          on or after January 1, 2011, a taxpayer is doing          called a “benefit corporation” can be formed
The instructions provided with California tax             business if it actively engages in any transaction        with the purpose of creating general public
forms are a summary of California tax law and are         for the purpose of financial or pecuniary gain            benefit, provided certain requirements are met.
only intended to aid taxpayers in preparing their         or profit in California or if any of the following        An existing corporation can become a “benefit
state income tax returns. We include information          conditions is satisfied:                                  corporation”, if certain procedures are followed.
that is most useful to the greatest number of                                                                       In addition, a “benefit corporation” can be created
taxpayers in the limited space available. It is           • The taxpayer is organized or commercially
                                                              domiciled in California.                              through a merger or reorganization, if certain
not possible to include all requirements of the                                                                     requirements are met. (For more information,
California Revenue and Taxation Code (R&TC) in            • The sales, as defined in R&TC Section 25120(e)
                                                              or (f), of the taxpayer in California, including      see the Corporations Code, commencing with
the tax booklets. Taxpayers should not consider                                                                     section 14600.)
the tax booklets as authoritative law.                        sales by the taxpayer’s agents and independent
                                                              contractors, exceed the lesser of $500,000 or         Flexible Purpose Corporation – Beginning on or
What’s New/Tax Law Changes                                    25% of the taxpayer’s total sales.                    after January 1, 2012, a new type of corporation
                                                          • The real property and tangible personal                 called a “flexible purpose corporation” can be
e-filing – The Franchise Tax Board (FTB) offers
                                                              property of the taxpayer in California exceed         formed, provided certain requirements are met.
e-filing for exempt homeowners associations and
                                                              the lesser of $50,000 or 25% of the taxpayer’s        An existing corporation can merge or convert into
exempt political organizations filing Form 100,
                                                              total real property and tangible personal             a “flexible purpose corporation”, upon completion
California Corporation Franchise or Income Tax
                                                              property.                                             of certain requirements. A “flexible purpose
Return, for taxable years beginning on or after
                                                          • The amount paid in California by the taxpayer           corporation” must have a special purpose which
January 1, 2011.
                                                              for compensation, as defined in R&TC                  may include but is not limited to, charitable and
Beginning mid-July 2012, the FTB will offer                   Section 25120(c), exceeds the lesser of               public purpose activities that could be carried out
e-filing for exempt organizations filing Form 199,            $50,000 or 25% of the total compensation              by a nonprofit public benefit corporation. (For
California Exempt Organization Annual Information             paid by the taxpayer.                                 more information, see the Corporations Code,
Return, for taxable years beginning on or after                                                                     commencing with section 2500.)
                                                          In determining the amount of the taxpayer’s
January 1, 2011. Check with the software
                                                          sales, property, and payroll for doing business           Conformity – For updates regarding the federal
providers to see if they support business e-filing.
                                                          purposes, include the taxpayer’s pro rata share of        acts, go to ftb.ca.gov and search for conformity.
MyFTB Account – Corporations can use MyFTB                amounts from partnerships and S corporations.
Account for Businesses to view the estimated tax
                                                          For more information, see R&TC Section 23101
                                                                                                                    Important Information
payments online. Go to ftb.ca.gov and search                                                                        • The FTB offers e-filing for corporations filing
                                                          or go to ftb.ca.gov and search for law changes.
for myftb account. Corporations can also make                                                                         Form 100 including combined reports and
payments online using Web Pay for Businesses.             Gross Receipts – For taxable years beginning on             certain accompanying forms and schedules.
The FTB does not charge for this service. Go to           or after January 1, 2011, R&TC Section 25120                Check with the software providers to see if
ftb.ca.gov and search for web pay.                        was amended to add the definition of gross                  they support business e-filing.
                                                          receipts.                                                 • The FTB offers e-filing for corporations filing
California Motion Picture and Television
Production – For taxable years beginning on or            “Gross receipts” means the gross amounts                    Form 100X, Amended Corporation Franchise
after January 1, 2011, a California motion picture        realized (the sum of money and the fair market              or Income Tax Return, for taxable years
and television production credit will be allowed          value of other property or services received) on:           beginning on or after January 1, 2010.
to a qualified taxpayer. The credit is allocated and      • The sale or exchange of property,                       • For taxable years beginning on or after
certified by the California Film Commission (CFC).        • The performance of services, or                           January 1, 2010, the Internal Revenue
The qualified taxpayer can:                               • The use of property or capital (including                 Service (IRS) requires certain corporations
• Offset the credit against income tax liability.             rents, royalties, interest, and dividends) in a         to file Schedule UTP (Form 1120), Uncertain
• Sell the credit to an unrelated party                       transaction that produces business income, in           Tax Position Statement, with their income
     (independent films only).                                which the income, gain, or loss is recognized           tax returns. For California purposes, if a
• Assign the credit to an affiliated corporation.             (or would be recognized if the transaction              corporation is required to file the Schedule
• Apply the credit against qualified sales and                were in the United States) under the IRC.               UTP (Form 1120) with the federal tax return,
     use taxes.                                                                                                       the corporation must attach a copy of the
                                                          Amounts realized on the sale or exchange of                 federal Schedule UTP (Form 1120) to the
For more information, get form FTB 3541,                  property shall not be reduced by the cost of                California tax return.
California Motion Picture and Television Production       goods sold or the basis of property sold.                 • For taxable years beginning on or after
Credit, form FTB 3551, Sale of Credit Attributable        For a complete definition of “gross receipts,”              January 1, 2010, and before January 1, 2018,
to an Independent Film, or go to ftb.ca.gov and           refer to R&TC Section 25120(f) or go to                     a corporation that is a small business solely
search for film.                                          ftb.ca.gov and search for law changes.                      owned by a deployed member of the United
Community Development Financial Institutions              Finnigan Rule – For taxable years beginning on              States Armed Forces shall not be subject
Investment Credit – The Community Development             or after January 1, 2011, R&TC Section 25135(b)             to the minimum franchise tax if the owner
Financial Institutions Investment Credit has been         adopts the Finnigan rule in assigning sales from            is deployed during the taxable year and the
extended for taxable years beginning on or after          tangible personal property.                                 corporation operates at a loss or ceases

                                                                                                                               Form 100 Booklet 2011 Page 
    operation. For more information, see General           amount of $3,000 is allowed for a qualified             Question R on Form 100, Side 2. Get form
    Information C, Minimum Franchise Tax.                  employer for each increase in qualified                 FTB 3726 for more information.
•   Corporations with total assets of $10 million          full-time employee hired in the current taxable     • For taxable years beginning on or after
    or more must complete the California                   year. For more information, go to                       January 1, 2003, corporate shareholders of
    Schedule M-1, Reconciliation of Income                 ftb.ca.gov and search for new jobs or get               a Regulated Investment Company (RIC) are
    (Loss) per Books With Income (Loss) per                form FTB 3527, New Jobs Credit.                         explicitly denied a dividend deduction for
    Return, and attach a copy of the federal           •   For taxable years beginning on or after                 earnings from the RIC that are not from stock
    Schedule M-3 (Form 1120), Net Income (Loss)            July 1, 2008, credit earned by members of a             dividends.
    Reconciliation for Corporations With Total             combined reporting group may be assigned            • R&TC Sections 17024.5 and 23051.5 have
    Assets of $10 Million or More, and/or federal          to an affiliated corporation that is a member           been amended to clarify that, unless otherwise
    Schedule M-3 (Form 1120-F), Net Income                 of the same combined reporting group. A                 expressly allowed, federal elections made
    (Loss) Reconciliation for Foreign Corporations         credit assigned may only be claimed by the              before a taxpayer becomes a California taxpayer
    with Reportable Assets of $10 Million or More.         affiliated corporation against its tax in taxable       are binding for California tax purposes.
    For more information, see Schedule M-1                 years beginning on or after January 1, 2010.        • Beginning on or after January 1, 2010,
    instructions, included in this booklet.                For more information, get form FTB 3544,                with certain limited exceptions, payers that
•   If the corporation made purchases from out-            Election to Assign Credit Within Combined               are required to withhold and remit backup
    of-state or Internet sellers and owes California       Reporting Group, or form FTB 3544A, List of             withholding to the IRS are also required to
    use tax, the corporation may report and pay            Assigned Credit Received and/or Claimed by              withhold and remit to the FTB. The California
    the tax on the California Franchise or Income          Assignee, or go to ftb.ca.gov and search for            backup withholding rate is 7% of the payment.
    Tax Return. See General Information Y,                 credit assignment.                                      For California purposes, dividends, interests,
    California Use Tax, for more information.          •   For taxable years beginning on or after                 and any financial institutions release of loan
•   If the corporation was involved in a reportable        January 1, 2009:                                        funds made in the normal course of business
    transaction, including a listed transaction,           • Group nonresident returns may include                 are exempt from backup withholding.
    the corporation may have a disclosure                       less than two nonresident individuals.             If the corporation (payee) has backup
    requirement. Attach federal Form 8886,                 • Nonresident individuals with more than                withholding, the corporation (payee) must
    Reportable Transaction Disclosure Statement,                $1 million of California taxable income            contact the FTB to provide a valid Taxpayer
    to the back of the California return along                  are eligible to be included in group               Identification Number, which is either the
    with any other supporting schedules. If this                nonresident returns.                               California corporation number or the federal
    is the first time the reportable transaction is        • An additional one percent tax will be                 employer identification number (FEIN), before
    disclosed on the return, send a duplicate copy              assessed on nonresident individuals who            filing the tax return. Failure to provide the
    of federal Form 8886 to the address below.                  would have California taxable income over          California corporation number or FEIN may
         TAX SHELTER FILING                                     $1 million.                                        result in a denial of the backup withholding
         ATSU 398 MS F385                                  Get FTB Pub. 1067, Guidelines for Filing a              credit. For more information, go to ftb.ca.gov
         FRANCHISE TAX BOARD                               Group Form 540NR, for more information.                 and search for backup withholding.
         PO BOX 1673                                   •   In general, water’s-edge rules provide for an       • For installment sales occurring on or after
         SACRAMENTO CA 95812-9900                          election out of worldwide combined reporting.           January 1, 2009, buyers will be required to
    The FTB may impose penalties if the                    By electing water’s-edge, a California taxpayer         withhold on each installment sale payment
    corporation fails to file federal Form 8886,           elects into a complex blend of state and                if the sale of California real property is
    Form 8918, Material Advisor Disclosure                 federal tax concepts. Under water’s-edge,               structured as an installment sale.
    Statement, or any other required information.          combined reporting is limited to certain            • For transactions occurring on or after
    A material advisor is required to provide a            corporations whose income is subject to tax             January 1, 2007, that require withholding, a
    reportable transaction number to all taxpayers         (directly or indirectly) by the United States           seller of California real estate may elect an
    and material advisors for whom the material            government. California taxpayers wishing to             alternative to withholding 3 1/3% of the total
    advisor acts as a material advisor.                    elect water’s-edge should get the Form 100W,            sales price. The seller may elect an alternative
    For more information, go to ftb.ca.gov and             Corporation Tax Booklet, Water’s-Edge Filers,           withholding amount based on the maximum
    search for tax shelter.                                for more information.                                   tax rate for individuals, corporations, or banks
                                                       •   An S corporation is a hybrid business entity.           and financial corporations, as applied to the
•   For taxable years beginning on or after                It is a separate legal entity and generally             gain on the sale. The seller is required to
    January 1, 2007, interest and dividends                offers liability protection to its owners               certify under penalty of perjury the alternative
    from intangible assets held in connection              (shareholders). An S corporation must                   withholding amount to the FTB. Get FTB
    with a treasury function of the taxpayer’s             elect to be treated as an S corporation. The            Pub. 1016, Real Estate Withholding Guidelines,
    unitary business, as well as the gross                 S corporation pays a reduced tax rate of 1.5%           for more information.
    receipts and any overall net gain from                 on its net income. The profits and losses           • R&TC Section 18662 requires buyers to
    the maturity, redemption, sale, exchange,              from the S corporation pass-through to each             withhold income taxes when purchasing
    or other disposition of these assets, are              shareholder through the Schedule K-1 (100S),            California real property from corporate sellers
    excluded from the sales factor. This exclusion         Shareholder’s Share of Income, Deductions,              with no permanent place of business in
    encompasses the use of futures contracts and           Credits, etc., and each shareholder is                  California immediately after the transfer. For
    options contracts to hedge foreign currency            responsible for paying taxes on the                     more information, get FTB Pub. 1016.
    fluctuations. See Cal. Code Regs., tit. 18             distributive share. California taxpayers wishing
    section 25137(c)(1)(D) for more information.                                                                   Sellers of California real estate must attach a
                                                           to elect to be treated as an S corporation              copy of Form 593, Real Estate Withholding
    For taxable years beginning on or after                should get the Form 100S, S Corporation Tax
    January 1, 2011, see R&TC Section 25120(f).                                                                    Tax Statement, to their tax return as proof of
                                                           Booklet, for more information.                          withholding.
•   For taxable years beginning on or after            •   Use form FTB 3725, Assets Transferred from
    January 1, 2008, transactions and activities           Parent Corporation to Insurance Company                 If the corporation needs to verify withholding
    performed on behalf of a taxpayer by an agent          Subsidiary, to report assets transferred from           payments, the corporation may call
    or an independent contractor are included in           a parent corporation to an insurance company            Withholding Services and Compliance at
    the cost of performance analysis to determine          subsidiary. Get form FTB 3725 for more                  916.845.4900 or 888.792.4900.
    the state to which receipts from sales, other          information.                                        California law conforms to federal law for the
    than sales of tangible personal property,          •   Use form FTB 3726, Deferred Intercompany            following:
    should be assigned. See Cal. Code Regs., tit.          Stock Account (DISA) and Capital Gains
    18 section 25136 for more information.                                                                     • The IRC Section 1245(b)(8) relating to
                                                           Information, to meet the annual disclosure              amortizable Section 197 intangibles property
•   For taxable years beginning on or after                requirements of the combined reporting group
    January 1, 2009, a new jobs credit in the                                                                      disposed on or after January 1, 2010.
                                                           of each DISA balance. Make sure to answer

Page       Form 100 Booklet 2011
• The federal grant tax treatment for specified        • The changes in the percentage of the gain            with the federal return, must attach a copy(ies)
    energy property.                                       exclusion for the sale of qualified small          to the California return. The penalty for failing to
• The useful life of motor sports entertainment            business stock acquired after February 17,         include a copy of federal Form(s) 5471 as required
    complex.                                               2009, and before January 1, 2011.                  is $1,000 per form. See General Information M,
• For taxable years beginning on or after              • The IRS Notice 2008-83 relating to                   Penalties, for more information.
    January 1, 2005, corporations may elect to             the treatment of deductions under IRC              Records Maintenance Requirements
    expense, under IRC Section 179, part or all            Section 382(h) following an ownership change.      Any taxpayer subject to the apportionment and
    of the cost of certain properties placed in        • The 50% bonus depreciation deduction [IRC            allocation provisions of the Corporation Tax Law
    service during the taxable year and used in the        Section 168(k)] for assets acquired and placed     is required to keep and maintain records and
    trade or business. For more information, see           in service during 2008 through 2010, and           make the following available upon request:
    form FTB 3885, Corporation Depreciation and            during 2011 for certain qualifying property.
    Amortization, included in this booklet.            • The decreased estimated tax payments for             • Any records needed to determine the correct
• Large banks’ bad-debt losses deduction, which            certain small businesses.                              treatment of items reported on the combined
    are limited to the actual losses rather than       • The treatment of the loss from the sale or               report for purposes of determining the income
    contributions to a reserve for bad debts.              exchange of certain preferred stock (of Fannie         attributable to California.
• AMT treatment of contributions of appreciated            Mae or Freddie Mac).                               • Any records needed to determine the treatment
    property.                                          • The additional first-year depreciation of certain        of items as nonbusiness or business income.
• Disallowing the deduction for club                       qualified property placed in service after         • Any records needed to determine the
    membership fees and employee remuneration              October 3, 2008, and the election to claim             apportionment factors.
    in excess of $1 million.                               additional research and minimum tax credits        See R&TC Section 19141.6 and the related
• Disallowing of the deduction for lobbying                in lieu of claiming the bonus depreciation.        regulations, for more information. A corporation
    expenses.                                          • Energy efficient commercial buildings                may be required to authorize an agent, through a
• For purposes of inventory accounting, an                 deduction.                                         Power of Attorney (POA), to act on its behalf in
    adjustment for shrinkage, based on an              • Reduce the compensation deduction                    response to requests for information or records
    estimate, may be made. Taxpayers can                   for certain employers from $1 million to           pursuant to R&TC Section 19504. For more
    voluntarily change their method of accounting          $500,000; and makes certain parachute              information, go to ftb.ca.gov and search for poa.
    if the method currently being used does not            payments nondeductible.                            The penalty for not maintaining the above required
    utilize estimates of inventory shrinkage and       • The percentage depletion deduction, which            records is $10,000 for each taxable year for
    the taxpayer now wishes to use that method.            may not exceed 65% of the taxpayer’s taxable       which the failure applies. In addition, if the failure
• Timeshare associations may qualify for                   income, is restricted to 100% of the net income    continues for more than 90 days after the FTB
    tax-exempt status like other homeowners’               derived from the oil or gas well property.         notifies the corporation of the failure, a penalty
    associations.                                      • Exclusion from gross income of certain               of $10,000 may be assessed for each additional
• Required recognition of gain on certain                  federal subsidies for prescription drug plans      30-day period of continued failure. See General
    appreciated financial positions in personal            under IRC Section 139A.                            Information M, Penalties, for more information.
    property.                                          • Certain environmental remediation
• Allows securities traders and commodities                expenditures that would otherwise be               Small Business Stock Questionnaire
    traders and dealers to elect to use mark-to-           chargeable to capital accounts may be              An information questionnaire, form FTB 3565,
    market accounting similar to what is currently         expensed and taken as a deduction in the year      Small Business Stock Questionnaire, is included in
    required for securities dealers. Commodities           the expense was paid or incurred.                  this booklet. The purpose of this questionnaire is to
    would include only commodities of a kind that      • Deduction for corporate donation of scientific       provide information regarding an issuance of stock
    are dealt with in the organized commodities            property and computer technology.                  pursuant to R&TC Section 18152.5. Corporations
    exchange. An election to use the mark-             • Decreased capital gains tax rate.                    that issue stock intended to be qualified small
    to-market method for federal purposes is           • Exemption from AMT for small corporations.           business stock are required to attach form
    considered an election for state purposes and a    • The treatment of Subpart F and IRC                   FTB 3565 to Form 100. See the instructions for
    separate election is not allowed.                      Section 936 income.                                form FTB 3565 for more information.
• Limitation on exception for investment               • The IRC passive activity loss rules for real         Publicly Traded Partnerships
    companies under IRC Section 351.                       estate activities.                                 California publicly traded partnerships that are not
• Expansion of deduction for certain interest          The above lists are not intended to be all-inclusive   eligible to make the special federal election under
    and premiums paid for company-owned life           of the federal and state conformities and              IRC Section 7704(g)(2), and that do not qualify
    insurance.                                         differences. For more information, refer to the        for the exception for partnerships with passive-
• Modification of holding period applicable to         R&TC.                                                  type income under IRC Section 7704(c), must file
    dividends received deduction.                                                                             Form 100 for taxable years beginning on or after
• Repeal of special installment sales rule for         California Taxpayers that are %                      January 1, 1998. A federal election under IRC
    manufacturers of tangible personal property.       Foreign-Owned U.S. Corporations and Foreign            Section 7704(g)(2) is considered an election for
• Payment of estimated tax for closely held real       Corporations                                           state purposes. A separate election is not allowed.
    estate investment trusts (REITs) and income        Corporations that are required to file federal
                                                       Form(s) 5472, Information Return of a 25%              Financial Asset Securitization Investment Trusts
    and services provided by REIT subsidiaries.                                                               (FASITs)
                                                       Foreign-Owned U.S. Corporation or a Foreign
California law does not conform to federal law         Corporation Engaged in a U.S. Trade or Business,       The provisions of the IRC relating to FASITs
for the following:                                     with the federal return must attach a copy(ies)        apply for California with certain modifications.
• The enhanced IRC Section 179 expensing               to the California return. The penalty for failing to   The FASIT is subject to the $800 minimum
    election for assets placed in service in 2010 or   include Form(s) 5472 as required is $10,000 per        franchise tax. A separate Form 100 should be
    2011 taxable year.                                 form. See General Information M, Penalties, for        filed to report the $800 minimum franchise
• The first-year depreciation deduction allowed        more information.                                      tax. Write “FASIT” in red in the top margin of
    for new luxury autos or certain passenger                                                                 the return. If a corporation holds an ownership
                                                       Information Return for U.S. Taxpayers Who              interest in a FASIT, it should report all the items
    automobiles acquired and placed in service in      Have Ownership (Directly or Indirectly) in a
    2010.                                                                                                     of income, gains, deductions, losses, and credits
                                                       Foreign Corporation                                    on the corporation’s return and attach a schedule
• The domestic production activities deduction.        For taxable years beginning on or after
• The IRC Section 613A (d)(4) relating to the                                                                 showing the breakdown of items from the FASIT.
                                                       January 1, 1997, U.S. taxpayers who have an
    exclusion of certain refiners.                     ownership interest (directly or indirectly) in a       Classification of Certain Business Trusts and
• The federal election to defer the income from        foreign corporation and are required to file federal   Certain Foreign Single Member Limited Liability
    discharge of indebtedness in connection with       Form(s) 5471, Information Return of U.S. Persons       Companies (SMLLCs)
    the reacquisition after December 31, 2008,         With Respect to Certain Foreign Corporations,          In general, the classification of a business entity
    and before January 1, 2011.                                                                               should be the same for California purposes as it

                                                                                                                         Form 100 Booklet 2011 Page 
is for federal purposes. However, an exception             (if required). Do not use staples or other           within California but are not doing business in
may apply for certain eligible business entities           permanent bindings to assemble the tax return.       California.
(business trusts and SMLLCs) existing prior to                                                                  For purposes of the corporation income tax, the
January 1, 1997, that were taxed as corporations        A Franchise or Income Tax                               term “corporation” is not limited to incorporated
for California purposes under former R&TC                                                                       entities but also includes the following:
Section 23038. For taxable years beginning on           Corporation Franchise Tax
or after January 1, 1997, a business trust or a         Entities subject to the corporation minimum             • Associations.
previously existing foreign SMLLC may make              franchise tax include all corporations (e.g. LLCs       • Massachusetts or business trusts.
an irrevocable election to be classified the same       electing to be taxed as corporations) that meet any     • REITs.
as federal for California purposes. To make the         of the following:                                       • LLCs electing to be taxed as corporations
election the business trust or the SMLLC must           • Incorporated or organized in California.                  other than those subject to the corporate
have been classified as a corporation under             • Qualified or registered to do business in                 franchise tax.
California law, but classified as a partnership (for        California.                                         • Other business entities, including partnerships,
a business trust) or elected to be treated as a         • Doing business in California, whether or                  electing to be taxed as corporations.
disregarded entity (for foreign SMLLC) for federal          not incorporated, organized, qualified, or          Political organizations that are exempt under R&TC
tax purposes for taxable years beginning before             registered under California law.                    Section 23701r and have political taxable income
January 1, 1997. If this election is not made, the      The minimum franchise tax must be paid by               in excess of $100 must file Form 100. Political
existing eligible business entity will continue to be   corporations incorporated in California or qualified    organization taxable income is the amount by
classified and taxed as a corporation for California    or registered under California law whether the          which gross income (other than exempt function
purposes. Get form FTB 3574, Special Election           corporation is active, inactive, not doing business,    income) less deductions directly connected with
for Business Trusts and Certain Foreign Single          or operates at a loss. See General Information C,       production of such gross income exceeds $100.
Member LLCs, for more information.                      Minimum Franchise Tax, for more information.            See the instructions for Schedule F, Computation
                                                                                                                of Net Income, included in this booklet. Exempt
                                                        The measured franchise tax is imposed on
General Information                                     corporations doing business in California and is
                                                                                                                function income includes amounts received as:
                                                        measured by the income of the current taxable           • Contributions of money or property.
Form 100 is California’s tax return for
                                                        year for the privilege of doing business in that        • Membership fees, dues, or assessments.
corporations, banks, financial corporations, real
                                                        taxable year.                                           • Proceeds from the sale of political campaign
estate mortgage investment conduits (REMICs),
                                                                                                                    material that are not received in the ordinary
regulated investment companies (RICs), real             For taxable years beginning on or after January 1,          course of any trade or business.
estate investment trusts (REITs), Massachusetts         2011, a taxpayer is “doing business” if it actively
or business trusts, publicly traded partnerships        engages in any transaction for the purpose of           Get FTB Pub. 1075, Exempt Organizations — Guide
(PTPs), exempt homeowners’ associations (HOAs),         financial or pecuniary gain or profit in California     for Political Organizations, for more information.
political action committees (PACs), FASITs, and         or if any of the following conditions is satisfied:     Homeowners’ associations that are exempt
LLCs or partnerships taxed as corporations.                                                                     under R&TC Section 23701t, including
                                                        • The taxpayer is organized or commercially
For taxable years beginning on or after January 1,          domiciled in California.                            unincorporated homeowners’ associations, and
2000, corporations filing on a water’s-edge             • The sales, as defined in R&TC Section                 have homeowners’ association taxable income in
basis are required to use Form 100W to file their           25120(e) or (f), of the taxpayer in California,     excess of $100 must file Form 100. Homeowners’
California tax return. Get the Form 100W Tax                including sales by the taxpayer’s agents and        association taxable income is the amount by
Booklet for more information. REMICs that are               independent contractors, exceed the lesser of       which gross income (other than exempt function
partnerships must file Form 565, Partnership                $500,000 or 25% of the taxpayer’s total sales.      income) less deductions directly connected with
Return of Income. S corporations must file              • The real property and tangible personal               the production of such gross income exceeds
Form 100S, California S Corporation Franchise or            property of the taxpayer in California exceed the   $100. See the instructions for Schedule F,
Income Tax Return.                                          lesser of $50,000 or 25% of the taxpayer’s total    included in this booklet.
An LLC classified as a partnership for federal              real property and tangible personal property.       Exempt function income means amounts received
purposes should generally file Form 568,                • The amount paid in California by the taxpayer         as membership fees, dues, and assessments.
Limited Liability Company Return of Income.                 for compensation, as defined in R&TC                Nonexempt gross income of a homeowners’
A limited partnership (LP) or limited liability             Section 25120(c), exceeds the lesser of             association is defined as all income other than
partnership (LLP) classified as a partnership for           $50,000 or 25% of the total compensation            amounts received from membership fees, dues,
federal purposes should generally file Form 565.            paid by the taxpayer.                               or assessments.
When Completing the Form 100:                           In determining the amount of the taxpayer’s             An exempt homeowners’ association may also
                                                        sales, property, and payroll for doing business         be required to file Form 199, California Exempt
• Use black or blue ink on the tax return sent to
                                                        purposes, include the taxpayer’s pro rata share of      Organization Annual Information Return or form
    the FTB.
                                                        amounts from partnerships and S corporations.           FTB 199N, Annual Electronic Filing Requirement
• Print name and address (in CAPITAL LETTERS).
                                                        For more information, see R&TC Section 23101            for Small Tax-Exempt Organizations (California
• When a domestic corporation files the first
                                                        or go to ftb.ca.gov and search for law changes.         e-Postcard). Get FTB Pub. 1028, Guidelines for
    California tax return, the fiscal year beginning
                                                                                                                Homeowners’ Associations, for more information.
    date must be the date the corporation is            In the case of a corporation qualified with the
    incorporated.
• Round cents to the nearest whole dollar. For
                                                        California Secretary of State (SOS) but not doing
                                                        business in this state, careful attention should
                                                                                                                B Tax Rates
    example, round $50.50 up to $51 or round            be given to the term “doing business.” It is not        The following tax rates apply to corporations
    $25.49 down to $25.                                 necessary that the corporation conducts business        subject to either the corporation franchise tax or
• Send a clean legible copy.                            or engages in transactions within the state on a        the corporation income tax.
• Enter all types of payments (overpayment              regular basis. Even an isolated transaction during      • Corporations other than banks and
    from prior year, estimated tax, nonresident         the taxable year may be enough to cause the                 financial corporations . . . . . . . . . . . . . 8.84%
    tax, etc.) made for the 2011 taxable year on        corporation to be “doing business.”                     • Banks and financial corporations . . . 10.84%
    the applicable line.
                                                        Also, when a corporation is either a general partner
• When making a payment with a check or
    money order, enclose, but do not staple the
                                                        of a partnership or a member of an LLC that is          C Minimum Franchise Tax
                                                        “doing business” in California, the corporation is
    payment to the face of the tax return.                                                                      All corporations subject to the franchise tax,
                                                        considered to be “doing business” in California.
• Assemble the corporation return in the                                                                        including banks, financial corporations, corporate
    following order: Form 100, Schedule R (if           Corporation Income Tax                                  general partners of partnerships, and corporate
    required), supporting schedules, a copy of          The corporation income tax is imposed on all            members of LLCs doing business in California,
    federal return (if required) and form FTB 5806      corporations that derive income from sources            must file Form 100 and pay at least the minimum

Page       Form 100 Booklet 2011
franchise tax as required by law. The minimum              For the purposes of this exemption:                     returns. The converted entity is required to file a
franchise tax, as indicated below, must be paid            (A) “Deployed” means being called to active             short-period return for the taxable year ending on
whether the corporation is active, inactive,                     duty or active service during a period when       the date of cancellation. The new entity would then
operates at a loss, or files a return for a short                the United States is engaged in combat or         be subject to all of the filing requirements and tax
period of less than 12 months.                                   homeland defense. “Deployed” does not             due before the effective date of converting.
• Domestic qualified inactive gold or                            include either of the following:
    quicksilver mining corporations . . . . . . . $25            • Temporary duty for the sole purpose of          F Extension of Time to File
• All other corporations subject to                                  training or processing.                       If the corporation cannot file its California tax
    franchise tax (see General                                   • A permanent change of station.                  return by the 15th day of the 3rd month after the
    Information A, Franchise or                            (B) “Operates at a loss” means negative net             close of the taxable year, it may file on or before the
    Income Tax, for definitions). . . . . . . . . . $800        income as defined in R&TC Section 24341.           15th day of the 10th month without filing a written
A combined group filing a single return must               (C) “Small business” means a corporation with           request for an extension unless the corporation is
pay at least the minimum franchise tax for                      $250,000 or less of total income from all          suspended on the original due date. An automatic
each corporation in the group that is subject to                sources derived from or attributable to            extension does not extend the time for payment
franchise tax.                                                  California.                                        of tax; the full amount of tax must be paid by the
                                                                                                                   original due date of Form 100. If there is an unpaid
For corporations incorporated or qualified through
the California SOS to do business in California on         D Accounting Period/Method                              tax liability, complete form FTB 3539, Payment
                                                                                                                   for Automatic Extension for Corps and Exempt
or after January 1, 2000, the prepayment of the            The taxable year of a corporation must not be           Orgs, included in this booklet, and send it with the
minimum franchise tax to the California SOS is             different from the taxable year used for federal        payment by the original due date of the Form 100.
no longer required. For the first taxable year, the        purposes, unless initiated or approved by the FTB
corporation will not be subject to the minimum             (R&TC Section 24632).                                   When the due date falls on a weekend or holiday,
franchise tax and will compute its tax liability by                                                                the deadline to file and pay without penalty is
                                                           A change in accounting method requires consent          extended to the next business day.
multiplying its state net income by the appropriate        from the FTB. However, a corporation that obtains
tax rate. The corporation will become subject to           federal approval to change its accounting method,       Due to the Emancipation Day holiday on April 16,
minimum franchise tax beginning in its second              or that is permitted or required by federal law         2012, tax returns filed and payments mailed or
taxable year. This does not apply to corporations          to change its accounting method without prior           submitted on April 17, 2012 will be considered
that are not qualified by the California SOS,              approval and does so, is deemed to have the             timely.
or reorganize solely to avoid payment of their             FTB’s approval if: (1) the corporation files a timely   If the corporation must pay its tax liability
minimum franchise tax.                                     Form 100 consistent with the change for the first       electronically, all payments must be remitted by
There is no minimum franchise tax for the                  taxable year the change becomes effective for           electronic fund transfer (EFT) or Web Pay to avoid
following entities:                                        federal purposes; and (2) the change is consistent      the penalty. Do not send form FTB 3539.
• Corporations that are not incorporated in                with California law. A copy of federal Form 3115,
    California, not qualified under the laws of            Application for Change in Accounting Method,            G Electronic Payments
    California, or are not doing business in California    and a copy of the federal consent to the change
                                                           must be attached to Form 100 for the first taxable      Electronic Funds Transfer (EFT)
    even though they derive income from California                                                                 Corporations remitting an estimated tax payment
    sources. For more information regarding doing          year the change becomes effective. Get FTB
                                                           Notice 2000-8 for more information. The FTB may         or extension payment in excess of $20,000 or
    business, get FTB Pub. 1050, Application and                                                                   having a total tax liability in excess of $80,000
    Interpretation of Public Law 86-272; or FTB            modify a requested change if the change would
                                                           distort income for California purposes.                 must remit all of their payments through EFT. Once
    Pub. 1060, Guide for Corporations Starting                                                                     a corporation meets the threshold, all subsequent
    Business in California.                                California is not following the automatic consent       payments regardless of amount, tax type, or taxable
• Qualified non-profit farm cooperative                    procedure for a change of accounting method             year must be remitted electronically to avoid
    associations.                                          involving previously unclaimed allowable                the 10% non-compliance penalty. Corporations
• Credit unions.                                           depreciation or amortization of federal Revenue         required to remit payments electronically may use
• Exempt homeowners’ associations.                         Procedure 96-31. Get FTB Notice 96-3 for more           Web Pay and be considered in compliance with that
• Unincorporated homeowners’ associations.                 information.                                            requirement. The FTB notifies corporations that are
• Exempt political organizations.                                                                                  subject to this requirement. Those that do not meet
• Exempt organizations.                                    E When to File                                          these requirements may participate on a voluntary
• Corporations that are not incorporated under             File Form 100 on or before the 15th day of the 3rd      basis. If the corporation pays electronically,
    the laws of California; whose sole activities          month after the close of the taxable year unless        complete the form FTB 3539 worksheet for its
    in this state are engaging in convention and           the return is for a short-period as required under      records. Do not mail the payment voucher. For
    trade show activities for seven or fewer days          R&TC Section 24634. Generally, the due date             more information, go to ftb.ca.gov and search for
    during the taxable year; and that do not               of a short-period return is the same as the due         eft, or call 916.845.4025.
    derive more than $10,000 of gross income               date of the federal short-period return. See R&TC
    reportable to California during the taxable                                                                    Web Pay
                                                           Section 18601(c) for the due date of a short            Corporations can make payments electronically at
    year. These corporations are not “doing                period return. Farmers’ cooperative associations
    business” in California. For more information,                                                                 the FTB’s website using Web Pay. After a one-time
                                                           must file Form 100 by the 15th day of the 9th           online registration, corporations can make an
    get FTB Pub. 1060.                                     month after the close of the taxable year.
• Newly formed or qualified corporations filing                                                                    immediate payment or schedule payments up to a
    an initial return for a taxable year beginning on      When the due date falls on a weekend or holiday,        year in advance. The FTB does not charge for this
    or after January 1, 2000.                              the deadline to file and pay without penalty is         service. For more information, go to ftb.ca.gov and
                                                           extended to the next business day.                      search for web pay. Corporations can also view
Deployed Military Exemption                                                                                        estimated tax payments online. Go to ftb.ca.gov
For taxable years beginning on or after January 1,         Due to the Emancipation Day holiday on April 16,
                                                           2012, tax returns filed and payments mailed or          and search for myftb account.
2010, and before January 1, 2018, a corporation
                                                           submitted on April 17, 2012 will be considered
that is a small business solely owned by a deployed
member of the United States Armed Forces shall             timely.                                                 H Where to File
not be subject to the minimum franchise tax if the         See General Information O, Dissolution/Withdrawal,      Payments
owner is deployed during the taxable year and the          and P, Ceasing Business, for information on final       If a tax is due and the corporation is not required
corporation operates at a loss or ceases operation.        returns.                                                to make the payment electronically (by EFT or
Corporations exempt from the minimum franchise             A corporation that converts to another type of          Web Pay),
tax should write “Deployed Military” in red ink in         entity, such as a limited liability company or
the top margin of the tax return.                          limited partnership, must file two California

                                                                                                                              Form 100 Booklet 2011             Page 
• Mail Form 100 with payment to:                             activities before any Net Operating            For taxable years beginning on or after
    FRANCHISE TAX BOARD                                      Loss (NOL) and special deductions on           January 1, 2006, California conformed to the
    PO BOX 942857                                            Form 100, Side 1, line 1.                      federal tax law in excluding the annual payments
    SACRAMENTO CA 94257-0501                            c. Enter state adjustments on line 2 through        of the last-in, first-out (LIFO) recapture tax from
                                                             line 17 to arrive at net income (loss) after   the computation of estimated tax.
• e-filed returns: Mail form FTB 3586, Payment               state adjustments, Side 1, line 18.
    Voucher for Corps and Exempt Orgs e-filed                                                               If the corporation must pay its tax liability
    Returns, with payment to:                       . Schedule F – California Computation Method           electronically, all estimate payments due must be
                                                        If the corporation has no federal filing            remitted by EFT or Web Pay to avoid the penalty.
    FRANCHISE TAX BOARD                                 requirement or if the corporation maintains
    PO BOX 942857                                                                                           Corporations can use MyFTB Account for
                                                        separate records for state purposes, complete       Businesses to view the estimated tax payments
    SACRAMENTO CA 94257-0531                            Form 100, Side 3, Schedule F, to determine          online. Go to ftb.ca.gov and search for
Using black or blue ink, make the check or money        state ordinary income. If ordinary income is        myftb account.
order payable to the “Franchise Tax Board.”             computed under California laws, generally no
Write the California corporation number and
“2011 Form 100” on the check or money order.
                                                        state adjustments are necessary. Transfer the       L New/Commencing
                                                        amount from Schedule F, line 30, to Form 100,
Make all checks or money orders payable in              Side 1, line 1. Complete Form 100, Side 1,            Corporations
U.S. dollars and drawn against a U.S. financial         line 2 through line 17, only if applicable.         For taxable years beginning on or after
institution.                                            For more information, see the Specific Line         January 1, 2000, no prepayment to the California
                                                        Instructions.                                       SOS is required and the corporation is required to
Do not attach a copy of the return with the                                                                 pay measured tax instead of minimum tax for the
balance due payment if the corporation already      Regardless of the net income computation method         first taxable year if the corporation incorporated
filed/e-filed a return for the same taxable year.   used, the corporation must attach any form,             or registered through the California SOS. For
Refunds                                             schedule, or supporting document referred to on         more information, see General Information C,
                                                    the return, schedules, or forms filed with the FTB.     Minimum Franchise Tax, or get FTB Pub. 1060.
• Mail Form 100 requesting a refund to:
    FRANCHISE TAX BOARD                             J Alternative Minimum Tax                               M Penalties
    PO BOX 942857
    SACRAMENTO CA 94257-0502                          (AMT)                                                 Failure to File a Timely Return
                                                    Corporations that claim certain types of                Any corporation that fails to file Form 100 on
Return Without Payment or Paid Electronically       deductions, exclusions, and credits may be              or before the extended due date is assessed a
• Mail Form 100 without a payment or paid by        subject to California AMT. Generally, corporations      delinquent filing penalty. The delinquent filing
     EFT or Web Pay to:                             that complete federal Form 4626, Alternative            penalty is computed at 5% of the tax due, after
     FRANCHISE TAX BOARD                            Minimum Tax — Corporations, must also complete          allowing for timely payments, for every month that
     PO BOX 942857                                  California Schedule P (100), Alternative Minimum        the return is late, up to a maximum of 25%. If a
     SACRAMENTO CA 94257-0500                       Tax and Credit Limitations — Corporations. See          corporation does not file its return by the extended
                                                    Schedule P (100), included in this booklet, for         due date, the automatic extension will not apply
Private Delivery Services                           more information.                                       and the late filing penalty will be assessed from
California law conforms to federal law regarding                                                            the original due date of the return. See R&TC
the use of certain designated private delivery
services to meet the “timely mailing as timely
                                                    K Estimated Tax                                         Sections 19131 and 23772 for more information.
filing/paying” rule for tax returns and payments.   Every corporation must pay estimated tax using          Failure to Pay Total Tax by the Due Date
See federal Form 1120, U.S. Corporation Income      Form 100-ES, Corporation Estimated Tax.                 Any corporation that fails to pay the total tax
Tax Return, for a list of designated delivery       For taxable years beginning on or after January 1,      shown on Form 100 by the original due date
services. If a private delivery service is used,    2010, corporations are required to pay the              is assessed a penalty. The penalty is 5% of the
address the return to:                              following percentages of the estimated tax liability    unpaid tax, plus 0.5% for each month, or part
                                                    during the taxable year:                                of the month (not to exceed 40 months), the tax
     FRANCHISE TAX BOARD                                                                                    remains unpaid. This penalty may not exceed
     SACRAMENTO CA 95827                            • 30% for the first required installment
                                                                                                            25% of the unpaid tax. See R&TC Section 19132
Private delivery services cannot deliver items to   • 40% for the second required installment
                                                                                                            for more information.
PO boxes. If using one of these services to mail    • No estimated tax payment is required for the
                                                        third installment                                   The late payment penalty may be waived where
any item to the FTB, do not use an FTB PO box.                                                              90% of the tax shown on the return, but not less
                                                    • 30% for the fourth required installment
Private Mail Box (PMB)                                                                                      than minimum franchise tax if applicable, is paid
Include the PMB in the address field. Write “PMB”   For exceptions and prior year’s information, get
                                                                                                            by the original due date of the return.
first, then the box number. Example: 111 Main       Form 100-ES.
                                                                                                            If a corporation is subject to both the penalty
Street PMB 123.                                     Estimated tax is generally due and payable in four
                                                                                                            for failure to file a timely return and the penalty
                                                    installments as follows:
                                                                                                            for failure to pay the total tax by the due date,
I Net Income Computation                            • The 1st payment is due by the 15th day of the         a combination of the two penalties may be
The computation of net income from trade                4th month of the taxable year (this payment         assessed, but the total penalty may not exceed
or business activities generally follows the            may not be less than the minimum franchise          25% of the unpaid tax.
determination of taxable income as provided in          tax, if applicable).
                                                                                                            Underpayment of Estimated Tax
the IRC. However, there are differences that must   • The 2nd, 3rd, and 4th installments are due
                                                                                                            Any corporation that fails to pay, pays late, or
be taken into account when completing Form 100.         and payable by the 15th day of the 6th, 9th,
                                                                                                            underpays an installment of estimated tax is
There are two ways to complete Form 100, the            and 12th months respectively, of the taxable
                                                                                                            assessed a penalty. The penalty is a percentage
federal reconciliation method or the California         year.
                                                                                                            of the underpayment of estimated tax for the
computation method:                                 If no amount is due, do not mail Form 100-ES.           period from the date the installment was due until
1. Federal Reconciliation Method                    California law has conformed to the federal             the date it is paid, or until the original due date
    a. Transfer the information from federal        expanded annualization periods for the                  of the tax return, which ever is earlier. Get form
        Form 1120, Page 1 to Form 100,              computation of estimate payments. For taxable           FTB 5806, Underpayment of Estimated Tax by
        Side 3, Schedule F, and attach a copy       years beginning on or after January 1, 1998, the        Corporations, to determine both the amount of
        of the federal return with all supporting   applicable percentage for estimate basis is 100%.       underpayment and the amount of penalty.
        schedules.                                                                                          The underpayment of estimated tax penalty shall
    b. Enter the amount of federal ordinary         Get the instructions for Form 100-ES for more
                                                    information.                                            not apply to the extent the underpayment of an
        income (loss) from trade or business                                                                installment was created or increased by any

Page 8     Form 100 Booklet 2011
provision of law that is chaptered during and           For information on filing the required federal            A corporation that commenced doing business
operative for the taxable year of the underpayment.     informational returns on a CD, see General                in California before January 1, 1972, is allowed
See R&TC Sections 19142, 19144, 19145, 19147,           Information V, Information Returns.                       a credit that may be refunded in the year of
19148, 19149, 19150, 19151, and 19161 for               Record Maintenance Penalty                                dissolution or withdrawal. The amount of the
more information.                                       The penalty for failure to maintain certain records is    refundable credit is the difference between the
                                                        $10,000 for each taxable year for which the failure       minimum franchise tax for the corporation’s first
If the corporation uses Exception B or Exception C
                                                        applies. In addition, if the failure continues for more   full 12 months of doing business and the total tax
to compute or eliminate any of the required
                                                        than 90 days after the FTB notifies the corporation       paid for the same period.
installments, form FTB 5806 must be attached
to the back of Form 100 (after all schedules and        of the failure, in general, a penalty of $10,000 may      To claim this credit, add this amount to the value
federal return) and the box on Side 2, line 42b         be assessed for each additional 30-day period of          on Form 100, line 35. Make a notation to the right
should be checked.                                      continued failure. For taxable years beginning on         of Side 1, line 35: “Dissolving/Withdrawing.”
                                                        or after January 1, 1996, there is no maximum             The return for the final taxable period is due on or
Large Corporate Understatement of Tax
                                                        amount of penalty that may be assessed.                   before the 15th day of the 3rd full month after the
Corporations are subject to a penalty in an
amount equal to 20% of the understatement of tax        See Records Maintenance Requirements on                   month during which the corporation withdrew or
liabilities that:                                       page 5 for a discussion of the records required to        stops doing business in California.
                                                        be maintained. See R&TC Section 19141.6 and               Corporations are subject to income tax or
• Exceeds the greater of $1 million or 20% of
                                                        the related regulations for more information.             franchise tax for the final taxable period.
     the tax shown on an original or amended
     return filed on or before the original or          Accuracy and Fraud Related Penalties                      Corporations that file a final franchise tax return
     extended due date of the return, for taxable       California conforms to IRC Sections 6662 through          must pay at least the minimum franchise tax as
     years beginning on or after January 1, 2010.       6665 that authorize the imposition of an accuracy-        specified in R&TC Section 23153.
• In excess of $1 million for taxable years             related penalty equal to 20% of the related               For taxable years beginning on or after
     beginning on or after January 1, 2003, and         underpayment, and the imposition of a fraud               January 1, 2006, the minimum franchise tax will
     before January 1, 2010.                            penalty equal to 75% of the related underpayment.         not be assessed after the taxable year the final
                                                        See R&TC Section 19164 for more information.              tax return is filed, if a corporation meets all of the
EFT Penalty
If the corporation must pay its tax liability           California Secretary of State (SOS) Penalty               following requirements:
electronically, all payments must be remitted by        The California Corporations Code requires the FTB         • The corporation files a timely final franchise
EFT or Web Pay to avoid the penalty. The penalty        to assess a penalty for failure to file an annual              tax return for the preceding taxable year,
is 10% of the amount not paid electronically. See       Statement of Information with the California SOS.              including extension.
R&TC Section 19011 and General Information G,           For more information, see R&TC Section 19141,             • The corporation did not do business in
Electronic Payments, for more information.              or contact:                                                    California after the final taxable year.
Information Reporting Penalties                             STATEMENT OF INFORMATION UNIT                         • The corporation files the appropriate
U.S. corporations that have an ownership interest           ATTENTION: PENALTY                                         documents for dissolution with the California
(directly or indirectly) in a foreign corporation           CALIFORNIA SECRETARY OF STATE                              SOS within 12 months of the timely filed final
and were required to file federal Form(s) 5471,             PO BOX 944230                                              franchise tax return.
Information Return of U.S. Persons With Respect             SACRAMENTO CA 94244-2300                              To get samples and forms for filing a dissolution,
to Certain Foreign Corporations, with the federal           Telephone: 916.657.3537                               surrender, or merger agreement, go to
return, must attach a copy(ies) to the California       Other Penalties                                           sos.ca.gov and search for corporation
return. The penalty for failure to include a copy of    Other penalties may be imposed for a payment              dissolution, or address your request to:
federal Form(s) 5471, as required, is $1,000 per        returned for insufficient funds, non-U.S. foreign              ATTN: LEGAL REVIEW
required form for each year the failure occurs.         corporations operating while forfeited or without              CALIFORNIA SECRETARY OF STATE
The penalty applies for taxable years beginning         qualifying to do business in California, and                   1500 11TH ST 3RD FLOOR
on or after January 1, 1998. The penalty will not       domestic corporations operating while suspended                SACRAMENTO CA 95814-5701
be assessed if the taxpayer provides a copy of the      in California. See R&TC Sections 19134 and 19135               Telephone: 916.657.5448
form(s) within 90 days of request from the FTB and      for more information.
the taxpayer agrees to attach a copy(ies) of federal
                                                                                                                  P Ceasing Business
Form 5471 to all returns filed for subsequent years.    N Interest                                                For taxable years beginning on or after
See R&TC Section 19141.2 for more information.          Interest is due and payable on any tax due if not         January 1, 2000 (other than the first taxable year
Certain domestic corporations that are 25% or           paid by the original due date of Form 100. Interest       beginning on or after that date), the tax for the final
more foreign-owned and foreign corporations             is also due on some penalties. The automatic              year in which the corporation does business in
engaged in a U.S. trade or business must attach         extension of time to file Form 100 does not               California is determined according to or measured
federal Form(s) 5472, Information Return of             stop interest from accruing. California follows           by its net income for the taxable year during which
a 25% Foreign-Owned U.S. Corporation or a               federal rules for the calculation of interest. Get        the corporation ceased doing business.
Foreign Corporation Engaged in a U.S. Trade or          FTB Pub. 1138, Business Entity Refund/Billing
Business, to Form 100. The penalty for failing          Information, for more information.                        In any event, the tax for any taxable year shall
to include a copy of federal Form(s) 5472,                                                                        not be less than the minimum franchise tax, if
as required, is $10,000 per required                    O Dissolution/Withdrawal                                  applicable.
form for each year the failure occurs. See              The corporation must fill in the applicable box           For more information, see R&TC Section 23151.1.
R&TC Section 19141.5 for more information.              on Form 100, Side 1, Question A1, if dissolving,          The unreported income on installment
If the corporation does not file its Form 100 by        merging, or withdrawing. The date should be               obligations, the distribution of notes, and the
the due date or extended due date, whichever is         the date the corporation filed/will file with the         distribution of corporate assets (i.e. land,
later, copy(ies) of federal Form(s) 5472 must still     California SOS. For taxable years beginning on            buildings) at a gain must be included in income
be filed on time or the penalty will be imposed.        or after January 1, 2006, corporations are not            in the year of cessation. There is no federal law
Attach a cover letter to the copy(ies) indicating the   required to obtain a Tax Clearance Certificate.           counterpart regarding this issue.
taxpayer’s name, California corporation number,         The franchise tax for the period in which the             For more information, see R&TC Sections 24672
and taxable year. Mail to the same address              corporation formally dissolves or withdraws is            and 24451.
used for returns without payments. See General          measured by the income of the taxable year in
Information H, Where to File, for more information.                                                               A domestic or qualified corporation will remain
                                                        which it ceased doing business in California,             subject to the minimum franchise tax for each
When the corporation files Form 100, also attach        unless such income has already been taxed at the
copy(ies) of the federal Form(s) 5472.                                                                            taxable year it is in existence until a certificate
                                                        rate prescribed for the taxable year of dissolution       of dissolution (and certificate of winding up, if
                                                        or withdrawal.                                            necessary), or certificate of withdrawal is filed with

                                                                                                                             Form 100 Booklet 2011             Page 
the California SOS. See General Information O,
Dissolution/Withdrawal, and R&TC Sections 23331
                                                        T Signatures                                                 awards, payments to independent contractors,
                                                                                                                     rents, royalties, legal services whether or not the
through 23335 for more information.                     Phone Number and Email Address                               payee is incorporated, interest (such as interest
                                                        Include an officer’s phone number and email                  charged for late payment), and pensions.
Q Suspension/Forfeiture                                 address in case the FTB needs to contact the            • Payments exceeding $10 annually for interest
If a corporation does not file Form 100 and/or          corporation for information needed to process                earned and dividends.
does not pay any tax, penalty, or interest due, its     this return. By providing this information the FTB      • All payment amounts made by a broker or
powers, rights, and privileges may be suspended         will be able to process the return or issue the              barter exchange.
(in the case of a domestic corporation) or              refund faster.                                          • All payment amounts for gross proceeds paid
forfeited (in the case of a foreign corporation).       Preparer Tax Identification Number (PTIN)                    to an attorney whether or not the services are
                                                        Tax preparers must provide their PTIN on the tax             performed for the payer.
Corporations that operate while suspended or                                                                    • Cash payments over $10,000 received in a
forfeited are subject to a $2,000 penalty per taxable   returns they prepare. Preparers who want a PTIN
                                                        should go to the IRS website at irs.gov for more             trade or business.
year, which is in addition to any tax, penalties,
and interest already accrued. Also, any contracts       information.                                            See instructions for federal Forms 1099 (series),
entered into during suspension or forfeiture are        Third Party Designee                                    1098, 5498, and W-2G; federal Publication
voidable at the request of any party to the contract    If the corporation wants to allow the FTB to discuss    1220, Specifications for Filing Forms 1097-BTC,
other than the suspended or forfeited corporation.      its 2011 tax return with the paid preparer who          1098, 1099, 3921, 3922, 5498, 8935 and W-2G
                                                        signed it, check the “Yes” box in the signature area    Electronically; and form FTB 4227A, Guide to
Such contracts will remain voidable and                                                                         Information Returns Filed With California.
unenforceable unless the corporation applies for        of the return. This authorization applies only to the
relief from contract voidability and the FTB grants     individual whose signature appears in the “Paid         Report payments to the FTB and the IRS using
relief.                                                 Preparer’s Use Only” section of the return. It does     the appropriate federal form. Reports must be
                                                        not apply to the firm, if any, shown in that section.   made for the calendar year. Federal Forms 1099
See R&TC Sections 19135, 19719, 23301,                                                                          (series), 1098, and W-2G’s are due no later than
23305.1, and 23305.2 for more information.              If the “Yes” box is checked, the corporation is
                                                        authorizing the FTB to call the paid preparer to        February 28th and federal Form 5498 is due by
                                                        answer any questions that may arise during the          May 31st of the year following payment. When
R Apportionment of Income                               processing of the tax return. The corporation is        the due date falls on a weekend or holiday, the
Corporations with business income attributable to       also authorizing the paid preparer to:                  deadline to file without penalty is extended to the
sources both within and outside of California are                                                               next business day. Due to the Emancipation Day
required to apportion such income. Use Schedule R       • Give the FTB any information that is missing
                                                                                                                holiday on April 16, 2012, tax returns filed and
to calculate the apportionment percentage. Be sure           from the return.
                                                                                                                payments mailed or submitted on April 17, 2012
to answer Question M on Form 100, Side 2.               • Call the FTB for information about the
                                                                                                                will be considered timely. Federal Form 8300,
                                                             processing of the return or the status of any
For more information, see R&TC Sections 25120                                                                   Report of Cash Payments Over $10,000 Received
                                                             related refund or payments.
through 25136.                                                                                                  in a Trade or Business, is due within 15 days after
                                                        • Respond to certain FTB notices about math
                                                                                                                the date of the transaction.
                                                             errors, offsets, and return preparation.
S Combined Report                                       The corporation is not authorizing the paid preparer
                                                                                                                California requires corporations to report to the
When filing a combined report answer the                                                                        FTB interest paid on municipal bonds held by
                                                        to receive any refund check, bind the corporation to
applicable questions on Form 100, Schedule Q,                                                                   California taxpayers and issued by a state other
                                                        anything (including any additional tax liability), or
Question B.                                                                                                     than California, or a municipality other than a
                                                        otherwise represent the corporation before the FTB.
                                                                                                                California municipality. Entities paying interest to
If two or more corporations are engaged in a            The authorization will automatically end no later       California residents on these types of bonds are
unitary business and derive income from sources         than the due date (without regard to extensions)        required to report interest payments aggregating
within and outside of California, the members of        for filing the corporation’s 2012 tax return. If the    $10 or more and paid after January 1, 2011.
the unitary group that are subject to California’s      corporation wants to expand the paid preparer’s         These information returns will be due June 1,
franchise or income tax are required to apportion       authorization, get form FTB 3520, Power of              2012. Get form FTB 4800, Federally Tax Exempt
the combined income of the entire unitary group         Attorney, Declaration for the Franchise Tax             Non-California Bond Interest and Interest-
in order to compute the measure of the tax.             Board. If the corporation wants to revoke the           Dividend Payment Information Media Transmittal,
If the income of a unitary group is derived wholly      authorization before it ends, notify the FTB in         for more information.
from California sources, its members may either         writing or call 800.852.5711.
                                                                                                                California conforms to the information reporting
file returns on a separate accounting basis or                                                                  requirements imposed under IRC Sections 6038
file on a combined report basis. See R&TC               U Amended Return                                        through 6038C. Any federal Forms 5471, 5472, or
Section 25101.15 for more information.                  To correct or change a previously filed Form 100,       926 required to be filed for federal purposes under
Members of a unitary group may elect to file            file the most current Form 100X, Amended                these IRC sections are also required to be filed
a single group return by filing Schedule R-7,           Corporation Franchise or Income Tax Return.             for California purposes. These federal information
Election to File a Unitary Taxpayers’ Group Return.     Using the incorrect form may delay processing           returns should be attached to the Form 100 when
For more information, get Schedule R and go to          of the amended return. File Form 100X within            filed or provided separately on CD as follows (the
Side 6 for Schedule R-7.                                six months after the corporation filed an               CD should not be password protected):
Attach the Schedule R behind the California tax         amended federal return or after the final federal
                                                                                                                Corporations That e-file Their Returns. The
return and prior to the supporting schedules.           determination, if the IRS examined and changed
                                                                                                                federal information returns can be included
                                                        the corporation’s federal return.
A combined unitary group’s single return must                                                                   electronically as part of the e-filed return, or can
                                                                                                                be provided separately on a CD (not password
present the group’s data by separate corporation, as
well as totals for the combined group.
                                                        V Information Returns                                   protected), per the instructions below.
                                                        Every corporation engaged in a trade or business
The total combined tax, which must include at                                                                   Corporations That File Paper Returns. The
                                                        and making or receiving certain payments in the
least the applicable minimum franchise tax for                                                                  options are different depending on the number of
                                                        course of the trade or business is required to file
each corporation subject to the franchise tax,                                                                  federal information returns filed:
                                                        information returns to report the amount of such
must be shown on Form 100, Side 1, line 24.             payments.                                               • If less than 100, attach a copy of each federal
For more information, get FTB Pub. 1061,                                                                             information return to the California tax return.
                                                        Payments that must be reported include, but are
Guidelines for Corporations Filing a Combined                                                                   • If 100 or more, attach a copy of each federal
                                                        not limited to the following:
Report.                                                                                                              information return to the California tax return
                                                        • Payments exceeding $600 annually for                       or submit the federal information returns via
                                                            compensation for services not subject to                 CD (not password protected), separate from
                                                            withholding, commissions, fees, prizes and               the California return, as follows:

Page 10      Form 100 Booklet 2011
     • Save the federal information returns on a
        CD in Adobe PDF format (not a stream of
                                                       (1) assign an identification number to an LLC
                                                       that files as a corporation, and (2) notify the LLC
                                                                                                              Specific Line Instructions
        the federal data).                             with the identification number upon receipt of         For taxable years beginning on or after
     • Write on the CD the corporation’s name,         the first estimated tax payment or the first tax       January 1, 2000, C corporations filing on
        the California corporation number, and         return. The LLC will be subject to the applicable      a water’s-edge basis are required to use
        the taxable year.                              provisions of the Corporation Tax Law and should       Form 100W to file their California tax return. Get
     • Mail the CD only to PO Box 1779, Rancho         be considered a corporation for purpose of all         Form 100W Tax Booklet, for more information.
        Cordova, CA 95741-1779.                        instructions unless otherwise indicated.               Filing Form 100 without errors will expedite
     • Mail the California tax return to the regular   If an LLC elects to be taxed as a partnership for      processing. Before mailing Form 100, make sure
        filing address. Attach a statement to the      federal tax purposes, it must file Form 568. LLCs      entries have been made for the following:
        return stating that the federal information    taxed as partnerships determine their income,          • California corporation number (a valid seven
        returns (e.g., Forms 5471, 5472) were          deductions, and credits under the Personal                  digit number assigned by the California SOS).
        submitted on a CD.                             Income Tax Law and are subject to an annual tax        • Federal employer identification number (FEIN)
If these federal information returns are not           as well as an annual fee based on total income.             (nine digits).
provided, penalties may be imposed under R&TC          If an SMLLC is disregarded for federal tax             • Corporation name (use the legal name filed
Sections 19141.2 and 19141.5.                          purposes, get Form 568 Tax Booklet for                      with the California SOS) and address (include
                                                       information regarding SMLLC filing requirements.            PMB no., if applicable).
W Net Operating Loss (NOL)                             A disregarded LLC reports its income, deductions,      File the 2011 Form 100 for calendar year 2011
For taxable years beginning in 2010 and 2011,          and credits on the return of its owner. However,       and fiscal year that begins in 2011. Enter taxable
California suspended the NOL carryovers deduction.     an LLC that is disregarded is subject to the           year beginning and ending dates only if the return
Corporations may continue to compute and               annual LLC tax as well as a fee based on total         is for a short year or a fiscal year. If a domestic
carryover an NOL during the suspension period.         income. Form 568, Side 1, provides the FTB             corporation files the first California tax return, the
However, corporations with net income after state      with information on the sole owner of the LLC,         fiscal year beginning date must be the date the
adjustments (pre-apportioned income) of less than      contains the owner’s consent to be taxed on            corporation is incorporated. If the corporation
$300,000 or with disaster loss carryovers are not      the income of the LLC, and provides for the            reports its income using a calendar year, leave the
affected by the NOL suspension rules.                  computation of the LLC tax and fee.                    date area blank. If the return is being filed for a
                                                                                                              short period (less than 12 months), write “short
Also, California modified the NOL carryback            Y California Use Tax                                   year” in red in the top margin. Convert all foreign
provision. For more information, see form
                                                       The use tax has been in effect in California           monetary amounts to U.S. dollars.
FTB 3805Q, Net Operating Loss (NOL) Computation
                                                       since July 1, 1935. It applies to purchases from       The 2011 Form 100 may also be used if:
and NOL and Disaster Loss Limitations
                                                       out-of-state sellers and is similar to the sales tax
— Corporations, included in this booklet.                                                                     • The corporation has a taxable year of less than
                                                       paid on purchases made in California.
R&TC Sections 24416.1 through 24416.7,                                                                             12 months that begins and ends in 2012.
                                                       In general, corporations must pay California use       • The 2012 Form 100 is not available at the time
24416.20 and R&TC Section 25108 provide for
                                                       tax on purchases made from out of state (for                the corporation is required to file its return. The
NOL carryovers incurred in the conduct of a trade
                                                       example, by telephone, over the Internet, by mail,          corporation must show its 2012 taxable year
or business.
                                                       or in person) if:                                           on the 2011 Form 100 and incorporate any tax
R&TC Section 24347.5 provides special treatment
                                                       • The seller does not collect California sales or           law changes that are effective for taxable years
for the carryover of disaster losses incurred in
                                                           use tax.                                                beginning after December 31, 2011.
an area declared by the President of the United
                                                       • The corporation uses, gives away, stores, or
States or the Governor of California as a disaster
area. If the disaster is declared by the Governor
                                                           consumes the item in this state.                   Questions A through BB
of California only, subsequent state legislation is    Example: The corporation purchases a                   Answer all applicable questions and attach
required for the disaster provision to be activated.   conference table from a company in North               additional sheets, if necessary. Be sure to answer
                                                       Carolina. The company ships the table from North       Questions C through BB on Form 100, Side 2. Use
Losses taken into account under the disaster
                                                       Carolina to the corporation’s address in California    the following instructions when answering:
provisions may not be included in computing
                                                       for the corporation’s use and does not charge          Question A – Deferred income
regular NOL deductions.
                                                       California sales or use tax. The corporation owes      California has not conformed to the federal
For more information, see form FTB 3805Q               use tax on the purchase.
included in this booklet, or get form FTB 3805D,                                                              election to defer the discharge of indebtedness
                                                       Complete the Use Tax Worksheet on page 14 to           income as described in IRC Section 108(i). If
Net Operating Loss (NOL) Carryover Computation
                                                       calculate the amount due.                              the corporation elected to defer the discharge of
and Limitation — Pierce’s Disease; form
FTB 3805Z, Enterprise Zone Deduction and               Extensions to File. If the corporation requests        indebtedness income for federal purposes, check
Credit Summary; form FTB 3806, Los Angeles             an extension to file the tax return, wait until the    the “Yes” box and enter the entire amount of the
Revitalization Zone Deduction and Credit               corporation files the return to report the purchases   federal deferred income. Include this amount on
Summary; form FTB 3807, Local Agency Military          subject to use tax and to make the use tax payment.    Form 100, line 8.
Base Recovery Area Deduction and Credit                Penalty. Failure to timely report and pay the use      Question B – Combined report information
Summary; or form FTB 3809, Targeted Tax Area           tax due may result in the assessment of penalties.     If the answer to Question B1 is:
Deduction and Credit Summary.                          Changes in Use Tax Reported. Do not file an            • “Yes,” make sure to complete all the questions
                                                       Amended Corporation Franchise or Income Tax                 listed
X Limited Liability Companies                          Return to revise the use tax previously reported. If   • “No,” skip Questions B2 - B4 and go to
  (LLCs)                                               the corporation has changes to the amount of use            Question B5
California law authorizes the formation of LLCs        tax previously reported on the original tax return,    Question B – FTB  and/or A
and recognizes out-of-state LLCs registered or         contact the State Board of Equalization.               Check the “Yes” box if form FTB 3544 and/or
doing business in California. The taxation of an       For assistance, go to the State Board of               3544A is attached to Form 100.
LLC in California depends upon its classification      Equalization’s website at boe.ca.gov or call their     Question E – Principal business activity (PBA)
as a corporation, partnership, or “disregarded         Taxpayer Information Section at 800.400.7115 or        code
entity” for federal tax purposes.                      California Relay Service (CRS) 711 (for hearing        All corporations must answer Question E.
If an LLC elects to be taxed as a corporation          and speech disabilities). Income tax information       Include the six digit PBA code from the Principal
for federal tax purposes, the LLC must file            is not available at these numbers.                     Business Activity Codes chart included in this
Forms 100/100ES and leave the California                                                                      booklet. The code should be the number for the
corporation number field blank. The FTB will                                                                  specific industry group from which the greatest


                                                                                                                        Form 100 Booklet 2011              Page 11
percentage of California “total receipts” is derived.      R&TC Section 64(e) requires this information for          franchise tax. The income of a REMIC is taxable
“Total receipts” means gross receipts plus all other       use by the California State BOE.                          to the holders of the REMIC interests. In order
income. The California PBA code number may be              Question L – Reportable transaction or listed             to qualify, substantially all of the assets of the
different from the federal PBA code number.                transaction                                               entity must consist of “qualified mortgages” and
If, as its principal business activity, the corporation:   Federal Form 8886, Reportable Transaction                 “permitted investments.” See the instructions for
(1) Purchases raw material. (2) Subcontracts               Disclosure Statement, is required to be attached          federal Form 1066, U.S. Real Estate Mortgage
out for labor to make a finished product from the          to any return on which a deduction, loss, credit,         Investment Conduit (REMIC) Income Tax
raw materials. (3) Retains title to the goods, the         or any other tax benefit is claimed or is reported,       Return, to determine if the corporation qualifies.
corporation is considered to be a manufacturer and         or any income the corporation’s reported from             California law is the same as federal law, except
must enter one of the codes under “Manufacturing.”         an interest in a reportable transaction. If the           California does not impose a tax on prohibited
Also, write in the business activity and the principal     corporation is required to file this form with the        transactions, as defined in IRC Section 860F. The
product or service on the lines provided.                  federal return, attach a copy to the corporation’s        income or gain from such prohibited transactions
                                                           Form 100.                                                 remains includible in the California tax base. If
Question I – Doing business as (DBA)                                                                                 the corporation is a REMIC for federal purposes,
Corporations doing business under a name                   A material advisor is required to provide a               answer “Yes” to Question T, complete Form 100
other than that entered on Side 1 of Form 100              reportable transaction number to all taxpayers            and attach a copy of federal Form 1066.
must enter the DBA name in Question I. If the              and material advisors for whom the material
corporation is doing business under multiple               advisor acts as a material advisor.                       Question U – Real estate investment trust (REIT)
DBA’s attach a schedule listing all DBA’s.                                                                           California tax law has partially conformed to the
                                                           A Reportable Transaction is any transaction               REIT provisions of the Ticket to Work and Work
Leave Question I blank if the corporation is not           as defined in R&TC Section 18407 and Treas.               Incentives Improvement Act of 1999 (Public
using DBA’s to conduct business.                           Reg. Section 1.6011-4 and includes, but is not            Law 106-170) for taxable years beginning on or
Question J – Transfer or acquisition of voting             limited to the following:                                 after January 1, 2001, except for the provisions
stock                                                      • A transaction with a significant book-tax               relating to income from redetermined rents,
All corporations must answer all three questions.               difference (entered into prior to August 3,          redetermined deductions, and excess interest.
If the corporation does not own or lease (as                    2007). Beginning January 6, 2006, this               Additionally, a federal election to treat property as
specified below) real property in California,                   transaction was no longer required to                foreclosure property under IRC Section 856(e)(5)
answer “No” to the questions. Real property                     be disclosed on Form 8886. See IRS                   is considered to be an election for California as
includes land, buildings, structures, fixtures. See             Notice 2006-06.                                      well. No separate elections are allowed.
R&TC Section 104 for more information.                     • A Listed Transaction, or a transaction that is          Question V – Limited liability company (LLC) or
The questions provide information regarding                     substantially similar to a listed transaction,       limited partnership (LP)
changes in ownership with regard to real property               which has been identified by the IRS or the          Answer “Yes” only if the business entity for
held by legal entities (R&TC Section 64). If any                FTB to be a tax avoidance transaction.               which the Form 100 is being filed is organized as
of the answers are “Yes,” a Statement of Change            • A Confidential Transaction, which is offered to         an LLC or LP but is classified as a corporation
in Control and Ownership of Legal Entities                      a taxpayer under conditions of confidentiality       for federal tax purposes. An LLC classified as a
(BOE-100-B), must be filed with the California State            and for which the taxpayer has paid a                partnership for federal purposes should generally
Board of Equalization (BOE). Failure to do so within            minimum fee.                                         file Form 568. An LP should file Form 565.
45 days of the event date will result in substantial       • A transaction with contractual protections
                                                                which provides the taxpayer with the right           Question Z – Corporations that own 80% of an
penalties. Get forms and information from the BOE                                                                    insurance company
website at boe.ca.gov and search for leop.                      to a full or partial refund of fees if all or part
                                                                of the intended tax consequences from the            One of the provisions of R&TC Section 24410
There may be a change in ownership or control                   transaction are not sustained.                       includes a reporting requirement to the
if, during this taxable year, one of the following         • A loss transaction under IRC Section 165                Legislature. To meet this requirement, the FTB
occurred with respect to this corporation or any                which is at least $10 million in any one-year        may contact any corporation who answers, “Yes”
of its subsidiaries:                                            or $20 million in any combination of taxable         for additional information.
• The percentage of outstanding voting shares                   years. (Those numbers would be reduced to
     transferred to, or owned or controlled by,                 $2 million and $4 million on the Form 100S.)         Line 1 through Line 42
     one person or one legal entity cumulatively           • A transaction where the taxpayer is claiming            Line 1 – Net income (loss) before state
     exceeded 50%.                                              a tax credit of greater than $250,000 and held       adjustments
• The total outstanding voting shares transferred               the asset for less than 45 days (entered into        Corporations using the federal reconciliation
     to or held by one irrevocable trust or trust               prior to August 3, 2007).                            method to figure net income (see General
     beneficiary cumulatively exceeded 50%.                • A transaction of interest is a transaction              Information I, Net Income Computation) must:
• One or more irrevocable proxies cumulatively                  that is the same as or substantially similar
     transferred voting rights to more than 50% of              to one of the types of transactions that the         • Transfer the amount from federal Form 1120,
     the outstanding voting shares to one person                IRS has identified by notice, regulation,                line 28, to Form 100, Side 1, line 1; and attach
     or one entity.                                             or other form of published guidance as a                 a copy of the federal return and all pertinent
• This corporation, or any of its subsidiaries,                 transaction of interest (entered into beginning          supporting schedules; or copy the information
     cumulatively acquired ownership or control of              November 1, 2006).                                       from federal Form 1120, Page 1, onto Form 100,
     more than 50% of the outstanding voting shares                                                                      Side 3, Schedule F and transfer the amount from
                                                           A Listed Transaction is a specific transaction,               Schedule F, line 30, to Form 100, Side 1, line 1.
     or other ownership interests in any legal entity.     or one that is substantially similar, which has
• As of the end of this taxable year, cumulatively                                                                   • Then, complete Form 100, Side 1, line 2
                                                           been identified by the IRS or the FTB to be a tax             through line 17, State Adjustments.
     more than 50% of the total outstanding                avoidance transaction.
     voting shares have been transferred, or                                                                         Corporations using the California computation
     the corporation experienced a change                  Question S – Regulated investment company (RIC)           method to figure net income (see General
     in ownership or control, in one or more               California conforms to federal law for taxable            Information I) must transfer the amount from
     transactions since March 1, 1975.                     years beginning on or after January 1, 1998, for          Form 100, Side 3, Schedule F, line 30, to Side 1,
                                                           the provisions related to the repeal of the 30%           line 1. Complete Form 100, Side 1, line 2 through
For purposes of these questions, leased real               gross income test for RICs.
property is a leasehold interest in taxable real                                                                     line 17, only if applicable.
property: (1) leased for a term of 35 years or             Question T – Real estate mortgage investment              Line  through Line 1 – State adjustments
more (including renewal options), if not leased            conduit (REMIC)                                           To figure net income for California purposes,
from a government agency; or (2) leased for any            If a corporation is a REMIC for federal purposes,         corporations using the federal reconciliation
term, if leased from a government agency.                  it is deemed to be a REMIC for California                 method must enter California adjustments
                                                           purposes. A REMIC is subject to the minimum               to the federal net income on line 2 through
                                                           franchise tax but is not subject to the income or         line 17. If a specific line for the adjustment is

Page 1       Form 100 Booklet 2011
not on Form 100, corporations must enter the           Line 10 – Dividend deduction                                        the basis for the deduction.
adjustment on line 8, Other additions, or line 16,     Complete Schedule H (100), Dividend Income                          For corporations subject to income tax (instead of
Other deductions, and attach a schedule that           Deduction, included in this booklet. Enter the total                the franchise tax), interest received on obligations
explains the adjustment.                               amount from Schedule H (100), Part I, line 4,                       of the federal government and on obligations of
Line  and Line  – Taxes not deductible               column (d) on Form 100, line 10.                                    the state of California and its political subdivisions
California does not permit a deduction of              Line 1 – Capital gain from federal                                 is exempt from income tax. If such interest is
California corporation franchise or income taxes       Enter the federal capital gain net income from                      reported on line 4, it must be deducted on line 16.
or any other taxes on, according to, or measured       federal Form 1120, line 8. The California net capital               Federal Ordinary Net Gain or Loss. Enter any
by net income or profits. Such taxes that are          gain should have been added to income on line 5.                    federal ordinary net gain or loss from federal
shown on Form 100, Schedule A, must be added           Line 1 – Contributions                                             Form 4797, Sales of Business Property.
to income by entering the amount on Side 1,            The contribution deduction for a California
line 2 or line 3 (see Schedule A, column (d) for                                                                           Line 1 – Net income (loss) for state purposes
                                                       corporation is limited to the adjusted basis of the                 If all corporate income is derived from California
the amount to be added to income). California          assets being contributed.
does not permit a deduction for environmental                                                                              sources, transfer the amount on line 18 directly
taxes imposed by IRC Section 59A.                      For taxable years beginning on or after                             to line 19.
                                                       January 1, 1996, the contribution deduction is                      If only a portion of income is derived from
The LLC fee is not a tax, R&TC Section 17942;          limited to 10% of California net income without
therefore, it is deductible. Do not include any part                                                                       California sources, complete Schedule R before
                                                       regard to charitable contribution. Carryover                        entering any amount on line 19. Transfer the
of an LLC fee on line 2 or line 3.                     provisions per IRC Section 170(d)(2) apply for                      amount from Schedule R, line 35, to Form 100,
Line  – Interest on government obligations            excess contributions made during taxable years                      line 19. Be sure to answer “Yes’’ to Question M on
Corporations subject to California franchise tax       beginning on or after January 1, 1996.                              Form 100, Side 2.
must report all interest received on government        On a separate worksheet, using the Form 100
obligations (such as federal, state, or municipal                                                                          If this line is a net loss, complete and attach the
                                                       format, complete Form 100, Side 1, line 1 through                   2011 form FTB 3805Q to Form 100.
bonds). On line 4, enter all interest on               line 18 without regard to line 14, Contributions.
government obligations that is not included in         If any federal contribution deduction was taken in                  Line 0, Line 1, and Line 
federal ordinary income (loss).                        arriving at the amount entered on Side 1, line 1,                   The order in which line 20, line 21, and line 22
Corporations subject to California corporation         enter that amount as a positive number on line 8                    appear is not meant to imply the order in which
income tax, see instructions for line 16.              of the Form 100 formatted worksheet. Enter                          any NOL carryover deduction or disaster loss
                                                       the adjusted basis of the assets contributed on                     deduction should be taken if more than one type
Line  – Net California capital gain                                                                                       of deduction is available.
Complete Schedule D on Side 5 of Form 100              line 5 of the following worksheet. Then complete
and enter the California net capital gain from         the worksheet that follows to determine the                         Line 0 – Net operating loss (NOL) carryover
Schedule D, line 11 on Form 100, line 5.               contributions to enter on line 14.                                  deduction
                                                       1. Net income after state adjustments                               The NOL carryover deduction is suspended
Get FTB Pub. 1061 for instructions on                                                                                      for the 2010 and 2011 taxable years if the
determining the net capital gain when a combined           from Side 1, line 18. . . . . . . . . . . . . . . ._____
                                                       2. Deduction for dividends received . . . . ._____                  corporation net income after state adjustments
report is filed.                                                                                                           (pre-apportioned income) is $300,000 or more.
                                                       3. Net income for contribution
Line  and line 1 – Depreciation and                      calculation purposes. Add                                       For more information, see form FTB 3805Q
amortization                                               line 1 and line 2 . . . . . . . . . . . . . . . . . . . _____   included in this booklet.
California law is substantially different from         4. Contributions. Multiply line 3                                   The NOL carryover deduction is the amount of
federal law for corporations.                              by 10% (.10) . . . . . . . . . . . . . . . . . . . . . _____    the NOL carryover from prior years that may be
Complete form FTB 3885 (included in this               5. Enter the amount actually                                        deducted from income in the current taxable year.
booklet), to determine the amounts to enter on             contributed . . . . . . . . . . . . . . . . . . . . . . _____   If line 19 is a positive amount and line 18 is less
line 6 or line 12.                                     6. Enter the smaller of line 4 or                                   than $300,000, enter the NOL carryover deduction
Line  – Net income not included in federal                line 5 here and on Side 1, line 14 . . . . . _____              from the 2011 form FTB 3805Q, Part III, line 3
consolidated return                                    Get Schedule R to figure the contribution                           on Form 100, line 20. The loss may not reduce
Use this line to report the net income from            computation for apportioning corporations.                          current year income below zero. Any excess loss
corporations included in the combined report but       Line 1 – EZ, LAMBRA, or TTA business expense                       must be carried forward. Attach a copy of the
not included in the federal consolidated return.       and EZ net interest deduction                                       2011 form FTB 3805Q to Form 100.
Line 8 – Other additions                               Businesses conducting a trade or business within                    If the full amount of the NOL carryover may not
Any miscellaneous items that must be added             an Enterprise Zone (EZ), Local Agency Military                      be deducted this year, complete and attach a 2011
to arrive at net income after state adjustments        Base Recovery Area (LAMBRA), or Targeted Tax                        form FTB 3805Q showing the computation of the
(line 18) should be shown on this line. Attach a       Area (TTA), may elect to treat a portion of the                     NOL carryover to future years.
schedule to itemize amounts.                           cost of qualified property as a business expense                    If line 19 is a negative amount, or line 18 is
If any federal contribution deduction was taken        rather than a capital expense. For the taxable year                 $300,000 or more, corporations may not claim an
in arriving at the amount entered on Form 100,         the property is placed in service, the business                     NOL carryover deduction. Enter -0- on line 20. See
Side 1, line 1, include that amount on line 8.         may deduct a percentage of the cost in that year                    the 2011 form FTB 3805Q instructions to compute
                                                       rather than depreciate it over the life of the asset.               the NOL carryover to future years.
California Ordinary Net Gain or Loss. Enter            For more information, get form FTB 3805Z; form
any California ordinary net gain or loss from          FTB 3807; or form FTB 3809.                                         If the corporation terminates its election to be
Schedule D-1, Sales of Business Property. Attach                                                                           taxed as an S corporation, thus becoming a C
Schedule D-1.                                          Also, a deduction may be claimed on this line for                   corporation, then only that portion of the prior
                                                       the amount of net interest on loans made to an                      NOL carryover incurred while it had C corporation
Deferred Income. California has not conformed          individual or company doing business within an
to the federal election to defer the discharge                                                                             status may be used to the extent it has not
                                                       EZ. For more information, get form FTB 3805Z.                       expired.
of indebtedness income as described in IRC
Section 108(i). If the corporation elected to defer    Be sure to attach the applicable form to the                        Line 1 – Pierce’s disease, EZ, LARZ, TTA, or
the discharge of indebtedness income for federal       Form 100 if any of these benefits are claimed. If                   LAMBRA NOL carryover deduction
purposes, include this amount on line 8.               the proper form is not attached, these tax benefits                 The Pierce’s disease, EZ, the former Los Angeles
                                                       may be disallowed.                                                  Revitalization Zone (LARZ), LAMBRA, or TTA
Domestic Production Activities Deduction.
California does not conform to the federal             Line 1 – Other deductions                                          NOL carryover deduction is suspended for the
domestic production activities deduction. If the       Include on this line deductions not claimed on any                  2010 and 2011 taxable years, if the corporation
corporation claimed the deduction for federal          other line. Attach a schedule that clearly shows                    net income after state adjustments (pre-
purposes, include this amount on line 8.               how each deduction was computed and explain                         apportioned income) is $300,000 or more. For

                                                                                                                                    Form 100 Booklet 2011             Page 1
more information, get form FTB 3805D, form             • Commercial solar electric system credit               Section at 800.400.7115 or California Relay Service
FTB 3805Z, form FTB 3806, form FTB 3807, or                 carryover                                          (CRS) 711 (for hearing and speech disabilities).
form FTB 3809.                                         • Research credit                                       Note: The following businesses are required to
An NOL generated by a farming business due             • Orphan drug credit carryover                          report purchases subject to use tax directly to the
to Pierce’s disease or a business that operates        • Low-income housing credit                             State Board of Equalization and may not report use
(operated) or invests (invested) within an EZ, the     • Manufacturers’ investment credit carryover            tax on their income tax return:
former LARZ, the TTA, or a LAMBRA receives             • Targeted tax area hiring and sales or use tax
                                                            credit                                             • Businesses that have a California seller’s
special tax treatment. The loss may not reduce the                                                                  permit.
corporation’s current taxable year income below        • Natural heritage preservation tax credit
                                                       • Clinical testing expense credit carryover             • Businesses that are not required to hold a
zero. Any excess loss must be carried forward.                                                                      California seller’s permit, but receive at least
Compute the corporation’s EZ, TTA, or LAMBRA           Each credit is identified by a code number. See              $100,000 in gross receipts.
NOL using form FTB 3805Z; form FTB 3809; or            the Credit Chart on page 22. To claim one or two        • Businesses that have a California consumer use
form FTB 3807, respectively.                           credits, enter the credit name, code number,                 tax account.
Compute and enter the Pierce’s disease, EZ,            and the amount of the credit on line 26a and
                                                       line 26b. To claim more than two credits, use           A corporation that is not required to report
TTA, LAMBRA, or former LARZ NOL carryover                                                                      purchases subject to use tax directly to the State
deduction from the corporation’s form FTB 3805D;       Schedule P (100). List two of the credits on
                                                       line 26a and line 26b. Enter the total of any           Board of Equalization may report use tax on its
form FTB 3805Z; form FTB 3809; form FTB 3807;                                                                  Corporation Franchise or Income Tax Return. To
or form FTB 3806; on Form 100, line 21. Attach a       remaining credits from Schedule P (100) on
                                                       line 27. Do not make an entry on line 27 unless         report use tax on the tax return, complete the Use
copy of the applicable form to the Form 100.                                                                   Tax Worksheet on this page.
                                                       line 26a and line 26b are complete.
Line  – Disaster loss carryover deduction                                                                    If the corporation owes use tax but does not
Disaster loss is not subject to the 2010 and 2011      To figure tax credits, use the appropriate form
                                                       or schedule. If the corporation claims a credit         report it on the income tax return, the corporation
NOL suspension rules.                                                                                          must report and pay the tax to the State Board of
                                                       carryover for an expired credit, use form
If the corporation has a disaster loss carryover       FTB 3540, Credit Carryover Summary, to figure           Equalization. For information on reporting use tax
deduction, enter the total amount from the 2011        the amount of credit, unless the corporation            directly to the State Board of Equalization, go to
form FTB 3805Q, Part III, line 2, if there is income   is required to complete Schedule P (100). In            their website at boe.ca.gov.
in the current taxable year. The loss may not          that case, enter the amount of the credit on            Failure to timely report and pay the use tax due may
reduce current taxable year income below zero.         Schedule P (100) and complete Schedule P (100).         result in the assessment of penalties.
Any excess loss must be carried forward.               Do not attach form FTB 3540.
Line  – Tax                                          Attach the credit form or schedule and Schedule P                        Use Tax Worksheet
Use rates listed in General Information B, Tax         (100), if applicable, to Form 100.                       Round all amounts to the nearest whole dollar.
Rates, and C, Minimum Franchise Tax.                                                                           1. Enter purchases from out-of-state
                                                       Line  – Balance                                          sellers made without payment
Line  – New jobs credit                              Subtract line 28 from line 24. Enter the result or
Use form FTB 3527 to calculate the new jobs                                                                       of California sales/use tax. See
                                                       the applicable minimum franchise tax, whichever            worksheet instructions below $ ________.00
credit. Enter the credit amount generated on           is more. See General Information C, Minimum
line 25a and amount claimed on line 25b. Do not                                                                2. Enter the applicable sales and
                                                       Franchise Tax.                                             use tax rate. See worksheet
claim the credit on Schedule P (100). Get form
FTB 3527 for more information, and attach a copy       Line 0 – Alternative minimum tax (AMT)                    instructions below. . . . . . . . . . . . . ________
of the credit form to the Form 100.                    Enter on this line the AMT from Schedule P (100),       3. Multiply line 1 by the tax rate
                                                       Part I, line 19, or Part II, line 18, whichever is         on line 2. Enter result here. . . $ ________.00
Line a through Line  – Tax credits                 applicable.                                             4. Enter any sales or use tax
For taxable years beginning on or after January 1,                                                                paid to another state for
2010, an eligible assignee can claim assigned          Line  – 011 Estimated tax payments
                                                       Enter the total amount of estimated tax payments           purchases included on
credits, received this taxable year or carried over                                                               line 1. See worksheet
from prior years, against its tax liabilities. For     made during the 2011 taxable year on this line.
                                                                                                                  instructions below . . . . . . . . . $ ________.00
more information, get form FTB 3544A.                  Line  – 011 Withholding (Form -B and/or           5. Total Use Tax Due. Subtract
Note: The total amount of specific credit claimed      )                                                       line 4 from line 3. Enter the
on Form 100 or Schedule P (100) should include         Enter the 2011 resident and nonresident or real            amount here and on
both: (1) the total assigned credit claimed from       estate withholding credit from Form 592-B,                 Form 100, line 40. If the
form FTB 3544A, column (i), and (2) the amount         Resident and Nonresident Withholding Tax                   amount is less than zero,
of credit claimed that was generated by the            Statement and/or Form 593, Real Estate                     enter -0- . . . . . . . . . . . . . . . . . $ ________.00
assignee.                                              Withholding Tax Statement. Attach a copy of the
                                                       form(s) to the lower front of Form 100, Side 1.         Worksheet, Line 1, Purchases Subject to Use Tax
A variety of tax credits are available to California
corporations to reduce tax. However, corporations      Line  and Line 8 – Tax due or overpayment            • Report items that would have been taxable
may not reduce the tax (line 24) below the             Revise the amount of tax due or overpayment, if             if sold in a California store, such as office
minimum franchise tax, if applicable.                  applicable, by the amount on Side 3, Schedule J,            equipment and supplies.
                                                       line 6. See instructions for Schedule J.                • Include handling charges.
Also, the amount of the credit that a corporation
is allowed to claim may be limited. Generally, if      Line  – Amount to be credited to 01                 • Do not include any other state’s sales or use
the corporation completed federal Form 4626, the       estimated tax                                               tax paid on the purchases.
corporation may have limited credits. Complete         If the corporation chooses to have the                  • Enter only purchases made during the year
Schedule P (100) (included in this booklet) to         overpayment credited to next year’s estimated tax           that correspond with the tax return the
compute this limitation.                               payment, the corporation cannot later request that          corporation is filing.
                                                       the overpayment be applied to the prior year to         Note: Report and pay any use tax the corporation
Corporations claiming the following credits            offset any tax due.
are not subject to the tentative minimum tax                                                                   owes on the following purchases directly to
limitation:                                            Line 0 – Use tax                                       the State Board of Equalization, not on the
                                                       As explained under General Information Y,               corporation’s income tax return:
• Enterprise zone hiring & sales or use tax            California use tax applies to purchases from out
     credit                                                                                                    • Vehicles, vessels, and trailers that must be
                                                       of state sellers (for example, purchases made by            registered with the Department of Motor
• LARZ construction hiring & sales or use tax          telephone, over the Internet, by mail, or in person).
     credit carryover                                                                                              Vehicles.
                                                       For questions on whether a purchase is taxable, go      • Mobile homes or commercial coaches that
• Solar energy credit carryover (Code 180)             to State Board of Equalization’s website at
• Commercial solar energy credit carryover                                                                         must be registered annually as required by the
                                                       boe.ca.gov, or call their Taxpayer Information              Health and Safety Code.

Page 1      Form 100 Booklet 2011
• Vessels documented with the U.S. Coast
    Guard.
                                                        Schedule D – Capital Gains or                            Political Organizations
                                                                                                                 A political organization exempt under R&TC
• Aircraft.                                             Losses                                                   Section 23701r must file Form 100 and report
• Leases of machinery, equipment, vehicles, and         California law does not conform to the federal           “political taxable income” in excess of $100.
    other tangible personal property.                   reduced capital gains tax rates. California taxes        “Political taxable income” means all amounts
Worksheet, Line , Sales and Use Tax Rate               capital gains at the same rate as other types of         received during the taxable year other than:
• Enter the sales and use tax rate applicable to        income. California does not allow a three-year           • Contributions of money or other property.
    the place in California where the property is       carryback of capital losses.                             • Membership fees, dues, or assessments.
    used, stored, or otherwise consumed. If the         Enter any unused capital loss carryover from             • Proceeds from political fundraising or
    corporation does not know the applicable city       2010 Form 100, Side 5, Schedule D, line 11 on                  entertainment events, or proceeds from the
    or county sales and use tax rate, please go to      2011 Form 100, Side 5, Schedule D, line 3.                     sale of political campaign material not received
    the State Board of Equalization’s website at        For information regarding the application of the               in the ordinary course of any trade or business.
    boe.ca.gov and click on City and County Tax         capital loss limitation and the capital loss carryover   Political organizations are not subject to the
    Rates or call their Taxpayer Information Section    in a combined report, see Cal. Code Regs., tit. 18       minimum franchise tax nor are they required to
    at 800.400.7115 or California Relay Service         section 25106.5-2 and FTB Pub. 1061.                     make estimate payments. The tax is computed
    (CRS) 711 (for hearing and speech disabilities).                                                             under Chapter 3 of the Corporation Tax Law.
                                                        Line 1 and Line 
Worksheet, Line , Credit for Tax Paid to               Report short-term or long-term capital gains             Enter the $100 limit on Schedule F, line 28, as a
Another State                                           (losses) from form FTB 3725, Assets Transferred          qualified “specific deduction.”
• This is a credit for tax paid to other states         from Parent Corporation to Insurance Company             Exempt Homeowners’ Associations
    on purchases reported on Line 1. The                Subsidiary, on Schedule D. Make sure to label            A homeowners’ association exempt under
    organization can claim a credit up to the           on Schedule D, Part I, line 1 and/or Part II,            R&TC Section 23701t, including unincorporated
    amount of tax that would have been due if the       line 5, under column (a) Description of property:        homeowners’ associations, must file Form 100
    purchase had been made in California. For           “FTB .” Enter the amount of short-term               if it received nonexempt function gross income
    example, if the organization paid $8.00 sales       or long-term capital gains (losses) from form            in excess of $100. Form 100 may be required in
    tax to another state for a purchase, and would      FTB 3725 on Schedule D, Part I, line 1, column (f)       addition to Form 199.
    have paid $6.00 in California, the organization     and/or Part II, line 5, column (f). Attach a copy of
    can claim a credit of only $6.00 for that           form FTB 3725 to the Form 100.                           Nonexempt function gross income means gross
    purchase.                                                                                                    income received during the taxable year other
                                                        Report short-term or long-term capital gains from        than amounts received from membership fees,
Line 1 – Refund                                        form FTB 3726, Deferred Intercompany Stock               dues, or assessments. Nonexempt function
Direct Deposit of Refund (DDR)                          Account (DISA) and Capital Gains Information, on         gross income includes the gross amount of such
Direct deposit is fast, safe, and convenient.           Schedule D. Make sure to label on Schedule D,            items as, but not limited to: interest, dividends,
To have the refund directly deposited into the          Part I, line 1 and/or Part II, line 5, under             rents, royalties, sale of assets, and income from
corporation’s bank account, enter the account           column (a) Description of property: “DISA.” Enter        nonmembers.
information on Form 100, Side 2, lines 41a, 41b,        the amount of short-term or long-term capital
                                                        gains from form FTB 3726 on Schedule D, Part I,          Exempt homeowners’ associations and
and 41c. Be sure to fill in all the information. Do                                                              unincorporated homeowners’ associations are not
not attach a voided check or deposit slip.              line 1, column (f) and/or Part II, line 5, column (f).
                                                        Attach a copy of form FTB 3726 to the Form 100.          subject to the minimum franchise tax. The tax is
Caution: Check with the corporation’s financial                                                                  computed under Chapter 3 of the Corporation Tax
institution to make sure the deposit will be
accepted and to get the correct routing and
                                                        Schedule F – Computation of                              Law. Under Chapter 3, estimated tax payments
                                                                                                                 may be required. Form 100 is due on or before
account numbers. The FTB is not responsible for a       Net Income                                               the 15th day of the 3rd month after the close of
lost refund due to incorrect account information.       See General Information I, Net Income                    the taxable year.
To cancel the DDR, call the FTB at 916.845.0353.        Computation, for information on net income               Enter the $100 limit on Schedule F, line 28, as a
The FTB is not responsible when a financial             computation methods.                                     qualified “specific deduction.”
institution rejects a direct deposit. If the FTB, the   Line  – Total dividends
bank, or financial institution rejects the direct       Enter the total amount of dividends received.            Schedule G – Bad Debts
deposit due to an error in the routing number or
account number, the FTB will issue a paper check.       Line 1 – Salaries and wages                             Reserve Method
                                                        Gain from the exercise of California Qualified           For taxable years beginning on or after
Line  – Penalties and interest                        Stock Options (CQSOs) issued and exercised
Enter on line 42a the amount of any penalties and                                                                January 1, 2002, only banks that are not a large
                                                        on or after January 1, 1997, and before                  bank, as defined in the IRC Section 585 (c)(2),
interest due. Complete and attach form FTB 5806         January 1, 2002, can be excluded from gross
to the back of Form 100 (after all schedules and                                                                 may use the bad debt reserve method. For the
                                                        income if the individual’s earned income is              purpose of the bad debt reserve method, banks
federal return), only if Exception B or Exception C     $40,000 or less. The exclusion from gross
is used in computing or eliminating the penalty.                                                                 include savings and loan associations, and other
                                                        income is subject to AMT and the corporation is          financial institutions. For more information, see
Be sure to check the box on line 42b.                   not allowed a deduction for the compensation             IRC Sections 581 and 585. Complete Schedule G
                                                        excluded from the employee’s gross income. For
Schedules                                               more information, see R&TC Section 24602.
                                                                                                                 on the next page and attach it to Form 100.

Schedule A – Taxes Deducted                             Line 1 – Taxes                                          Schedule J – Add-On Taxes and
                                                        If the corporation is using the California
Enter the nature of the tax, the taxing authority,      computation method to compute the net income,            Recapture of Tax Credits
the total tax, and the amount of the tax that is not    enter on line 17 the difference of column (c) and        Complete Schedule J on Form 100, Side 3, if the
deductible for California purposes on Form 100,         column (d) of Schedule A.                                corporation has credit amounts to recapture or
Side 3, Schedule A.                                     Line  – Other deductions                               is required to include installment payments of
If the corporation is using the California              Do not include any dividend deduction on this            “add-on” taxes for the following:
computation method to compute the net income,           line. Instead enter the dividend deduction on            • Last-in, first-out (LIFO) recapture resulting
enter the difference of column (c) and column (d)       Form 100, Side 1, line 10, or line 11.                       from an S corporation election.
on Schedule F, line 17.                                 Line 8 – Specific deduction for organizations           • Interest computed under the look-back
                                                        under R&TC Section 01r or 01t                          method for completed long-term contracts.



                                                                                                                          Form 100 Booklet 2011             Page 1
Schedule G Bad Debts Reserve Method. See instructions
                                                                                    Amount added to reserve
   (a)                                 (b)                                          (c)                 (d)                 (e)                    (f)
 Taxable            Accounts outstanding at the end of the year                Current year’s       Recoveries        Amount charged        Reserve for bad
  year                                                                          provisions                            against reserve     debts at end of year
   2006
   2007
   2008
   2009
   2010
   2011

• Interest on tax attributable to installment sales
    of certain property or use of the installment
                                                       Long-Term Contracts. Include the amount of
                                                       interest the corporation owes or the amount
                                                                                                             Schedule M-1 – Reconciliation
    method for non-dealer installment obligations.     of interest to be credited or refunded to the         of Income (Loss) per Books
• IRC Section 197(f)(9)(B)(ii) election to
    recognize gain on the disposition of an IRC
                                                       corporation on Schedule J, line 2. If interest is
                                                       to be credited or refunded, enter as a negative
                                                                                                             With Income (Loss) per Return
    Section 197 intangible.                            amount. Attach form FTB 3834 to Form 100.             Schedule M-1 is used to reconcile the difference
                                                                                                             between book and tax accounting for an
Revise the amount of tax due or overpayment on         Interest on Tax Attributable to Payments
                                                                                                             income or expense item. The federal and state
Form 100, line 37 or line 38, as applicable by the     Received on Installment Sales of Certain
                                                                                                             Schedule M-1 may be the same when the
amount from Schedule J, line 6.                        Timeshares and Residential Lots. If the
                                                                                                             corporation uses the federal reconciliation
Installment Payment of Tax Attributable to             corporation elected to pay interest on the
                                                                                                             method for net income computation. See General
LIFO Recapture for Corporations Making an              amount of tax attributable to payments received
                                                                                                             Information I, Net Income Computation, for
S Corporation Election. A corporation that uses        on installment obligations arising from the
                                                                                                             more information. The California Schedule M-1
the LIFO inventory pricing method and makes            disposition of certain timeshares and residential
                                                                                                             will be different from the federal Form 1120,
an S corporation election must include a “LIFO         lots under IRC Section 453(l)(3), it must include
                                                                                                             Schedule M-1, if using the California computation
recapture amount” in income for its last year as a     the interest due on Schedule J, line 3a. For the
                                                                                                             method for net income. The California
C corporation. The corporation’s LIFO recapture        applicable interest rates, get FTB Pub. 1138.
                                                                                                             computation method is generally used when the
amount is equal to the excess of the inventory         Attach a schedule showing the computation.
                                                                                                             corporation has no federal filing requirement, or
amount using the first-in, first-out (FIFO) method,    Interest on Tax Deferred Under the Installment        if the corporation maintains separate records for
over the inventory amount using the LIFO               Method for Certain Nondealer Installment              state purposes.
method, at the close of the corporation’s last         Obligations. If an obligation arising from
                                                                                                             Reporting Requirements: If the corporation’s
taxable year as a C corporation.                       the disposition of property to which IRC
                                                                                                             total receipts (see top of page 44 for definition
The additional tax resulting from inclusion of         Section 453A(c) applies is outstanding at the
                                                                                                             of total receipts) for the taxable year and total
the LIFO recapture in income is payable in four        close of the taxable year, the corporation must
                                                                                                             assets at the end of the taxable year are less
equal installments. The first installment is due on    include the interest due under IRC Section 453A
                                                                                                             than $250,000, the corporation is not required
the original due date of Form 100 of the electing      on Schedule J, line 3b. For the applicable interest
                                                                                                             to complete Schedule L, Schedule M-1, and
corporation’s last year as a C corporation.            rates, get FTB Pub. 1138.
                                                                                                             Schedule M-2. However, this information must be
To determine the additional tax due to LIFO            IRC Section 1(f)()(B)(ii) Election. Complete       available in the future upon request.
recapture, the corporation must complete               Schedule J, line 4 if the corporation elected to
                                                                                                             Corporation With Total Assets of $10 Million
Form 100, Side 1, line 19 through line 31,             pay tax on the gain from the sale of an intangible
                                                                                                             or More. For taxable years beginning on or after
based on income that does not include the LIFO         under the related person exception to the
                                                                                                             January 1, 2004, the IRS generally requires
recapture amount.                                      anti-churning rules.
                                                                                                             corporations with total assets of $10 million
On a separate worksheet using the Form 100             Credit Recapture. Complete Schedule J, line 5,        or more on the last day of the taxable year to
format, the corporation must complete the              if the corporation completed the credit recapture     complete federal Schedule M-3 (Form 1120/
equivalent of Form 100, Side 1, line 19 through        portion for any of the following forms:               1120-F) instead of federal Schedule M-1. For
line 31, based on taxable income including             • FTB 3501, Employer Child Care Program/              California purposes, the corporation must
the LIFO recapture amount. Form 100, Side 1,                Contribution Credit                              complete the California Schedule M-1, and attach
line 31, must then be compared to line 31 of the       • FTB 3511, Environmental Tax Credit                  either of the following:
worksheet. The difference is the additional tax due    • FTB 3805Z, Enterprise Zone Deduction and            • A copy of the federal Schedule M-3
to LIFO recapture.                                          Credit Summary                                        (Form 1120/1120-F) and related attachments
Since Form 100, Side 1, line 31, does not              • FTB 3807, Local Agency Military Base                     to the Form 100.
include the additional tax due to LIFO recapture,           Recovery Area Deduction and Credit Summary       • A complete copy of the federal return.
corporations must include 1/4 of the additional        • FTB 3808, Manufacturing Enhancement Area
                                                                                                             The FTB will accept the federal Schedule M-3
tax on Schedule J, line 1 and adjust line 37 or line        Credit Summary
                                                                                                             (Form 1120/1120-F) in a spreadsheet format if
38 accordingly. Attach the worksheet showing the       • FTB 3809, Targeted Tax Area Deduction and
                                                                                                             more convenient.
computation.                                                Credit Summary
The electing S corporations must pay the               Also complete Schedule J, line 5, if the
remaining three installments of deferred tax with      corporation is subject to recapture for any of the
Form 100S.                                             following credits:
Long-term Contracts. If the corporation must           • The Farmworker Housing Credits
compute interest under the look-back method            • The Community Development Financial
for completed long-term contracts, complete                 Institutions Investment Credit
and attach form FTB 3834, Interest Computation
Under the Look-Back Method for Completed




Page 1      Form 100 Booklet 2011
     TAXABLE  YEAR
                                       California Corporation                                                                                                                                                        FORM


                    2011               Franchise or Income Tax Return                                                                                                                                               100
     For calendar year 2011 or fiscal year beginning month ____ day ____ year _____, and ending month ____ day ____ year _____ .
     Corporation name                                                                                                                                                                         California corporation number


     Address (suite, room, or PMB no.)                                                                                                                                                        FEIN


     City                                                                                                                           State         ZIP Code


      Schedule Q Questions                               (continued on Side 2)                                                B  . Is income included in a combined report of a
                                             
      A . FINAl reTurN?   Dissolved  	Surrendered (withdrawn)                                                                                                                                             
                                                                                                                                    unitary group? . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Yes  No
            Merged/Reorganized  IRC Section 338 sale  QSub election                                                           2. If “Yes,” indicate:    	 wholly within CA (R&TC 25101.15)
                                     
           Enter date   _________________________________________                                                                                          	 within and outside of CA
                                                                                                                                 3. Is there a change in the members listed in
                    2. DeFerreD INCOMe. Did this corporation elect to defer
                       income from the discharge of indebtedness as described
                                                                                                                                                                                                           
                                                                                                                                    Schedule R-7 from the prior year? . . . . . . . . . . . . . .  Yes  No
                       in IRC Section 108(i) for federal purposes? . . . . . . .  Yes                         No             4. Enter the number of members (including parent
                                                                                                                                    or key corporation) listed in the Schedule R-7,
                       If “Yes,” enter the federal deferred income from                                                             Part I, Section A, subject to income or franchise tax .               ___________
                       discharge of indebtedness. . . . . . . . . . . . . . . . . . . . .      	$___________                    5. Is form FTB 3544 and/or 3544A attached to the return? 	 Yes  No     
                       Net income (loss) before state adjustments. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	                                                        00
                     2  Amount deducted for foreign or domestic tax based on income or profits from Schedule A . . . . . . . . . . . . . . . .                                           2                                   00
                     3  Amount deducted for tax under the provisions of the Corporation Tax Law from Schedule A . . . . . . . . . . . . . . .                                            3                                   00
                     4  Interest on government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         4                                   00
                     5  Net California capital gain from Side 5, Schedule D, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                   5                                   00
                     6  Depreciation and amortization in excess of amount allowed under California law. Attach form FTB 3885 . . . . . .                                                 6                                   00
                     7  Net income from corporations not included in federal consolidated return. See instructions. . . . . . . . . . . . . . . . 	 7                                                                        00
State Adjustments




                     8  Other additions. Attach schedule(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        8                                   00
                     9                                                                                                                                                           
                        Total. Add line 1 through line 8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .     9                                   00
                    0  Intercompany dividend deduction. Attach Schedule H (100) . . . . . . . .                             0                                                      00
                      Dividends received deduction. Attach Schedule H (100) . . . . . . . . . . .                                                                                00
                    2  Additional depreciation allowed under CA law. Attach form FTB 3885 . 	 2                                                                                    00
                    3  Capital gain from federal Form 1120, line 8 . . . . . . . . . . . . . . . . . . . . .                3                                                      00
                    4                                                                                                   
                        Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4                                                      00
                    5  EZ, LAMBRA, or TTA business expense and EZ net interest deduction. .                                 5                                                      00
                    6  Other deductions. Attach schedule(s). . . . . . . . . . . . . . . . . . . . . . . . . .              6                                                      00
                    7                                                                                                                                                          
                        Total. Add line 10 through line 16. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      7                                   00
                    8  Net income (loss) after state adjustments. Subtract line 17 from line 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                         8                                   00
                    9  Net income (loss) for state purposes. Complete Schedule R if apportioning income. See instructions . . . . . . . .                                              9                                   00
                                                                                                                         
CA Net Income




                    20  Net operating loss (NOL) carryover deduction. See instructions . . . . .                              20                                                      00
                    2  Pierce’s disease, EZ, LARZ, TTA, or LAMBRA NOL carryover deduction.
                                                                                                                         
                        See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2                                                      00
                    22 Disaster loss carryover deduction. See instructions. . . . . . . . . . . . . . .                      22                                                      00
                    23 Net income for tax purposes. Combine line 20 through line 22. Then, subtract from line 19 . . . . . . . . . . . . . . . .                                        23                                   00
                    24 Tax. __________% x line 23 (not less than minimum franchise tax, if applicable) . . . . . . . . . . . . . . . . . . . . . . .                                    24                                   00
                                                                                         
                    25 New jobs credit. . . . . . . . a) amount generated ___________________ b) amount claimed . . . . . . . . . . . . . 	 25b                                                                              00
                    26a Credit name _______________________code no. __ __ __ amount . 	 26a                                                                                          00
                      b Credit name _______________________code no. __ __ __ amount . 	 26b                                                                                          00
Taxes




                    27 To claim more than two credits, see instructions . . . . . . . . . . . . . . . . .                    27                                                      00
                                                                                                                                                                                
                    28 Add line 25b through line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 28                                      00
                    29 Balance. Subtract line 28 from line 24 (not less than minimum franchise tax, if applicable) . . . . . . . . . . . . . . . . 	 29                                                                      00
                    30 Alternative minimum tax. Attach Schedule P (100). See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 30                                                            00
                                                                                                                                                                                
                    3 Total tax. Add line 29 and line 30. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 3                                       00
                    32   Overpayment from prior year allowed as a credit . . . . . . . . . . . . . . . . .          32                                                      00
                                                                                                                         
Payments




                    33   20 estimated tax payments. See instructions . . . . . . . . . . . . . . . . . 	 33                                                                00
                    34   2011 Withholding (Form 592-B and/or 593). See instructions . . . . . . . .                 34                                                      00
                    35   Amount paid with extension of time to file tax return . . . . . . . . . . . . . .          35                                                      00
                    36   Total payments. Add line 32 through line 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .    
                                                                                                                                                                                36                                            00


                                                                                                                 3601113                                                                      Form 100 C1 2011         Side 
                       37 Franchise or income tax due. If line 31 is more than line 36, subtract line 36 from line 31. Go to line 40 		 37                                                                         00
                       38 Overpayment. If line 36 is more than line 31, subtract line 31 from line 36 . . . . . . . . . . . . . . . . . . . . . . . 		 38                                                          00
refund or Amount Due

                       39 Amount of line 38 to be credited to 2012 estimated tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 39                                                  00
                       40 use tax. This is not a total line. See instructions . . . . . . . . . . . . 	 40                                                                     00
                       4 refund. If the sum of line 39 and line 40 is less than line 38, then subtract the result from line 38. . . . . 		4                                                                      00
                          See instructions to have the refund directly deposited. a Routing number . . . . . . . . . . . . . . . . 		4a
                          b Type: Checking  	 Savings  	 	 c Account number . . . . . . . . . . . . . . . . . . . . . . . 		4c
                       42 a Penalties and interest. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 42a                              00
                          b   Check if estimate penalty computed using Exception B or C. See instructions.
                       43 Total amount due. Add line 37, line 39, line 40, and line 42a. Then, subtract line 38 from the result. . . . .                                            43                              00
 Schedule Q Questions (continued from Side 1)
 C  If the corporation filed on a water’s-edge basis pursuant to R&TC                                                           If 1 or 3 is “Yes,” enter the country of the ultimate parent
    Sections 25110 and 25113 in previous years, enter the                                                                 	        
                                                                                                                            	  _______________________________________________
                                                                    
    date the water’s-edge election ended            /       /                                                                   If 1, 2, or 3 is “Yes,” furnish a statement of ownership indicating
 D Was the corporation’s income included in a                                                                                   pertinent names, addresses, and percentages of stock owned.
    consolidated federal return? . . . . . . . . . . . . . . . . . . . . . .  Yes  No                                        If the owner(s) is an individual, provide the SSN/ITIN.
 E Principal business activity code.                                                                                      L Has the corporation included a reportable transaction
    (Do not leave blank): . . . . . . . . . . . . . . . . . . . . .                                                        or listed transaction within this return?
   Business activity _____________________________________________                                                          (See instructions for definitions) . . . . . . . . . . . . . . . . . . .         	Yes 	No
    Product or service____________________________________________                                                          If “Yes,” complete and attach federal Form 8886 for each transaction.
                                                                                                                          M Is this corporation apportioning income to California
 F Date incorporated:          /        /                                                                                                                                                                
                                                                                                                            using Schedule R?. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
    Where: 	State                Country _______________________________                                                 N How many affiliates in the combined report are claiming
 G Date business began in California or date income was first derived from                                                  immunity from taxation in California under
                                            
    California sources           /        /                                                                                                               
                                                                                                                            Public Law 86-272?	 	______________________________________
 H First return?                     
                         Yes  No If “Yes” and this corporation is a                                                     O Corporation headquarters are:                 ()  Within California
    successor to a previously existing business, check the appropriate box.                                                 (2)  Outside of California, within the U.S. (3)  Outside of the U.S.
                       
       	() 	sole proprietorship (2) 	partnership (3) 	joint venture                                                   P Location of principal accounting records ________________________
        (4) 	corporation (5) 	other                                                                                       ________________________________________________________
    (attach statement showing name, address, and FEIN/SSN/ITIN of                                                         Q Accounting method:              ()  Cash (2)  Accrual (3)  Other
    previous business)                                                                                                    R Does this corporation or any of its subsidiaries have a
                                                                                                                           Deferred Intercompany Stock Account (DISA)? . . . . . . .  Yes  No         
 I “Doing business as” name. See instructions: ____________________
    __________________________________________________________
                                                                                                                                                                                          
                                                                                                                            If “Yes,” enter the total balance of all DISAs $___________________
 J . For this taxable year, was there a change in control
                                                                                                                          S Is this corporation or any of its subsidiaries a RIC? . . . . 	Yes 	No     
                                                                                                                          T Is this corporation treated as a REMIC for
        or majority ownership for this corporation or any of
                                                                                                                                                                                                         
                                                                                                                            California purposes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
        its subsidiaries that owned or (under certain
        circumstances) leased real property in California? . . . .           	Yes 	No                                  U Is this corporation a REIT for California purposes? . . . . . 	Yes 	No     
                                                                                                                          V Is this corporation an LLC or limited partnership
    2. For this taxable year, did this corporation or any of its
                                                                                                                            electing to be taxed as a corporation for federal
        subsidiaries acquire control or majority ownership of
                                                                                                                                                                                                         
                                                                                                                            purposes? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
        any other legal entity that owned or (under certain
        circumstances) leased real property in California? . . . .           	Yes 	No                                  W Is this corporation to be treated as a credit union? . . . . . 	Yes 	No    
                                                                                                                          X Is the corporation under audit by the IRS or has it
    3. If this corporation or any of its subsidiaries owned or
        (under certain circumstances) leased real property in
                                                                                                                            been audited by the IRS in a prior year? . . . . . . . . . . . . . 	Yes 	No
                                                                                                                          Y Have all required information returns (e.g. federal
        California, has more than 50% of the voting stock of any                                                            Forms 1099, 5471, 5472, 8300, 8865, etc.) been
        one of them cumulatively transferred in one or more                                                                 filed with the Franchise Tax Board? . . . . . . . . . . . . 	N/A 	Yes 	No
        transactions since March 1, 1975, which was not                                                                   Z Does the taxpayer (or any corporation of the
        reported on a previous year’s tax return? . . . . . . . . . . .      	Yes 	No                                    taxpayer’s combined group, if applicable) own 80%
        (Penalties may apply – see instructions.)                                                                           or more of the stock of an insurance company? . . . . . . . . . 	Yes 	No
 K At any time during the taxable year, was more than                                                                     AA Did the corporation file the federal Schedule UTP
    50% of the voting stock:                                                                                                                                                                             
                                                                                                                               (Form 1120)? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
    . Of the corporation owned by any single interest? . . . . .            	Yes 	No                                  BB Does any member of the combined report own an
    2. Of another corporation owned by this corporation? . . .               	Yes 	No                                       SMLLC or generate/claim credits that are attributable
    3. Of this and one or more other corporations owned or                                                                     to an SMLLC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
        controlled, directly or indirectly, by the same interests?.          	Yes 	No         
                                   Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and belief, it is 
 Sign                              true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
 Here                                                                                                        Title                                         Date                     Telephone
                                  Signature
                                  of officer    
                                 Officer’s email address (optional)                                                                                                                (                ) 
 Paid       Preparer’s
                                                                                                                                  Date                      Check if self-         	PTIN
 Preparer’s signature                                                                                                                                      employed   	
 Use Only
                                   Firm’s name (or yours,
                                                                                                                                                                                    	FEIN
                                   if self-employed)       
                                   and address                                                                                                                                      	Telephone
                                                                                                                                                                                    (                )

                                   May the FTB discuss this return with the preparer shown above? See instructions . . . . . . . . . . . . . . . . . .                             	 Yes  No

Side 2                       Form 100 C1 2011                                                                  3602113                                                   For Privacy Notice, get form FTB 1131.
Schedule A Taxes Deducted. Use additional sheet(s) if necessary.
                (a)                                               (b)                                                                                             (c)                   (d)
            Nature of tax                                   Taxing authority                                                                                Total amount        Nondeductible amount
                                                                                                                                                                                                  00
                                                                                                                                                                                                  00
Total. Enter total of column (c) on Schedule F, line 17, and total of column (d) on Side 1, line 2 or line 3.
       If the corporation uses California computation method to compute the net income, see instructions.                                                                                        00

Schedule F Computation of Net Income. See instructions.
     a) Gross receipts or gross sales__________________________________________
      b) Less returns and allowance____________________________________________c) Balance . . . . .                                                                  c                          00
    2 Cost of goods sold. Attach federal Form 1125-A (California Schedule V). . . . . . . . . . . . . . . . . . . . . . . . .                                         2                          00
    3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    3                          00
    4 Total dividends. Attach federal Schedule C, California Schedule H (100) . . . . . . . . . . . . . . . . . . . . . . . . .                                       4                          00
    5 a) Interest on obligations of the United States and U.S. instrumentalities . . . . . . . . . . . . . . . . . . . . . . . .                                     5a                          00
Income




      b) Other interest. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 5b                          00
    6 Gross rents. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      6                          00
    7 Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       7                          00
    8 Capital gain net income. Attach federal Schedule D (California Schedule D) . . . . . . . . . . . . . . . . . . . . . .                                          8                          00
    9 Ordinary gain (loss). Attach federal Form 4797 (California Schedule D-1) . . . . . . . . . . . . . . . . . . . . . . . .                                        9                          00
   0 Other income (loss). Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    0                          00
    Total income. Add line 3 through line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                               00
   2 Compensation of officers. Attach federal Form 1125-E or
      equivalent schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 2                                                              00
   3 Salaries and wages (not deducted elsewhere) . . . . . . . . . . . . . . 	 3                                                                              00
   4 Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	 4                                                    00
   5 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 5                                                        00
   6 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 6                                                      00
   7 Taxes (California Schedule A). See instructions . . . . . . . . . . . . . 	 7                                                                            00
   8 Interest. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 8                                                                00
   9 Contributions. Attach schedule. . . . . . . . . . . . . . . . . . . . . . . . . . 	 9                                                                    00
   20 Depreciation. Attach federal
      Form 4562 and FTB 3885 . . . . . . 	 20
Deductions




   2 Less depreciation claimed
      elsewhere on return . . . . . . . . . . 2a                                                     	 2b                                                     00
   22 Depletion. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 22                                                                 00
   23 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	 23                                                      00
   24 Pension, profit-sharing plans, etc. . . . . . . . . . . . . . . . . . . . . . . . . . 	 24                                                                 00
   25 Employee benefit plans. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	 25                                                              00
   26 a) Total travel and entertainment __________________________
      b) Deductible amounts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 26b                                                               00
   27 Other deductions. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . 	 27                                                                      00
   28 Specific deduction for organizations under R&TC
      Section 23701r or 23701t. See instructions . . . . . . . . . . . . . . . . 	 28                                                                           00
   29 Total deductions. Add line 12 through line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                        29                         00
   30 Net income before state adjustments. Subtract line 29 from line 11. Enter here and on Side 1, line 1 . . .                                                     30                         00

 Schedule J Add-On Taxes and recapture of Tax Credits. See instructions.
   LIFO recapture due to S corporation election, IRC Sec. 1363(d) deferral: $____________________ . . . . . .                                                                                 00
  2 Interest computed under the look-back method for completed long-term contracts (Attach form FTB 3834)                                                       2                               00
  3 Interest on tax attributable to installment: a Sales of certain timeshares and residential lots . . . . . . . . . . . .                                    	 3a                             00
                                                    b Method for nondealer installment obligations . . . . . . . . . . . . .                                   	 3b                             00
  4 IRC Section 197(f)(9)(B)(ii) election. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       	 4                              00
  5 Credit recapture name:______________________________________________________________ . . . .                                                                5                               00
  6 Combine line 1 through line 5, revise Side 2, line 37 or line 38, whichever applies, by this amount. Write
    “Schedule J” to the left of line 37 or line 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 6                          00




                                                                                                  3603113                                                                  Form 100 C1 2011   Side 3
Schedule V Cost of Goods Sold
 Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            00
2 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2 00
3 Cost of labor. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	  3 00
4 a Additional IRC Section 263A costs. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             4a 00
    b Other costs. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 4b           00
5 Total. Add line 1 through line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .            5 00
6 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       6 00
7 Cost of goods sold. Subtract line 6 from line 5. Enter here and on Side 3, Schedule F, line 2 . . . . . . . . . . . . . .                                            7 00
Method of inventory valuation 	_____________________________________________________________________________________________
Was there any change in determining quantities, costs of valuations between opening and closing inventory? . . . . . . . . . . . . . . . . . . . . . . 	Yes 	No
If “Yes,” attach an explanation.
Enter California seller’s permit number, if any 	_____________________________________________________________
Check if the LIFO inventory method was adopted this taxable year for any goods. If checked, attach federal Form 970 . . . . . . . . . . . . . . . . . . . . . . . . 
If the LIFO inventory method was used for this taxable year, enter the amount of closing inventory under LIFO__________________________________
Do the rules of IRC Section 263A (with respect to property produced or acquired for resale) apply to the corporation? . . . . . . . . . . . . . . 	 	Yes 	No




The corporation may not be required to complete Schedules l, M-, and M-2. See Schedule M- instructions for reporting requirements.
Schedule L Balance Sheet                                                        Beginning of taxable year         end of taxable year
Assets                                                                          (a)                   (b)     (c)                     (d)
  Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                              
 2 a Trade notes and accounts receivable . . . . . . . . .                                                
   b Less allowance for bad debts . . . . . . . . . . . . . . . (                         )               	(              ) 
 3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                 
 4 Federal and state government obligations . . . . . . .                                                                    
 5 Other current assets. Attach schedule(s) . . . . . . . .
 6 Loans to stockholders/officers. Attach schedule . .                                                                       
 7 Mortgage and real estate loans. . . . . . . . . . . . . . . .                                                             
 8 Other investments. Attach schedule(s). . . . . . . . . .                                                                  
 9 a Buildings and other fixed depreciable assets . . .                                                   
   b Less accumulated depreciation. . . . . . . . . . . . . . (                           )               	(              ) 
0 a Depletable assets . . . . . . . . . . . . . . . . . . . . . . . .
   b Less accumulated depletion . . . . . . . . . . . . . . . . (                         )               (               )
 Land (net of any amortization) . . . . . . . . . . . . . . . .                                                                                 
2 a Intangible assets (amortizable only) . . . . . . . . . .                                                         
   b Less accumulated amortization. . . . . . . . . . . . . . (                        )                              (                       )
3 Other assets. Attach schedule(s) . . . . . . . . . . . . . .                                                                                   
4 Total assets.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                       
Liabilities and Stockholders’ Equity
5 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . .                                                                           
6 Mortgages, notes, bonds payable in less than 1 year                                                                                            
7 Other current liabilities. Attach schedule(s) . . . . . .
8 Loans from stockholders. Attach schedule(s) . . . .                                                                                            
9 Mortgages, notes, bonds payable in 1 year or more                                                                                              
20 Other liabilities. Attach schedule(s) . . . . . . . . . . . .                                                                                  
2 Capital stock: a Preferred stock. . . . . . . . . . . . . .                                                        
                     b Common stock . . . . . . . . . . . . . .                                                                                  
22 Paid-in or capital surplus. Attach reconciliation . . .                                                                                        
23 Retained earnings – Appropriated. Attach schedule
24 Retained earnings – Unappropriated . . . . . . . . . . .
25 Adjustments to shareholders’ equity. Attach schedule
26 Less cost of treasury stock. . . . . . . . . . . . . . . . . . .                        (                      )                               (                     )
27 Total liabilities and stockholders’ equity . . . . . . .




Side 4       Form 100 C1 2011                                                 3604113
Schedule M-1 reconciliation of Income (loss) per Books With Income (loss) per return.
             If the corporation completed federal Schedule M-3 (Form 20 /20-F), see instructions.

    Net income per books . . . . . . . . . . . . . . . . . . . . .                                        7 Income recorded on books this year not
2    Federal income tax . . . . . . . . . . . . . . . . . . . . . . . .                                      included in this return (itemize)
3    Excess of capital losses over capital gains . . . . . .                                                 a Tax-exempt interest .$_______________
4    Taxable income not recorded on books this year                                                           b Other . . . . . . . . . . $_______________
     (itemize)__________________________________                                                              c Total. Add line 7a and line 7b . . . . . . . . 
	 ________________________________                                                                         8 Deductions in this return not charged
5 Expenses recorded on books this year not deducted                                                           against book income this year (itemize)
  in this return (itemize)                                                                                    a Depreciation . . . . .$_________________
  a Depreciation . . $_________________________                                                               b State tax refunds .$_________________
  b State taxes . . . . $_________________________                                                            c Other . . . . . . . . . .$_________________
  c Travel and                                                                                                  d Total. Add line 8a through line 8c . . . . . 
      entertainment . $_________________________
                                                                                                            9 Total. Add line 7c and line 8d . . . . . . . . . . . .
  d Other . . . . . . . . $_________________________
  e Total. Add line 5a through line 5d . . . . . . . . . .                                                0 Net income per return.
6 Total. Add line 1 through line 5e. . . . . . . . . . . . . . . .                                            Subtract line 9 from line 6 . . . . . . . . . . . . . .


Schedule M-2                  Analysis of unappropriated retained earnings per Books (Side 4, Schedule L, line 24)
 Balance at beginning of year . . . . . . . . . . . . . . . .                                            5 Distributions: a Cash . . . . . . . . . . . . . . 
2    Net income per books . . . . . . . . . . . . . . . . . . . . .                                   	     	               b Stock. . . . . . . . . . . . . . 
                                                                                                       	     	               c Property . . . . . . . . . . . 
3 Other increases (itemize)_____________________
                                                                                                           6 Other decreases (itemize)______________
  ________________________________________
                                                                                                            __________________________________	 	
  ________________________________________
                                                                                                           7 Total. Add line 5 and line 6 . . . . . . . . . . . . . .
  _______________________________________	 
                                                                                                           8 Balance at end of year.
4 Total. Add line 1 through line 3 . . . . . . . . . . . . . . . .                                           Subtract line 7 from line 4 . . . . . . . . . . . . . .


Schedule D California Capital Gains and losses
Part I Short-Term Capital Gains and losses – Assets Held One Year or less. Use additional sheet(s) if necessary.
                     (a)                           (b)              (c)              (d)                 (e)                                                                 (f)
       Kind of property and description       Date acquired     Date sold       Gross sales         Cost or other                                                       Gain (loss)
       (Example, 100 shares of Z Co.)         (mo., day, yr.) (mo., day, yr.)       price             basis plus                                                        (d) less (e)
                                                                                                  expense of sale
                                                                                                                                                                                         00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
 2 Short-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 . . . . . . . . . . . . . . . . .                          2                                    00
 3 Unused capital loss carryover from 2010 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                                    00
 4 Net short-term capital gain (loss). Combine line 1 through line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4                                                  00
Part II long-Term Capital Gains and losses – Assets Held More Than One Year. Use additional sheet(s) if necessary.
 5                                                                                                                                                                                        00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
                                                                                                                                                                                          00
 6    Enter gain from Schedule D-1, line 9 and/or any capital gain distributions. . . . . . . . . . . . . . . . . . . . . . . . . . . .               6                                   00
 7    Long-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 . . . . . . . . . . . . . . . . .                         7                                   00
 8    Net long-term capital gain (loss). Combine line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             8                                   00
 9    Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 8) . . . . . . . . . . . . . . .                     9                                   00
0    Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss (line 4). .                             0                                   00
    Total lines 9 and 10. Enter here and on Form 100, Side 1, line 5.
      If losses exceed gains, carry forward losses to 2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      00




                                                                                         3605113                                                             Form 100 C1 2011          Side 5
Credit Chart
Credit Name                                                   Code     Description
Current Credits List
 California Motion Picture and Television                     223      The credit, which is allocated and certified by the California Film Commission, is 20% of
  Production – FTB 3541                                                expenditures attributable to a qualified motion picture and 25% of production expenditures
                                                                       attributable to an independent film or a TV series that relocates to California.
Community Development Financial Institutions                  209      20% of qualified investments made into a community development financial institution
Investment – Obtain certification from:
  CALIFORNIA ORGANIZED INVESTMENT
  NETWORK (COIN)
  DEPARTMENT OF INSURANCE
  300 CAPITOL MALL, SUITE 1600
  SACRAMENTO CA 95814
  Website: insurance.ca.gov
Disabled Access for Eligible Small Businesses –               205      Similar to the federal credit, but limited to $125 per eligible small business, and based on
  FTB 3548                                                             50% of qualified expenditures that do not exceed $250
Donated Agricultural Products Transportation –                204      50% of the costs paid or incurred for the transportation of agricultural products donated to
 FTB 3547                                                              nonprofit charitable organizations
Employer Child Care Contribution – FTB 3501                   190      Employer: 30% of contributions to a qualified plan
Employer Child Care Program – FTB 3501                        189      Employer: 30% of the cost of establishing a child care program or constructing a child
                                                                       care facility
Enhanced Oil Recovery – FTB 3546                              203      1/3 of the similar federal credit but limited to qualified enhanced oil recovery projects
                                                                       located within California
Enterprise Zone Hiring & Sales or                             176      Business incentives for trade or business activities conducted within an enterprise zone
  Use Tax – FTB 3805Z
Environmental Tax – FTB 3511                                  218      Five cents ($0.05) for each gallon of ultra low sulfur diesel fuel produced during the
                                                                       taxable year by a small refiner at any facility located in California
Local Agency Military Base Recovery Area                      198      Business incentives for trade or business activities conducted within a local agency
Hiring & Sales or Use Tax – FTB 3807                                   military base recovery area
Low-Income Housing – FTB 3521                                 172      Similar to the federal credit but limited to low-income housing in California
Manufacturing Enhancement Area – FTB 3808                     211      Hiring credit for Manufacturing Enhancement Area
Natural Heritage Preservation – FTB 3503                      213      55% of the fair market value of the qualified contribution of property donated to the state,
                                                                       any local government, or any nonprofit organization designated by a local government
New Jobs – FTB 3527                                           220      $3,000 allowed for a qualified employer for each increase in qualified full-time employee
                                                                       hired in the current taxable year
Prior Year Alternative Minimum Tax                            188      Must have paid alternative minimum tax in a prior year and have no alternative minimum
                                                                       tax liability in the current year
Prison Inmate Labor – FTB 3507                                162      10% of wages paid to prison inmates
Research – FTB 3523                                           183      Similar to the federal credit but limited to costs for research activities in California
Targeted Tax Area Hiring & Sales or Use                       210      Business incentives for trade or business activities conducted within a targeted tax area
  Tax – FTB 3809
Repealed Credits with Carryover Provisions: The expiration dates for these credits have passed. However, these credits had carryover
provisions. The corporation may claim these credits if there is a carryover available from prior years. If the corporation is not required to complete
Schedule P (100), get form FTB 3540, Credit Carryover Summary, to figure the credit carryover to future years.
Agricultural Products . . . . . . . . . . . . . . . . . 175     Joint Strike Fighter Wage . . . . . . . . . . . . 215         Rice Straw. . . . . . . . . . . . . . . . . . . . . . . 206
Commercial Solar Electric System . . . . . . . 196              Joint Strike Fighter Property . . . . . . . . . . 216         Ridesharing. . . . . . . . . . . . . . . . . . . . . . 171
Commercial Solar Energy . . . . . . . . . . . . . . 181         Los Angeles Revitalization Zone Hiring                        Salmon & Steelhead Trout Habitat
Contribution of Computer Software . . . . . . 202                 & Sales or Use Tax . . . . . . . . . . . . . . . 159          Restoration . . . . . . . . . . . . . . . . . . . . 200
Employer Ridesharing – Large employer . . 191                   Low-Emission Vehicles . . . . . . . . . . . . . . 160         Solar Energy . . . . . . . . . . . . . . . . . . . . . 180
Employer Ridesharing – Small employer . . 192                   Manufacturers’ Investment . . . . . . . . . . . 199           Solar Pump . . . . . . . . . . . . . . . . . . . . . . 179
Employer Ridesharing – Transit passes . . . 193                 Orphan Drug . . . . . . . . . . . . . . . . . . . . . . 185   Solar or Wind Energy System . . . . . . . . 217
Energy Conservation. . . . . . . . . . . . . . . . . . 182      Recycling Equipment . . . . . . . . . . . . . . . 174         Technology Property Contributions. . . . 201
Farmworker Housing – Construction . . . . . 207




Page 22      Form 100 Booklet 2011
                            TAXABLE YEAR
                                                                                                                                                                                                                                                                      CALIFORNIA SCHEDULE


                             2011                    Dividend Income Deduction                                                                                                                                                                                              H (100)
                        Attach to Form 100. Attach additional sheets if necessary.
                        Corporation name                                                                                                                                                                                                            California corporation number




                        Part I        Elimination of Intercompany Dividends (R&TC Section 25106)
                                                                                           (a)                                                                                                                                               (b)
                                                                                     Dividend payer                                                                                                                                    Dividend payee
                        1
                        2
                        3
                                             (c)                                                      (d)                                                       (e)                                                       (f)                                                  (g)
                             Total amount of dividends received                          Amount that qualifies for 100%                         Amount from column (d) paid out of                        Amount from column (d) paid out of                                 Balance
                                                                                                  elimination                                    current year earnings and profits                          prior year earnings and profits                        column (c) minus column (d)
                        1
                        2
                        3
                        4
                        Enter total amounts of each column on line 4 above. Enter total from Part I, line 4, column (d) on Form 100, Side 1, line 10.
7831113




                        Part II Deduction for Dividends Paid to a Corporation by an Insurance Company (R&TC Section 24410)
                                                                                           (a)                                                                                                                                               (b)
                                                                                     Dividend payer                                                                                                                                    Dividend payee
                        1
                        2
                        3
                                          (c)                                                          (d)                                                         (e)                                                   (f)                                                   (g)
                        Percentage of ownership of dividend payer                      Total insurance dividends received                            Qualified dividend percentage                     Amount of qualified insurance dividends                         Deductible dividends
                                 (must be at least 80%)                                                                                                    (see instructions)                                column (d) x column (e)                                    85% of column (f)
                        1
                        2
                        3
                        4    Total amounts in column (g). Enter here and on Form 100, Side 1, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Schedule H (100) 2011
Instructions for Schedule H (100)
Dividend Income Deduction
Important Information                               In Farmer Bros. Co. v. Franchise Tax Board (2003)    The amount of the dividends that qualify for
                                                    108 Cal App 4th 976, 134 Cal Rptr. 2nd 390,          the dividends received deduction is the total
Revenue and Taxation Code (R&TC)                    the California Court of Appeal found R&TC            amount of dividends received from that insurer,
Section 24410 was repealed and re-enacted           Section 24402 to be unconstitutional. A statute      multiplied by the insurer’s qualified dividend
to allow a “Dividends Received Deduction”           that is held to be unconstitutional is invalid and   percentage. The qualified dividend percentage
for qualified dividends received from an            unenforceable. Therefore, R&TC Section 24402         is determined under R&TC Section 24410(c).
insurer subsidiary. The deduction is allowed        deduction is not available.                          To complete Part II:
whether or not the insurer is engaged in
business in California, if at the time of each      Specific Instructions                                1. Fill in columns (a) through (c).
payment, at least 80% of each class of stock                                                             2. Enter in column (d) the total amount of
of the insurer was owned by the corporation         A corporation may eliminate or deduct dividend           insurance dividends received.
receiving the dividend. For taxable years           income when certain requirements are met.            3. Enter the qualified dividend percentage in
beginning on or after January 1, 2004, and          The available eliminations or deductions are             column (e).
before January 1, 2008, an 80% deduction            described below.                                     4. Multiply the amount in column (d) by the
was allowed for qualified dividends. For taxable                                                             qualified dividend percentage in column (e)
years beginning on or after January 1, 2008,        Part I – Elimination of                                  and enter that amount in column (f).
the deduction is increased to 85%. A portion        Intercompany Dividends (R&TC                         5. Multiply the amount in column (f) by 85%
of the dividends may not qualify if the             Section 25106)                                           and enter the result in column (g).
insurer subsidiary paying the dividend is                                                                6. Total the amounts on Part II, line 4,
                                                    A corporation may eliminate dividends received           column (g). Enter the amount from Part II,
overcapitalized for the purpose of the dividends
                                                    from unitary subsidiaries but only to the                line 4, column (g) on Form 100, Side 1,
received deduction. See Specific Instructions,
                                                    extent that the dividends are paid from unitary          line 11.
Part II, for more information.
                                                    earnings and profits accumulated while both
For taxable years beginning on or after             the payee and payer were members of the              The calculation of the qualified dividend
January 1, 2008, dividend elimination is            combined report. See R&TC Section 25106 for          percentage should be presented in a
allowed regardless of whether the payer/            more information.                                    supplemental schedule that is attached to
payee are taxpayer members of the California                                                             the taxpayer’s return. That schedule should
                                                    Complete Part I and enter the total of Part I,       identify the amount of the net written
combined unitary group return, or whether
                                                    line 4, column (d) on Form 100, Side 1, line 10.     premiums for all the insurance companies
the payer/payee had previously filed California
tax returns, as long as the payer/payee filed                                                            in the commonly controlled group for the
                                                    Part II – Deduction for Dividends                    preceding five years (including an identification
as members of a comparable unitary business
outside of California when the earnings and         Paid to a Corporation by an                          of property/casualty premiums, life insurance
profits from which the dividends were paid          Insurance Company (R&TC                              premiums, and financial guarantee premiums),
                                                                                                         the relative weight given to each class of net
arose.                                              Section 24410)                                       written premiums, and the total income of
In addition, dividend elimination is allowed        R&TC Section 24410 provides that a                   the insurance companies in the commonly
for dividends paid from a member of a               corporation that owns 80% or more of                 controlled group (including premium and
combined unitary group to a newly formed            each class of stock of an insurer is entitled        investment income for the preceding five
member of the combined unitary group if the         to 85% dividends received deduction for              years). For more information, see R&TC
recipient corporation has been a member of          qualified dividends received from that               Section 24410.
the combined unitary group from its formation       insurer. The deduction would be allowed
to its receipt of the dividends. Earnings and       regardless of whether the insurer does
profits earned before becoming a member of          business in California. The 85% deduction
the unitary group do not qualify for elimination.   applies to taxable years beginning on or after
See R&TC Section 25106 for more information.        January 1, 2008.




Page 24     Form 100 Booklet 2011
                              Alternative Minimum Tax and
  TAXABLE YEAR                                                                                                                                                                                     CALIFORNIA SCHEDULE


      2011                    Credit Limitations — Corporations                                                                                                                                        P (100)
 Attach to Form 100 or Form 109.
Corporation name                                                                                                                                                                             California corporation number


Part I	 Tentative Minimum Tax (TMT) and Alternative Minimum Tax (AMT) Computation
  Net income (loss) after state adjustments. Enter the amount from Form 100, line 18; Schedule R, line 1c; or Form 109,
   the lesser of line 1 or line 2. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                      00
 2 Adjustments. See instructions
   a Depreciation of tangible property placed in service after 1986 . . . . . . . . . . . . . . . . . . . . . . . 2a                                                               00
   b Amortization of certified pollution control facilities placed in service after 1986 . . . . . . . . . 2b                                                                      00
   c Amortization of mining exploration and development costs incurred after 1987 . . . . . . . . . 2c                                                                             00
   d Basis adjustments in determining gain or loss from sale or exchange of property. . . . . . . . 2d                                                                             00
   e Long-term contracts entered into after February 28, 1986 . . . . . . . . . . . . . . . . . . . . . . . . . . 2e                                                               00
   f Installment sales of certain property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f                                                  00
   g Tax shelter farm activities (personal service corporations only) . . . . . . . . . . . . . . . . . . . . . . 2g                                                               00
   h Passive activities (closely held corporations and personal service corporations only). . . . . 2h                                                                             00
   i Certain loss limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2i                                         00
   j Beneficiaries of estates and trusts. Enter the amount from Schedule K-1 (541), line 12a . . 2j                                                                                00
   k Merchant marine capital construction funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k                                                         00
   l Combine line 2a through line 2k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .          2l                         00
 3 Tax preference items. See instructions
   a Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a                                     00
   b Intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3b                                           00
   c Add line 3a and line 3b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   3c                          00
 4 Pre-adjustment alternative minimum taxable income (AMTI):
   a Combine line 1, line 2l, and line 3c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .        4a                          00
   b Apportioned pre-adjustment AMTI. If income is derived from sources both within and outside of California,
     see instructions. Otherwise, enter amount from line 4a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      4b                          00
 5 Adjusted current earnings (ACE) adjustment:
   a Enter ACE. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 5a                                            00
   b Apportioned ACE. If income is derived from sources both within and outside of
     California, see instructions. Otherwise, enter amount from line 5a . . . . . . . . . . . . . . . . . . . 5b                                                                   00
   c Subtract line 4b from line 5b (even if one or both of the figures are negative).
     If negative, use brackets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c                                           00
   d Multiply line 5c by 75% (.75) and enter the result as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                               5d                          00
   e Enter the excess, if any, of the corporation’s total increases in AMTI from prior year ACE adjustments over its total
     reductions in AMTI from prior year ACE adjustments. Enter an amount on line 5e (even if line 5c is positive) . . . . . . . . . . . .                                                    5e                          00
   f ACE adjustment:
     • If line 5c is a positive amount or zero, enter the amount from line 5d on line 5f as a positive amount.
     • If line 5c is a negative amount, enter the smaller of line 5d or line 5e on line 5f as a negative amount . . . . . . . . . . . . . . . .                                               5f                         00
 6 Combine line 4b and line 5f. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 6                          00
 7 a Reduction for disaster loss carryover deduction, if any, from Form 100, line 22 . . . . . . . . . 7a                                                                          00
   b AMT net operating loss deduction. See instructions. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 	 7b                                                          00
   c Combine line 7a and line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .       7c                          00
 8 AMTI. Subtract line 7c from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .         8                          00
 9 Enter $40,000 exemption. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                9                          00
0 Enter $150,000 limitation. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             0                          00
 Subtract line 10 from line 8. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                         00
2 Multiply line 11 by 25% (.25). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      2                          00
3 Exemption. Subtract line 12 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                       3                          00
4 Subtract line 13 from line 8. If zero or less, enter -0-. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               4                          00
5 Multiply line 14 by 6.65% (.0665) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5                                                00
6 Banks and financial corps. Multiply Form 100, line 23, by 2.00% (.0200). See instructions. . . 6                                                                               00




                                                                                                         7951113                                                                Schedule P (100) 2011 Side 
Part I	 Tentative Minimum Tax (TMT) and Alternative Minimum Tax (AMT) Computation (continued)

7 TMT. Add line 15 and line 16 from Side 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7                        00
8 Regular tax before credits. Enter amount from Form 100, line 24 or Form 109, line 10. See instructions . . . . . . . . . . . . . . . . . . 8                                                          00
9 AMT. Subtract line 18 from line 17. If zero or less, enter -0-. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9                                        00

Part II	 Credits that Reduce Tax
  Regular tax from Form 100, line 24 or Form 109, line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                     00
 2 TMT (before credits) from Part I, line 17 (but not less than the minimum franchise tax, if applicable) . . . . . . . . . . . . . . . . . . .                                 2                         00
                                                                                                                                     (a)                    (b)                   (c)            (d)
                                                                                                                               Credit amount         Credit used this      Tax balance that     Credit
                                                                                                                                                           year            may be offset by   carryover
Section A	– Credits that reduce excess regular tax.                                                                                                                             credits
 3 Subtract line 2 from line 1. If zero or less, enter -0- and see instructions.
    This is the excess regular tax which may be offset by credits.
    Note: Reduce the amount in column (c) by the New Jobs Credit amount claimed
    on Form 100, line 25b, if applicable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
A1 Credits that reduce excess regular tax and have no carryover provisions.
 4 Code: 162 Prison inmate labor credit. See instructions. . . . . . . . . . . . . . . . . . . . 4
A2 Credits that reduce excess regular tax and have carryover provisions.
    See instructions.
 5 Code: ___ ___ ___ Credit Name: ______________________________________ 5
 6 Code: ___ ___ ___ Credit Name: ______________________________________ 6
 7 Code: ___ ___ ___ Credit Name: ______________________________________ 7
 8 Code: ___ ___ ___ Credit Name: ______________________________________ 8
 9 Code: 188 Credit for prior year AMT from Part III, line 3. . . . . . . . . . . . . . . . . . . 9
Section B – Credits that may reduce regular tax below TMT.
0 If Part II, line 3 is zero, enter the amount from line 1 minus the minimum
    franchise tax, if applicable. If line 3 is more than zero, enter the total of Part II,
    line 2, minus the minimum franchise tax, if applicable, plus line 9, column (c) or
    the last entry in column (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0
B Credits that reduce net tax and have carryover provisions. See instructions.
 Code: ___ ___ ___ Credit Name: ______________________________________ 
2 Code: ___ ___ ___ Credit Name: ______________________________________ 2
3 Code: ___ ___ ___ Credit Name: ______________________________________ 3
4 Code: ___ ___ ___ Credit Name: ______________________________________ 4
Section C – Credits that may reduce AMT. See instructions.
5 Enter the AMT from Part I, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6a Code: 180 Solar energy credit carryover from Section B, column (d) . . . . . . . . . 6a
6b Code: 181 Commercial solar energy credit carryover from
                  Section B, column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6b
7a Code: 176 Enterprise zone hiring & sales or use tax credit carryover
                  from Section B, column (d). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7a
7b Code: 199 Manufacturers’ investment credit carryover from Section B,
                  column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7b
8 Adjusted AMT. Enter the balance from line 17b, column (c) here and on
    Form 100, Side 1, line 30 or Form 109, Side 1, line 13 . . . . . . . . . . . . . . . . . . . . . 8
Part III Credit for Prior Year AMT
  Enter the AMT from the 2010 Schedule P (100). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                          00
 2 Carryover of unused credit for prior year AMT. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .             2                          00
 3 Total available credit. Add line 1 and line 2. Enter here and on Part II, line 9, column (a).. . . . . . . . . . . . . . . . . . . . . . . . . . . . .                      3                          00




Side 2       Schedule P (100) 2011                                                               7952113
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                                                credit may be carried over to reduce the “tax” in
                                                          the following year, and succeeding seven years
                                                                                                                    California tax laws give special treatment to some
                                                                                                                    types of income and allow special deductions and
California Motion Picture and Television                  if necessary, until the credit is exhausted. For          credits for some types of expenses. Corporations
Production – For taxable years beginning on or            more information, go to ftb.ca.gov and search             that benefit from these laws may have to pay AMT
after January 1, 2011, a California motion picture        for new jobs or get form FTB 3527, New Jobs               in addition to the minimum franchise tax.
and television production credit will be allowed          Credit. See Form 100 Tax Booklet, line 25 specific
to a qualified taxpayer. The credit is allocated and                                                                Use this schedule to calculate AMT and to figure
                                                          instructions for information on how to claim the          credits that are limited by the TMT or that may
certified by the California Film Commission (CFC).        new jobs credit.
The qualified taxpayer can:                                                                                         reduce AMT.
                                                          For taxable years beginning on or after                   See IRC Sections 55 through 59 for more
• Offset the credit against income tax liability.         July 1, 2008, credit earned by members of a
• Sell the credit to an unrelated party                                                                             information on figuring AMT. Note that R&TC
                                                          combined reporting group may be assigned to               Sections 23455, 23456, 23457, and 23459
    (independent films only).                             an affiliated corporation that is a member of the
• Assign the credit to an affiliated corporation.                                                                   modify IRC Sections 55 through 59.
                                                          same combined reporting group. A credit assigned
• Apply the credit against qualified sales and            may only be claimed by the affiliated corporation         Who Must File
    use taxes.                                            against their tax in taxable years beginning on or        • Corporations should file Schedule P (100)
For more information, get form FTB 3541,                  after January 1, 2010. For more information, get              if the sum of: AMT adjustments, preference
California Motion Picture and Television                  form FTB 3544, Election to Assign Credit Within               items, loss denials, other items as specified
Production Credit, form FTB 3551, Sale of Credit          Combined Reporting Group or form FTB 3544A,                   under IRC Section 59, and state net income
Attributable to an Independent Film, or go to             List of Assigned Credit Received and/or Claimed               exceeds $40,000.
ftb.ca.gov and search for film.                           by Assignee, or go to ftb.ca.gov and search for           • Exempt organizations, other than exempt
Community Development Financial Institutions              credit assignment.                                            trusts with unrelated business income, should
Investment Credit – The Community Development             California law conforms to federal law regarding:             file Schedule P (100) if the sum of: AMT
Financial Institutions Investment Credit has been                                                                       adjustments, preference items, loss denials,
                                                          • The contribution deduction in excess of                     items specified under IRC Section 59, and
extended for taxable years beginning on or after              adjusted basis for appreciated property.
January 1, 2012, and before January 1, 2017.                                                                            state net unrelated business taxable income
                                                          • Large banks’ bad-debt losses deduction, which               exceeds $40,000.
                                                              is limited to the actual losses rather than           • Exempt trusts should use Schedule P (541),
Important Information                                         contributions to a reserve for bad debts.                 Alternative Minimum Tax and Credit
In general, for taxable years beginning on or after       • The removal of the adjusted current earnings                Limitations — Fiduciaries.
January 1, 2010, California law conforms to the               (ACE) depreciation adjustment.
                                                          • The use of the same depreciation recovery               In addition, if the corporation claims credits that
Internal Revenue Code (IRC) as of January 1,
                                                              periods for regular tax and AMT for property          are limited by TMT (Part I, line 17) or that reduce
2009. However, there are continuing differences
                                                              placed in service after December 31, 1998.            the AMT (Part I, line 19), the corporation must file
between California and federal law. When
                                                          • The repeal of the installment method AMT                Schedule P (100).
California conforms to federal tax law changes,
we do not always adopt all of the changes                     adjustment for farmers. Farmers are allowed           Members of a Combined Report. Alternative
made at the federal level. For more information,              to use the installment method of accounting           minimum taxable income (AMTI) and ACE are
go to ftb.ca.gov and search for conformity.                   for purposes of AMT for payments received             apportioned and allocated to California and to each
Additional information can be found in FTB                    in taxable years beginning on or after                taxpayer in the same manner as net income for
Pub. 1001, Supplemental Guidelines to California              January 1, 1997, for installment sales related        purposes of regular tax. A separate AMT calculation
Adjustments, the instructions for California                  to the sale or disposition of farm property           is required for each member of a combined report.
Schedule CA (540 or 540NR), and the Business                  made in taxable years beginning on or after           Complete a separate Schedule P (100) for each
Entity tax booklets.                                          January 1, 1988.                                      member included in the combined report. Attach the
                                                          • The treatment of merchant marine capital                Schedule P (100) for each member in the combined
The instructions provided with California tax
                                                              construction account funds as an adjustment           report behind the combined Schedule P (100) for
forms are a summary of California tax law and are
                                                              item for AMT.                                         all members. See instructions for Part I, line 4b,
only intended to aid taxpayers in preparing their
                                                          California law does not conform to federal law            line 5a, line 5b, line 5e, line 7b, line 9, and line 10.
state income tax returns. We include information
that is most useful to the greatest number of             regarding:                                                Short Period Tax Return. For a short-period tax
taxpayers in the limited space available. It is           • The election to claim additional research               return, use the formula in IRC Section 443(d) to
not possible to include all requirements of the               and minimum tax credits in lieu of claiming           determine the AMTI and AMT.
California Revenue and Taxation Code (R&TC) in                additional first-year depreciation of certain         Credit for Prior Year AMT. If the corporation paid
the tax booklets. Taxpayers should not consider               qualified property.                                   AMT for 2010 or has a carryover of credit for
the tax booklets as authoritative law.                    • The 15% alternative tax with qualified timber           prior year AMT and has no AMT liability for 2011,
The Board of Equalization ruled in the Appeal                 gains under IRC Section 1201(b).                      the corporation may use this credit in 2011 to
of NASSCO Holdings, Inc 2010-SBE-001,                     • The elimination of AMT for small businesses.            reduce its regular tax liability. Complete Part III to
November 17, 2010, that a corporate taxpayer              These lists are not intended to be all-inclusive of       figure this credit.
may use Enterprise Zone (EZ) credits and/or               the federal and state conformities and differences.
the Manufacturing Investment Credit (MIC) to              For more information, refer to the R&TC.                  Specific Line Instructions
reduce alternative minimum tax (AMT). For more
information, see the instructions for Part II,            General Information                                       Part I — Tentative Minimum
Section C or go to ftb.ca.gov and search for
nassco.                                                   Unless stated otherwise, the term “corporation”           Tax (TMT) and Alternative
For taxable years beginning on or after January 1,
                                                          as used in Schedule P (100), Alternative Minimum
                                                          Tax and Credit Limitations — Corporations, and
                                                                                                                    Minimum Tax (AMT)
2009, a new jobs credit in the amount of $3,000           in these instructions, includes banks, financial          Computation
is allowed for a qualified employer for each              corporations, partnerships or limited liability           Line 1- Net income (loss) after state
increase in qualified full-time employees hired           companies (LLCs) classified as corporations, and          adjustments
in the current taxable year. If the available credit      exempt organizations other than exempt trusts,            Enter the amount from Form 100, line 18 or
exceeds the current year tax liability, the excess        but not S corporations.                                   Form 109, the lesser of line 1 or line 2. If the

                                                                                                                Schedule P (100) Instructions 2011 Page 27
corporation filed a Schedule R, Apportionment            Line 2d – Basis adjustments in determining gain        Complete this line only if the corporation has
and Allocation of Income, with the tax return,           or loss from sale or exchange of property              a gain or loss from a tax shelter farm activity,
enter the amount from Schedule R, line 1c.               If the corporation disposed of property during         as defined in IRC Section 58(a)(2), that is not a
Line 2a – Depreciation of tangible property              the year, refigure the gain or loss from such          passive activity. If the tax shelter farm activity is
placed in service after 1986 and before 1999             sale taking into account the AMT adjustments           a passive activity, the corporation must include
Do not include depreciation adjustments                  on line 2a through line 2c. Enter the difference       the gain or loss with its other passive activities
attributable to a tax shelter farm activity or a         between the gain or loss reported for regular          on line 2h.
passive activity on this line. Instead, include the      tax and the recomputed gain or loss. If the            Refigure all gains and losses reported for regular
adjustment on line 2g or line 2h.                        recomputed gain is less, or the loss is more, enter    tax purposes from tax shelter farm activities using
                                                         the difference as a negative amount. Otherwise,        the AMT adjustments and tax preference items.
Refigure the depreciation as follows:                    enter a positive amount.
• For property other than real property and                                                                     Figure the tax shelter farm activity gain or loss for
                                                         Line 2e – Long-term contracts entered into after       AMT using the same rules the corporation used
     property on which the straight-line method          February 28, 1986
     was used, use the 150% declining balance                                                                   for regular tax except:
                                                         If the corporation entered into a long-term contract   • Do not take any refigured loss unless
     method, switching to straight-line for the first    after February 28, 1986, determine the taxable
     taxable year in which that method will give a                                                                   the corporation is insolvent. For more
                                                         income from the contract under the percentage of            information, see IRC Section 58(c)(1).
     higher depreciation deduction. Use the same         completion method of accounting as modified by
     life classes as used on the federal Form 4626,                                                             • Do not offset gains from other tax shelter
                                                         IRC Section 460(b) and R&TC Section 24673.2                 activities with any refigured loss.
     Alternative Minimum Tax – Corporations.             using AMT adjustments and tax preference items.
• For personal property having no asset                                                                         Instead, suspend and carry over the loss to future
     depreciation range (ADR) class life, use            Determine the difference between that result and       taxable years until one of the following applies:
     12 years.                                           the amount determined for the contract in figuring     • The corporation has a gain in a future taxable
• For residential rental and nonresidential real         the regular tax and enter the difference on this            year from that same tax shelter farm activity.
     property, use the straight-line method over         line. If the refigured taxable income is less than     • The corporation disposes of the activity.
     40 years.                                           the result when determining the regular tax, enter
                                                         the difference as a negative amount.                   Enter on this line the difference between the
Determine the depreciation adjustment by                                                                        AMT tax shelter farm activity gain or loss and the
subtracting the recomputed depreciation from             California conforms to IRC Section 460(b)(2).          regular tax shelter farm activity gain or loss.
the California depreciation on form FTB 3885,            This section requires the taxpayer to “look-back”
                                                         to previous years during which the contract            Line 2h – Passive activities (closely
Corporation Depreciation and Amortization. Enter                                                                held corporations and personal service
the difference on this line.                             work for certain contracts was in progress. The
                                                         taxpayer must compute interest on the difference       corporations only)
If the corporation elected to depreciate a grapevine     between the tax that was actually paid and the         Caution: To avoid duplication, if the corporation
that was replanted in a vineyard as a result of          tax that would have been paid if the taxpayer had      included AMT adjustments or tax preference
phylloxera or Pierce’s disease infestation over          known the actual contract prices and costs that        items on this line, do not include them on any
5 years instead of 20 years for regular tax, it must     would finally result.                                  other line of this schedule.
depreciate the grapevine over 10 years for AMT.
                                                         Get form FTB 3834, Interest Computation Under          For AMT purposes, complete a second form
Depreciation that is capitalized to inventory under      the Look-Back Method for Completed Long-Term           FTB 3802, Corporate Passive Activity Loss and
the uniform capitalization rules must be refigured       Contracts, to figure the interest due or to be         Credit Limitations, to figure the adjustments.
using the rules described above.                         refunded under the “look-back method.”                 Corporations may enter two kinds of adjustments
Include on line 2a any differences between regular       Line 2f – Installment sales of certain property        on this line:
and AMT depreciation (e.g., IRC Section 179              For regular tax purposes, corporations may             Regular Passive Activities. Refigure passive
depreciation differences).                               use the installment method of accounting for           activity gains and losses for AMT by taking into
Line 2b – Amortization of certified pollution            sales of certain property. For AMT, corporations       account all AMT adjustments, tax preference
control facilities placed in service after 1986          may not determine income from dispositions             items and AMT prior year unallowed losses that
For any certified pollution control facility placed      of inventory or other property described in IRC        apply to the passive activity.
in service in California after 1986 and before           Section 1221(a)(1) using the installment method,       Tax Shelter Farm Activities That Are Passive
1999, the five-year depreciation method available        except for certain dispositions of timeshares or       Activities. Refigure any gain or loss from a tax
for such facilities for regular tax purposes must        residential lots, if the corporation elected to pay    shelter farm activity that is a passive activity by
be replaced for AMT purposes by the alternative          interest under IRC Section 453(l)(2)(B) (R&TC          taking into account all AMT adjustments, tax
depreciation system (ADS) specified under IRC            Section 24667).                                        preference items, and AMT prior year unallowed
Section 168(g) (straight-line method, without            If the corporation used the installment method         losses. If the amount is a gain, it may be
regard to salvage value). A facility placed in           for regular tax purposes, but was required for         included on form FTB 3802, and it may be used
service after December 31, 1998 is depreciated           AMT purposes to report the entire gain in the          to offset AMT losses from other passive activities.
using the IRC Section 168 straight-line method.          year of disposition, the corporation may have          However, if it is a loss, it must be suspended and
For more information, see IRC Section 56 (a)(5).         adjustments with respect to those dispositions.        carried forward indefinitely until the corporation
Line 2c – Amortization of mining exploration             Enter on this line as a negative amount the            has a gain in a subsequent year from that same
and development costs incurred after 1987                current year income the corporation reported for       activity or it disposes of the activity. The AMT loss
If the corporation elected the optional ten-year         regular tax.                                           carryover is the refigured AMT loss.
write-off under IRC Section 59(e) for all assets in      Farmers that received payments for a taxable           If, at the end of the taxable year, the corporation’s
this category, skip this line.                           year beginning on or after January 1, 1997, for        liabilities exceed the fair market value of the
With respect to each mine or other natural deposit,      qualified installment sales made in taxable years      corporation’s assets (insolvency), increase the
(other than an oil, gas, or geothermal well) refigure    beginning on or after January 1, 1988, do not          passive activity loss allowed by that excess
the expenses before the 30% reduction under IRC          need to make an adjustment on this line.               (but not more than the total loss). For more
Section 291(b) by amortizing them over ten years         Line 2g – Tax shelter farm activities (personal        information, see IRC Section 58(c)(1).
beginning with the year in which the expenses            service corporations only)                             Line 2i – Certain loss limitations
were paid or incurred. Figure the adjustment                                                                    Refigure the allowable losses from at-risk activities
by subtracting the refigured amount from the             Caution: To avoid duplication, if the corporation
                                                         included AMT adjustments or tax preference             and basis limitations applicable to partnerships,
deduction taken under IRC Section 616(a) or                                                                     taking into account the AMT adjustments and tax
617(a) after the 30% reduction. Enter the amount         items on this line, do not include them on any
                                                         other line of this schedule.                           preference items. See IRC Sections 59(h), 465,
on this line. If a loss resulted with respect to those                                                          and 704(d). If the refigured loss is more than the
expenses, see IRC Section 56(a)(2)(B).                                                                          loss reported for purposes of the regular tax, enter


Page 28      Schedule P (100) Instructions 2011
on this line as a negative amount the difference       taking into account any AMT adjustments,               Line 5b – Apportioned ACE
between the loss reported on the tax return for        then transfer the refigured net income from            For apportioning taxpayers and members of
purposes of the regular tax and the refigured loss.    Schedule R, line 35 to Schedule P (100), line 4b.      a combined report, ACE is apportioned and
Line 2k – Merchant marine capital construction         For combined reports, each taxpayer’s                  allocated to California in the same manner as net
funds                                                  pre-adjustment AMTI is the sum of (1) that             income for purposes of the regular tax and AMTI
Amounts deposited in these funds are not               corporation’s apportioned share of combined            (FTB Legal Ruling 94-3). The method described
deductible for AMT. Earnings on these funds are        business pre-adjustment AMTI and (2) any of that       in the instructions for line 4b may be used to
not excludable from gross income for AMT. If the       corporation’s nonbusiness California source pre-       compute the California ACE.
corporation deducted these amounts or excluded         adjustment AMTI. For additional guidance in making     Line 5e – Excess of AMTI increases over AMTI
them from income for regular tax, add them back        these computations, get FTB Pub. 1061, Guidelines      reductions from prior year ACE adjustments
on line 2k.                                            for Corporations Filing a Combined Report.             For combined reports, each taxpayer corporation
                                                       Line 5a – ACE                                          enters the excess of its prior year accumulated
Tax Preference Items                                   If this schedule is for a regulated investment         positive California ACE adjustments over its
Line 3a – Depletion                                    company or a real estate investment trust, skip        prior years accumulated negative California ACE
In the case of mines, wells, and other natural         this line.                                             adjustments.
deposits, enter the amount by which the deduction                                                             Line 7a – Reduction for disaster loss carryover
                                                       The ACE is the pre-adjustment AMTI from line 4a
for depletion under IRC Section 611 is more than                                                              deduction
                                                       with additional adjustments. California’s ACE
the adjusted basis of the property at the end of                                                              Disaster loss is not subject to the 2010 and 2011
                                                       adjustment generally follows the federal ACE
the corporation’s taxable year. Figure the adjusted                                                           NOL suspension rules.
                                                       adjustment rules in IRC Section 56(g). To compute
basis without regard to the depletion deduction
                                                       the California ACE, the federal ACE worksheet          If a disaster loss carryover is claimed in 2011,
and figure the excess separately for each property.
                                                       included in the instructions for the federal           enter the amount on this line.
California conformed in 1993 to the federal repeal     Form 4626 can be used by taking into account the       Line 7b – AMT net operating loss (NOL) deduction
of the AMT depletion adjustment for independent        modifications of R&TC Sections 23456 (e) and (f),      The NOL carryover deduction is suspended
oil and gas producers and royalty owners. Get          if applicable. For example:                            for the 2010 and 2011 taxable years if the
federal Form 4626 for more information. However,
                                                       Taxes. Taxes on, according to, or measured by          corporation’s net income after state adjustments
the California depletion costs may continue to be
                                                       income are not deductible from earnings and            (pre-apportioned income) is $300,000 or more.
different from the federal amounts because of
                                                       profits (E&P). Foreign taxes on, according to,         The corporation may continue to compute and
prior differences in law and differences in basis.
                                                       or measured by income are not deductible even          carryover an NOL during the suspension period.
See IRC Section 291(a)(2) for reduction in the         though a foreign tax credit is not taken for federal   However, corporations with net income after state
amount allowable as a deduction in the case of         purposes. Environmental taxes imposed by IRC           adjustments (pre-apportioned income) of less
iron ore and coal.                                     Section 59A are not deductible from E&P.               than $300,000 or with disaster loss carryovers
Line 3b – Intangible drilling costs                    Depreciation and Amortization. For property            are not affected by the NOL suspension rules.
If the corporation elected the optional 60-month       placed in service on or after January 1, 1987, and     For more information, see form FTB 3805Q, Net
write-off under IRC Section 59(e) for all property     before January 1, 1990, the amount allowable as        Operating Loss (NOL) Computation and NOL and
in this category, skip this line.                      depreciation or amortization must be determined        Disaster Loss Limitations — Corporations.
Enter the amount by which excess intangible            by using the state AMTI depreciable basis              Note. If taxpayers are required to be included
drilling costs exceed 65% of net income from oil,      as of the close of the taxable year beginning          in a combined report, the 2010 and 2011 NOL
gas, and geothermal properties.                        before January 1, 1990, and applying IRC               limitation amount of $300,000 or more shall
Figure excess intangible drilling costs as follows:    Section 168(g). For property placed in service         apply to the aggregate amount of pre-apportioned
From the intangible drilling and development           in taxable years beginning on or after January 1,      income for all members included in the combined
costs allowable under IRC Section 263(c) or            1990, and before January 1, 1998, use the ADS          report.
291(b) (except costs in drilling a nonproductive       described in IRC Section 168(g). For property          The AMT NOL is the NOL determined for regular
well), subtract the amount that would have been        placed in service in taxable years beginning on        tax except for the following:
allowable if these costs had been capitalized and      or after January 1, 1998, no ACE depreciation
                                                       adjustment is necessary.                               1. For any taxable year beginning before 1988,
either amortized over 120 months starting when                                                                     reduce the NOL amount by any preference
production began or treated according to an            Dividends. Dividends deductible for regular                 items attributable to the deferred tax that has
election made under IRC Section 57(b)(2).              California tax purposes are deductible from E&P.            not been paid.
Net income from oil, gas, and geothermal properties    The provision of IRC Section 56(g)(4)(C)(ii), for      2. In the case of a loss year beginning after
is gross income from them, minus the deductions        100% dividend, does not apply.                              1987, the NOL determined for regular tax for
allocable to them, except for excess intangible        The provisions of IRC Sections 56(g)(4)(C)(iii)             such year must be:
drilling costs and nonproductive well costs.           and (iv), for dividends from IRC Section 936                (a) Reduced by the positive AMT adjustments
Figure the line 3b amount separately for oil and gas   companies and certain dividends received by                     and increased by the negative AMT
properties that are not geothermal deposits and for    certain cooperatives, do not apply.                             adjustments.
oil and gas properties that are geothermal deposits.                                                               (b) Reduced by the tax preference items (but
                                                       Certain Amortization Provisions. IRC                            only to the extent they increased the NOL
California conformed in 1993 to the limited federal    Section 56(g)(4)(D)(ii) was modified to specify that            as determined for regular tax).
repeal of intangible drilling costs preferences for    circulation expenditures under IRC Section 173         3. Reduce the AMT NOL by any expired losses.
independent producers. California now conforms         (R&TC Section 24364) and organizational                4. The AMT NOL may not offset more than 90%
to the limit on the benefit of the exclusion of        expenditures under IRC Section 248 (R&TC                    of the AMTI, Part I, line 6. Enter on line 7b the
the preference for intangible drilling costs of        Section 24407) do not apply to expenditures paid            smaller of the AMT NOL or 90% of the amount
40% of AMTI. See the instructions for federal          or incurred in taxable years beginning on or after          on line 6.
Form 4626. Also, note that the intangible drilling     January 1, 1990, for E&P calculations.
costs amounts may differ from federal amounts                                                                 Taxpayers that are members of a unitary group
                                                       Interest Income. For entities not subject to the       filing a combined report must separately compute
because of prior differences in the law.               minimum franchise tax, interest income included        the NOL carryover and application of the NOL
Line 4b – Apportioned pre-adjustment AMTI              in E&P must not exceed the amount of interest          carryover for each corporation in the group
For taxpayers required to apportion their income,      income included for regular tax purposes.              (R&TC Section 25108). The amount carried over
pre-adjustment AMTI is apportioned and allocated       Appropriate adjustments must be made to                for AMT is likely to differ from the amount (if any)
to California in the same manner as net income         limit deductions from ACE for interest expense         that is carried over for regular tax; therefore, it
for purposes of the regular tax. This may be           in accordance with the provisions of R&TC              is essential that the corporation retain adequate
done by transferring the amount from line 4a           Sections 24344 and 24425.                              records for both AMT and regular tax.
to Schedule R, line 1c. Refigure the Schedule R

                                                                                                          Schedule P (100) Instructions 2011 Page 29
If the corporation had a loss from a farming                Inmate Labor credit that was disallowed             The carryover period for the disallowed credit
business due to Pierce’s disease or from a                  due to the 50% limitation for taxable years         is extended by the number of taxable years the
business activity within an enterprise zone,                2008 and 2009. The carryover period for the         credit was not allowed.
the former Los Angeles Revitalization Zone, a               disallowed credit is extended by the number         Section A2 Instructions
Local Agency Military Base Recovery Area, or                of taxable years the credit was not allowed.
the Targeted Tax Area, get form FTB 3805D, Net              Credits with carryover provisions are listed on     For taxable years beginning on or after
Operating Loss (NOL) Carryover Computation                  the Credit Table on the next page. The table        January 1, 2002, the credit for prior year AMT has
and Limitation - Pierce’s Disease; FTB 3805Z,               identifies the section(s) of Part II in which the   to be applied before any credits that can reduce
Enterprise Zone Business Booklet; FTB 3806, Los             corporation may take these tax credits.             the regular tax below the TMT in accordance with
Angeles Revitalization Zone Business Booklet;            • If the corporation has credit(s) in Section B,       R&TC Section 23036 (c).
FTB 3807, Local Agency Military Base Recovery               be sure to complete line 10 in addition to the      Line 5 through Line 9 – Follow the Credit Table
Area Business Booklet; or FTB 3809, Targeted Tax            line(s) for the corporation’s credit(s).            Instructions on the next page to find out in
Area Business Booklet.                                   • Complete column (a) through column (d) for           which section to claim the credit. Then complete
Line 9 and Line 10 – The $40,000 exemption and              each line on which the corporation is taking a      column (a) through column (d) for each credit in
the $150,000 limitation apply to each corporation           credit. See “Column Instructions” below for         each section before going to the next section.
included in the combined report that has a filing           more information.                                   Generally, it is to the corporation’s advantage
requirement in California, to the extent that each       • Once the corporation has completed Part II,          to apply credits with limited carryovers before
corporation has AMTI.                                       see “How to Claim Credits” on next page.            credits with no limitation on the carryover.
Line 16 – Banks and financial corporations               Column Instructions – In column:                       However, the corporation may want to apply
Corporations with negative or zero taxable income        (a) Enter the amount of credit available to offset     credits with no limitation on the carryover first if
on Form 100, line 23, enter -0-.                               tax.                                             that is more advantageous.
Line 18 – Regular tax before credits                     (b) Figure the amount of credit the corporation        Corporations may use these credits to reduce
For installment obligations subject to IRC                     is able to use this year by entering the         regular tax but not below TMT. The corporation
Section 453(l)(2)(B) (Timeshares and Residential               smaller of the amount in column (a) or the       may be able to, if applicable, carry them over to
Lots) and IRC Section 453A (Nondealer                          amount in column (c) from the previous line.     future years. The credits that do not have shading
dispositions greater than $150,000), do not              (c) Figure the amount of tax remaining to be           in column (d) can be carried over to future years,
include tax increases for interest on the deferred             offset by other credits by subtracting the       if applicable, after reducing the regular tax down
tax liability.                                                 amount in column (b) from the balance in         to TMT.
                                                               column (c) of the previous line.
Line 19 – AMT
If line 17 is more than zero, and if the corporation
                                                         (d) Enter the amount of credit carryover               Section B – Credits that may
                                                               available to use in future years by
has credits or credit carryovers, continue to Part II.         subtracting the amount in column (b) from
                                                                                                                reduce regular tax below TMT
Otherwise, stop here and enter the amount from                 the amount in column (a).                        Corporations may use these credits to reduce
line 19 on Form 100, line 30 or Form 109, line 13.                                                              the regular tax below TMT. Corporations may

Part II — Credits that Reduce                            Section A – Credits that reduce                        also carryover to future taxable years any credits
                                                                                                                remaining after reducing the regular tax down
Tax                                                      excess regular tax                                     to the minimum franchise tax, if applicable. But,
                                                         Section A Instructions                                 if the corporation has a tax balance and can
Complete Part II only if the corporation has tax                                                                continue to use the credit in Section C, apply the
credits.                                                 Line 3 – Subtract line 2 from line 1. If the amount
                                                         is zero or less, continue to Question 1. If the        carryover in Section C.
Use Part II to determine the following:                  amount is greater than zero, go to the Section A1      Section B Instructions
• The amount of credit that may be used to               instructions.
    offset tax.                                                                                                 Line 11 through Line 14 – Follow the Credit
• The tax that may be offset.                            1. Does the Credit Table show that the                 Table Instructions on the next page to find out in
• The amount of credit, if any, that may be                  corporation may take the credit only in            which section to claim the credit. Then complete
    carried over to future years.                            Section A1 or A2?                                  column (a) through column (d) for each credit in
• The order in which to claim credits, if the                Yes Do not take the credit this year. Go to        each section before going to the next section.
    corporation has more than one credit to claim.                  question 2.
Credits are applied against the tax on a separate            No Go to Section B to figure the amount            Section C — Credits that may
entity basis. Unless otherwise provided by                          of credit the corporation may take this     reduce AMT
statutory authority, specific credit(s) are only                    year. Then continue to Section C if the
                                                                                                                If the corporation has AMT, the corporation
available to the corporation that incurred the                      corporation’s credit is listed in that
                                                                                                                may reduce AMT using current EZ credit and/or
expense that generated the credits.                                 section.
                                                                                                                remaining credit carryover from either the solar
Before the corporation completes Part II:                2. Does the credit have carryover provisions?          energy, commercial solar energy, EZ hiring
• Complete Form 100 through line 24.                         Yes Enter the credit code, credit name,            & sales or use tax, or MIC after reducing the
• Figure the amount of credit(s) using a schedule                   and credit amount in column (a) in the      regular tax down to the minimum franchise tax (if
    or the credit form identified in the Credit Table               section indicated by the table. Enter -0-   applicable). Corporations may carryover to future
    on the next page. Be sure to attach the credit                  in column (b). Enter the credit amount      taxable years any credits remaining after reducing
    form or schedule to the tax return, if applicable.              in column (d). This is the amount of the    the AMT to zero.
To complete Part II:                                                credit the corporation may carry over       Section C Instructions
• Complete line 1 through line 3 to figure the                      and use in future years.
                                                                                                                Lines 16a, 16b, 17a and 17b – If the corporation
    amount of excess tax the corporation may                 No Do not take the credit this year or in
                                                                                                                has any of the credits listed in this section,
    offset by credits.                                              future years.
                                                                                                                complete column (a) through column (d) for each
• Identify in which section(s) of Part II the            Section A1 Instructions                                credit in the order listed.
    corporation may take tax credit(s). Credits          Line 4 – If the corporation has the credit listed
    without carryover provisions are listed on           in this section, complete column (a) through
    Schedule P (100) in Section A1 and may be            column (c). The corporation is allowed to
    taken only in that section. The corporation is       carryover the amount of the Prison Inmate
    allowed to carryover the amount of the Prison        Labor credit, that was disallowed due to the
                                                         50% limitation for taxable years 2008 and 2009.



Page 30      Schedule P (100) Instructions 2011
How to Claim Credits                                  Credit Table Instructions. To use the table:
Claim credits by transferring them to Form 100 or     1. Find the corporation’s credit(s) listed in the table.
Form 109 as follows:                                  2. See which sections are identified in the columns under “Offset Tax in
                                                         Section.”
Credits on line 4 through line 14                     3. Take the credit only in sections the table identifies for the corporation’s
Form 100 – If the corporation claims only one            credit.
or two credits, enter the name, code number,          4. Complete each section before going to the next section.
and amount of the credit from column (b) on
Form 100, line 26a and line 26b.                      Credit Table
If the corporation has any other credits to claim,     Code                Current Credits                 Form Offset Tax in Section
add the amounts from column (b) for those               223 California Motion Picture and Television     FTB 3541      A2
credits. Enter the total on Form 100, line 27.                Production
Form 109 – If the organization claims only one         209 Community Development Financial                 N/A          A2
to three credits, enter the name, code number,                Institutions Investment
and amount of the credit from column (b) on            205 Disabled Access for Eligible Small            FTB 3548       A2
Form 109, Schedule B, line 1 through line 3.                  Businesses
                                                       204 Donated Agricultural Products                 FTB 3547       A2
If the organization claims more than three credits,           Transportation
see Form 109, Schedule B instructions.                 190 Employer Child Care Contribution               FTB 3501      A2
                                                       189 Employer Child Care Program                    FTB 3501      A2
Part III — Credit for Prior Year                       203 Enhanced Oil Recovery                          FTB 3546      A2
AMT                                                    176 Enterprise Zone Hiring &                      FTB 3805Z           B1     C1
Use this part to figure the 2011 credit for prior             Sales or Use Tax                                               B2     C2
year AMT if the corporation paid AMT for 2010 or              1 = hiring
had an AMT credit carryover from 2010.                        2 = sales or use tax
For members of a unitary group filing a combined        218 Environmental Tax                            FTB 3511       A2
report, compute the credit for prior year AMT for      198 Local Agency Military Base Recovery           FTB 3807       A2
each entity in the current year’s group.                      Area Hiring & Sales or Use Tax
                                                       172 Low-Income Housing                            FTB 3521            B
Line 1 – Enter the AMT from the 2010
                                                       211 Manufacturing Enhancement Area                FTB 3808       A2
Schedule P (100), Part I, line 19. If this amount
                                                              Hiring
was reduced by any credits from Part II,
                                                       213 Natural Heritage Preservation                 FTB 3503            B
Section C, use the AMT from Section C, line 18 of
the 2010 Schedule P (100).                             220 New Jobs*                                     FTB 3527    A2
                                                        188 Prior Year Alternative Minimum Tax             N/A       A2
Line 2 – Enter the credit for prior year carryover
from the 2010 Schedule P (100), Part II, line 9,        162 Prison Inmate Labor                          FTB 3507 A1
column (d).                                             183 Research                                     FTB 3523            B
                                                        210 Targeted Tax Area                            FTB 3809            B
                                                              Hiring & Sales or Use Tax
                                                       Code Repealed Credits with Carryover Provisions     Form Offset Tax in Section
                                                        175 Agricultural Products                        FTB 3540      A2
                                                       196 Commercial Solar Electric System              FTB 3540            B
                                                       181 Commercial Solar Energy                       FTB 3540            B C
                                                       202 Contribution of Computer Software             FTB 3540      A2
                                                              Employer Ridesharing
                                                       191 Large
                                                       192 Small                                         FTB 3540       A2
                                                       193 Transit Passes
                                                       182 Energy Conservation                           FTB 3540       A2
                                                       207 Farmworker Housing – Construction             FTB 3540       A2
                                                       215 Joint Strike Fighter Wage                     FTB 3540       A2
                                                        216 Joint Strike Fighter Property                FTB 3540       A2
                                                        159 Los Angeles Revitalization Zone              FTB 3806            B
                                                              Hiring & Sales or Use Tax
                                                        160 Low-Emission Vehicles                        FTB 3540       A2
                                                        199 Manufacturers’ Investment                    FTB 3540            B      C
                                                        185 Orphan Drug                                  FTB 3540            B
                                                        174 Recycling Equipment                          FTB 3540       A2
                                                        206 Rice Straw                                   FTB 3540       A2
                                                        171 Ridesharing                                  FTB 3540       A2
                                                        200 Salmon & Steelhead Trout                     FTB 3540       A2
                                                              Habitat Restoration
                                                        180 Solar Energy                                 FTB 3540            B      C
                                                        179 Solar Pump                                   FTB 3540       A2
                                                        217 Solar or Wind Energy System                  FTB 3540       A2
                                                        201 Technological Property Contribution          FTB 3540       A2
                                                      *Do not claim the New Jobs Credit on Schedule P (100). Claim this credit on
                                                      Form 100, line 25b.


                                                                                                            Schedule P (100) Instructions 2011   Page 31
                           THIS PAGE INTENTIONALLY LEFT BLANK




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Page 32   Form 100 Booklet 2011
Instructions for Form FTB 3539
Payment for Automatic Extension for Corporations and Exempt Organizations
General Information                                                                         the corporation or exempt organization is required to pay electronically,
                                                                                            see Electronic Funds Transfer (EFT) section for more information.
Corporations can make payments electronically at the Franchise
Tax Board’s (FTB’s) website using Web Pay. After a one‑time online                     Make all checks or money orders payable in U.S. dollars and drawn against
registration, corporations can make an immediate payment or schedule                   a U.S. financial institution.
payments up to a year in advance. FTB does not charge for this service. For            If a corporation (including real estate investment trusts (R E I Ts), real
more information go to ftb.ca.gov and search for web pay. Corporations                 estate mortgage investment conduits (R E M I Cs), regulated investment
and exempt organizations can also view estimated tax payments online. Go               companies (R I Cs), limited liability companies (L L Cs) electing to be treated
to ftb.ca.gov and search for myftb account.                                            as corporations, or an exempt organization in good standing) cannot file
                                                                                       its C A tax return by the original due date, a seven‑month extension to file
Use form FTB 3539, Payment for Automatic Extension for Corps and
                                                                                       is granted without submitting a written request. To qualify for the automatic
Exempt Orgs, only if both of the following apply:
                                                                                       extension, the corporation or exempt organization must file its CA tax return
• The corporation or exempt organization cannot file its 2011 California
                                                                                       by the extended due date and its powers, rights, and privileges must not be
   (C A) tax return by the original due date.
                                                                                       suspended or forfeited by the FTB or the California Secretary of State (S O S)
• The corporation or exempt organization owes tax for the 2011 taxable year.
                                                                                       as of the original due date.
Use the worksheet on the next page to determine if the corporation or
exempt organization owes tax.                                                          Electronic Funds Transfer
• If the corporation or exempt organization does not owe tax, do not file
   form FTB 3539. However, the corporation or exempt organization must file            Corporations or exempt organizations remitting an estimated tax payment
   its return by the extended due date listed below.                                   or extension payment in excess of $20,000 or having a total tax liability in
• If the corporation or exempt organization owes tax, and will not pay the             excess of $80,000 must remit all of their payments through EFT. Once a
   tax due electronically, complete form FTB 3539, make a check or money               corporation or an exempt organization meets the threshold, all subsequent
   order, using black or blue ink, and mail them to the FTB by the original            payments regardless of amount, tax type, or taxable year must be remitted
   due date of the return to avoid late payment penalties and interest. For            electronically to avoid a 10% non‑compliance penalty. Corporations required
   more information, see Penalties and Interest section on the next page. If           to remit payments electronically may use Web Pay and be considered in
                                                                                       compliance with that requirement. The FTB notifies corporations or exempt

Payment of Tax Dates: To avoid late payment penalties and interest, 100% of the tax liability must be paid by the following dates (see item 4 below for exception):
Form Filed                                               Calendar Year Filers             Fiscal Year Filers: 15th day of the
• Form 100, 100W, or 100S                                • March 15, 2012                 • 3rd month following the close of the taxable year
• Form 100 for farmers’ cooperative                      • September 17, 2012             • 9th month following the close of the taxable year
• Form 199 or 109, generally                             • May 15, 2012                   • 5th month following the close of the taxable year
• Form 109 for employee’s trust                          • April 17, 2012                 • 4th month following the close of the taxable year
   (IRC 401(a)) or IRA
Extended Filing Dates: The extended date for filing the return is as follows:
Form Filed                                            Calendar Year Filers              Fiscal Year Filers: 15th day of the
• Form 100, 100W, or 100S                             • October 15, 2012                • 10th month following the close of the taxable year
• Form 100 for farmers’ cooperative                   • April 15, 2013                  • 16th month following the close of the taxable year
• Form 199 or 109, generally                          • December 17, 2012               • 12th month following the close of the taxable year
• Form 109 for employee’s trust                       • November 15, 2012               • 11th month following the close of the taxable year
   (IRC 401(a)) or IRA
1. An extension of time to file the C A tax return is not an extension of time to pay the tax.
2. When the due date falls on a weekend or holiday, the deadline to file and pay without penalty is extended to the next business day.
   Due to the Emancipation Day holiday on April 16, 2012, tax returns filed and payments mailed or submitted on April 17, 2012, will be considered timely.
3. Save the completed worksheet, on next page, as a permanent part of the corporation’s or exempt organization’s tax records, along with a copy of the C A tax return.
4. The FTB may waive the late payment penalty based on reasonable cause if 90% of the tax shown on the return is paid by the original due date of the
   return, but not less than the minimum franchise tax if applicable.
         DETACH HErE                      IF No PAYMENT IS DUE or PAID ElECTroNICAllY, Do NoT MAIl THIS ForM
(Calendar year corporations — File and Pay by March 15, 2012)  (Fiscal year filers – See instructions)
                                                                                                                                              DETACH HErE             
                       RA
(Employees’ trust and I     — File and Pay by April 17, 2012)
(Calendar year exempt organizations — File and Pay by May 15, 2012)
TAXABlE YEAr
                        Payment for Automatic Extension                                                                                      CAlIForNIA ForM


    2011                for Corps and Exempt Orgs                                                                                           3539 (CORP)            

For calendar year 2011 or fiscal year beginning month _____ day ____ year _____, and ending month _____ day ____ year ______ .
California corporation number        F     
                                      EIN                                          This entity will file Form:
                                                                                    100, 100 W, or 100S              1   
                                                                                                                        09           99
                                                                                                                                     1   
Corporation/exempt organization name


Address (suite, room, or P    no.)
                          MB


City                                                                                                                             State   ZIP Code


Contact telephone no.                         If no payment is due or paid electronically, do not mail this form.             Amount of payment
                                               Caution: You may be required to pay electronically. See instructions.
(         )                                                                                                                              ,            ,               . 00
                                                                             6141113                                                                  FTB 3539 2011
organizations that are subject to this requirement. Those that do not meet                             • If the corporation or exempt organization is required to remit all
these requirements may participate on a voluntary basis.                                                 of its payments electronically and pays by another method, a 10%
If the corporation or exempt organization pays electronically, complete the                              non‑compliance penalty will be assessed.
worksheet for the corporation’s or exempt organization’s records. Do not
mail form FTB 3539. For more information, go to ftb.ca.gov and search for                              Combined Reports
eft, or call 916.845.4025.                                                                             • If members of a combined unitary group have made or intend to make
                                                                                                         an election to file a combined unitary group single return, only the key
Where to File                                                                                            corporation designated to file the return should submit form FTB 3539.
If tax is due and the corporation or exempt organization is not paying                                   The key corporation must include payment of at least the minimum
electronically through EFT or Web Pay, make a check or money order using                                 franchise tax for each corporation of the combined unitary group that is
black or blue ink payable to the “Franchise Tax Board” for the amount of                                 subject to the franchise tax in California.
the tax due. Write the California corporation number or Federal Employer                               • If members of a combined unitary group intend to file separate returns
Identification Number (F E I N) and “2011 FTB 3539” on the check or money                                with the FTB, each member must submit its own form FTB 3539 if there is
order. Enclose, but do not staple, the payment with the form FTB 3539 and                                an amount entered on line 3 of the Tax Payment Worksheet.
mail to:                                                                                               • If any member of a combined unitary group meets the requirements for
                                                                                                         mandatory EFT, all members must remit their payments electronically,
     FRANCHISE TAX BOARD                                                                                 regardless of their filing election.
     PO BOX 942857
     SACRAMENTO CA 94257‑0551
                                                                                                       Exempt Organizations
Make all checks or money orders payable in U.S. dollars and drawn against
                                                                                                       •   Form 100 filers:
a U.S. financial institution.
                                                                                                           The due dates for corporations also apply to the filing of Form 100,
Private Mail Box (PMB)                                                                                     California Corporation Franchise or Income Tax Return, by political action
Include the P M B in the address field. Write “P M B” first, then the box                                  committees and exempt homeowners’ associations.
number. Example: 111 Main Street P M B 123.                                                                Political action committees and exempt homeowners’ associations that
                                                                                                           file Form 100 should not enter the minimum franchise tax on line 1 of
Penalties and Interest                                                                                     the Tax Payment Worksheet.
• If the corporation or exempt organization fails to pay its total tax liability                       •   Form 199 Filers:
  by the original due date, the corporation or exempt organization will                                    Generally, Form 199, California Exempt Organization Annual Information
  incur a late payment penalty plus interest. If the corporation or exempt                                 Return, requires a $10 filing fee to be paid with the return on the original
  organization paid at least 90% of the tax shown on the return by the                                     or extended due date.
  original due date of the return, but not less than the minimum franchise                                 Use form FTB 3539 only if paying the fee early. Enter the amount of the
  tax if applicable, the FTB may waive the penalty based on reasonable                                     fee on line 3 of the Tax Payment Worksheet.
  cause. However, the imposition of interest is mandatory.
• If the corporation or exempt organization does not file its C A tax return by                        •   Form 109 Filers:
  the extended due date, or the corporation’s powers, rights, and privileges                               The due dates for filing Form 109, California Exempt Organization
  have been suspended or forfeited by the FTB or the California S O S, as                                  Business Income Return, depend on the type of organization filing the
  of the original due date, the automatic extension will not apply and a                                   return. Employees’ pension trusts and I R As (including education I R As)
  delinquency penalty plus interest will be assessed from the original due                                 must file on or before the 15th day of the 4th month after the close of
  date of the C A tax return.                                                                              their taxable year. All other exempt organizations (except homeowners’
                                                                                                           associations and political organizations) must file on or before the 15th
                                                                                                           day of the 5th month after the close of their taxable year.


                                                    TAX PAYMENT WORKSHEET FOR YOUR RECORDS
1 Total tentative tax. Include alternative minimum tax if applicable. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1                                  00
2 Estimated tax payments including prior year overpayment applied as a credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2                                   00
3 Tax due. If line 2 is more than line 1, see instructions. If line 1 is more than line 2, subtract line 2 from line 1.
  Enter the result here and on form FTB 3539 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                00

How to Complete the Tax Payment Worksheet                                                              • If filing Form 199, use form FTB 3539 only if paying the filing fee of $10
                                                                                                         early. Skip line 1 and line 2, and enter the amount of the filing fee on line 3
Line 1                                                                                                   of the Tax Payment Worksheet, and on form FTB 3539.
Enter the total tentative tax, including the alternative minimum tax if
applicable, for the taxable year.                                                                      Line 2
                                                                                                       Enter the estimated tax payments, including prior year overpayment applied
• If filing Form 100, Form 100W, or Form 100S, and subject to franchise                                as a credit. S corporations may include any Q Sub annual tax payments.
   tax, the tentative tax may not be less than the minimum franchise
   tax and Qualified Subchapter S Subsidiary (Q Sub) annual tax                                        Line 3
   (S corporations only).                                                                              Excess payments. If the amount on line 2 is more than the amount on
• If filing Form 100, Form 100 W, or Form 100 S, and subject to income tax,                            line 1, the payments and credits are more than the tentative tax. The
   enter the amount of tax. Corporations subject to the income tax do not                              corporation or exempt organization has no tax due. Do not mail form
   pay the minimum franchise tax.                                                                      FTB 3539. The corporation or exempt organization will automatically
• If a corporation incorporates or qualifies to do business in California on or                        qualify for an extension if the CA tax return is filed by the extended due date
   after January 1, 2000, the corporation will compute its tax liability for the                       and the corporation or exempt organization is in good standing with the
   first taxable year by multiplying its state net income by the appropriate tax                       FTB and California S O S.
   rate and will not be subject to the minimum franchise tax. The corporation                          Tax due. If the amount on line 1 is more than the amount on line 2, the
   will become subject to minimum franchise tax beginning in its second                                corporation’s or exempt organization’s tentative tax is more than its
   taxable year.                                                                                       payments and credits. The corporation or exempt organization has tax due.
• If filing Form 109, enter the amount of tax. Form 109 filers are not subject
   to the minimum franchise tax.                                                                       Subtract line 2 from line 1. Enter this amount on line 3 and on
                                                                                                       form FTB 3539.


Page 34        FTB 3539 Instructions 2011
 TAXABLE  YEAR                                                                                                                                                                                                                                                             CALIFORNIA  FORM


      2011                              Small Business Stock Questionnaire                                                                                                                                                                                                    3565
Attach to Form 100 or Form 100W.
Corporation name                                                                                                                                                                                                                     California corporation number


Address (suite, room, or PMB no.)                                                                                                                                                                                                    FEIN


City                                                                                                                                                                    State ZIP Code


A.  Taxable year (beginning and ending)                                                               B.  Date of incorporation                                                                           C.  State of incorporation


D.  Date of qualification in California                                                               E.  Principal business activity                                                                     F.  Principal business activity code (Do not leave blank)



If the answer to any of the questions G through L is “No,” STOP; do not complete this form because the stock issuance does not qualify
under California Revenue and Taxation Code Section 18152.5.

G. Did the corporation issue non-treasury stock during the current taxable year?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                                        Yes       No   
   Date of stock issuance for which this information applies:                                                                                               /                            /
                                                                                                                                    Month                             Day                        Year
H. Was the non-treasury stock issued, in whole or in part, for money, for property other than stock, or for services
   provided to the corporation?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                       Yes       No   
I. Were the corporation’s aggregate gross assets less than or equal to $50,000,000 from the period beginning
   July 1, 1993, to the date of issuance of the non-treasury stock?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                    Yes       No   
J. Was at least 80% of the corporation’s payroll in California at the date of issuance of the non-treasury stock?  .  .  .  .  .  .  .  .  .                                                                                                                               Yes       No   
K. Was the corporation a domestic corporation at the date of issuance of the non-treasury stock?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                                                               Yes       No   
L. Since the issuance of non-treasury stock, was this a corporation with a classification other than a:
   • Regulated Investment Company (RIC), Real Estate Investment Trust (REIT), or
       Real Estate Mortgage Investment Conduit (REMIC)?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                           Yes       No   
   • Domestic International Sale Corporation (DISC) or former DISC?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                             Yes       No   
   • Corporation with an IRC Section 936 election in effect or a direct or indirect subsidiary with an election?  .  .  .  .  .  .  .  .  .  .                                                                                                                             Yes       No   
   • Cooperative?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .       Yes       No   
M. Did the corporation’s assets (in excess of liabilities) consist of 10% or less of stocks or securities of a
   non-subsidiary corporation(s)? .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                         Yes       No   
N. Since the issuance of non-treasury stock, was this corporation a C corporation for California purposes?  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                                                                          Yes       No   
O. Since the issuance of non-treasury stock, were at least 80% (by value) of the corporation’s assets used in
   the active conduct of one or more qualified trades or businesses in California? See instructions .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                                                             Yes       No   
P. What percentage of the total value of assets consisted of real property not used in the active conduct
   of the trade or business? See instructions  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                          __________%
Q. What was the aggregate subscription amount for all non-treasury stock issuances during the corporation’s
   existence prior to the current issuance?  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .  .                                               00
                                                                                                                                                                                                                                                                            _____________
R. What was the aggregate subscription amount of non-treasury stock issued during the current taxable year?  .  .  .  .  .  .  .  .  .  .                                                                                                                                              00
                                                                                                                                                                                                                                                                            _____________
S. How much of the amount in Question R did the corporation receive for qualified small business stock?  .  .  .  .  .  .  .  .  .  .  .  .  .                                                                                                                                         00
                                                                                                                                                                                                                                                                            _____________

T.        What was the date of the first non-treasury stock issuance during the current taxable year?  .  .  .  .  .  .  .  .                                                                                                                                          /          /
                                                                                                                                                                                                                                                 Month                      Day       Year
U. What was the date of the last non-treasury stock issuance during the current taxable year?  .  .  .  .  .  .  .  .                                                                                                                                                  /          /
                                                                                                                                                                                                                                                 Month                      Day       Year
V.        What was the aggregate percentage of the total purchases of this corporation’s own stock (relative to the aggregate
          value of the corporation’s total stock for a two-year period beginning on the date one year before the issuance of
          this stock)? (If the aggregate percentage is more than 5%, the stock does not qualify as small business stock .)  .  .  .  .  .  .  .                                                                                                                               __________%

Under penalties of perjury, I declare that I have examined this form, and to the best of my knowledge and belief, it is true, correct, and complete.
                                                                                                                                             Telephone
Signature
of officer                                                                                                                                  (       )
	                                                                                        	                                                                                                                                                                      Date

Print name and title


                                                                                                                                        7401113                                                                                                                        FTB 3565 C3 2011
2011 Instructions for Form FTB 3565
Small Business Stock Questionnaire
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).

General Information                                       C When and Where to File                                  Question K – A domestic corporation is
                                                                                                                    defined in IRC Section 7701(a)(4) as any
In general, for taxable years beginning on or             A corporation is required to file form FTB 3565
                                                                                                                    corporation created or organized in the United
after January 1, 2010, California law conforms            along with Form 100, California Corporation
                                                                                                                    States or under the law of the United States or
to the Internal Revenue Code (IRC) as of                  Franchise or Income Tax Return, or
                                                                                                                    of any State .
January 1, 2009 . However, there are continuing           Form 100W, California Corporation Franchise
differences between California and federal                or Income Tax Return — Water’s-Edge                       Question O – A qualified trade or business is
law . When California conforms to federal tax             Filers . Attach form FTB 3565 to Form 100                 any trade or business other than:
law changes, we do not always adopt all of                or Form 100W and file on or before the due                • Any trade or business involving the
the changes made at the federal level . For               date of the corporate tax return, including                   performance of services in the fields of
more information, go to ftb.ca.gov and search             extension .                                                   health, law, engineering, architecture,
for conformity . Additional information can               Under authority granted in R&TC                               accounting, actuarial science, performing
be found in FTB Pub . 1001, Supplemental                  Section 18152 .5, the Franchise Tax Board                     arts, consulting, athletics, financial
Guidelines to California Adjustments, the                 (FTB) requires the corporation to provide                     services, brokerage services, or any trade
instructions for California Schedule CA (540 or           a copy of any completed form FTB 3565 to                      or business where the principal asset of the
540NR), and the Business Entity tax booklets .            each stockholder that acquired qualified small                trade or business is the reputation or skill
The instructions provided with California tax             business stock as part of the stock issuance                  of one or more of its employees .
forms are a summary of California tax law                 reported on the completed form FTB 3565                   • Any banking, insurance, financing, leasing,
and are only intended to aid taxpayers in                 during the current taxable year .                             investing, or similar business .
preparing their state income tax returns . We                                                                       • Any farming business (including the
                                                          Failure to file this form on or before the due
include information that is most useful to the                                                                          business of raising or harvesting trees) .
                                                          date of the corporation tax return, including
greatest number of taxpayers in the limited                                                                         • Any business involving the production
                                                          extension, may result in a penalty being
space available . It is not possible to include                                                                         or extraction of products of a character
                                                          assessed to the corporation pursuant to R&TC
all requirements of the California Revenue                                                                              with respect to which a percentage
                                                          Section 19133 .5 . The penalty amount is $50
and Taxation Code (R&TC) in the tax booklets .                                                                          depletion deduction is allowable under IRC
                                                          per failure to file unless the failure is due to
Taxpayers should not consider the tax booklets                                                                          Section 613 or 613A .
                                                          negligence or intentional disregard, then the
as authoritative law .                                                                                              • Any business of operating a hotel, motel,
                                                          penalty amount is $100 per failure to file the
                                                                                                                        restaurant, or similar business .
California law does not conform to the federal            form .
law changes in regard to the increase in the                                                                        Question P – For the purpose of calculating
                                                          Failure of the corporation to file form FTB 3565
percentage of the gain exclusion for the sale                                                                       the total value of the assets, any ownership of,
                                                          will not disqualify the stockholder from
of qualified small business stock acquired                                                                          dealing in, or renting of, real property shall not
                                                          excluding gain from the sale or exchange of
after February 17, 2009, and before January 1,                                                                      be treated as the active conduct of a qualified
                                                          stock . However, the stockholder bears the
2011 . Current California law allows an                                                                             trade or business .
                                                          burden of proving that the gain from the sale
exclusion of 50% of any gain from the sale                or exchange qualifies for exclusion pursuant              Question R – Enter the aggregate subscription
or exchange of qualified small business stock             to R&TC Section 18152 .5 whether or not the               amount of non-treasury stock the corporation
held for more than 5 years .                              corporation files/provides form FTB 3565 .                issued during the entire taxable year .
A Purpose                                                 Private Mail Box (PMB)                                    Question S – Enter the amount included in
                                                          Include the PMB in the address field . Write              Question R that the corporation received for
Use form FTB 3565, Small Business Stock                                                                             that part of the stock issuance that qualifies as
Questionnaire, to provide information                     “PMB” first, then the box number . Example:
                                                          111 Main Street PMB 123 .                                 small business stock under the provisions of
regarding issuance of stock pursuant to R&TC                                                                        R&TC Section 18152 .5 .
Section 18152 .5 .
                                                          Specific Instructions                                     The amounts entered in Question R and
B Who Must File                                           Item F – Principal business activity (PBA)                Question S should not include the value of
                                                          code – Do not leave blank. Enter the six-digit            stock issued in exchange for stock .
A corporation must file form FTB 3565 if
it qualifies as a “qualified small business”              PBA code from the Principal Business Activity             Question T – If there was more than one
and issued stock pursuant to R&TC                         Codes chart included in the 2011 Form 100,                issuance of small business stock during the
Section 18152 .5 during the current taxable               Corporation Tax Booklet, or Form 100W,                    current taxable year, enter the date of the first
year . Complete a separate form FTB 3565                  Corporation Tax Booklet, Water’s-Edge Filers .            issuance here .
for each issuance of small business stock                 The PBA code should be the number for                     Question U – If there was more than one
during the taxable year . The corporation                 the specific industry group from which the                issuance of small business stock during the
should maintain records to show that the                  corporation derives the greatest percentage of            current taxable year, enter the date of the last
stock issuance met the requirements of                    California “total receipts .” Total receipts means        issuance here .
R&TC Section 18152 .5 .                                   gross receipts plus all other income . The
                                                          California PBA code may be different than the
For purposes of this form, all corporations               federal PBA code .
which are members of the same parent-
subsidiary controlled group shall be treated as           Questions G through L – If the answer
one corporation . A parent-subsidiary controlled          to any of these questions is “No,’’ stop .
group is defined in IRC Section 1563(a)(1),               The stock issuance does not qualify under
except that for California tax purposes                   R&TC Section 18152 .5 . The corporation does
“more than 50%” shall be substituted for “at              not need to complete the rest of form FTB 3565
least 80% .”                                              and should not attach it to the Form 100 or
                                                          Form 100W .



Page 36      FTB 3565 Instructions 2011
                                Net Operating Loss (NOL) Computation and NOL
TAXABLE YEAR                                                                                                                                                                                         CALIFORNIA FORM


     2011                       and Disaster Loss Limitations — Corporations                                                                                                                            3805Q
Attach to Form 100, Form 100W, Form 100S, or Form 109.
Corporation name                                                                                                                                                               California corporation number



During the taxable year the corporation incurred the NOL, the corporation was a(n):  C corporation                      FEIN

 S corporation  Exempt organization  Limited Liability Company (electing to be taxed as a corporation)
If the corporation previously filed California tax returns under another corporate name, enter the corporation name and California corporation number:
______________________________________________________________________________________________________________________________
If the corporation is included in a combined report of a unitary group, see instructions, General Information C, Combined Reporting.

Part I	     Current year NOL. If the corporation does not have a current year NOL, go to Part II.
 1 Net loss from Form 100, line 19; Form 100W, line 19; Form 100S, line 16; or Form 109, line 2.
   Enter as a positive number. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1                                      00
 2 2011 disaster loss included in line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2                                                          00
 3 Subtract line 2 from line 1. If zero or less, enter -0- and see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                                                           00
 4 a Enter the amount of the loss incurred by a new business included in line 3 . . . . . . . . . . . . . 4a                                                                           00
   b Enter the amount of the loss incurred by an eligible small business included in line 3 . . . . . 4b                                                                               00
   c Add line 4a and line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c                                     00
 5 General NOL. Subtract line 4c from line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5                                              00
 6 2011 NOL carryover. Add line 2, line 4c, and line 5. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6                                                            00

Part II	 NOL carryover and disaster loss carryover limitations. See Instructions.
 1 Net income (loss) – Enter the amount from Form 100, line 19; Form 100W, line 19; Form 100S, line 16 less                                                                             (g)
                                                                                                                                                                                 Available balance
    line 17 (but not less than -0-); or Form 109, line 2. If the corporation net income after state adjustments
    (pre-apportioned income) is $300,000 or more, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Prior Year NOLs
     (a)                      (b)                               (c)                        (d)                            (e)                           (f)                                                    (h)
   Year of           Code – See instructions               Type of NOL –              Initial loss                     Carryover                   Amount used                                         Carryover to 2012
    loss                                                    See below*                                                from 2010                      in 2011                                            col. (e) - col. (f)




 2




Current Year NOLs
                                                                                                                                                                                                        col. (d) - col. (f)

 3 2011                                                          DIS

 4 2011

      2011

      2011

      2011

*Type of NOL: General (GEN), New Business (NB), Eligible Small Business (ESB), or Disaster (DIS).
Part III	 2011 NOL deduction
 1 Total the amounts in Part II, line 2, column (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1                                           00
 2 Enter the total amount from line 1 that represents disaster loss carryover deduction here and on Form 100, line 22;
   Form 100W, line 22; or Form 100S, line 20. Form 109 filers enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2                                                           00
 3 Subtract line 2 from line 1. Enter the result here and on Form 100, line 20; Form 100W, line 20; Form 100S, line 18;
   or Form 109, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3                               00

                                                                                                         7521113                                                                                     FTB 3805Q          2011
2011 Instructions for Form FTB 3805Q
Net Operating Loss (NOL) Computation and NOL and Disaster Loss 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                                                    Also, NOLs incurred in taxable years beginning
                                                              on or after January 1, 2013, may be carried back
                                                                                                                     A Purpose
Disaster Loss Deductions – Disaster loss deductions           to each of the preceding two taxable years.            Use form FTB 3805Q, Net Operating Loss (NOL)
are allowed for losses sustained in the County of                                                                    Computation and NOL and Disaster Loss Limitations
Santa Cruz as a result of the severe storms that              The allowable NOL carryback percentage varies.
                                                                                                                     — Corporations, to figure the current year NOL and
occurred in March 2011, and for losses sustained              For an NOL incurred in a taxable year beginning
                                                                                                                     to limit NOL and disaster loss carryover deductions.
in the Counties of Los Angeles and San Bernardino             on or after:
                                                                                                                     Exempt trusts should use form FTB 3805V, Net
as a result of the severe winds that occurred in              • January 1, 2013, and before January 1, 2014,
                                                                                                                     Operating Loss (NOL) Computation and NOL and
November 2011.                                                     the carryback amount shall not exceed 50%
                                                                                                                     Disaster Loss Limitations – Individuals, Estates, and
• Taxpayers may make an election under IRC                         of the NOL.
                                                                                                                     Trusts.
     Section 165(i) on a prior year return or an              • January 1, 2014, and before January 1, 2015,
                                                                   the carryback amount shall not exceed 75%         The California NOL is figured the same way as the
     amended return filed on or before the due date of
                                                                   of the NOL.                                       federal NOL, except that for California:
     the return, determined with regard to extension,
     for the taxable year in which the disaster               • January 1, 2015, the carryback amount shall          • The carryover period and the amount to be
     occurred.                                                     be 100% of the NOL.                                    carried over differ from federal allowances. See
• These disasters qualify for the 20 year general         •   For NOLs incurred in taxable years beginning on             General Information F, Types of NOLs, for more
     NOL carryover provision, instead of the 15 year          or after January 1, 2008, California has extended           information.
     carryover provision. These disaster loss                 the NOL carryover period from 10 taxable years         • An NOL may be carried over only to future years
     deductions are allowed at 100%.                          to 20 taxable years following the year of the loss.         (no carrybacks are allowed).
• In addition, any provision of law that suspends,        •   For taxable years that began in 2002 and                    Note: California will allow NOLs incurred
     defers, reduces, or otherwise diminishes the             2003, California suspended the NOL carryover                in taxable years beginning on or after
     deduction of a NOL does not apply to NOL                 deduction. Corporations continued to compute                January 1, 2013, to be carried back to each of the
     attributable to the losses sustained in the              and carryover an NOL during the suspension                  preceding two taxable years.
     Counties of Santa Cruz, Los Angeles and San              period. However, the deduction for disaster losses
                                                                                                                     If the corporation has a current year NOL under
     Bernardino.                                              was not affected by the NOL suspension rules.
                                                                                                                     R&TC Sections 24416.2, 24416.5, and 24416.6
For more information, refer to R&TC                           The carryover period for an NOL incurred in            (relating to Enterprise Zone (EZ), Local Agency
Sections 24347.11 and 24347.12.                               taxable years:                                         Military Base Recovery Area (LAMBRA), or Targeted
                                                              • Beginning before January 1, 2002, have been          Tax Area (TTA) NOLs), the corporation must elect on
Important Information                                              extended for two years.                           its tax return for the taxable year in which the loss
                                                              • Beginning on or after January 1, 2002, and           is incurred to carryover the loss either under that
•   For taxable years beginning in 2010 and 2011,
                                                                   before January 1, 2003, have been extended        section or the loss under R&TC Section 24416.20
    California suspended the net operating loss
                                                                   for one year.                                     (relating to general NOLs). If the corporation elects
    (NOL) carryovers deduction. Corporations may
                                                                                                                     to compute the NOL under R&TC Section 24416.1(c)
    continue to compute and carryover NOLs during             For more information, get FTB Legal Ruling
                                                                                                                     (relating to EZ, LAMBRA, or TTA NOLs), the
    the suspension period. However, corporations              2011-04.
                                                                                                                     corporation must:
    with net income after state adjustments (pre-         •   The general NOL carryover percentage varies
    apportioned income) of less than $300,000 or                                                                     • Make the election in a statement attached to the
                                                              for NOLs incurred prior to January 1, 2004. See
    with disaster loss carryovers are not affected by                                                                     original tax return.
                                                              General Information F, Types of NOLs, for more
    the NOL suspension rules.                                                                                        • Use the applicable economic development area
                                                              information.
                                                                                                                          (EDA) form to calculate the NOL.
    If taxpayers are required to be included in a         •   In 1998, the Franchise Tax Board (FTB)
    combined report, the 2010 and 2011 NOL                                                                           The election is irrevocable. Get form FTB 3805Z,
                                                              implemented the new Principal Business Activity
    limitation amount of $300,000 or more                                                                            Enterprise Zone Deduction and Credit Summary,
                                                              (PBA) Codes chart that is based on the North
    shall apply to the aggregate amount of pre-                                                                      FTB 3807, Local Agency Military Base Recovery Area
                                                              American Industry Classification System (NAICS)
    apportioned income for all members included in                                                                   Deduction and Credit Summary, or FTB 3809, Target
                                                              in the corporate tax booklets. However, the
    the combined report.                                                                                             Tax Area Deduction and Credit Summary, for more
                                                              California Revenue and Taxation Code (R&TC)
                                                                                                                     information.
    For taxable years beginning in 2008 and 2009,             still uses the Standard Industrial Codes (SIC) for
    California has suspended the NOL carryover                purposes of the new business and eligible small
    deduction. Corporations may continue to                   business NOL.                                          B Apportioning Corporations
    compute and carryover an NOL during the                                                                          The loss carryover for a corporation that apportions
    suspension period. However, corporations with
    taxable income of less than $500,000 or with
                                                          General Information                                        income is the amount of the corporation’s loss, if
                                                                                                                     any, after adding income or loss apportioned to
    disaster loss carryovers are not affected by the      In general, for taxable years beginning on or after
                                                                                                                     California with income or loss allocable to California
    NOL suspension rules.                                 January 1, 2010, California law conforms to the Internal
                                                                                                                     under Chapter 17 of the Corporation Tax Law. The
                                                          Revenue Code (IRC) as of January 1, 2009. However,
    The carryover period for any NOL or NOL                                                                          loss carryover may be deducted from income of that
                                                          there are continuing differences between California and
    carryover, for which a deduction is disallowed                                                                   corporation apportioned and allocable to California in
                                                          federal law. When California conforms to federal tax
    because of the 2008-2011 suspension, are                                                                         subsequent taxable years.
                                                          law changes, we do not always adopt all of the changes
    extended by:                                          made at the federal level. For more information, go
    • One year for losses incurred in taxable years       to ftb.ca.gov and search for conformity. Additional        C Combined Reporting
        beginning on or after January 1, 2010, and        information can be found in FTB Pub. 1001,                 Corporations that are members of a unitary group
        before January 1, 2011.                           Supplemental Guidelines to California Adjustments, the     filing a single tax return must use intrastate
    • Two years for losses incurred in taxable years      instructions for California Schedule CA (540 or 540NR),    apportionment, separately computing the loss
        beginning before January 1, 2010.                 and the Business Entity tax booklets.                      carryover for each corporation in the group
    • Three years for losses incurred in taxable          The instructions provided with California tax forms        using its individual apportionment factors (R&TC
        years beginning before January 1, 2009.           are a summary of California tax law and are only           Section 25108). Complete a separate form
    • Four years for losses incurred in taxable           intended to aid taxpayers in preparing their state         FTB 3805Q for each taxpayer included in the
        years beginning before January 1, 2008.           income tax returns. We include information that is         combined report. Attach the separate forms for
    For more information, get FTB Legal Ruling            most useful to the greatest number of taxpayers            each taxpayer member behind the combined form
    2011-04.                                              in the limited space available. It is not possible to      FTB 3805Q for all members.
                                                          include all requirements of the R&TC in the tax            Unlike the loss treatment for a federal consolidated
                                                          booklets. Taxpayers should not consider the tax            tax return, a California loss carryover for one
                                                          booklets as authoritative law.                             member in a combined report may not be applied

Page 38      FTB 3805Q Instructions 2011 (REV 09-12)
to the income of another member included in the             worldwide combined reporting group as if the                  corporation was a C corporation may not be applied
combined report. Get FTB Pub. 1061, Guidelines for          water’s-edge election had been in force for the               to offset income subject to the 1.5% tax imposed
Corporations Filing a Combined Report, for more             taxable year of the loss. If R&TC Section 24416.20(c)         on an S corporation. However, losses incurred
information.                                                applies, the NOL carryover for each corporation may           while the corporation was a C corporation may be
Note. If taxpayers are required to be included in a         be decreased, but not increased.                              applied against the built-in gains which are subject
combined report, the 2010 and 2011 NOL limitation                                                                         to tax. If the corporation incurred losses while it
amount of $300,000 or more shall apply to the               E S Corporations                                              was a C corporation and an S corporation, and the
aggregate amount of pre-apportioned income for all                                                                        S corporation is using C corporation losses to offset
                                                            An S corporation is allowed to carryover a loss
members included in the combined report.                                                                                  its built-in gains, the S corporation must complete
                                                            that is incurred during a taxable year in which it            two forms FTB 3805Q and attach them to Form
                                                            has in effect a valid election to be treated as an
D Water’s-Edge                                              S corporation. The loss is also separately calculated
                                                                                                                          100S, California S Corporation Franchise or Income
                                                                                                                          Tax Return. The unused losses incurred while the
For water’s-edge taxpayers, R&TC                            under the pass-through rules and passed to the                S corporation was a C corporation are “unavailable”
Section 24416.20(c) imposes a limitation on the             shareholders in the year incurred and is taken into           except as provided for above unless and until the
NOL deduction if the NOL is generated during a              account in determining each shareholder’s NOL                 S corporation reverts back to a C corporation or the
non-water’s-edge taxable year. The NOL carryover            carryover, if any.                                            carryover period expires.
is limited to the lesser amount as re-determined by         If a corporation changes from a C corporation                 However, if an S corporation changes to a
computing the income and factors of the original            to an S corporation, the loss incurred while the              C corporation, any S corporation NOLs are lost.

*Note: The carryover period for any NOL or NOL carryover, for which a deduction is disallowed because of the 2008-2011 suspension, are extended. For more information,
see Important Information section.
                                               Type of NOL and Description                                                         Taxable Year        NOL         Carryover*
                                                                                                                                   NOL Incurred    Carried Over      Period

 General NOL (GEN)                                                                                                                  On or after
   Available as a result of a loss incurred in taxable years after 1986 and allowed under R&TC Section 24416.20.
   Does not include losses incurred from activities that qualify as a new business, an eligible small business, EZ,                01/01/2008         100%          20 Years
   LARZ, LAMBRA, TTA, disaster loss, or Pierce’s disease.                                                                          2004-2007          100%          10 Years
                                                                                                                                   2002-2003           60%          10 Years
                                                                                                                                   2000-2001           55%          10 Years
                                                                                                                                   1987-1999          None          Expired
 Disaster Losses (DIS)
    Casualty losses in areas of California declared by the President of the United States or the Governor of California to              See           100%           First
    be in a state of disaster. If the disaster is declared by the Governor of California only, subsequent state legislation is        “List of                      5 Years
    required for the disaster provision to be activated.                                                                            events that
    An election may be made under IRC Section 165(i) permitting the disaster loss to be taken against the previous year’s            have been
    income. If the corporation made this election, see Part II, current year NOLs, line 3 and federal Form 4684 instructions        declared as
    for when the election must be filed. If special legislation is enacted and the specified disaster loss exceeds income in the   disasters” on       See          10 Years
    year it is claimed, 100% of the excess may be carried over for up to five taxable years. If any excess loss remains after         the next     instructions    Thereafter
    the five-year period, 50% of that remaining loss may be carried over for up to 10 additional taxable years for losses              page.
    occurred in any taxable year beginning before January 1, 2000; 55% for losses incurred in any taxable year beginning
    on or after January 1, 2000, and before January 1, 2002; 60% for losses incurred in any taxable year beginning on or
    after January 1, 2002, and before January 1, 2004; or 100% for losses incurred in any taxable year beginning on or
    after January 1, 2004.
 New Business NOL (NB)                                                                                                             On or after        100%          20 Years
   Get FTB Legal Ruling 96-5 for more information.                                                                                 01/01/2008
   NB means any trade or business activity that is first commenced in California on or after January 1, 1994. 100% of an
   NB NOL may be carried over, but only to the extent of the net loss from the new business. The term ‘’new business’’             On or after         100%         10 Years
   also includes any taxpayer engaged in biopharmaceutical activities or other biotechnology activities described in Codes         01/01/2000         For the
   2833 to 2836 of the SIC Manual. Also, it includes any taxpayer that has not received regulatory approval for any product        and before       first three
   from the United States Food and Drug Administration. See R&TC 24416.20(g)(7)(A) for more information.                           01/01/2008        years of
   If a taxpayer’s NOL exceeds the net loss from the new business, the excess may be carried over as a general NOL.                                  business
   If a taxpayer acquires assets of an existing trade or business which is doing business in California, the trade or business
   conducted by the taxpayer or related person is not a new business if the fair market value (FMV) of the acquired assets         On or after
   exceeds 20% of the FMV of the total assets of the trade or business conducted by the taxpayer or any related person. To         01/01/1994
   determine whether the acquired assets exceed 20% of the total assets, include only the assets that continue to be used          and before
   in the same trade or business activity as were used immediately prior to the acquisition. For this purpose, the same            01/01/2000
   trade or business activity means the same division classification listed in the SIC Manual.
   If a taxpayer or related person has been engaged in a trade or business in California within the preceding 36 months               Year of
   and then starts an additional trade or business in California, the additional trade or business qualifies as a new business       business
   only if the activity is classified under a different division classification of the SIC Manual.                                    Year 1          100%          8 Years
   Business activities conducted by the taxpayer or related persons wholly outside California are disregarded in                      Year 2          100%          7 Years
   determining whether the trade or business conducted within California is a new business. Related persons are defined
   in IRC Sections 267 or 318.                                                                                                        Year 3          100%          6 Years

 Eligible Small Business NOL (ESB)                                                                                                 On or after        100%          20 Years
   Get FTB Legal Ruling 96-5 for more information.                                                                                 01/01/2008
   ESB NOL incurred in a trade or business activity that has gross receipts, less returns and allowances, of less than             On or after        100%          10 Years
   $1 million during the taxable year.                                                                                             01/01/2000
   100% of an NOL may be carried over, but only to the extent of the net loss from the eligible small business. If a               and before
   taxpayer’s NOL exceeds the net loss from an eligible small business, the excess may be carried over as a general NOL.           01/01/2008
   The corporation should use the same SIC Code division classifications described in the new business NOL section to              On or after        None          Expired
   determine what constitutes a trade or business activity.                                                                        01/01/1994
                                                                                                                                   and before
                                                                                                                                   01/01/2000


                                                                                                           FTB 3805Q Instructions 2011 (REV 09-12) Page 39
F Types of NOLs                                             from a new business or eligible small business, enter
                                                            the SIC Code for the new business or eligible small
                                                                                                                     ***Note: The Santa Cruz County Severe Storms
                                                                                                                     (occurred in March 2011) and the Los Angeles and
The table on page 39 shows the types of NOLs                business from the Standard Industrial Classification     San Bernardino County Severe Winds (occurred
available, a description, and the percentages and           Manual. Do not enter the code from the PBA Codes         in November 2011) disaster loss deductions
carryover periods for each type of loss.                    chart available in the 2011 Form 100, Form 100W,         are allowed at 100% and can be carried over for
                                                            or Form 100S Tax Booklets. If the loss was from          20 years. Corporations can elect to deduct the
Specific Line Instructions                                  an S corporation, enter the entity’s California          disaster loss in the prior year return under IRC
                                                            corporation number from Schedule K-1 (100S),             Section 165(i). Any provision of law that suspends,
Part I – Current year NOL                                   Shareholder’s Share of Income, Deductions, Credits,      defers, reduces, or otherwise diminishes the
                                                            etc.                                                     deduction of a NOL does not apply to a NOL
Use Part I to figure the current year NOL eligible for
carryover.                                                  List of events that have been declared disasters:        attributable to the Santa Cruz County Severe Storms
                                                                                                                     occurred in March 2011 and the Los Angeles and
Line 2 – If the corporation incurred a disaster loss        Year Code Event                                          San Bernardino County Severe Winds occurred in
during the 2011 taxable year, enter the amount of the       2011 51 Los Angeles & San Bernardino County              November 2011. Refer to R&TC Sections 24347.11
loss on this line. Enter as a positive number.                        Severe Winds 11/11***                          and 24347.12 for more information.
Line 3 – If the amount is zero or less, the corporation     2011 50 Santa Cruz County Severe
                                                                                                                     Column (c) – Enter the type of NOL: General (GEN),
does not have a current year general NOL. Go to                       Storms 03/11***
Part II for computation of general NOL carryovers,                                                                   New Business (NB), Eligible Small Business (ESB),
                                                            2011 49 Mendocino County Tsunami                         or Disaster (DIS). For more information see the table
the current year disaster loss, and carryover from                    Wave Surge 03/11
disaster losses.                                                                                                     in General Information F, Types of NOLs.
                                                            2011 48 Del Norte and Santa Cruz County
                                                                                                                     Using Pierce’s disease, or an EDA NOL, get the
Line 6 – Go to Part II, Current Year NOLs, to record                  Tsunami Wave Surge 03/11**
the corporation’s 2011 NOL carryover to 2012.                                                                        applicable form for the NOL type.
                                                            2011 47 Severe Winter Storms, Flooding, Debris,
Complete columns (b), (c), (d), and (h) only, for each      2010      and Mud Flows 12/10 to 01/11**                 Column (d) – Enter 100% of the initial loss for the
type of loss that the corporation incurred.                                                                          year given in column (a).
                                                            2010 46 San Bruno Explosion
If the corporation has an eligible qualified new            2010 45 Kern County Wildfires                            Column (e) – Enter the NOL carryover amount from
business or a small business and the NOL is greater                                                                  the 2010 form FTB 3805Q, Part II, column (h).
                                                            2010 44 CA Winter Storms 01/10 to 02/10
than the amount of net loss from such a business,                                                                    Column (f) – Enter the smaller of the amount in
use the general NOL first. If the corporation operates      2009 43 Los Angeles, Monterey and Placer
                                                                      County Wildfires                               column (e) or the amount in column (g) of the
one or more new businesses and one or more                                                                           previous line.
eligible small businesses, determine the amount             2010 42 Baja California (Imperial County)
of the loss attributable to the new business(es),                     Earthquake 2010                                Column (g) – Enter the result of subtracting
the small business(es), and the general NOL in the          2010 41 Humboldt County Earthquake                       column (f) from the balance in column (g) of the
following manner. The NOL is first treated as a new         2009 40 Santa Barbara Wildfires                          previous line.
business NOL to the extent of the loss from the new         2008 39 Southern California Wildfires 10/08 to           Column (h) – Subtract the amount in column (f)
business. Any remaining NOL is then treated as                            11/08                                      from the amount in column (e) and enter the result.
an eligible small business NOL to the extent of the         2008    38    Humboldt County Wildfires                  Current Year NOLs
loss from the eligible small business. Any further
                                                            2008    37    California Wildfires 2008                  If a disaster loss occurs between the date of the
remaining NOL is treated as an NOL under the
general rules.                                              2007    36    Riverside County Winds                     publication and the end of the taxable year, go to
                                                            2008    35    Inyo Complex Fire                          ftb.ca.gov for an updated version of this form, which
                                                                                                                     will include information for any subsequent disaster
Part II – NOL carryover and                                 2007
                                                            2007    34    Southern California Wildfires              loss. Then follow the line 3 instructions.
disaster loss carryover                                     2007    33    Santa Barbara and Ventura County Fires     Line 3 – Current year Disaster Loss
limitations                                                 2007    32    El Dorado County Wildfires                 If the corporation did not elect to deduct the current
Use Part II to limit current year disaster loss and         2007    31    California Severe Freeze 01/07             year disaster loss in the prior year:
NOL carryover deductions to current year income             2006    30    Riverside and Ventura County Wildfires     • In column (d), enter your 2011 disaster loss
and to record all of the corporation’s loss carryover       2006    29    San Bernardino County Wildfires                 from Part I, line 2.
information.                                                2006    28    Northern California flooding, mudslides,   •	 In column (f), enter the disaster loss used in
If the corporation has losses from more than                              and landslides (03/06 to 04/06)                 2011.
one source and/or more than one category, the               2006    27    Northern California flooding, mudslides,   • In column (h), enter column (d) less column (f).
corporation must compute the allowable NOL                  2005          and landslides (12/05 to 01/06)
carryover for each loss separately.                                                                                  If the corporation elected to deduct the 2011 disaster
                                                            2004    26    Shasta County Wildfires
                                                                                                                     loss on the 2010 tax return, and the corporation has
When to use an NOL carryover                                2005    25    Southern California flooding, debris       an excess amount to be carried over to 2011, enter
If the corporation NOL carryover deduction is not           2004          flows, and mudslides                       the carryover amount in Part II, line 2, column (e).
suspended, use the corporation’s NOLs and disaster          2004    24    San Joaquin Levee Break                    Use the Prior Year NOL instructions for column (a)
losses in the order the losses were incurred. There         2003    23    San Simeon earthquake                      through column (h) except:
is no requirement to deduct NOL carryovers before           2003    22    Southern California fires and other        • In column (a), enter 2011.
disaster loss carryovers.                                                 related casualties
                                                                                                                     • In column (b), enter the new disaster code.
Line 1 – The NOL carryover deduction is suspended           2000    21    Napa County earthquake
for 2010 and 2011 taxable years if the corporation                                                                   • In column (d), enter the total disaster loss
                                                            1999    19    Winter Freeze 98/99
net income after state adjustments (line 18 of                                                                            incurred in 2011.
                                                            1998
Form 100 and Form 100W, or line 15 less line                1998    18    El Niño 98
17 of Form 100S) is $300,000 or more. The                   1997    17    Disaster floods 97
corporation may continue to compute and carryover           1996          Disaster floods 96 (expired)*
an NOL during the suspension period. However,
corporations with net income after state adjustments        *Corporations that elected to deduct the disaster
(pre-apportioned income) of less than $300,000 or           loss in the prior year under IRC Section 165(i),
with disaster loss carryovers are not affected by the       the final year to deduct the disaster loss carryover
NOL suspension rules.                                       was last year. Corporations that did not elect
Line 2 – Prior Year NOLs                                    IRC Section 165(i), the final year to deduct the
                                                            disaster loss carryover is this year.
Column (a) – Enter the year the loss was incurred.
                                                            **Carryover period and percentage are limited to the
Column (b) – If the loss is due to a disaster, enter        NOL rules. No special legislation was enacted.
the disaster code from the following list. If the loss is


Page 40       FTB 3805Q Instructions 2011 (REV 09-12)
TAXABLE YEAR                                                                                                                                                                                     CALIFORNIA FORM


    2011                     Corporation Depreciation and Amortization                                                                                                                                 3885
Attach to Form 100 or Form 100W.
Corporation name                                                                                                                                                            California corporation number



Part I Election To Expense Certain Property Under IRC Section 179
  1  Maximum deduction under IRC Section 179 for California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .               1                 $25,000
  2  Total cost of IRC Section 179 property placed in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           2
  3  Threshold cost of IRC Section 179 property before reduction in limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    3               $200,000
  4  Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                 4
  5  Dollar limitation for taxable year. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                    5
                                (a)  Description of property                                            (b)  Cost (business use only)                   (c) Elected cost
 6
 
 
 
  7  Listed property (elected IRC Section 179 cost) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
  8 Total elected cost of IRC Section 179 property. Add amounts in column (c), line 6 and line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                             8
  9  Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .      9
10  Carryover of disallowed deduction from prior taxable years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .           10
11  Business income limitation. Enter the smaller of business income (not less than zero) or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . .                              11
12  IRC Section 179 expense deduction. Add line 9 and line 10, but do not enter more than line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . .                                12
13  Carryover of disallowed deduction to 2012. Add line 9 and line 10, less line 12 . . . . . . . . . . . . . . . .   13
Part II Depreciation and Election of Additional First Year Expense Deduction Under R&TC Section 24356
                     (a)                                   (b)                        (c)                           (d)                   (e)             (f)                  (g)                         (h) 
           Description of property                    Date acquired           Cost or other basis          Depreciation allowed       Depreciation      Life or          Depreciation for            Additional first
                                                                                                             or allowable in            method           rate               this year               year depreciation
                                                                                                              earlier years

14
 
 
 
 
15  Add the amounts in column (g) and column (h). The total of column (h) may not exceed $2,000.
    See instructions for line 14, column (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Part III Summary
16  Total: If the corporation is electing:
    IRC Section 179 expense, add the amount on line 12 and line 15, column (g) or
    Additional first year depreciation under R&TC Section 24356, add the amounts on line 15, columns (g) and (h) or
    Depreciation (if no election is made), enter the amount from line 15, column (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
17  Total depreciation claimed for federal purposes from federal Form 4562, line 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
18  Depreciation adjustment. If line 17 is greater than line 16, enter the difference here and on Form 100 or Form 100W, Side 1, line 6.
    If line 17 is less than line 16, enter the difference here and on Form 100 or Form 100W, Side 1, line 12. (If California depreciation
    amounts are used to determine net income before state adjustments on Form 100 or Form 100W, no adjustment is necessary.). . . 18
Part IV Amortization
                    (a)                                    (b)                           (c)                              (d)                           (e)                  (f)                       (g) 
          Description of property                     Date acquired              Cost or other basis           Amortization allowed or            R&TC section            Period or         Amortization for this year
                                                                                                               allowable in earlier years       (see instructions)       percentage

19
 
 
 
 
20  Total. Add the amounts in column (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   20
21  Total amortization claimed for federal purposes from federal Form 4562, line 44. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .                           21
22  Amortization adjustment. If line 21 is greater than line 20, enter the difference here and on Form 100 or Form 100W,
    Side 1, line 6. If line 21 is less than line 20, enter the difference here and on Form 100 or Form 100W, Side 1, line 12 . . . . .                                           22




                                                                                                     7621113                                                                                       FTB 3885 2011
2011 Instructions for Form FTB 3885
Corporation Depreciation and Amortization
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).

General Information                                       California law does not conform to federal law for 
                                                          the following:
                                                                                                                     The numerator of the fraction is the number of years
                                                                                                                     remaining in the useful life of the property. Therefore,
In general, for taxable years beginning on or after       • The enhanced IRC Section 179 expensing election          the numerator changes each year as the life of the
January 1, 2010, California law conforms to the              for assets placed in service in 2010 or 2011            property decreases. The denominator of the fraction
Internal Revenue Code (IRC) as of January 1, 2009.           taxable year.                                           is the sum of the digits representing the years of
However, there are continuing differences between         • The first-year depreciation deduction allowed            useful life. The denominator remains constant every
California and federal law. When California conforms         for new luxury autos or certain passenger               year.
to federal tax law changes, we do not always adopt           automobiles acquired and placed in service in
all of the changes made at the federal level. For                                                                    Other Consistent Methods. Other depreciation
                                                             2010.                                                   methods may be used as long as the total
more information, go to ftb.ca.gov and search for         • The IRC Section 613A(d)(4) relating to the
conformity. Additional information can be found                                                                      accumulated depreciation at the end of any taxable
                                                             exclusion of certain refiners. See R&TC                 year during the first 2/3 of the useful life of the
in FTB Pub. 1001, Supplemental Guidelines to                 Section 24831.3 for more information.
California Adjustments, the instructions for California                                                              property is not more than the amount that would
                                                          • The 50% bonus depreciation deduction [IRC                have resulted from using the declining balance
Schedule CA (540 or 540NR), and the Business                 Section 168(k)] for assets acquired and placed
Entity tax booklets.                                                                                                 method.
                                                             in service during 2008 through 2010, and during
The instructions provided with California tax forms          2011 for certain qualifying property.                   D Period of Depreciation
are a summary of California tax law and are only          • The additional first-year depreciation of certain        Under Cal. Code Regs., tit. 18, section 24349(l),
intended to aid taxpayers in preparing their state           qualified property placed in service after              California conforms to the federal useful lives of
income tax returns. We include information that is           October 3, 2008, and the election to claim              property.
most useful to the greatest number of taxpayers              additional research and minimum tax credits in
                                                             lieu of claiming the bonus depreciation.                Use the following information as a guide to
in the limited space available. It is not possible to
                                                          • The accelerated recovery period for depreciation         determine reasonable periods of useful life for
include all requirements of the California Revenue
                                                             of smart meters and smart grid systems.                 purposes of calculating depreciation. Actual facts and
and Taxation Code (R&TC) in the tax booklets.
                                                          • The ten-year useful life for grapevines planted as       circumstances will determine useful life. However,
Taxpayers should not consider the tax booklets as
                                                             replacements for vines subject to Phylloxera or         the figures listed below represent the normal periods
authoritative law.
                                                             Pierce’s disease. California law allows a useful life   of useful life for the types of property listed as shown
A Purpose                                                    of five years.                                          in IRS Rev. Proc. 87-56.
                                                                                                                     • Office furniture, fixtures, machines,
Use form FTB 3885, Corporation Depreciation and           • The federal special class life for gas station
Amortization, to calculate California depreciation and       convenience stores and similar structures.                  and equipment . . . . . . . . . . . . . . . . . . . . . . 10 yrs.
amortization deduction for corporations, including        • The depreciation under Modified Accelerated Cost             This category includes furniture and fixtures (that
partnerships and limited liability companies (LLCs)          Recovery System (MACRS) for corporations,                   are not structural components of a building) and
classified as corporations.                                  except to the extent such depreciation is passed            machines and equipment used in the preparation
S corporations must use Schedule B (100S),                   through from a partnership or LLC classified as a           of paper or data.
S Corporation Depreciation and Amortization.                 partnership.                                                Examples include: desks; files; safes; typewriters,
                                                                                                                         accounting, calculating, and data processing
Depreciation is the annual deduction allowed to           C Depreciation Calculation                                     machines; communications equipment; and
recover the cost or other basis of business or income
producing property with a determinable useful life of       Methods                                                      duplicating and copying equipment.
more than one year. Generally, depreciation is used       Depreciation methods are defined in R&TC                   • Computers and peripheral
in connection with tangible property.                     Sections 24349 through 24354. Depreciation                     equipment (printers, etc.). . . . . . . . . . . . . . . 6 yrs.
                                                          calculation methods, described in R&TC                     • Transportation equipment and
Amortization is an amount deducted to recover the         Section 24349, are as follows:                                 automobiles (including taxis) . . . . . . . . . . . . 3 yrs.
cost of certain capital expenses over a fixed period.                                                                • General-purpose trucks:
Generally amortization is used for intangible assets.     Straight-Line. The straight-line method divides the
                                                          cost or other basis of property, less its estimated            Light (unloaded weight less than
For amortizing the cost of certified pollution control    salvage value, into equal amounts over the estimated           13,000 lbs.) . . . . . . . . . . . . . . . . . . . . . . . . . 4 yrs.
facilities, use form FTB 3580, Application and            useful life of the property. An asset may not be               Heavy (unloaded weight 13,000 lbs.
Election to Amortize Certified Pollution Control          depreciated below a reasonable salvage value.                  or more) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 yrs.
Facility.                                                                                                            • Buildings
                                                          Declining Balance. Under this method, depreciation
                                                                                                                         This category includes the structural shell of a
B Federal/State Differences                               is greatest in the first year and smaller in each
                                                                                                                         building and all of its integral parts that service
Differences between federal and California laws affect    succeeding year. The property must have a useful
                                                          life of at least three years. Salvage value is not taken       normal heating, plumbing, air conditioning,
the calculation of depreciation and amortization. The                                                                    fire prevention and power requirements, and
following lists are not intended to be all-inclusive of   into account in determining the basis of the property,
                                                          but the property may not be depreciated below a                equipment such as elevators and escalators.
the federal and state conformities and differences.
For more information, refer to the R&TC.                  reasonable salvage value.                                      Type of building:
                                                          The amount of depreciation for each year is                    Apartments. . . . . . . . . . . . . . . . . . . . . . . . . 40 yrs.
California law conforms to federal law for the                                                                           Dwellings (including rental residences) . . . 45 yrs.
following:                                                subtracted from the basis of the property and a
                                                          uniform rate of up to 200% of the straight-line rate is        Office buildings. . . . . . . . . . . . . . . . . . . . . . 45 yrs.
• The federal grant tax treatment for specified                                                                          Warehouses . . . . . . . . . . . . . . . . . . . . . . . . 60 yrs.
    energy property.                                      applied to the remaining balance.
• The useful life of motor sports entertainment           For example, the annual depreciation allowances for        E       Depreciation Methods to Use
    complex.                                              property with an original basis of $100,000 are:           Corporations may use the straight-line method
• The sport utility vehicles (SUVs) and minivans                                                                     for any depreciable property. Before using other
    built on a truck chassis are included in the                                      Declining
                                                                                                                     methods, consider the kind of property, its useful
    definition of trucks and vans when applying the                     Remaining     balance   Depreciation
                                                                                                                     life, whether it is new or used, and the date it was
    6,000 pound gross weight limit. See federal Rev.      Year          basis         rate      allowance
                                                                                                                     acquired. Use the following chart as a general guide
    Proc. 2003-75 for more information.                   First. . . . . . $100,000   20%          $20,000           to determine which method to use:
• The additional first-year depreciation, or the          Second . . .       80,000   20%           16,000
    election to expense the cost of the property as                                                                                                               Maximum
    provided in IRC Section 179, with modification.       Third . . . . .    64,000   20%           12,800           Property description                         depreciation method
• The federal Class Life Asset Depreciation Range         Fourth . . . .     51,200   20%           10,240           Real estate acquired 12/31/70 or earlier
                                                                                                                      New (useful life 3 yrs. or more) . . . . . 200% Declining balance
    (ADR) System provisions, which specifies a            Sum-of-the-Years-Digits Method. This method may             Used (useful life 3 yrs. or more) . . . . . 150% Declining balance
    useful life for various types of property. However,   be used whenever the declining balance method is
    California law does not allow the corporation to                                                                 Real estate acquired 1/1/71 or later
                                                          allowed. The depreciation deduction is figured by           Residential rental:
    choose a depreciation period that varies from the     subtracting the salvage value from the cost of the           New. . . . . . . . . . . . . . . . . . . . . . . . . . 200% Declining balance
    specified asset guideline system.                     property and multiplying the result by a fraction.           Used (useful life 20 yrs. or more) . . . 125% Declining balance
                                                                                                                       Used (useful life less than 20 yrs.) . . Straight-line


Page 42  FTB 3885 Instructions 2011
 Commercial and industrial:                                              qualified property under R&TC Section 24356. The           Exception. Listed property generally does not
  New (useful life 3 yrs. or more) . . . . 150% Declining balance        corporation may only elect IRC Section 179 or the          include:
  Used . . . . . . . . . . . . . . . . . . . . . . . . . Straight-line   additional first year expense deduction for the same
Personal property                                                                                                                   • Photographic, phonographic, communication,
 New (useful life 3 yrs. or more) . . . . . 200% Declining balance
                                                                         taxable year. The election must be made on a timely           or video equipment used exclusively in the
 Used (useful life 3 yrs. or more) . . . . . 150% Declining balance      filed tax return (including extension). The election          corporation’s trade or business.
                                                                         may not be revoked except with the Franchise Tax           • Any computer or peripheral equipment used
See “Other Consistent Methods” information on                            Board‘s consent.
page 42.                                                                                                                               exclusively at a regular business.
                                                                         Part II is also used to calculate depreciation for         • An ambulance, hearse, or vehicle used for
The Class Life ADR System of depreciation may                            property (with or without the above elections).               transporting persons or property for hire.
be used for designated classes of assets placed in
service after 1970.                                                      Part I  Election To Expense Certain Property               Listed property used 50% or less in business activity
                                                                                 Under IRC Section 179                              does not qualify for the IRC Section 179 expense
The Guideline Class Life System of depreciation                                                                                     deduction. For more information regarding listed
may be used for certain classes of assets placed in                      Complete Part I if the corporation elects IRC
                                                                         Section 179 expense. Include all assets qualifying         property, see the instructions for federal Form 4562.
service before 1971.
                                                                         for the deduction since the limit applies to all           Line 11 
F      Election To Expense                                               qualifying assets as a group rather than to each asset     The total cost the corporation can deduct is limited to
                                                                         individually. The total IRC Section 179 expense for        the corporation’s business income. For the purpose
       Certain Property Under IRC                                        property, which the election may be made, is figured       of IRC Section 179 election, business income is the
       Section 179                                                       on line 5. The amount of IRC Section 179 expense           net income derived from the corporation’s active
For taxable years beginning on or after                                  deductions for the taxable year cannot exceed the          trade or business, Form 100 or Form 100W, line 18,
January 1, 2005, corporations may elect IRC                              corporation’s business income on line 11. See              before the IRC Section 179 expense deduction
Section 179 to expense part or all of the cost of                        the instructions for federal Form 4562 for more            (excluding items not derived from a trade or
depreciable tangible property used in the trade                          information.                                               business actively conducted by the corporation).
or business and certain other property described                         Line 2                                                     Part II  Depreciation and Election of 
in federal Publication 946, How to Depreciate                            Enter the cost of all IRC Section 179 qualified
Property. To elect IRC Section 179, the corporation
                                                                                                                                             Additional First Year Expense 
                                                                         property placed in service during the taxable year
must have purchased property, as defined in the                          including the cost of any listed property. See General              Deduction Under R&TC 
IRC Section 179(d)(2), and placed it in service                          Information F, Election To Expense Certain Property                 Section 24356
during the taxable year. If the corporation elects                       Under IRC Section 179, for information regarding           Line 14
this deduction, the corporation must reduce the                          qualified property. See line 7 instructions for            Corporations may enter each asset separately or
California depreciable basis by the IRC Section 179                      information regarding listed property.                     group assets into depreciation accounts. Figure the
expense. See the instructions for federal Form 4562,                                                                                depreciation separately for each asset or group of
                                                                         Line 5                                                     assets. The basis for depreciation is the cost or other
Depreciation and Amortization, for more information.
                                                                         If line 5 is zero, the corporation cannot elect to         basis reduced by a reasonable salvage value (except
California does not allow IRC Section 179 expense                        expense any IRC Section 179 property. Skip line 6          when using the declining balance method), additional
election for off-the-shelf computer software.                            through line 11, enter zero on line 12.                    first-year depreciation (if applicable), and tax credits
California conforms to the federal changes made to                       Line 6                                                     claimed on depreciable property (where specified).
the deduction of business start-up and organizational                    Do not include any listed property on line 6. Enter        This may cause the California basis to be different
costs paid or incurred on or after January 1,                            the elected IRC Section 179 cost of listed property        from the federal basis.
2005. Exceptions: California does not conform to                         on line 7.                                                 If the Guideline Class Life System or Class Life ADR
the federal increase in the deduction for start-up
                                                                         Column (a) – Description of property. Enter a brief        System is used, enter the total amount from the
expenses in 2010 taxable year.
                                                                         description of the property the corporation elects to      corporation’s schedule showing the computation on
Limitations. Federal limitation amounts are different                    expense.                                                   form FTB 3885, column (g), and identify as such.
than California limitation amounts. For California
                                                                         Column (b) – Cost (business use only). Enter the           Line 14, Column (h), Additional first-year 
purposes, the maximum IRC Section 179 expense
                                                                         cost of the property. If the corporation acquired          depreciation.
deduction allowed is $25,000. This amount is
                                                                         the property through a trade-in, do not include any        Corporations may elect to deduct up to 20% of the
reduced if the cost of all IRC Section 179 property
                                                                         carryover basis of the property traded in. Include         cost of “qualifying property” in the year acquired
placed in service during the taxable year is more
                                                                         only the excess of the cost of the property over the       in addition to the regular depreciation deduction.
than $200,000. The total IRC Section 179 expense
                                                                         value of the property traded in.                           The maximum additional first-year depreciation
deduction cannot exceed the corporation’s business
                                                                         Column (c) – Elected cost. Enter the amount the            deduction is $2,000. Corporations must reduce the
income.
                                                                         corporation elects to expense. The corporation does        basis used for regular depreciation by the amount of
G Amortization                                                           not have to expense the entire cost of the property.       additional first-year depreciation claimed.
California conforms to the IRC Section 197                               The corporation can depreciate the amount it does          “Qualifying property” is tangible personal property
amortization of intangibles for taxable years                            not expense.                                               used in business and having a useful life of at
beginning on or after January 1, 1994. Generally,                        Line 7                                                     least six years. Land, buildings, and structural
assets that meet the definition under IRC Section 197                    Use a format similar to federal Form 4562, Part V,         components do not qualify. Property converted from
are amortized on a straight-line basis over 15 years.                    line 26 to determine the elected IRC Section 179 cost      personal use, acquired by gift, inheritance, or from
There may be differences in the federal and California                   of listed property. Listed property generally includes     related parties also does not qualify.
amounts for intangible assets acquired in taxable                        the following:                                             See R&TC Section 24356 and the applicable
years beginning prior to January 1, 1994. See R&TC                                                                                  regulations for more information.
Section 24355.5 for more information.                                    • Passenger automobiles weighing 6,000 pounds or
                                                                             less.                                                  An election may be made to expense up to
Amortization of the following assets is governed by                      • Any other property used for transportation if the        40% of the cost of property described in
California law:                                                              nature of the property lends itself to personal use,   R&TC Sections 24356.6, 24356.7, and 24356.8.
Bond premiums                          R&TC 24360 – 24363.5                  such as motorcycles, pick-up trucks, SUVs, etc.        For more information, get form FTB 3809, Targeted
Research expenditures                  R&TC 24365                        • Any property used for entertainment or                   Tax Area Deduction and Credit Summary; form
Reforestation expenses                 R&TC 24372.5                          recreational purposes (such as photographic,           FTB 3805Z, Enterprise Zone Deduction and Credit
Organizational expenditures            R&TC 24407 – 24409                    phonographic, communication, and video                 Summary; or form FTB 3807, Local Agency Military
Start-up expenses                      R&TC 24414                            recording equipment).                                  Base Recovery Area Deduction and Credit Summary.
Other intangible assets may be amortized if it is                        • Cellular telephones (and other similar
                                                                             telecommunications equipment). Note: California        Part IV  Amortization
approved with reasonable accuracy that the asset                                                                                    Line 19, Column (e) – R&TC section. 
has an ascertainable value that diminishes over time                         does not conform to the federal exclusion of these
                                                                             items from being treated as listed property for        Enter the correct R&TC section for the type
and has a limited useful life.                                                                                                      of amortization. See General Information G,
                                                                             taxable years beginning on or after January 1,
                                                                             2010.                                                  Amortization, for a list of the R&TC sections.
Specific Line Instructions                                               • Computers or peripheral equipment.
For properties placed in service during the taxable
year, the corporation may complete Part I if the
corporation elects to expense qualified property
under IRC Section 179, or Part II if the corporation
elects additional first year expense deduction for

                                                                                                                                        FTB 3885 Instructions 2011 Page 43
Principal Business Activity Codes                                                          Code                                        Code
                                                                                           315210 Cut & Sew Apparel Contractors        332810 Coating, Engraving, Heat
This list of principal business activities and their associated codes is designed to       315220 Men’s & Boys’ Cut & Sew                       Treating, & Allied Activities
classify a business by the type of activity in which it is engaged to facilitate the                 Apparel Mfg                       332900 Other Fabricated Metal
administration of the California Revenue and Taxation Code. For taxable years              315230 Women’s & Girls’ Cut & Sew                    Product Mfg
beginning on or after January 1, 1998, these principal business activity codes are                   Apparel Mfg                       Machinery Manufacturing
based on the North American Industry Classification System.                                315290 Other Cut & Sew Apparel Mfg          333100 Agriculture, Construction, &
Using the list of activities and codes below, determine from which activity the            315990 Apparel Accessories & Other                   Mining Machinery Mfg
company derives the largest percentage of its ‘’total receipts.’’ Total receipts is                  Apparel Mfg                       333200 Industrial Machinery Mfg
defined as the sum of gross receipts or sales (Form 100, Side 3, Schedule F, line 1a)      Leather and Allied Product                  333310 Commercial & Service Industry
plus all other income (Form 100, Side 3, Schedule F, lines 4 through 10). If the           Manufacturing                                        Machinery Mfg
company purchases raw materials and supplies them to a subcontractor to produce            316110 Leather & Hide Tanning &             333410 Ventilation, Heating, Air-
the finished product, but retains title to the product, the company is considered a                  Finishing                                  Conditioning, & Commercial
                                                                                           316210 Footwear Mfg (including rubber                Refrigeration Equipment Mfg
manufacturer and must use one of the manufacturing codes (311110-339900).
                                                                                                     & plastics)                       333510 Metalworking Machinery Mfg
Once the principal business activity is determined, entries must be made on                316990 Other Leather & Allied Product       333610 Engine, Turbine, & Power
Form 100, Question E. For the business activity code number, enter the six-digit                     Mfg                                        Transmission Equipment Mfg
code selected from the list below. On the next line enter a brief description of the       Wood Product Manufacturing                  333900 Other General Purpose
company’s business activity. Finally, enter a description of the principal product or      321110 Sawmills & Wood Preservation                  Machinery Mfg
service of the company on the next line.                                                   321210 Veneer, Plywood, & Engineered        Computer and Electronic Product
                                                                                                     Wood Product Mfg                  Manufacturing
                                                                                           321900 Other Wood Product Mfg               334110 Computer & Peripheral
                                                                                                                                                Equipment Mfg
                                                                                           Paper Manufacturing
                                                                                                                                       334200 Communications Equipment
                                                                                           322100 Pulp, Paper, & Paperboard
Agriculture, Forestry, Fishing,               Construction                                           Mills
                                                                                                                                                Mfg
and Hunting                                                                                                                            334310 Audio & Video Equipment Mfg
                                              Code                                         322200 Converted Paper Product Mfg
                                                                                                                                       334410 Semiconductor & Other
Code                                          Construction of Buildings                    Printing and Related Support                         Electronic Component Mfg
Crop Production                               236110 Residential Building                  Activities                                  334500 Navigational, Measuring,
111100 Oilseed & Grain Farming                         Construction                        323100 Printing & Related Support                    Electromedical, & Control
111210 Vegetable & Melon Farming              236200 Nonresidential Building                         Activities                                 Instruments Mfg
         (including potatoes & yams)                   Construction                        Petroleum and Coal Products                 334610 Manufacturing & Reproducing
111300 Fruit & Tree Nut Farming               Heavy and Civil Engineering                  Manufacturing                                        Magnetic & Optical Media
111400 Greenhouse, Nursery, &                 Construction                                 324110 Petroleum Refineries (including      Electrical Equipment, Appliance, and
         Floriculture Production              237100 Utility System Construction                     integrated)                       Component Manufacturing
111900 Other Crop Farming (including          237210 Land Subdivision                      324120 Asphalt Paving, Roofing, &           335100 Electric Lighting Equipment
         tobacco, cotton, sugarcane,          237310 Highway, Street, & Bridge                       Saturated Materials Mfg                    Mfg
         hay, peanut, sugar beet, & all                Construction                        324190 Other Petroleum & Coal               335200 Household Appliance Mfg
         other crop farming)                  237990 Other Heavy & Civil                             Products Mfg                      335310 Electrical Equipment Mfg
Animal Production                                      Engineering Construction            Chemical Manufacturing                      335900 Other Electrical Equipment &
112111 Beef Cattle Ranching &                 Specialty Trade Contractors                  325100 Basic Chemical Mfg                            Component Mfg
         Farming                              238100 Foundation, Structure, &              325200 Resin, Synthetic Rubber, &           Transportation Equipment
112112 Cattle Feedlots                                 Building Exterior Contractors                 Artificial & Synthetic Fibers &   Manufacturing
112120 Dairy Cattle & Milk Production                  (including framing carpentry,                 Filaments Mfg                     336100 Motor Vehicle Mfg
112210 Hog & Pig Farming                               masonry, glass, roofing, &          325300 Pesticide, Fertilizer, & Other       336210 Motor Vehicle Body & Trailer
112300 Poultry & Egg Production                        siding)                                       Agricultural Chemical Mfg                  Mfg
112400 Sheep & Goat Farming                   238210 Electrical Contractors                325410 Pharmaceutical & Medicine            336300 Motor Vehicle Parts Mfg
112510 Aquaculture (including shellfish       238220 Plumbing, Heating, & Air-                       Mfg                               336410 Aerospace Product & Parts
         & finfish farms & hatcheries)                 Conditioning Contractors            325500 Paint, Coating, & Adhesive Mfg                Mfg
112900 Other Animal Production                238290 Other Building Equipment              325600 Soap, Cleaning Compound, &           336510 Railroad Rolling Stock Mfg
                                                       Contractors                                   Toilet Preparation Mfg            336610 Ship & Boat Building
Forestry and Logging                          238300 Building Finishing Contractors        325900 Other Chemical Product &
113110 Timber Tract Operations                                                                                                         336990 Other Transportation
                                                       (including drywall, insulation,               Preparation Mfg                            Equipment Mfg
113210 Forest Nurseries & Gathering                    painting, wallcovering, flooring,
         of Forest Products                                                                Plastics and Rubber Products                Furniture and Related Product
                                                       tile, & finish carpentry)           Manufacturing
113310 Logging                                238900 Other Specialty Trade                                                             Manufacturing
                                                                                           326100 Plastics Product Mfg                 337000 Furniture & Related Product
Fishing, Hunting and Trapping                          Contractors (including site
                                                       preparation)                        326200 Rubber Product Mfg                            Manufacturing
114110 Fishing
                                                                                           Nonmetallic Mineral Product                 Miscellaneous Manufacturing
114210 Hunting & Trapping
                                              Manufacturing                                Manufacturing                               339110 Medical Equipment & Supplies
Support Activities for Agriculture and                                                     327100 Clay Product & Refractory Mfg                 Mfg
Forestry                                      Food Manufacturing
                                              311110 Animal Food Mfg                       327210 Glass & Glass Product Mfg            339900 Other Miscellaneous
115110 Support Activities for Crop                                                         327300 Cement & Concrete Product                     Manufacturing
         Production (including cotton         311200 Grain & Oilseed Milling
                                                                                                     Mfg
         ginning, soil preparation,           311300 Sugar & Confectionery Product
         planting, & cultivating)                      Mfg                                 327400 Lime & Gypsum Product Mfg            Wholesale Trade
                                              311400 Fruit & Vegetable Preserving &        327900 Other Nonmetallic Mineral            Merchant Wholesalers, Durable Goods
115210 Support Activities for Animal                                                                 Product Mfg
         Production                                    Specialty Food Mfg                                                              423100 Motor Vehicle & Motor Vehicle
115310 Support Activities for Forestry        311500 Dairy Product Mfg                     Primary Metal Manufacturing                         Parts & Supplies
                                              311610 Animal Slaughtering and               331110 Iron & Steel Mills & Ferroalloy      423200 Furniture & Home Furnishings
Mining                                                 Processing                                    Mfg                               423300 Lumber & Other Construction
211110 Oil & Gas Extraction                   311710 Seafood Product Preparation &         331200 Steel Product Mfg from                       Materials
212110 Coal Mining                                     Packaging                                     Purchased Steel                   423400 Professional & Commercial
212200 Metal Ore Mining                       311800 Bakeries & Tortilla Mfg               331310 Alumina & Aluminum                           Equipment & Supplies
                                              311900 Other Food Mfg (including                       Production & Processing           423500 Metal & Mineral (except
212310 Stone Mining & Quarrying
                                                       coffee, tea, flavorings, &          331400 Nonferrous Metal (except                     Petroleum)
212320 Sand, Gravel, Clay, & Ceramic                                                                 Aluminum) Production &
       & Refractory                                    seasonings)                                                                     423600 Electrical & Electronic Goods
                                                                                                     Processing                        423700 Hardware, & Plumbing &
       Mineral Mining & Quarrying             Beverage and Tobacco Product
                                              Manufacturing                                331500 Foundries                                    Heating Equipment & Supplies
212390 Other Nonmetallic Mineral
       Mining & Quarrying                     312110 Soft Drink & Ice Mfg                  Fabricated Metal Product                    423800 Machinery, Equipment, &
213110 Support Activities for Mining          312120 Breweries                             Manufacturing                                       Supplies
                                              312130 Wineries                              332110 Forging & Stamping                   423910 Sporting & Recreational Goods
Utilities                                     312140 Distilleries                          332210 Cutlery & Handtool Mfg                       & Supplies
221100 Electric Power Generation,             312200 Tobacco Manufacturing                 332300 Architectural & Structural           423920 Toy & Hobby Goods & Supplies
       Transmission & Distribution                                                                   Metals Mfg                        423930 Recyclable Materials
                                              Textile Mills and Textile Product Mills      332400 Boiler, Tank, & Shipping             423940 Jewelry, Watch, Precious
221210 Natural Gas Distribution               313000 Textile Mills
221300 Water, Sewage, & Other                                                                        Container Mfg                             Stone, & Precious Metals
                                              314000 Textile Product Mills                 332510 Hardware Mfg                         423990 Other Miscellaneous Durable
       Systems
221500 Combination Gas and Electric           Apparel Manufacturing                        332610 Spring & Wire Product Mfg                    Goods
                                              315100 Apparel Knitting Mills                332700 Machine Shops, Turned
                                                                                                     Product, & Screw, Nut, & Bolt
                                                                                                     Mfg


Page 44       Form 100 Booklet 2011
Code                                     Code                                       Code                                          Code
Merchant Wholesalers, Nondurable         Clothing and Clothing Accessories          Support Activities for Transportation         523130 Commodity Contracts Dealing
Goods                                    Stores                                     488100 Support Activities for Air             523140 Commodity Contracts
424100 Paper & Paper Products            448110 Men’s Clothing Stores                        Transportation                                 Brokerage
424210 Drugs & Druggists’ Sundries       448120 Women’s Clothing Stores             488210 Support Activities for Rail            523210 Securities & Commodity
424300 Apparel, Piece Goods, &           448130 Children’s & Infants’ Clothing               Transportation                                 Exchanges
        Notions                                   Stores                            488300 Support Activities for Water           523900 Other Financial Investment
424400 Grocery & Related Products        448140 Family Clothing Stores                       Transportation                                 Activities (including portfolio
424500 Farm Product Raw Materials        448150 Clothing Accessories Stores         488410 Motor Vehicle Towing                             management & investment
424600 Chemical & Allied Products        448190 Other Clothing Stores               488490 Other Support Activities for                     advice)
424700 Petroleum & Petroleum             448210 Shoe Stores                                  Road Transportation                  Insurance Carriers and Related
        Products                         448310 Jewelry Stores                      488510 Freight Transportation                 Activities
424800 Beer, Wine, & Distilled           448320 Luggage & Leather Goods                      Arrangement                          524140 Direct Life, Health, & Medical
        Alcoholic Beverages                       Stores                            488990 Other Support Activities for                     Insurance & Reinsurance
424910 Farm Supplies                                                                         Transportation                                 Carriers
                                         Sporting Goods, Hobby, Book, and                                                         524150 Direct Insurance & Reinsurance
424920 Book, Periodical, &               Music Stores                               Couriers and Messengers
        Newspapers                                                                  492110 Couriers                                         (except Life, Health, & Medical)
                                         451110 Sporting Goods Stores                                                                       Carriers
424930 Flower, Nursery Stock, &          451120 Hobby, Toy, & Game Stores           492210 Local Messengers & Local
        Florists’ Supplies                                                                   Delivery                             524210 Insurance Agencies &
                                         451130 Sewing, Needlework, & Piece                                                                 Brokerages
424940 Tobacco & Tobacco Products                 Goods Stores                      Warehousing and Storage
424950 Paint, Varnish, & Supplies                                                                                                 524290 Other Insurance Related
                                         451140 Musical Instrument & Supplies       493100 Warehousing & Storage (except                    Activities (including third-party
424990 Other Miscellaneous                        Stores                                     lessors of miniwarehouses &                    administration of insurance and
        Nondurable Goods                 451211 Book Stores                                  self- storage units)                           pension funds)
Wholesale Electronic Markets and         451212 News Dealers & Newsstands                                                         Funds, Trusts, and Other Financial
Agents and Brokers                       451220 Prerecorded Tape, Compact           Information                                   Vehicles
425110 Business to Business                       Disc, & Record Stores             Publishing Industries (except Internet)       525100 Insurance & Employee Benefit
        Electronic Markets                                                          511110 Newspaper Publishers                             Funds
                                         General Merchandise Stores
425120 Wholesale Trade Agents &                                                     511120 Periodical Publishers                  525910 Open-End Investment Funds
        Brokers                          452110 Department stores
                                         452900 Other General Merchandise           511130 Book Publishers                                  (Form 1120-RIC)
                                                  Stores                            511140 Directory & Mailing List               525920 Trusts, Estates, & Agency
Retail Trade                                                                                 Publishers                                     Accounts
Motor Vehicle and Parts Dealers          Miscellaneous Store Retailers
                                                                                    511190 Other Publishers                       525990 Other Financial Vehicles
441110 New Car Dealers                   453110 Florists                                                                                    (including mortgage REITS &
                                         453210 Office Supplies & Stationery        511210 Software Publishers
441120 Used Car Dealers                                                                                                                     closed-end investment funds)
                                                  Stores                            Motion Picture and Sound Recording            “Offices of Bank Holding Companies” and
441210 Recreational Vehicle Dealers                                                 Industries
                                         453220 Gift, Novelty, & Souvenir Stores                                                  “Offices of Other Holding Companies”
441221 Motorcycle Dealers                                                           512100 Motion Picture & Video
                                         453310 Used Merchandise Stores                                                           are located under Management of
441222 Boat Dealers                                                                          Industries (except video rental)
                                         453910 Pet & Pet Supplies Stores                                                         Companies (Holding Companies) on
441229 All Other Motor Vehicle Dealers                                              512200 Sound Recording Industries             next page.
                                         453920 Art Dealers
441300 Automotive Parts, Accessories,
         & Tire Stores                   453930 Manufactured (Mobile) Home          Broadcasting (except Internet)
                                                  Dealers                           515100 Radio & Television                     Real Estate and Rental and
Furniture and Home Furnishings           453990 All Other Miscellaneous Store                Broadcasting                         Leasing
Stores                                            Retailers (including tobacco,     515210 Cable & Other Subscription
442110 Furniture Stores                                                                                                           Real Estate
                                                  candle, & trophy shops)                    Programming
442210 Floor Covering Stores                                                                                                      531110 Lessors of Residential
                                         Nonstore Retailers                         Telecommunications                                     Buildings & Dwellings
442291 Window Treatment Stores           454110 Electronic Shopping & Mail-                                                                (including equity REITs)
                                                                                    517000 Telecommunications (including
442299 All Other Home Furnishings                 Order Houses                               paging, cellular, satellite,         531114 Cooperative Housing (including
         Stores                          454210 Vending Machine Operators                    cable & other program                         equity REITs)
Electronics and Appliance Stores         454311 Heating Oil Dealers                          distribution, resellers, & other     531120 Lessors of Nonresidential
443111 Household Appliance Stores        454312 Liquefied Petroleum Gas                      telecommunications & internet                 Buildings (except
443112 Radio, Television, & Other                 (Bottled Gas) Dealers                      service providers)                            Miniwarehouses) (including
         Electronics Stores              454319 Other Fuel Dealers                  Data Processing Services                               equity REITs)
443120 Computer & Software Stores        454390 Other Direct Selling                518210 Data Processing, Hosting, &            531130 Lessors of Miniwarehouses &
443130 Camera & Photographic                      Establishments (including                  Related Services                              Self-Storage Units (including
         Supplies Stores                          door-to-door retailing, frozen                                                           equity REITs)
                                                                                    Other Information Services                    531190 Lessors of Other Real Estate
Building Material and Garden                      food plan providers, party plan
                                                  merchandisers, & coffee-break     519100 Other Information Services                      Property (including equity
Equipment and Supplies Dealers                                                               (including news syndicates,                   REITs)
                                                  service providers)
444110 Home Centers                                                                          libraries, internet publishing &     531210 Offices of Real Estate Agents &
444120 Paint & Wallpaper Stores                                                              broadcasting)
                                         Transportation and                                                                                Brokers
444130 Hardware Stores
444190 Other Building Material Dealers
                                         Warehousing                                Finance and Insurance                         531310 Real Estate Property Managers
                                                                                                                                  531320 Offices of Real Estate Appraisers
444200 Lawn & Garden Equipment &         Air, Rail, and Water Transportation        Depository Credit Intermediation              531390 Other Activities Related to Real
         Supplies Stores                 481000 Air Transportation                  522110 Commercial Banking                              Estate
Food and Beverage Stores                 482110 Rail Transportation                 522120 Savings Institutions
                                         483000 Water Transportation                                                              Rental and Leasing Services
445110 Supermarkets and Other                                                       522130 Credit Unions                          532100 Automotive Equipment Rental
         Grocery (except Convenience)    Truck Transportation                       522190 Other Depository Credit                         & Leasing
         Stores                          484110 General Freight Trucking, Local               Intermediation                      532210 Consumer Electronics &
445120 Convenience Stores                484120 General Freight Trucking, Long-     Nondepository Credit Intermediation                    Appliances Rental
445210 Meat Markets                                 distance                        522210 Credit Card Issuing                    532220 Formal Wear & Costume Rental
445220 Fish & Seafood Markets            484200 Specialized Freight Trucking        522220 Sales Financing                        532230 Video Tape & Disc Rental
445230 Fruit & Vegetable Markets         Transit and Ground Passenger               522291 Consumer Lending                       532290 Other Consumer Goods Rental
445291 Baked Goods Stores                Transportation                             522292 Real Estate Credit (including          532310 General Rental Centers
445292 Confectionery & Nut Stores        485110 Urban Transit Systems                         mortgage bankers &                  532400 Commercial & Industrial
445299 All Other Specialty Food Stores   485210 Interurban & Rural Bus                        originators)                                 Machinery & Equipment Rental
445310 Beer, Wine, & Liquor Stores                  Transportation                  522293 International Trade Financing                   & Leasing
Health and Personal Care Stores          485310 Taxi Service                        522294 Secondary Market Financing             Lessors of Nonfinancial Intangible
446110 Pharmacies & Drug Stores          485320 Limousine Service                   522298 All Other Nondepository Credit         Assets (except copyrighted works)
446120 Cosmetics, Beauty Supplies, &     485410 School & Employee Bus                         Intermediation                      533110 Lessors of Nonfinancial
         Perfume Stores                             Transportation                  Activities Related to Credit                           Intangible Assets (except
446130 Optical Goods Stores              485510 Charter Bus Industry                Intermediation                                         copyrighted works)
446190 Other Health & Personal Care      485990 Other Transit & Ground              522300 Activities Related to Credit
         Stores                                     Passenger Transportation                  Intermediation (including loan      Professional, Scientific, and
Gasoline Stations                        Pipeline Transportation                              brokers, check clearing, &          Technical Services
                                         486000 Pipeline Transportation                       money transmitting)
447100 Gasoline Stations (including                                                                                               Legal Services
         convenience stores with gas)    Scenic & Sightseeing Transportation        Securities, Commodity Contracts,              541110 Offices of Lawyers
                                                                                    and Other Financial Investments and           541190 Other Legal Services
                                         487000 Scenic & Sightseeing                Related Activities
                                                    Transportation
                                                                                    523110 Investment Banking &
                                                                                              Securities Dealing
                                                                                    523120 Securities Brokerage

                                                                                                                                Form 100 Booklet 2011 Page 45
Code                                        Code                                       Code                                         Code
Accounting, Tax Preparation,                561500 Travel Arrangement & Reserva-       Other Ambulatory Health Care                 Food Services and Drinking Places
Bookkeeping, and Payroll Services                    tion Services                     Services                                     722110 Full-Service Restaurants
541211 Offices of Certified Public          561600 Investigation & Security            621900 Other Ambulatory Health Care          722210 Limited-Service Eating Places
         Accountants                                 Services                                     Services (including ambulance     722300 Special Food Services
541213 Tax Preparation Services             561710 Exterminating & Pest Control                   services & blood & organ                  (including food service
541214 Payroll Services                              Services                                     banks)                                    contractors & caterers)
541219 Other Accounting Services            561720 Janitorial Services                 Hospitals                                    722410 Drinking Places (Alcoholic
                                            561730 Landscaping Services                622000 Hospitals                                     Beverages)
Architectural, Engineering, and
Related Services                            561740 Carpet & Upholstery Cleaning        Nursing and Residential Care
541310 Architectural Services                        Services                          Facilities
                                                                                                                                    Other Services
541320 Landscape Architecture               561790 Other Services to Buildings &       623000 Nursing & Residential Care            Repair and Maintenance
         Services                                    Dwellings                                    Facilities                        811110 Automotive Mechanical
541330 Engineering Services                 561900 Other Support Services                                                                    & Electrical Repair &
                                                     (including packaging & labeling   Social Assistance                                     Maintenance
541340 Drafting Services                             services, & convention & trade    624100 Individual & Family Services
541350 Building Inspection Services                                                                                                 811120 Automotive Body, Paint,
                                                     show organizers)                  624200 Community Food & Housing,                      Interior, & Glass Repair
541360 Geophysical Surveying & Map-         Waste Management and Remediation                      & Emergency & Other Relief        811190 Other Automotive Repair &
         ping Services                      Services                                              Services                                   Maintenance (including oil
541370 Surveying & Mapping (except          562000 Waste Management &                  624310 Vocational Rehabilitation                      change & lubrication shops &
         Geophysical) Services                       Remediation Services                         Services                                   car washes)
541380 Testing Laboratories                                                            624410 Child Day Care Services               811210 Electronic & Precision
Specialized Design Services                 Educational Services                                                                             Equipment Repair &
541400 Specialized Design Services          611000 Educational Services                Arts, Entertainment, and                              Maintenance
         (including interior, industrial,          (including schools, colleges, &     Recreation                                   811310 Commercial & Industrial
         graphic, & fashion design)                universities)                       Performing Arts, Spectator Sports,                    Machinery & Equipment
                                                                                       and Related Industries                                (except Automotive &
Computer Systems Design and
Related Services                            Health Care and Social                     711100 Performing Arts Companies
                                                                                                                                             Electronic) Repair &
                                                                                                                                             Maintenance
541511 Custom Computer                      Assistance                                 711210 Spectator Sports (including           811410 Home & Garden Equipment
         Programming Services               Offices of Physicians and Dentists                   sports clubs & racetracks)                  & Appliance Repair &
541512 Computer Systems Design              621111 Offices of Physicians (except       711300 Promoters of Performing Arts,                  Maintenance
         Services                                    mental health specialists)                  Sports, & Similar Events           811420 Reupholstery & Furniture
541513 Computer Facilities                  621112 Offices of Physicians, Mental       711410 Agents & Managers for Artists,                 Repair
         Management Services                         Health Specialists                          Athletes, Entertainers, & Other    811430 Footwear & Leather Goods
541519 Other Computer Related               621210 Offices of Dentists                           Public Figures                              Repair
         Services                                                                      711510 Independent Artists, Writers, &       811490 Other Personal & Household
                                            Offices of Other Health Practitioners                Performers
Other Professional, Scientific, and         621310 Offices of Chiropractors                                                                  Goods Repair & Maintenance
Technical Services                                                                     Museums, Historical Sites, and Similar       Personal and Laundry Services
                                            621320 Offices of Optometrists             Institutions
541600 Management, Scientific, &            621330 Offices of Mental Health                                                         812111 Barber Shops
         Technical Consulting Services                                                 712100 Museums, Historical Sites, &
                                                     Practitioners (except                       Similar Institutions               812112 Beauty Salons
541700 Scientific Research &                         Physicians)                                                                    812113 Nail Salons
         Development Services               621340 Offices of Physical,                Amusement, Gambling, and                     812190 Other Personal Care Services
541800 Advertising & Related Services                Occupational & Speech             Recreation Industries                                 (including diet & weight
541910 Marketing Research & Public                   Therapists, & Audiologists        713100 Amusement Parks & Arcades                      reducing centers)
         Opinion Polling                    621391 Offices of Podiatrists              713200 Gambling Industries                   812210 Funeral Homes & Funeral
541920 Photographic Services                621399 Offices of All Other                713900 Other Amusement &                              Services
541930 Translation & Interpretation                  Miscellaneous Health                        Recreation Industries (including   812220 Cemeteries & Crematories
         Services                                    Practitioners                               golf courses, skiing facilities,   812310 Coin-Operated Laundries &
541940 Veterinary Services                                                                       marinas, fitness centers, &                 Drycleaners
                                            Outpatient Care Centers                              bowling centers)
541990 All Other Professional,              621410 Family Planning Centers                                                          812320 Drycleaning & Laundry
         Scientific, & Technical Services                                                                                                    Services (except Coin-
                                            621420 Outpatient Mental Health &          Accommodation and Food                                Operated)
                                                     Substance Abuse Centers
Management of Companies                     621491 HMO Medical Centers
                                                                                       Services                                     812330 Linen & Uniform Supply
(Holding Companies)                         621492 Kidney Dialysis Centers             Accommodation                                812910 Pet Care (except Veterinary)
551111 Offices of Bank Holding Com-         621493 Freestanding Ambulatory             721110 Hotels (except Casino Hotels)                  Services
       panies                                        Surgical & Emergency Centers             & Motels                              812920 Photofinishing
551112 Offices of Other Holding             621498 All Other Outpatient Care           721120 Casino Hotels                         812930 Parking Lots & Garages
       Companies                                     Centers                           721191 Bed & Breakfast Inns                  812990 All Other Personal Services
                                            Medical and Diagnostic Laboratories        721199 All Other Traveler                    Religious, Grantmaking, Civic,
Administrative and Support                  621510 Medical & Diagnostic
                                                                                              Accommodation                         Professional, and Similar
and Waste Management and                             Laboratories                      721210 RV (Recreational Vehicle)             Organizations
Remediation Services                                                                          Parks & Recreational Camps            813000 Religious, Grantmaking,
                                            Home Health Care Services                  721310 Rooming & Boarding Houses                      Civic, Professional, & Similar
Administrative and Support Services         621610 Home Health Care Services                                                                 Organizations (including
561110 Office Administrative Services                                                                                                        condominium and homeowners
561210 Facilities Support Services                                                                                                           associations)
561300 Employment Services
561410 Document Preparation
        Services
561420 Telephone Call Centers
561430 Business Service Centers
        (including private mail centers
        & copy shops)
561440 Collection Agencies
561450 Credit Bureaus
561490 Other Business Support
        Services (including
        repossession services,
        court reporting, & stenotype
        services)




Page 46      Form 100 Booklet 2011
How To Get California Tax Information
Where To Get Tax Forms and Publications                                        California Tax Forms and Publications
By Internet – You can download, view, and print California tax forms,          817   California Corporation Tax Forms and Instructions.
instructions, publications, FTB Notices, and FTB Legal Rulings at                    This booklet contains:
ftb.ca.gov.                                                                                 Form 100, California Corporation Franchise or Income Tax
By phone – You can order current year California tax forms from 6 a.m.                      Return;
                                                                                            Schedule H (100), Dividend Income Deduction
to 10 p.m. weekdays, 6 a.m. to 4:30 p.m. Saturdays, except holidays.
                                                                                            Schedule P (100), Alternative Minimum Tax and Credit
• Refer to the list in the right column and find the code number for the                    Limitations — Corporations
    form you want to order.                                                                 FTB 3539, Payment for Automatic Extension for Corps and
• Call 800.338.0505.                                                                        Exempt Orgs
• Select “Business Entity Information.”                                                     FTB 3565, Small Business Stock Questionnaire
• Select “Forms and Publications.”                                                          FTB 3805Q, Net Operating Loss (NOL) Computation
• Enter the three-digit code shown to the left of the form title when                       and NOL and Disaster Loss Limitations — Corporations
    instructed.                                                                             FTB 3885, Corporation Depreciation and Amortization
                                                                               816   California S Corporation Tax Forms and Instructions.
Allow two weeks to receive your order. If you live outside California, allow         This booklet contains:
three weeks to receive your order.                                                          Form 100S, California S Corporation Franchise or Income
By mail – Write to:                                                                         Tax Return;
    TAX FORMS REQUEST UNIT                                                                  Schedule B (100S), S Corporation Depreciation and
    FRANCHISE TAX BOARD                                                                     Amortization
    PO BOX 307                                                                              Schedule C (100S), S Corporation Tax Credits
                                                                                            Schedule D (100S), S Corporation Capital Gains and
    RANCHO CORDOVA CA 95741-0307                                                            Losses and Built-In Gains
                                                                                            Schedule H (100S), S Corporation Dividend Income
                                                                                            Deduction
Letters                                                                                     Schedule K-1 (100S), Shareholder’s Share of Income,
If you write to us, be sure to include your California corporation number                   Deductions, Credits, etc.
or federal employer identification number, your daytime and evening                         Schedule QS, Qualified Subchapter S Subsidiary (QSub)
telephone numbers, and a copy of the notice with your letter. Send your                     Information Worksheet
letter to:                                                                                  FTB 3539, Payment for Automatic Extension for Corps and
                                                                                            Exempt Orgs
    FRANCHISE TAX BOARD                                                                     FTB 3805Q, Net Operating Loss (NOL) Computation and
    PO BOX 942857                                                                           NOL and Disaster Loss Limitations – Corporations
    SACRAMENTO CA 94257-0540                                                   814   Form 109, Exempt Organization Business Income Tax Booklet
We will respond to your letter within ten weeks. In some cases, we may         818   Form 100-ES, Corporation Estimated Tax
need to call you for additional information. Do not attach correspondence      815   Form 199, California Exempt Organization Annual Information
to your tax return unless the correspondence relates to an item on the               Return and Instructions
return.                                                                        802   FTB 3500, Exemption Application
                                                                               831   FTB 3500A, Submission of Exemption Request
                                                                               943   FTB Pub. 4058, California Taxpayers’ Bill of Rights
General Phone Service
Telephone assistance is available year-round from 7 a.m. until 5 p.m.          Your Rights As A Taxpayer
Monday through Friday, except holidays. Hours subject to change.               The FTB’s goals include making certain that your rights are protected
Telephone: 800.852.5711 from within the United States                          so that you have the highest confidence in the integrity, efficiency, and
               916.845.6500 from outside the United States                     fairness of our state tax system. FTB Pub. 4058, California Taxpayers’ Bill
TTY/TDD:       800.822.6268 for persons with hearing or speech impairment      of Rights, includes information on your rights as a California taxpayer, the
IRS:           800.829.4933 call the IRS for federal tax questions             Taxpayers’ Rights Advocate Program, and how you request written advice
                                                                               from the FTB on whether a particular transaction is taxable.
Asistencia bilingüe en español:
                                                                               See “Where To Get Tax Forms and Publications,” on this page.
Asistencia telefónica está disponible todo el año durante las 7 a.m. y las
5 p.m. lunes a viernes, excepto días festivos. Las horas están sujetas a
cambios.
Teléfono:      800.852.5711 dentro de los Estados Unidos
               916.845.6500 fuera de los Estados Unidos
TTY/TDD:       800.822.6268 personas con discapacidades
               auditivas y del habla
IRS:           800.829.4933 llame al IRS para preguntas sobre
               impuestos federales




                                                                                                                  Form 100 Booklet 2011 Page 47
 Automated Phone Service                                                                             (Keep This Booklet For Future Use)
Use our automated phone service to get recorded answers to many of                  Minimum Tax and Estimate Tax
your questions about California taxes and to order current year California    712   What is the minimum franchise tax?
business entity tax forms and publications. This service is available in      714   My corporation is not doing business; does it have to pay the
English and Spanish to callers with touch-tone telephones. Have paper               minimum franchise tax?
and pencil ready to take notes.                                                     Billings and Miscellaneous Notices
Telephone: 800.338.0505 from within the United States                         503   How do I file a protest against a Notice of Proposed Assessment?
              916.845.6500 from outside the United States                     723   I received a bill for $250. What is this for?
                                                                                    Corporate Dissolution
To Order Forms                                                                724   How do I dissolve my corporation?
See “Where to Get Tax Forms and Publications” on the previous page.                 Limited Liability Companies (LLCs)
                                                                              750   How do I organize or register an LLC?
To Get Information                                                            752   What tax forms do I use to file as an LLC?
                                                                              753   When is the annual tax payment due?
You can hear recorded answers to Frequently Asked Questions 24 hours          754   How is the Gross Receipts calculated and reported? When is it
a day, 7 days a week. Call our automated phone service at the number                due?
listed above. Select “Business Entity Information,” then select “Frequently   755   How do I convert an LLC?
Asked Questions.” Enter the 3-digit code, listed below, when prompted.        756   How do I cancel an LLC?
Code Filing Assistance
715 If my actual tax is less than the minimum franchise tax,                        Miscellaneous
        what figure do I put on line 24 of Form 100 or Form 100W?             700   Who do I need to contact to start a business?
717 What are the tax rates for corporations?                                  701   I need a state Employer ID number for my business. Who do I
718 How do I get an extension of time to file?                                      contact?
722 When does my corporation have to file a short-period return?              703   How do I incorporate?
734 Is my corporation subject to franchise tax or income tax?                 737   Where do I send my payment?
        S Corporations
704 Is an S corporation subject to the minimum franchise tax?
705 Are S corporations required to make estimated payments?
706 What forms do S corporations file?
707 The tax for my S corporation is less than the minimum
        franchise tax. What figure do I put on line 22 of Form 100S?
        Exempt Organizations
709 How do I get tax-exempt status?
710 Does an exempt organization have to file Form 199?
736 I have exempt status. Do I need to file Form 100 or Form 109
        in addition to Form 199?




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