Get documents about "2011 100 Booklet -- Corporation Tax Booklet - California Franchise
Document Sample
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
Visit our website:
ftb.ca.gov
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?
Recycled
Recyclable
Page 48 Form 100 Booklet 2011
