Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations

Part III

Part IV

Figure the tax on net passive income as follows:

A. Taxable income

Special Allowance for Low-Income Housing

including net

Credits for Property Placed in Service

Credits for Property Placed in Service After

passive income . . . . . . A ______

Before 1990 (or from Pass-Through Interests

1989

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

Acquired Before 1990)

Line 35 – Figure the tax on the remaining

C. Taxable income without

Married/RDP persons filing separate returns

special allowance as follows:

net passive income . . . C ______

who lived together at any time during the year

D. Tax on line C . . . . . . . . . . . . . . . . .D ______

A. Taxable income . . . . . . A ______

are not eligible to complete Part III.

E. Subtract line D from line B

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

and enter the result on form

In computing the special allowance for rental

C. Enter $75,000 ($37,500

FTB 3801-CR, line 6 . . . . . . . . . . . E ______

real estate activities with active participation,

if married/RDP filing a separate

the dollar limitation for the low-income

return and you lived

When using taxable income in the above

housing credit is more than the amount

apart the entire year) . . C ______

computation, it is not necessary to refigure

allowed under federal law. The California

D. Enter amount from

items that are based on a percentage of

limitation is $75,000 ($37,500 if married/RDP

form FTB 3801,

adjusted gross income.

filing a separate return and you lived apart for

line 9 . . . . . . . . . . . . . . D ______

Line 7 – If line 7 is zero because the tax on

the entire year).

E. Subtract line D from

net passive income on line 6 is more than

line C . . . . . . . . . . . . . . E ______

Line 21 – The special allowance for low-

your credits from passive activities on line 5,

F. Subtract line E from

income housing credits for property placed

all of your passive activity credits are allowed.

line A . . . . . . . . . . . . . . F ______

in service before 1990 (or from pass-through

In this case, enter the amount from line 5 on

G. Tax on line F . . . . . . . . . . . . . . . . .G ______

interests acquired before 1990) is completely

line 37. Report the credits on the related credit

phased out once federal modified adjusted

H. Subtract line G from line B . . . . . .H ______

forms. Do not complete Worksheet 5 through

gross income reaches $350,000 ($175,000

I. Enter the sum from form

Worksheet 9.

if married/RDP filing a separate return and

FTB 3801-CR, line 16

Part II

you lived apart for the entire year). If you

and line 30 . . . . . . . . . . . . . . . . . . I ______

completed Part II of this form and your federal

J. Subtract line I from line H. This

Special Allowance for Credits from

modified adjusted gross income on line 10 was

is the amount of tax attributable

Rental Real Estate Activities with Active

$200,000 or less ($100,000 or less if married/

to the remaining special allowance.

Participation

RDP filing a separate return and you lived apart

Enter the result on form

Line 9 – Married/RDP persons filing separate

for the entire year), enter $75,000 on line 24

FTB 3801-CR, line 35 . . . . . . . . . . J ______

returns who lived together at any time during

($37,500 if married/RDP filing a separate

When using taxable income in the above

the year are not eligible to complete Part II.

return and you lived apart for the entire year).

computation, it is not necessary to refigure

Line 10 – Enter your federal modified adjusted

Line 22 – Enter your federal modified adjusted

items that are based on a percentage of

gross income from federal Form 8582-CR,

adjusted gross income.

line 10. For RDPs, enter your federal

line 22.

Part V

modified adjusted gross income from your

If you are a military servicemember domiciled

refigured federal Form 8582-CR, line 10. For

outside of California, subtract your military

Passive Activity Credits Allowed

S corporations, enter your net income for tax

pay from your modified federal adjusted gross

Line 37 – If you have only one type of credit,

purposes from Form 100S, line 20.

income.

the amount on line 37 is the credit allowed for

If you are a military servicemember domiciled

the year. Enter this amount on the appropriate

Line 27 – Figure the tax attributable to the

outside of California, subtract your military

credit form. Your unallowed credit would be

amount on line 26 as follows:

pay from your modified federal adjusted gross

line 5 minus line 37.

A. Taxable income . . . . . . A ______

income.

If you have more than one type of credit,

B. Tax on line A . . . . . . . . . . . . . . . . . B ______

Line 15 – Figure the tax attributable to

or credits from more than one activity, use

C. Enter the amount

the amount on line 14 using the following

Worksheet 5 through Worksheet 9 in the

from line A above. . . . . C ______

worksheet.

instructions for federal Form 8582-CR to

D. Enter amount from

allocate the allowed and unallowed credits.

A. Taxable income . . . . . . . A______

form FTB 3801-CR,

Keep a record of each unallowed amount and

B. Tax on line A . . . . . . . . . . . . . . . . . B______

line 26 . . . . . . . . . . . . . D ______

the activity to which it belongs so you can

C. Enter amount from

E. Subtract line D from

claim the credit if it becomes allowable in a

line A above . . . . . . . . . C ______

line C . . . . . . . . . . . . . . E ______

future year.

D. Enter amount from

F. Tax on line E . . . . . . . . . . . . . . . . . F ______

form FTB 3801-CR,

G. Subtract line F from line B and

Credits from Publicly Traded Partnerships

line 14 . . . . . . . . . . . . . D ______

enter the result on form

(PTPs)

E. Subtract line D from

FTB 3801-CR, line 27 . . . . . . . . . .G ______

A credit from a passive activity held through

line C . . . . . . . . . . . . . . E ______

a PTP is allowed to the extent of the tax

When using taxable income in the above

F. Tax on line E . . . . . . . . . . . . . . . . . F ______

attributable to net passive income from that

computation, it is not necessary to refigure

G. Subtract line F from line B and

partnership. In addition, low-income housing

items that are based on a percentage of

enter the result on form

credits from rental real estate activities held

adjusted gross income.

FTB 3801-CR, line 15 . . . . . . . . . .G ______

through PTPs are allowed to the extent of the

remaining $75,000 special allowance. Before

When using taxable income in the above

the credits may be applied to the $75,000

computation, it is not necessary to refigure

(or less, if applicable) special allowance, the

items that are based on a percentage of

special allowance must be reduced by the

adjusted gross income.

amount used under the passive loss rules and

the amount used for credits which were not

from a PTP.

FTB 3801-CR Instructions 2014 Page 3

Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2014 Page 3

Related Articles

Related forms

Related Categories