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

Line 27 – Figure the tax attributable to the

Credits from Publicly Traded Partnerships

Part II

amount on line 26 as follows:

(PTPs)

Special Allowance for Credits from Rental Real

A credit from a passive activity held through a

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

Estate Activities with Active Participation

PTP is allowed to the extent of the tax attribut-

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

able to net passive income from that partner-

Line 9 – Married persons filing separate returns

C. Enter the amount

ship. In addition, low-income housing credits

who lived together at any time during the year

from line A above . . . . . C ______

from rental real estate activities held through

are not eligible to complete Part II.

D. Enter amount from

PTPs are allowed to the extent of the remaining

form FTB 3801-CR,

Line 10 – Enter your federal modified adjusted

$75,000 special allowance. Before the credits

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

gross income from federal Form 8582-CR,

may be applied to the $75,000 (or less, if

E. Subtract line D from

line 10.

applicable) special allowance, the special

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

Line 15 – Figure the tax attributable to the amount

allowance must be reduced by the amount used

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

on line 14 using the following worksheet.

under the passive loss rules and the amount

G. Subtract line F from line B and

used for credits which were not from a PTP.

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

enter the result on form

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

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

Do not enter credits from PTPs on the

C. Enter amount from

worksheets or on form FTB 3801-CR. Instead,

Note: When using taxable income in the above

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

use the following steps to compute the allowed

computation, it is not necessary to refigure

D. Enter amount from

and unallowed credits from passive activities

items that are based on a percentage of adjusted

form FTB 3801-CR,

held through PTPs.

gross income.

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

Computation of Passive Activity Credits

E. Subtract line D from

Part IV

Allowed for PTPs

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

Complete Step 1 and Step 2 only if you have net

Special Allowance for Low-Income Housing

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

passive income from a PTP with passive activity

Credits for Property Placed in Service After 1989

G. Subtract line F from line B and

credits.

enter the result on form

Line 35 – Figure the tax on the remaining special

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

Note: In the following instructions, the term

allowance as follows:

“credits” includes current year credits and prior

Note: When using taxable income in the above

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

year unallowed credits.

computation, it is not necessary to refigure

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

items that are based on a percentage of

Step 1 — Figure the tax attributable to net

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

adjusted gross income.

passive income from each PTP with passive

if married filing a separate

activity credits by following the steps shown in

return and you lived

Part III

the worksheet in the line 6 instructions.

apart the entire year) . . C ______

Complete a separate tax computation for each

Special Allowance for Low-Income Housing

D. Enter amount from

PTP with net passive income.

Credits for Property Placed in Service Before

form FTB 3801,

1990 (or from Pass-Through Interests Acquired

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

Step 2 — Passive activity credits from each PTP

are allowed to the extent of the tax attributable

Before 1990)

E. Subtract line D from

to net passive income from that same PTP.

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

Note: Married persons filing separate returns

Credits in excess of the tax attributable to net

F. Subtract line E from

who lived together at any time during the year

passive income may be allowed under one or

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

are not eligible to complete Part III.

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

more steps below.

Caution: In computing the special allowance for

Complete Step 3 through Step 5 only if you have

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

rental real estate activities with active participa-

low-income housing credits for property placed

I. Enter the sum from form

tion, the dollar limitation for the low-income

in service before 1990 from a PTP, or low-

FTB 3801-CR, line 16

housing credit is more than the amount allowed

income housing credits from a PTP in which

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

under federal law. The California limitation is

you acquired your interest before 1990

J. Subtract line I from line H. This

$75,000 ($37,500 if married filing a separate

(regardless of the date placed in service).

is the amount of tax attributable

return, and you lived apart for the entire year).

to the remaining special allowance.

Step 3 — Reduce low-income housing credits

Line 21 – The special allowance for low-income

Enter the result on form

for property placed in service before 1990 from

housing credits for property placed in service

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

each PTP, and any low-income housing credits

before 1990 (or from pass-through interests

from each PTP in which you acquired your

Note: When using taxable income in the above

acquired before 1990) is completely phased out

interest before 1990 (regardless of the date

computation, it is not necessary to refigure

once federal modified adjusted gross income

items that are based on a percentage of

placed in service) to the extent of the tax

reaches $350,000 ($175,000 if married filing a

attributable to net passive income from that

adjusted gross income.

separate return and you lived apart for the entire

PTP, which was figured in Step 1.

year). If you completed Part II of this form and

Part V

Step 4 — Before beginning this step, you must

your federal modified adjusted gross income on

complete form FTB 3801-CR if you have any

assive Activity Credits Allowed

line 10 was $200,000 or less ($100,000 or less

passive credits that are not from PTPs. Subtract

if married filing a separate return and you lived

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

the sum of form FTB 3801-CR, line 16, line 30

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

the amount on line 37 is the credit allowed for

and line 36 (if any) from form FTB 3801-CR,

24 ($37,500 if married filing a separate return

the year. Enter this amount on the appropriate

line 27 to figure the tax attributable to the

and you lived apart for the entire year).

credit form. Your unallowed credit would be

$75,000 special allowance available for the

line 5 minus line 37.

Line 22 – Enter your federal modified adjusted

credits in Step 3.

gross income from federal Form 8582-CR,

If you have more than one type of credit, or

If your only passive credits are from PTPs,

line 22.

credits from more than one activity, use

complete form FTB 3801-CR, line 21 through

Worksheet 5 through Worksheet 9 in the

line 27 as a worksheet. The amount on line 27 is

instructions for federal Form 8582-CR to

the tax attributable to the $75,000 special

allocate the allowed and unallowed credits. Keep

allowance available for the credits in Step 3.

a record of each unallowed amount and the

activity to which it belongs so you can claim the

credit if it becomes allowable in a future year.

FTB 3801-CR Instructions 2002 Page 3

Instructions For Form Ftb 3801-Cr - Passive Activity Credit Limitations - 2002 Page 3

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