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Specific Line Instructions

List of events that have been declared disasters:

Storms occurred in March 2011 and the Los Angeles

and San Bernardino County Severe Winds occurred in

Year

Code Event

Part I – Current year NOL

November 2011 . Refer to R&TC Sections 24347.11

2011

Los Angeles and San Bernardino

and 24347.12 for more information.

***

County Severe Winds 11/11

Use Part I to figure the current year NOL eligible for

Column (c) – Enter the type of NOL: General (GEN),

carryover.

2011

Santa Cruz County Severe

New Business (NB), Eligible Small Business (ESB),

***

Storms 03/11

Line 2 – If the corporation incurred a disaster loss

or Disaster (DIS). For more information see the table

2011

Mendocino County Tsunami

during the 2012 taxable year, enter the amount of the

in General Information F, Types of NOLs.

Wave Surge 03/11

loss on this line. Enter as a positive number.

Using Pierce’s disease, or an EDA NOL, get the

2011

Del Norte and Santa Cruz County

Line 3 – If the amount is zero or less, the corporation

applicable form for the NOL type.

Tsunami Wave Surge 03/11

does not have a current year general NOL. Go to

Column (d) – Enter 100% of the initial loss for the

2011

Severe Winter Storms, Flooding, Debris,

Part II for computation of general NOL carryovers,

year given in column (a).

2010

and Mud Flows 12/10 to 01/11

the current year disaster loss, and carryover from

disaster losses.

2010

San Bruno Explosion

Column (e) – Enter the NOL carryover amount from

the 2011 form FTB 3805Q, Part II, column (h).

2010

Kern County Wildfires

Line 6 – Go to Part II, Current Year NOLs, to record

2010

CA Winter Storms 01/10 to 02/10

the corporation’s 2012 NOL carryover to 2013.

Column (f) – Enter the smaller of the amount in

Complete columns (b), (c), (d), and (h) only, for each

column (e) or the amount in column (g) of the

2009

Los Angeles, Monterey and Placer

type of loss that the corporation incurred.

previous line.

County Wildfires

2010

Baja California (Imperial County)

If the corporation has an eligible qualified new

Column (g) – Enter the result of subtracting

Earthquake 2010

business or a small business and the NOL is greater

column (f) from the balance in column (g) of the

than the amount of net loss from such a business,

previous line.

2010

Humboldt County Earthquake

use the general NOL first. If the corporation operates

2009

Santa Barbara Wildfires

Column (h) – Subtract the amount in column (f)

one or more new businesses and one or more

from the amount in column (e) and enter the result.

2008

Southern California Wildfires 10/08 to

eligible small businesses, determine the amount

11/08

Current Year NOLs

of the loss attributable to the new business(es),

2008

Humboldt County Wildfires

the small business(es), and the general NOL in the

If a disaster loss occurs between the date of the

2008

California Wildfires 2008

following manner. The NOL is first treated as a new

publication and the end of the taxable year, go to

2007

Riverside County Winds

business NOL to the extent of the loss from the new

ftb.ca.gov for an updated version of this form, which

business. Any remaining NOL is then treated as

2008

Inyo Complex Fire

will include information for any subsequent disaster

an eligible small business NOL to the extent of the

2007

loss. Then follow the line 3 instructions.

loss from the eligible small business. Any further

2007

Southern California Wildfires

Line 3 – Current Year Disaster Loss

remaining NOL is treated as an NOL under the

2007

Santa Barbara and Ventura County Fires

If the corporation did not elect to deduct the current

general rules.

2007

El Dorado County Wildfires

year disaster loss in the prior year:

2007

California Severe Freeze 01/07

Part II – NOL carryover and

•

In column (d), enter your 2012 disaster loss

2006

Riverside and Ventura County Wildfires

from Part I, line 2.

disaster loss carryover

2006

San Bernardino County Wildfires

•

In column (f), enter the disaster loss used in

limitations

2006

Northern California flooding, mudslides,

2012.

and landslides (03/06 to 04/06)

•

In column (h), enter column (d) less column (f).

Use Part II to limit current year disaster loss and

2006

Northern California flooding, mudslides,

NOL carryover deductions to current year income

If the corporation elected to deduct the 2012 disaster

2005

and landslides (12/05 to 01/06)

and to record all of the corporation’s loss carryover

loss on the 2011 tax return, and the corporation has

2004

Shasta County Wildfires

information.

an excess amount to be carried over to 2012, enter

2005

Southern California flooding, debris

If the corporation has losses from more than

the carryover amount in Part II, line 2, column (e).

2004

flows, and mudslides

one source and/or more than one category, the

Use the Prior Year NOL instructions for column (a)

2004

San Joaquin Levee Break

corporation must compute the allowable NOL

through column (h) except:

2003

San Simeon earthquake

carryover for each loss separately.

•

In column (a), enter 2012.

2003

Southern California fires and other

When to use an NOL carryover

•

In column (b), enter the new disaster code.

related casualties

Use the corporation’s NOLs and disaster losses

•

In column (d), enter the total disaster loss

2000

Napa County earthquake

in the order the losses were incurred. There is

incurred in 2012.

1999

Winter Freeze 98/99

no requirement to deduct NOL carryovers before

1998

disaster loss carryovers.

1998

El Niño 98

Line 2 – Prior Year NOLs

1997

Disaster floods 97 (expired)*

Column (a) – Enter the year the loss was incurred.

Corporations that elected to deduct the disaster

Column (b) – If the loss is due to a disaster, enter

loss in the prior year under IRC Section 165(i),

the disaster code from the following list. If the loss is

the final year to deduct the disaster loss carryover

from a new business or eligible small business, enter

was last year. Corporations that did not elect

the SIC Code for the new business or eligible small

IRC Section 165(i), the final year to deduct the

business from the Standard Industrial Classification

disaster loss carryover is this year.

Manual. Do not enter the code from the PBA Codes

Carryover period and percentage are limited to the

chart available in the 2012 Form 100, Form 100W,

NOL rules. No special legislation was enacted.

or Form 100S Tax Booklets. If the loss was from

***

Note: The Santa Cruz County Severe Storms

an S corporation, enter the entity’s California

(occurred in March 2011) and the Los Angeles and

corporation number from Schedule K-1 (100S),

San Bernardino County Severe Winds (occurred

Shareholder’s Share of Income, Deductions, Credits,

in November 2011) disaster loss deductions are

etc.

allowed at 100% and can be carried over for 20 years.

Corporations can elect to deduct the disaster loss in

the prior year under IRC Section 165(i). Any provision

of law that suspends, defers, reduces, or otherwise

diminishes the deduction of a NOL does not apply to

a NOL attributable to the Santa Cruz County Severe

FTB 3805Q Instructions 2012 Page 3

California Form 3805q Draft - Net Operating Loss (Nol) Computation And Nol And Disaster Loss Limitations - Corporations - 2012 Page 5

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