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California

Forms & Instructions

PLACE ADDRESS
100
LABEL HERE

2000
Corporation Tax Booklet
(Not to be used by
Water’s-Edge Filers)

Members of the Franchise Tax Board


Kathleen Connell, Chair
Dean Andal, Member
B. Timothy Gage, 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 Voucher for Automatic
Extension for Corporations and Exempt
Organizations
FTB 3565, Small Business Stock
Questionnaire
FTB 3805Q, Net Operating Loss (NOL)
Computation and NOL and Disaster Loss
Limitations — Corporations
FTB 3885, Corporation Depreciation and
Amortization

STATE OF CALIFORNIA
FRANCHISE TAX BOARD
Table of Contents

Form 100, California Corporation Franchise or Income Tax Return . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19


Instructions for Form 100 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Schedule H (100), Dividend Income Deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Instructions for Schedule H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
Schedule P (100), Alternative Minimum Tax and Credit Limitations — Corporations . . . . . . . . . . . . . . . . . . . . 25
Instructions for Schedule P (100) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27
FTB 3539, Payment Voucher for Automatic Extension for Corporations and Exempt Organizations . . . . . . . . 39
Instructions for form FTB 3539 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
FTB 3565, Small Business Stock Questionnaire . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41
Instructions for form FTB 3565 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
FTB 3805Q, Net Operating Loss (NOL) Computation and NOL and
Disaster Loss Limitations — Corporations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33
Instructions for form FTB 3805Q . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
FTB 3885, Corporation Depreciation and Amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37
Instructions for form FTB 3885 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37

Page 2 Form 100 Booklet 2000 (REV 03-04)


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, 1998, and to the California Revenue and Taxation Code (R&TC).

What’s New • The general Net Operating Loss (NOL) deduction for contributing computer
carryover percentage has changed. For technology and equipment to be used for
For any taxable years beginning on or after taxable years beginning on or after: educational purposes by schools located
January 1, 2000, C corporations filing on a in California. The additional deduction is
water’s-edge basis are required to use new • January 1, 2000, and before January 1,
2002, 55% of the NOL may be carried equal to the corporation’s basis in the
Form 100W, California Corporation Franchise property plus one-half of the amount of
or Income Tax Return - Water’s-Edge Filers, to forward;
• January 1, 2002, and before January 1, ordinary income that would have been
file their California tax return. S corporations realized if the property had been sold. This
filing on water’s-edge basis should continue 2004, 60% of the NOL may be carried
forward; and provision does not apply to contributions
to file Form 100S. made during any taxable year beginning on
• January 1, 2004, 65% of the NOL may
Effective for years beginning on or after be carried forward. or after January 1, 2000.
January 1, 2000, references to “income year” • Repeal of depreciation adjustment for
were replaced with “taxable year” in all Also, any NOL incurred in any taxable year AMT. The same recovery periods are used
provisions of the Bank and Corporation Tax beginning on or after January 1, 2000 may for regular tax and AMT. The depreciation
Law (B&CTL), the Administration of the be carried forward for 10 years. methods used may be different.
Franchise and Income Tax Law (AFITL), and • The new Natural Heritage Preservation Tax • Expensing of Environmental Remediation
the Personal Income Tax Law (PITL). Credit (NHPTC) is 55% of the fair market Costs. Certain environmental remediation
Therefore, all forms and instructions have value of the qualified contribution of expenditures that would otherwise be
been revised to replace the term “income property donated to the state, any local chargeable to capital accounts may be
year” with “taxable year.” When referring to government, or to any nonprofit organiza- expensed and taken as a deduction in the
an income measurement period beginning tion designated by a local government. The year the expense was paid or incurred. An
before January 1, 2000, the term “taxable credit is figured on FTB Form 3503, election to expense environmental
year” should be interpreted to mean “income Natural Heritage Preservation Tax Credit. remediation costs for federal purposes is
year” as that term applied for those periods • For corporations that incorporate or considered an election for state purposes
prior to January 1, 2000. qualify to do business in California on or and a separate election is not allowed.
after January 1, 2000, the prepayment of • Shrinkage Estimates for Inventory
Tax Law Changes the minimum franchise tax to the Secre- Accounting. For purposes of inventory
In general, California tax law conforms to the tary of State (SOS) is no longer required. accounting, an adjustment for shrinkage,
Internal Revenue Code (IRC) as of For the first taxable year the corporation based on an estimate, may be made.
January 1, 1998. However, there are continu- will compute its tax liability by multiplying Taxpayers can voluntarily change their
ing differences between California and federal its state net income by the appropriate tax method of accounting if the method
tax law. California has not conformed to most rate and will not be subject to the currently being used does not utilize
of the changes made to the IRC by the federal minimum franchise tax. The corporation estimates of inventory shrinkage and the
Internal Revenue Service Restructuring and will become subject to minimum franchise taxpayer now wishes to use that method.
Reform Act of 1998 (Public Law 105-206) tax beginning in its second taxable year. • Timeshare associations may qualify for
and has not conformed to any of the changes • Effective January 1, 2000, single member tax-exempt status like other homeowners’
made by the Tax and Trade Relief Extension limited liability companies are authorized associations.
Act of 1998 (Public Law 105-277), the to organize in California. • Required recognition of gain on certain
Miscellaneous Trade and Technical Correc- • The sunset date of January 1, 2000, was appreciated financial positions in personal
tions Act of 1999 (Public Law 106-36), and eliminated and instead provides that the property.
the Ticket to Work and Work Incentives chapter authorizing the Tax Credit • Election of mark-to-market for securities
Improvement Act of 1999 (Public Allocation Committee to allocate the credit and commodities traders. Allows securities
Law 106-170). for the costs of constructing or rehabilitat- traders and commodities traders and
California law changes effective for taxable ing low-income housing shall be in effect dealers to elect to use mark-to-market
years beginning on or after January 1, 2000. so long as the federal low-income housing accounting similar to what is currently
• The Franchise Tax Board may request credit is in effect. required for securities dealers. Commodi-
taxpayers to furnish a copy of California or • The state credit for “qualified research ties would include only commodities of a
federal tax returns that are or were subject expenses” was increased from 12% to kind that are dealt with in the organized
to, or related to, a federal audit. 15%. commodities exchange. An election to use
• For taxpayers that claimed a business the mark-to-market method for federal
expense deduction for the smog impact Important Information purposes is considered an election for
fee when it was paid, the refund and the California conforms to federal law for the state purposes and a separate election is
interest on the refund should be included following provisions: not allowed.
in California gross income. • Limitation on exception for investment
• Repeal of installment method alternative companies under IRC Section 351.
• Revenue and Taxation Code (R&TC) minimum tax (AMT) adjustment for
Section 18622 defines the date of a “final • Expansion of deduction for certain interest
farmers for payments received in taxable and premiums paid for company-owned
federal determination” as the date that years beginning on or after
each adjustment resulting from a federal life insurance.
January 1, 1997, for installment sales • Modification of holding period applicable
examination is assessed pursuant to IRC made in taxable years beginning after
Section 6203. This new definition of a final to dividends received deduction.
December 31, 1987. • Repeal of special installment sales rule for
federal determination supersedes the • Enhanced charitable contribution deduc-
previous definition found in Title 18 Cal manufacturers of tangible personal
tion for corporate contributions of property.
Code Regs. Section 19059. computer technology and equipment. • Required registration for abusive tax
Corporations will receive an additional shelters.

Form 100 Booklet 2000 Page 3


• 1995 ESOPs provisions. Existing federal required form for each year the failure occurs. tax. A separate Form 100 should be filed to
law provides special tax rules for the See General Information M, Penalties, for report the $800 minimum tax. Write “FASIT”
purchase of employer securities by more information. in red in the top margin of the return. If a
employees of the issuing company under Records Maintenance Requirements corporation holds an ownership interest in a
IRC Section 1042. State law previously Any taxpayer subject to the apportionment FASIT, it should report all the items of income,
conformed to these provisions except for and allocation provisions of the Bank and gain, deductions, losses, and credits on the
the 1995 taxable year. California law now Corporation Tax Law is required to keep and corporation’s return and attach a schedule
conforms to these provisions for the maintain records and make the following showing the breakdown of items from the
year 1995. available upon request: FASIT.
California law does not conform to federal • Any records needed to determine the Classification of Certain Business Trusts and
law for the following: correct treatment of items reported on the Certain Foreign Single Member Limited
• Temporary suspension of income combined report for purposes of determin- Liability Companies (LLCs)
limitations on percentage depletion for ing the income attributable to California; Normally, the classification of a business
production from marginal wells. The • Any records needed to determine the entity should be the same for California
percentage depletion deduction, which treatment of items as nonbusiness or purposes as it is for federal purposes.
may not exceed 65% of the taxpayer’s business income; and However, an exception may apply for certain
taxable income, is restricted to 100% of • Any records needed to determine the eligible business entities (business trusts and
the net income derived from the oil or gas apportionment factors. single member LLCs) existing prior to
well property. See R&TC Section 19141.6 and the regula- January 1, 1997 that were taxed as corpora-
• The federal repeal of the installment tions thereunder for more information. A tions for California purposes under former
method for accrual basis taxpayers (IRC corporation may be required to authorize an R&TC Section 23038. If such an existing
Section 536(a)). Accrual basis taxpayers agent to act on its behalf in response to eligible business entity is, without an election
may still use the installment method for requests for information or records pursuant for federal purposes, classified as a partner-
California. to R&TC Section 19504. ship (in the case of a business trust) or
• Decreased capital gains tax rate. disregarded (in the case of a single member
Note: For information about the Power of LLC) for taxable years beginning on or after
• Exemption from AMT for small corporations. Attorney, go to our website at:
• Accelerated depreciation for property on January 1, 1997, the entity may elect to be
www.ftb.ca.gov classified the same as federal for taxable years
Indian Reservations.
• AMT treatment of contributions of The penalty for failure to maintain the above beginning on or after January 1, 1997, for
appreciated property. required records is $10,000 for each taxable California. If this election is not made, the
• The elimination of the deduction for club year for which the failure applies. In addition, existing eligible business entity will continue
membership fees. Also, California law if the failure continues for more than 90 days to be classified and taxed as a corporation for
does not conform to the disallowance of after the FTB notifies the corporation of the California purposes. Get form FTB 3574,
the deduction for employee remuneration failure, in general, a penalty of $10,000 may Special Election for Business Trusts and
in excess of $1 million. be assessed for each additional 30-day period Certain Foreign Single Member LLCs, for
• The federal provisions disallowing the of continued failure. For taxable years more information.
deduction for lobbying expenses. The beginning on or after January 1, 1996, there
expense is still deductible for California is no maximum amount of penalty that may General Information
purposes. be assessed. See General Information M,
Penalties, for more information. Form 100 is California’s tax return for
• The treatment of Subpart F and
Small Business Stock Questionnaire corporations, banks, financial corporations,
Section 936 income.
An information questionnaire, form FTB 3565, real estate mortgage investment conduits
• The IRC passive activity loss rules for real
Small Business Stock Questionnaire, is (REMICs), regulated investment companies
estate activities.
included in this booklet. The purpose of this (RICs), real estate investment trusts (REITs),
California Taxpayers That are 25% Foreign- Massachusetts or business trusts, publicly
Owned U.S. Corporations and Foreign questionnaire is to provide information
regarding an issuance of stock pursuant to traded partnerships (PTPs), exempt
Corporations homeowners’ associations (HOAs), political
Corporations that are required to file federal R&TC Section 18152.5. For taxable years
beginning on or after January 1, 1996, action committees (PACs), FASITs and LLCs,
Form(s) 5472, Information Return of a 25% and partnerships taxed as corporations.
Foreign-Owned U.S. Corporation or a Foreign corporations that issue stock intended to be
qualified small business stock are required to For taxable years beginning on or after
Corporation Engaged in a U.S. Trade or
attach form FTB 3565 to Form 100. See the January 1, 2000, corporations filing on
Business, with the federal return must attach
instructions for form FTB 3565. water’s-edge basis are required to use the
a copy(s) to the California return. The penalty
Publicly Traded Partnerships new Form 100W to file their California tax
for failing to include Form(s) 5472 as required
California publicly traded partnerships that are return. Get the Form 100W, Water’s Edge
is $10,000 per form. See General Information
not eligible to make the special federal Booklet, for more information. REMICs that
M, Penalties, for more information.
election under IRC Section 7704(g)(2), and are partnerships must file Form 565,
Information Return for U.S. Taxpayers Who Partnership Return of Income. S corporations
Have Ownership (directly or indirectly) in a that do not qualify for the exception for
partnerships with passive-type income under must file Form 100S, California S Corporation
Foreign Corporation Franchise or Income Tax Return.
For taxable years beginning on or after IRC Section 7704(c), must file Form 100 for
taxable years beginning on or after An LLC classified as a partnership for federal
January 1, 1997, U. S. taxpayers who have an
January 1, 1998. An election under IRC purposes should generally file Form 568,
ownership interest (directly or indirectly) in a
Section 7704(g)(2) for federal purposes is Limited Liability Company Return of Income.
foreign corporation and were required to file
considered an election for state purposes, and A limited partnership (LP) or limited liability
federal Form(s) 5471, Information Return of
a separate election is not allowed. partnership (LLP) classified as a partnership
U.S. Persons With Respect to Certain Foreign
Financial Asset Securitization Investment for federal purposes should generally file
Corporations, with the federal return, must
Trusts (FASITs) Form 565, Partnership Return of Income.
attach a copy(s) to the California return. The
penalty for failure to include a copy of federal The provisions of the IRC relating to FASITs
Form(s) 5471 as required is $1,000 per apply for California with certain modifications.
The FASIT is subject to the $800 minimum
Page 4 Form 100 Booklet 2000
A Franchise or Income Tax amounts received as membership fees, dues, • Credit unions;
and assessments. Nonexempt gross income • Exempt homeowners’ associations;
Corporation franchise tax of a homeowners’ association is defined as all • Exempt political organizations;
Entities subject to the corporation franchise income other than amounts received from • Exempt organizations;
tax include all corporations (including LLCs or membership fees, dues, or assessments. • Corporations that are not incorporated
other business entities electing to be taxed as Note: An exempt homeowners’ association under the laws of California; whose sole
corporations) that are: may also be required to file Form 199, activities in this state are engaging in
• Incorporated or organized in California; or California Exempt Organization Annual convention and trade show activities for
• Qualified or registered to do business in Information Return. Get FTB Pub. 1028, seven or fewer days during the taxable
California; or Guidelines for Homeowners’ Associations, for year; and do not derive more than $10,000
• Doing business in California, whether or more information. of gross income reportable to this state
not incorporated, organized, qualified, or during the taxable year. These corporations
registered under California law. B Tax Rates are not “doing business” in California, (get
FTB Pub. 1060 for more information); and
The franchise tax is measured by the income The tax rates below apply to corporations
• Newly formed corporations filing an initial
of the current taxable year for the privilege of subject to either the corporation franchise tax
return for a taxable year beginning on or
doing business in that taxable year. or the corporation income tax.
after January 1, 2000.
The term “doing business” means actively • Corporations other than banks and
engaging in any transaction for the purpose of financial corporations . . . . . . . . . 8.84% D Accounting Period/Method
financial gain or profit. • Banks and financial corporations 10.84% The taxable year of a corporation must not be
Corporation income tax different from the taxable year used for federal
The corporation income tax is imposed on all C Minimum Franchise Tax purposes, unless initiated or approved by the
corporations that derive income from sources All corporations subject to the franchise tax, FTB (R&TC Section 24632).
within California but are not doing business in including banks, financial corporations, cor-
A change in accounting method requires
California. porate general partners of partnerships, and
consent from the FTB. However, a corporation
For purposes of the corporation income tax, corporate members of LLCs doing business in
that obtains federal approval to change its
the term “corporation” generally includes: California, must file Form 100 and pay at least
accounting method, or that is permitted or
the minimum franchise tax as required by law.
• Associations; required by federal law to change its account-
The minimum franchise tax, as indicated
• Massachusetts or business trusts; ing method without prior approval and does
below, must be paid whether the corporation
• REITs; so, is deemed to have the FTB’s approval if:
is active, inactive, operates at a loss, or files a
• LLCs electing to be taxed as corporations (1) the corporation files Form 100 consistent
return for a short period of less than 12
other than those subject to the corporate with the change for the first year the change
months.
franchise tax; and becomes effective for federal law; and (2) the
• Other business entities, including • Domestic qualified inactive gold or change is consistent with California law.
partnerships, electing to be taxed as quicksilver mining corporations . . . . $25 A copy of federal Form 3115, Application for
corporations. • All other corporations subject to Change in Accounting Method, and a copy of
franchise tax (see General Information the federal consent to the change must be
Political organizations that are exempt under A, Franchise or Income Tax, for attached to Form 100 for the first year the
R&TC Section 23701r and have political definitions) . . . . . . . . . . . . . . . . . . $800 change becomes effective. The FTB may
taxable income in excess of $100 must file
A combined group filing a single return must modify a requested change if the change
Form 100. Political organization taxable
pay at least the minimum franchise tax for would distort income for California purposes.
income is the amount by which gross income
(other than exempt function income) less each corporation in the group that is subject Note: California is not following the automatic
deductions directly connected with production to franchise tax. consent procedure for a change of accounting
of such gross income exceeds $100. See the Note: For corporations that incorporate or method involving previously unclaimed
instructions for Schedule F, Computation of qualify to do business in California on or after allowable depreciation or amortization of
Net Income, included in this booklet. Exempt January 1, 2000, the prepayment of the Federal Revenue Procedure 96-31. Get
function income includes amounts received minimum franchise tax to the SOS is no FTB Notice 96-3 for more information.
as: longer required. For the first taxable year the If the corporation is a bank, a savings and loan
• Contributions of money or property; corporation will compute its tax liability by association, or a financial corporation, it can
• Membership fees, dues, or assessments; multiplying its state net income by the no longer use the bad debt reserve method of
or appropriate tax rate and will not be subject to accounting and elect to be, or continue to be,
• Proceeds from the sale of political cam- the minimum franchise tax. The corporation an S corporation for taxable years beginning
paign material that are not received in the will become subject to minimum franchise tax on or after January 1, 1997. However, the
ordinary course of any trade or business. beginning in its second taxable year. This S corporation status can be maintained or
does not apply to corporations that reorganize elected if the corporation changes accounting
Get FTB Pub. 1075, Exempt Organizations - solely to avoid payment of its minimum method from the bad debt reserve method to
Guide for Political Organizations, for more franchise tax. the specific write-off method. Get FTB
information.
There is no minimum franchise tax for: Notice 98-3 for more information.
Homeowners’ associations that are exempt
• Corporations that derive income from
under R&TC Section 23701t and have
sources within California but are subject E When to File
homeowners’ association taxable income File Form 100 on or before the 15th day of
must file Form 100. Homeowners’ association only to income tax because they are not
“doing business” in California, and are not the 3rd month after the close of the taxable
taxable income is the amount by which gross year unless the return is for a short period as
income (other than exempt function income) incorporated or qualified under the laws of
California (get FTB Pub. 1050, FTB required under R&TC Section 24634. Gener-
less deductions directly connected with the ally, the due date of a short period return is the
production of such gross income exceeds Pub. 1060, or FTB Pub. 1063 for more
information regarding “doing business”); same as the due date of the federal short
$100. See the instructions for Schedule F, period return. See R&TC Section 18601(c) for
Computation of Net Income, included in this • Qualified non-profit farm cooperative
associations; the due date of a short period return. Farmers’
booklet. Exempt function income means
Form 100 Booklet 2000 Page 5
cooperative associations must file Form 100 by of designated delivery services. If a private California Schedule P (100), Alternative
the 15th day of the 9th month after the close of delivery service is used, address the return to: Minimum Tax and Credit Limitations —
the taxable year. See General Information O, FRANCHISE TAX BOARD Corporations. See Schedule P (100), included
Dissolution/Withdrawal, and P, Ceasing Busi- SACRAMENTO CA 95827 in this booklet, for more information.
ness, for information on final returns.
Caution: Private delivery services cannot K Estimated Tax
F Extension of Time to File deliver items to PO boxes. If using one of
these services to mail any item to the FTB, Every bank and corporation must pay
If the corporation cannot file its California tax DO NOT use an FTB PO box. estimated tax using Form 100-ES, Corpora-
return by the 15th day of the 3rd month after tion Estimated Tax. Estimated tax is generally
the close of the taxable year, it may file on or Private Mailbox (PMB) Number due and payable in four installments:
before the 15th day of the 10th month without If you lease a private mailbox (PMB) from a • The 1st payment is due by the 15th day of
filing a written request for an extension unless private business rather than a PO box from the 4th month of the taxable year (note
the corporation is suspended on the original the United States Postal Service, include the that this payment may not be less than the
due date. This does not extend the time for box number in the field labeled “PMB no.” in minimum franchise tax, if applicable); and
payment of tax; the full amount of tax must be the address area. • The 2nd, 3rd, and 4th installments are due
paid by the original due date of Form 100. If and payable by the 15th day of the 6th,
there is an unpaid tax liability, complete form I Net Income Computation 9th, and 12th months respectively, of the
FTB 3539, Payment Voucher for Automatic The computation of net income from trade or taxable year.
Extension for Corporations and Exempt business activities generally follows the
Organizations, included in this booklet, and Note for first-time filers: The prepayment of
determination of taxable income as provided tax made to the California SOS at the time of
send it with the payment by the original due in the IRC. However, there are differences that
date of the Form 100. incorporation or qualification was for the
must be taken into account when completing privilege of “doing business” during the
Note: If the corporation must pay its tax Form 100. There are two ways to complete corporation’s first taxable year. Do not claim
liability using electronic funds transfer (EFT), Form 100, the federal reconciliation method this payment as an estimated tax payment or
all payments must be remitted by EFT to avoid or the California computation method: credit against the tax liability shown on the
penalties. Do not send form FTB 3539. 1. Federal reconciliation method return for the corporation’s first year.
a. Attach a copy of federal Form 1120 or California law has conformed to the federal
G Electronic Funds Transfer Form 1120A, Page 1, U.S. Corporation expanded annualization periods for the
(EFT) Income Tax Return and all pertinent computation of estimate payments.
Corporations that meet certain requirements supporting schedules, or transfer the For taxable years beginning on or after
must remit all of their payments through EFT information from federal Form 1120 or January 1, 1998, the applicable percentage for
rather than by paper check or money order to Form 1120A, Page 1, to Schedule F and estimate basis is 100%.
avoid penalties. Once a corporation remits an attach all pertinent schedules; Get the instructions for Form 100-ES for more
estimated tax payment or extension payment in b. Enter the amount of federal ordinary information.
excess of $20,000, or has a total tax liability in income (loss) from trade or business
excess of $80,000 the FTB will notify the activities before any net operating loss Note: If the corporation must pay its tax
corporation that all future payments must be (NOL) on Form 100, Side 1, line 1; and liability using EFT, ALL estimate payments due
made by EFT. Those that wish to participate on c. Enter state adjustments on line 2 must be remitted by EFT to avoid penalties.
a voluntary basis may do so. For more infor- through line 16 to arrive at net income
mation, call the FTB EFT Section at after state adjustments, Side 1, line 17. L Commencing Corporations
(916) 845-4025, or get FTB Pub. 3817, 2. Schedule F – California computation For taxable years beginning on or after
Electronic Funds Transfer Program Information January 1, 2000, no minimum tax is required
If the corporation has no federal filing
Guide. for the first taxable year. See General
requirement or if the corporation main-
tains separate records for state purposes, Information C, Minimum Franchise Tax, for
H Where to File complete Form 100, Schedule F, to more information.
If tax is due, and the corporation is not determine state ordinary income. If Get FTB Pub. 1060, Guide for Corporations
required to use EFT, make the check or money ordinary income is computed under Starting Business in California, for more
order payable to the Franchise Tax Board. California laws, generally no state information.
Write the California corporation number adjustments are necessary. Transfer the
and “2000 Form 100” on the check or money amount from Schedule F, line 30, to M Penalties
order. Mail the return and payment to: Side 1, line 1. Complete Form 100, Side 1,
FRANCHISE TAX BOARD Failure to file a timely return
line 2 through line 16, only if applicable. Any corporation that fails to file Form 100 on
PO BOX 942857
SACRAMENTO CA 94257-0501 For more information, see the specific line or before the extended due date is assessed a
instructions. penalty. The penalty is 5% of the unpaid tax
Mail all other returns, including those with for each month, or part of the month, the
payment by EFT, to: Note: Regardless of the net income computa-
tion method used, the corporation must return remains unfiled from the due date of
FRANCHISE TAX BOARD the return until filed. The penalty may not
PO BOX 942857 attach any form, schedule, or supporting
document referred to on the return, sched- exceed 25% of the unpaid tax. If a corporation
SACRAMENTO CA 94257-0500 does not file its return by the extended due
ules, or forms filed with the FTB.
Private Delivery Services date, the automatic extension will not apply
California law conforms to federal law J Alternative Minimum Tax and the late filing penalty will be assessed
regarding the use of certain designated from the original due date of the return. See
Corporations that claim certain types of
private delivery services to meet the “timely R&TC Sections 19131 and 23772 for more
deductions, exclusions, and credits may be
mailing as timely filing/paying” rule for tax information.
subject to California’s alternative minimum tax
returns and payments. See federal Form 1120, Failure to pay total tax by the due date
(AMT). Generally, corporations that complete
U.S. Corporation Income Tax Return, for a list Any corporation that fails to pay the total tax
federal Form 4626, Alternative Minimum Tax
— Corporations, must also complete shown on Form 100 by the original due date

Page 6 Form 100 Booklet 2000


is assessed a penalty. The penalty is 5% of the each year the failure occurs. See California follows federal rules for the
unpaid tax, plus 0.5% for each month, or part R&TC Section 19141.5 for more information. calculation of interest. Get FTB Pub. 1138,
of the month (not to exceed 40 months), the If the corporation does not file its Form 100 Refund/Billing Information, for more
tax remains unpaid. This penalty may not by the due date or extended due date, information.
exceed 25% of the unpaid tax. See R&TC whichever is later, copies of federal
Section 19132 for more information. Form(s) 5472 must still be filed on time or the O Dissolution/Withdrawal
Note: If a corporation is subject to both the penalty will be imposed. Attach a cover letter The franchise tax for the period in which the
penalty for failure to file a timely return and the to the copies indicating the taxpayer’s name, corporation formally dissolves or withdraws is
penalty for failure to pay the total tax by the California corporation number, and taxable measured by the income of the year in which
due date, a combination of the two penalties year. Mail to the same address used for it ceased doing business in California, unless
may be assessed, but the total penalty may not returns without payments. See General such income has already been taxed at the
exceed 25% of the unpaid tax. Information H, Where to File. When the rate prescribed for the taxable year of
Underpayment of estimated tax corporation files Form 100, also attach copies dissolution or withdrawal.
Any corporation that fails to pay, pays late, or of the federal Form(s) 5472. A corporation that commenced doing
underpays an installment of estimated tax is Record maintenance penalties business in California before January 1, 1972,
assessed a penalty. The penalty is a percent- The penalty for failure to maintain certain is allowed a credit that may be refunded in the
age of the underpayment for the underpay- records is $10,000 for each taxable year for year of dissolution or withdrawal. The amount
ment period. which the failure applies. In addition, if the of the refundable credit is the difference
Get form FTB 5806, Underpayment of failure continues for more than 90 days after between the minimum franchise tax for the
Estimated Tax by Corporations, to determine the FTB notifies the corporation of the failure, corporation’s first full 12 months of doing
both the amount of underpayment and the in general, a penalty of $10,000 may be business and the total tax paid for the same
amount of penalty. assessed for each additional 30-day period of period.
continued failure. For taxable years beginning To claim this credit, add this amount to the
See R&TC Sections 19142, 19144, 19145, on or after January 1, 1996, there is no
19147, 19148, 19149, 19150, 19151, and value on line 36. Make a notation to the right
maximum amount of penalty that may be of Side 1, line 36: “Dissolving/Withdrawing.”
19161 for more information assessed.
Note: If the corporation uses Exception B or The return for the final taxable period is due
See the Important Information Section for a on or before the 15th day of the 3rd full
Exception C either to compute or eliminate discussion of the records required to be
any of the four installments, form FTB 5806 month after the month during which the
maintained. See R&TC Section 19141.6 and corporation formally dissolved or withdrew.
must be attached to the front of Form 100 and the regulations thereunder for more
the box on Side 1, line 43 should be checked. information. Get FTB Pub. 1149, Terminating a Corporation
EFT Penalty for more information.
Accuracy and fraud related penalties
If the corporation must pay its tax liability California conforms to IRC Sections 6662 Samples and/or forms for a dissolution,
using EFT, all payments must be remitted by through 6665 that authorize the imposition of surrender, or merger agreement filing may be
EFT to avoid penalties. The EFT penalty is an accuracy-related penalty equal to 20% of obtained by addressing your request to:
10% of the amount not paid by EFT. See the related underpayment, and the imposition CALIFORNIA SECRETARY OF STATE
R&TC Section 19011 and General of a fraud penalty equal to 75% of the related LEGAL REVIEW
Information G, Electronic Funds Transfer underpayment. See R&TC Section 19164 for 1500 11TH ST 3RD FLOOR
(EFT), for more information. more information. SACRAMENTO CA 95814-5701
Information reporting penalties Telephone: (916) 657-5448
Secretary of State penalty
For taxable years beginning on or after
January 1, 1997, U. S. corporations who have
The California Corporations Code requires the P Ceasing Business
FTB to assess a penalty for failure to file a
an ownership interest (directly or indirectly) A special tax computation is necessary when
biennial statement of corporate officers with
in a foreign corporation and were required to a corporation ceases to do business. The tax
the California SOS. See R&TC Section 19141
file federal Form(s) 5471, Information Return for the final year in which the corporation
for more information.
of U.S. Persons With Respect to Certain does business in California is:
Foreign Corporations, with the federal return, For more information, contact:
• The tax measured by the income of the
must attach a copy(s) to the California return. CALIFORNIA SECRETARY OF STATE
preceding year; PLUS
A penalty for failure to include a copy of PO BOX 944230
• The tax measured by the income of the
federal Form(s) 5471, as required, is $1,000 SACRAMENTO CA 94244-2300
year in which the corporation ceases to do
per required form for each year the failure Telephone: (916) 657-3537
business; PLUS
occurs. The penalty applies for taxable years Other penalties • The tax due on unreported income
beginning on or after January 1, 1998. The Other penalties may be imposed for a check attributable to installment obligations.
penalty will not be assessed if the taxpayer returned for insufficient funds, non-U.S.
The tax due must be at least the minimum
provides a copy of the form(s) within 90 days foreign corporations operating while forfeited
franchise tax. Generally, the corporation will
of request from the FTB and the taxpayer or without qualifying to do business in
remain subject to the minimum franchise tax
agrees to attach a copy(s) of Form 5471 to all California, and domestic corporations
for each year it is in existence until it files a
returns filed for subsequent years. operating while suspended in California. See
certificate of dissolution or withdrawal with
Certain domestic corporations that are 25% R&TC Sections 19134 and 19135 for more
the SOS. See General Information O,
or more foreign-owned and foreign corpora- information.
Dissolution/Withdrawal, and R&TC Sections
tions engaged in a U.S. trade or business 23331 through 23335 for more information.
must attach federal Form(s) 5472, Informa- N Interest
tion Return of a 25% Foreign-Owned U.S. Interest is due and payable on any tax due if Q Suspension/Forfeiture
Corporation or a Foreign Corporation Engaged not paid by the original due date of Form 100.
If a corporation fails to file Form 100 and/or
in a U.S. Trade or Business, to Form 100. The Interest is also due on some penalties. The
fails to pay any tax, penalty, or interest due,
penalty for failing to include Form(s) 5472, as automatic extension of time to file Form 100
its powers, rights, and privileges may be
required, is $10,000 per required form for does not stop interest from accruing.
suspended (in the case of a domestic

Form 100 Booklet 2000 Page 7


corporation) or forfeited (in the case of a U Amended Return should be attached to the Form 100 when
foreign corporation). filed. If these information returns are not
To correct or change a previously filed provided, penalties may be imposed under
Corporations that operate while suspended or Form 100, file the most current Form 100X,
forfeited are subject to a $2,000 penalty, R&TC Sections 19141.2 and 19141.5.
Amended Corporation Franchise or Income
which is in addition to any tax, penalties, and Tax Return. Using the incorrect form may Mail all information returns required to be
interest already accrued. Also, any contracts delay processing of the amended return. File filed separate from the tax return to:
entered into during suspension or forfeiture Form 100X within 6 months after the FRANCHISE TAX BOARD
are voidable at the request of any party to the corporation filed an amended federal return or PO BOX 942857
contract other than the suspended or forfeited after the final federal determination, if the SACRAMENTO CA 94257-0500
corporation. Internal Revenue Service (IRS) examined and
Such contracts will remain voidable and changed the corporation’s federal return. W Net Operating Loss (NOL)
unenforceable unless the corporation applies Carryover periods varying from 5 to 15 years
for relief from contract voidability and the FTB V Information Returns and carryover deductions varying from 50%
grants relief. Every corporation engaged in a trade or to 100% are allowed for NOLs sustained by
See R&TC Sections 19135, 19719, 23301, business and making or receiving certain corporations.
23305.1, and 23305.2 for more information. payments in the course of the trade or For taxable years beginning on or after
business is required to file information January 1, 2000, the NOL carryover deduction
R Apportionment of Income returns to report the amount of such percentage and periods have been changed.
Corporations with business income attribut- payments. For more information, see Tax Law Changes
able to sources both within and outside of Payments that must be reported include, but section on page 3.
California are required to apportion such are not limited to, compensation for services R&TC Sections 24416 through 24416.6 and
income. To calculate the apportionment not subject to withholding, commissions, R&TC Section 25108 provide for NOL
percentage, use Schedule R, Apportionment fees, prizes and awards, payments to carryovers incurred in the conduct of a trade
and Allocation of Income. Be sure to answer independent contractors, rents, royalties, and or business.
Question M on Form 100, Side 2. pensions exceeding $600 annually, interest
and dividends exceeding $10 annually, and R&TC Section 24347.5 provides special
S Combined Report cash payments over $10,000 received in a treatment for the carryover of disaster losses
trade or business. Payments of any amount incurred in an area designated by the
If two or more corporations are engaged in a President of the United States or the Governor
unitary business and derive income from by a broker or barter exchange must also be
reported. of California as a disaster area.
sources within and outside of California, the
members of the unitary group that are subject Report payments on federal Form 1099 For more information, get form FTB 3805Q,
to California’s franchise or income tax are (series). Reports must be made for the Net Operating Loss (NOL) Computation and
required to apportion the combined income of calendar year and are due to the IRS no later NOL and Disaster Loss Limitations —
the entire unitary group in order to compute than February 28th of the year following Corporations (included in this booklet), or get
the measure of the tax. payment. Corporations must also submit form FTB 3805Z, Enterprise Zone Business
federal Form 8300, Report of Cash Payments Booklet; form FTB 3806, Los Angeles
If the income of a unitary group is derived Revitalization Zone Business Booklet, form
wholly from California sources, its members Over $10,000 Received in a Trade or Busi-
ness, within 15 days after the date of the FTB 3807, Local Agency Military Base
may either file returns on a separate account- Recovery Area Business Booklet, or form
ing basis or file on a combined report basis. transaction.
FTB 3809, Targeted Tax Area Business
Members of a unitary group may elect to file a Corporations must report interest paid on Booklet.
group single return by filing Schedule R-7, municipal bonds held by California taxpayers
Election to File a Unitary Taxpayers’ Group and issued by a state other than California, or X Limited Liability Companies
Return and List of Affiliated Corporations. For a municipality other than a California
more information, get Schedule R. municipality. Entities paying interest to (LLCs)
California residents on these types of bonds California law authorizes the formation of
A combined unitary group’s single return LLCs and recognizes out-of-state LLCs
are required to report interest payments
must present the group’s data by separate registered or doing business in California. The
aggregating $10 or more and paid after
corporation, as well as in combined format. taxation of an LLC in California depends upon
January 1, 2000. Information returns will be
The total combined tax, which must include at due June 1, 2001. Get form FTB 4800, its classification as a corporation, partnership,
least the applicable minimum franchise tax for Federally Tax Exempt Non-California Bond or “disregarded entity” for federal tax
each corporation subject to the franchise tax, Interest and Interest-Dividend Payment, for purposes.
must be shown on Form 100, Side 1, line 23. more information. If an LLC elects to be taxed as a corporation
For more information, get FTB Pub. 1061, California conforms to the information for federal tax purposes, it must file
Guidelines for Corporations Filing a Combined reporting requirements of IRC Section 6045(f) Form 100. LLCs electing to be taxed as
Report. for certain payments made to attorneys. If the corporations are subject to the applicable
corporation has complied with the require- provisions of the Bank and Corporation Tax
T Preparer Tax Identification ments for federal purposes, the corporation Law.
Number will be treated as having complied with the If an LLC is treated as a partnership for
requirements for California purposes and no federal tax purposes, it generally must file
Beginning January 1, 2000 tax preparers have penalty will be imposed. Form 568. LLCs taxed as partnerships
the option of providing their individual Social
California conforms to the information determine their income, deductions, and
Security Number (SSN) or Preparer Tax
reporting requirements imposed under IRC credits under the Personal Income Tax Law
Identification Number (PTIN) on returns they
Sections 6038 through 6038C. Any and are subject to an annual tax as well as an
prepare. The PTIN can be used in lieu of an
Forms 5471, 5472, or 926 required to be filed annual fee based on total income.
SSN. Preparers who want a PTIN must
complete and submit federal Form W-7P, for federal purposes under these IRC Sections If a single member LLC is disregarded for
Application for Preparer Tax Identification are also required to be filed for California federal tax purposes, it must file Side 1 of
Number, to the IRS. purposes. These federal information returns Form 568. A disregarded LLC reports its

Page 8 Form 100 Booklet 2000


income, deductions, and credits on the return return without regard to extension. See R&TC If, as its principal business activity, the
of its owner. However, an LLC that is Section 23153 for more information. corporation: (1) purchases raw material;
disregarded is subject to the annual LLC tax (2) subcontracts out for labor to make a
as well as a fee based on total income. Z New Corporations finished product from the raw materials; and
Form 568, Side 1, provides the FTB with (3) retains title to the goods, the corporation
New corporations, which begin business on
information on the sole owner of the LLC, is considered to be a manufacturer and must
or after January 1, 2000, are no longer
contains the owner’s consent to be taxed on enter one of the codes under “Manufactur-
required to prepay minimum tax to the SOS.
the income of the LLC, and provides for the ing.” Also, write in the business activity and
computation of the LLC tax and fee. For taxable years beginning on or after the principal product or service on the lines
January 1, 2000, no minimum franchise tax provided.
Y Qualified New Corporations will be due with the initial return.
Question J – Transfer or acquisition of
(QNCs) Specific Line Instructions voting stock
All corporations must answer Question J. If
Secretary of State prepayment tax the answer is “Yes,” a Statement of Change in
Effective for taxable years beginning on or For taxable years beginning on or after
January 1, 2000, C corporations filing on Control and Ownership of Legal Entities
after January 1, 1999, and before January 1, (BOE-100-B) must be filed with the State
2000, the minimum tax prepaid to the water’s-edge basis are required to use the
new Form 100W to file their California tax Board of Equalization (BOE), or substantial
California SOS was $300 for a QNC. For penalties may result. Forms and information
purposes of the $300 prepaid minimum tax, a return. Get the Form 100W, Water’s Edge
Booklet, for more information. may be obtained from the BOE at
QNC was a corporation that reasonably (916) 323-5685.
estimates it would: Filing Form 100 without errors will expedite
processing. Before mailing Form 100, make Answer “Yes” if:
• Have gross receipts, less returns and
allowances, reportable to California of sure entries have been made for the: • The percentage of outstanding voting
$1 million or less; • California corporation number (7 digits); shares of this corporation or its
• Have tax liability that did not exceed $800; • Federal employer identification number subsidiary(ies) owned by one person or
and (FEIN) (9 digits); and one entity cumulatively exceeded 50%
• Not have 50% or more of its stock owned, • Corporation name and address (include during this year; or
upon initial issuance, by another corpora- PMB no. if applicable). • The total of voting shares transferred to
tion. one irrevocable trust cumulatively
File the 2000 Form 100 for calendar year 2000 exceeded 50% during this year; or
• Begin operations at or after the time of its and fiscal years that begin in 2000. Enter
incorporation; and • One or more irrevocable proxies trans-
taxable year beginning and ending dates only ferred voting rights to more than 50% of
• Not have begun business prior to its if the return is for a short year or a fiscal year.
incorporation as a single proprietorship, the outstanding shares to one person or
If the corporation reports its income using a one entity during this year; or
partnership or other form of business calendar year, leave blank. If the return is
entity. • This corporation’s cumulative ownership
being filed for a short period of less than 12 or control of the stock or other ownership
Gross receipts includes the gross receipts of months, write “short year” in red in the top interest in any legal entity exceeded 50%
each member of the commonly controlled margin. Convert all foreign monetary amounts during this year; or
group, as defined in R&TC Section 25105, of to U.S. dollars. • Cumulatively more than 50% of the total
which the bank or corporation is a member. Note: The 2000 Form 100 may also be used if: outstanding shares of this corporation
If during the first taxable year, the • The corporation has a taxable year of less have transferred, changed ownership or
corporation’s gross receipts exceeded than 12 months that begins and ends in control during this year.
$1 million or tax liability exceeds $800, the 2001; and R&TC Section 64(e) requires this information
corporation must pay an additional amount of • The 2001 Form 100 is not available at the for use by the California State BOE.
$500, if the corporation prepaid the $300 time the corporation is required to file its
minimum tax to the SOS. Question S – Regulated Investment
return. The corporation must show its Company (RIC)
The corporation must pay the additional tax 2001 taxable year on the 2000 Form 100 California conforms to federal law for taxable
on or before the original due date of its first and incorporate any tax law changes that years beginning on or after January 1, 1998,
required tax return without regard to are effective for taxable years beginning for the provisions related to the repeal of
extension. See R&TC Section 23221, for more after December 31, 2000. the 30% gross income test for RICs.
information.
Minimum franchise tax Questions A through Z Question T – Real Estate Mortgage
Investment Conduit (REMIC)
For taxable years beginning on or after Answer all applicable questions and attach
If a corporation is a REMIC for federal
January 1, 1999 and before January 1, 2000, additional sheets, if necessary. Be sure to
purposes, it is deemed to be a REMIC for
the minimum franchise tax for a QNC for the answer Questions E through Z on Side 2. Note
California purposes. A REMIC is subject to the
first return required to be filed was $500. The the following instructions when answering:
minimum franchise tax but is not subject to
minimum franchise tax for the first tax return Question E – Principal business activity the income or franchise tax. The income of a
is due as an estimate payment on the 15th (PBA) code REMIC is taxable to the holders of the REMIC
day of the 4th month of the QNC’s first taxable All corporations must answer Question E. interests. In order to qualify, substantially all
year. For purposes of the QNC minimum of the assets of the entity must consist of
Include the 6 digit PBA code from the chart
franchise tax, the corporation must meet the “qualified mortgages” and “permitted
found on page 15 through page 17 of this
QNC criteria outlined above. investments.” See the instructions for federal
booklet. The code should be the number for
If during the taxable year, the corporation’s the specific industry group from which the Form 1066, U.S. Real Estate Mortgage
gross receipts exceed $1 million or the tax greatest percentage of California “total Investment Conduit Income Tax Return, to
liability exceeded the minimum franchise tax receipts” is derived. “Total receipts” means determine if the corporation qualifies.
of $800, the corporation must pay an gross receipts plus all other income. The California law is the same as federal law,
additional amount of $300. The corporation California code number may be different from except California does not impose a tax on
must pay the additional amount on or before the federal code number. prohibited transactions, as defined in IRC
the original due date of its first required tax

Form 100 Booklet 2000 Page 9


Section 860F. However, the income or gain Line 2 and Line 3 – Taxes not deductible Line 10, and Line 11 – Dividend deduction
from such prohibited transactions remains California does not permit a deduction of See instructions for Schedule H (100),
includible in the California tax base. If the California corporation franchise or income Dividend Income Deduction included in this
corporation is a REMIC for federal purposes, taxes or any other taxes on, according to, or booklet.
answer “Yes” to Question T, complete measured by net income or profits. Such Line 12 – Federal capital gain net income
Form 100 and attach a copy of federal taxes that are shown on Form 100, Enter the federal capital gain net income from
Form 1066. Schedule A, must be added to income by federal Form 1120 or Form 1120A, line 8. The
Question U – Real Estate Investment Trust entering the amount on Side 1, line 2 or line 3 California net capital gain should have been
(REIT) (see Schedule A, column (d) for the amount added to income on line 5.
California conforms to the federal law relating to be added to income). California does not
permit a deduction for environmental taxes Line 13 – Contributions
to REITs, except for the provisions relating to The contribution deduction for a California
retaining capital gain tax credit added by imposed by IRC Section 59A.
corporation is limited to the adjusted basis of
Section 1254 of the Taxpayer Relief Act The LLC fee is not a tax (R&TC the assets being contributed.
of 1997, and various alternative taxes Section 23092); therefore, it is deductible. Do
imposed on certain income and activities of not include any part of an LLC fee on line 2 or For taxable years beginning on or after
REITs (although such income amounts remain line 3. January 1, 1996, the contribution deduction
includible in the California tax base). Addition- is limited to 10% of California net income.
Line 4 – Interest on government obligations Carryover provisions per IRC
ally, a federal election to treat property as Corporations subject to California franchise
foreclosure property under IRC Section 170(d)(2) apply for excess contribu-
tax must report all interest received on tions made during taxable years beginning on
Section 856(e)(5) is considered to be an government obligations (such as federal,
election for California as well. No separate or after January 1, 1996.
state, or municipal bonds). On line 4, enter all
elections are allowed. interest on government obligations that is not On a separate worksheet, using the Form 100
Question V – Limited liability company included in federal ordinary income (loss). format, complete Form 100, Side 1, line 1
(LLC) or Limited Partnership through line 17 without regard to line 13,
Corporations subject to California corporation Contributions. If any federal contribution
Answer “Yes” only if the business entity for income tax, see instructions for line 15.
which the Form 100 is being filed is organized deduction was taken in arriving at the amount
as an LLC or limited partnership but is Line 5 – Net California capital gain entered on Side 1, line 1, enter that amount as
classified as a corporation for federal tax Complete Schedule D, Side 2, and enter the a positive number on line 8 of the Form 100
purposes. An LLC classified as a partnership California net capital gain from Schedule D, formatted worksheet. Enter the adjusted basis
for federal purposes should generally file line 11. of the assets contributed on line 5 of the
Form 568. A limited partnership should file Line 6 – Depreciation and amortization following worksheet. Then complete the
Form 565. California law is substantially different from worksheet that follows to determine the
federal law for corporations. contributions to enter on line 13.
Line 1 through Line 44 Complete form FTB 3885, Corporation 1. Net income after state adjustments
Depreciation and Amortization (included in from Side 1, line 17 . . . . . . . . . . _____
Line 1 – Net income (loss) before state
adjustments this booklet), to determine the amounts to be 2. Deduction for dividends
Corporations using the federal reconciliation entered on line 6. received . . . . . . . . . . . . . . . . . . . _____
method to figure net income (see General Line 7 – Income not included in federal 3. Net income for contribution
Information I, Net Income Computation) consolidated return calculation purposes. Add
must: Use this line to report the net income of line 1 and line 2 . . . . . . . . . . . . . _____
corporations included in the combined report 4. Contributions. Multiply line 3
• Transfer the amount from federal by 10% (.10) . . . . . . . . . . . . . . . _____
Form 1120, line 28; or federal but not included in the federal consolidated
return. 5. Enter the amount actually
Form 1120A, line 24, to line 1; and attach contributed . . . . . . . . . . . . . . . . _____
a copy of the federal return and all Line 8 – Other additions 6. Enter the smaller of line 4 or
pertinent supporting schedules; or copy Any miscellaneous items that must be added line 5 here and on Side 1, line 13 _____
the information from federal Form 1120 or to arrive at net income after state adjustments
Form 1120A, Page 1, onto Schedule F and (line 17) should be shown on this line. Attach Get Schedule R to figure the contribution
transfer the amount from Schedule F, a schedule to itemize amounts. computation for apportioning corporations.
line 30, to line 1. If any federal contribution deduction was Line 14 – EZ, TTA, or LAMBRA business
• Then, complete Form 100, Side 1, line 2 taken in arriving at the amount entered on expense and/or net interest deduction
through line 16, State Adjustments. Form 100, Side 1, line 1, include that amount Businesses conducting a trade or business
Corporations using the California computation on line 8. within an EZ, LAMBRA, or TTA may elect to
method to figure net income (see General treat a portion of the cost of qualified property
California ordinary net gain or loss. Enter as a business expense rather than a capital
Information I) must transfer the amount from any California ordinary net gain or loss from
Side 3, Schedule F, line 30, to line 1. Com- expense. For the year the property is placed in
Schedule D-1, Sales of Business Property. service, the business may deduct a percent-
plete Form 100, Side 1, line 2 through line 16, Attach Schedule D-1.
only if applicable. age of the cost in that year rather than
Note: Business expense deductions are not depreciate it over the life of the asset. For
Line 2 through Line 16 – State adjustments allowed for payments to a club that restricts more information, get form FTB 3805Z; form
To figure net income for California purposes, membership or the use of its services or FTB 3807; or form FTB 3809.
corporations using the federal reconciliation facilities on the basis of age, sex, race,
method must enter California adjustments to Also, a deduction may be claimed on this line
religion, color, ancestry, or national origin. for the amount of net interest on loans made
the federal net income on line 2 through “Club” means a club as defined in the
line 16. If a specific line for the adjustment is to an individual or company doing business
Business and Professions Code, Div. 9, Ch. 3, within an EZ or a TTA. For more information,
not on Form 100, corporations must enter the Art. 4, beginning with Section 23425. Add
adjustment on line 8, Other additions, or get form FTB 3805Z or form FTB 3809.
back such deductions on this line.
line 15, Other deductions, and attach a Be sure to attach form FTB 3805Z; form
schedule that explains the adjustment. FTB 3807; or form FTB 3809 if any of these

Page 10 Form 100 Booklet 2000


benefits are claimed. If the proper form is not Line 20 – EZ, LARZ, TTA, or LAMBRA NOL line 25, and line 26. Enter the total of any
attached, these tax benefits may be carryover deduction remaining credits from Schedule P (100) on
disallowed. An NOL generated by a business that operates line 27. Do not make an entry on line 27
Line 15 – Other deductions (operated) or invests (invested) within an EZ, unless line 24 through line 26 are complete.
Include on this line deductions not claimed on the former LARZ, the TTA, or a LAMBRA To figure tax credits, use the appropriate form
any other line. Attach a schedule that clearly receives special tax treatment. The loss may or schedule. If the corporation claims a credit
shows how each deduction was computed not reduce the corporation’s current year carryover for an expired credit, use form
and explain the basis for the deduction. income below zero. Any excess loss must be FTB 3540, Credit Carryover Summary, to
carried forward. Compute the corporation’s figure the amount of credit, unless the
For corporations subject to income tax EZ, TTA, or LAMBRA NOL using form
(instead of the franchise tax), interest received corporation is required to complete
FTB 3805Z, form FTB 3809, or form Schedule P (100). In that case, enter the
on obligations of the federal government and FTB 3807.
on obligations of the State of California and amount of the credit on Schedule P (100) and
its political subdivisions is exempt from Enter the EZ, TTA, LARZ, or LAMBRA NOL complete Schedule P (100). Do not attach
income tax. If such interest is reported on carryover deduction from the corporation’s form FTB 3540.
line 4, it must be deducted on line 15. form FTB 3805Z; form FTB 3809; form Attach the credit form or schedule and
FTB 3807; or form FTB 3806, on Form 100, Schedule P (100), if applicable, to Form 100.
Federal ordinary net gain or loss. Enter any line 20. Attach a copy of the form FTB 3805Z;
federal ordinary net gain or loss from federal form FTB 3809; form FTB 3807; or form Line 29 – Balance
Form 4797, Sales of Business Property. FTB 3806 to the Form 100. Subtract line 28 from line 23. Enter the result or
Line 18 – Net income (loss) for state the applicable minimum franchise tax, whichever
Line 21 – Disaster loss carryover deduction is more. See General Information C, Minimum
purposes If you have a disaster loss carryover deduc-
If all corporate income is derived from Franchise Tax.
tion, enter the total amount from the 2000
California sources, transfer the amount on form FTB 3805Q, Part III, line 2, only if you Line 30 – Alternative minimum tax (AMT)
line 17 directly to line 18. have income in the current year. The loss may Enter on this line the AMT from Schedule P
If only a portion of income is derived from not reduce current year income below zero. (100), Part I, line 19; or Part II, line 18,
California sources, complete Schedule R Any excess loss must be carried forward. whichever is applicable.
before entering any amount on line 18. Line 23 – Tax Line 32 – Additional SOS prepayment tax
Transfer the amount from Schedule R, line 24, Use rates listed in General Information B, Tax For taxable years beginning on or after
to Form 100, line 18. Be sure to answer “Yes’’ Rates, and C, Minimum Franchise Tax. January 1, 1999 but before January 1, 2000,
to Question M on Form 100, Side 2. the corporation must pay an additional $500
Line 24 through Line 28 – Tax credits on the original due date of the firstt required
If this line is a net loss, complete and attach A variety of tax credits are available to
the 2000 form FTB 3805Q to Form 100. tax return if it:
California corporations to reduce tax.
Line 19, Line 20, and Line 21 However, corporations may not reduce the tax • Incorporated as a QNC with the California
Note: The order in which line 19, line 20, and (line 23) below the minimum franchise tax, if SOS; and
line 21 appear is not meant to imply the order applicable. • Paid the $300 prepaid minimum tax to the
in which any NOL carryover deduction or California SOS; and
Also, the amount of the credit that a corpora- • Had gross receipts, less returns and
disaster loss deduction be taken if more than tion is allowed to claim may be limited.
one type of deduction is available. allowances, exceeding $1 million or tax
Generally, if the corporation completed federal liability exceeding $800 during the first
Line 19 – Net operating loss (NOL) Form 4626, Alternative Minimum Tax — taxable year.
carryover deduction Corporations, the corporation may have
The NOL carryover deduction is the amount of limited credits. Complete Schedule P (100) If the corporation is required to pay the
the NOL carryover from prior years that may (included in this booklet) to compute this additional SOS prepayment tax, enter $500 on
be deducted from income in the current limitation. this line. See General Information Y, Qualified
taxable year. New Corporations (QNC), for more
Corporations claiming only: information.
If line 18 is a positive amount, enter the NOL • Enterprise zone hiring & sales or use tax
carryover from the 2000 form FTB 3805Q, Line 35 – 2000 estimated tax payments/
credit; excess SOS prepayment tax
Part III, line 3 on Form 100, line 19. The loss • LARZ construction hiring & sales or use
may not reduce current year income below Enter the total amount of estimated tax
tax credit carryover; payments made during the 2000 taxable year
zero. Any excess loss must be carried • Solar energy credit carryover;
forward. Attach a copy of the 2000 form on this line.
• Commercial solar energy credit carryover;
FTB 3805Q to Form 100. • Commercial solar electric system credit; If the corporation incorporated or qualified
If the full amount of the NOL carryover may • Research credit; with the California SOS and prepaid the $800
not be deducted this year, complete and • Orphan drug credit carryover; minimum tax, but then during the taxable year
attach a 2000 form FTB 3805Q showing the • Low-income housing credit; met the requirements to be a QNC, include the
computation of the NOL carryover to future • Manufacturers’ Investment Credit; additional $500 prepaid minimum tax on this
years. • Targeted tax area hiring and sales or use line. See General Information Y, Qualified New
tax credit; and Corporations (QNC), for more information on
If line 18 is a negative amount, corporations the QNC requirements.
may not claim an NOL carryover deduction. • Natural Heritage Perservation Tax Credit
Enter -0- on line 19. See the 2000 form are not subject to the tentative minimum tax Line 38 and Line 39 – Tax due or
FTB 3805Q instructions to compute the NOL limitation. overpayment
carryover to future years. Revise the amount of tax due or overpayment, if
Each credit is identified by a code number. applicable, by the amount on Side 2, Schedule J,
If the corporation terminates its election to be See the credit code chart on page 14. To claim line 6. See instructions for Schedule J.
taxed as an S corporation, thus becoming a one, two, or three credits, enter the credit
C corporation, then only that portion of the name, code number, and the amount of the Line 40 – Amount to be credited to 2001
prior NOL carryover incurred while it had credit on line 24, line 25, and line 26. To claim estimated tax
C corporation status may be used to the more than three credits, use Schedule P If the corporation chooses to have the
extent it has not expired. (100). List three of the credits on line 24, overpayment credited to next year’s estimated

Form 100 Booklet 2000 Page 11


tax payment, the corporation cannot later Schedule F – Computation of computed under Chapter 3 of the Bank and
request that the overpayment be applied to Corporation Tax Law.
the prior year to offset any tax due. Net Income
See General Information I, Net Income Enter the $100 limit on Schedule F, line 28, as
Line 42 and Line 43 – Penalties and interest a qualified “specific deduction.”
Enter on line 42 the amount of any penalties Computation, for information on net income
and interest due. Complete and attach form computation methods. Exempt homeowners’ associations
FTB 5806, Underpayment of Estimated Tax by Line 13 – Salaries and Wages A homeowners’ association exempt under
Corporations, to the front of Form 100, only if Gain from the exercise of California Qualified R&TC Section 23701t must file Form 100 if it
Exception B or Exception C is used in Stock Options (CQSOs) issued and exercised received nonexempt function gross income in
computing or eliminating the penalty. Be sure after 1996 and before 2002 can be excluded excess of $100. Form 100 may be required in
to check the box on line 43. from gross income if the individual’s earned addition to Form 199, California Exempt
income is $40,000 or less. The exclusion Organization Annual Information Return.
Schedules from gross income is subject to AMT and the Nonexempt function gross income means
corporation is not allowed a deduction for the gross income received during the taxable year
compensation excluded from the employee’s other than amounts received from member-
Schedule A – Taxes Deducted gross income. ship fees, dues, or assessments. Nonexempt
Enter the nature of the tax, the taxing function gross income includes the gross
authority, the total tax, and the amount of the Line 28 – Specific deduction for 23701r or
23701t organizations amount of such items as, but not limited to:
tax that is not deductible for California interest, dividends, rents, royalties, sale of
purposes on Form 100, Side 3, Schedule A. Political organizations assets, and income from nonmembers.
A political organization exempt under R&TC
Schedule D – Capital Gain or Section 23701r must file Form 100 and report Exempt homeowners’ associations are not
“political taxable income” in excess of $100. subject to the minimum franchise tax. The tax
Loss is computed under Chapter 3 of the Bank and
California law does not conform to the federal “Political taxable income” means all amounts Corporation Tax Law. Under Chapter 3,
reduced capital gains tax rates. California received during the taxable year other than: estimated tax payments may be required.
taxes capital gains at the same rate as other • Contributions of money or other property; Form 100 is due within 2 months and 15 days
types of income. California does not allow a • Membership fees, dues, or assessments; after the close of the taxable year.
three-year carryback of capital losses. and Enter the $100 limit on Schedule F, line 28, as
Enter any unused capital loss carryover from • Proceeds from political fund raising or a qualified “specific deduction.”
1999 on line 3. entertainment events, or proceeds from
the sale of political campaign material not Schedule G – Bad Debts
received in the ordinary course of any
trade or business. Reserve Method
Political organizations are not subject to the Only savings and loan associations, banks,
minimum franchise tax nor are they required and financial corporations may use the bad
to make estimate payments. The tax is debt reserve method. Use the format below
to prepare Schedule G below and attach the
schedule to Form 100.

Schedule G Bad Debts — Reserve Method Complete only if a savings and loan association, bank ,or financial corporation.
Amount added to reserve (f) Reserve for bad
(a) Income (b) Accounts outstanding at the end of the year (c) Current year’s (d) Recoveries (e) Amount charged debts at end of
year provision against reserve year
1995
1996
1997
1998
1999
2000

Schedule J – Add-On Taxes and • IRC Section 197(f)(9)(B)(ii) election to (FIFO) method, over the inventory amount
recognize gain on the disposition of an using the LIFO method, at the close of the
Recapture of Tax Credits IRC Section 197 intangible. corporation’s last taxable year as a
Complete Schedule J if the corporation has Revise the amount of tax due or overpayment C corporation.
credit amounts to recapture or is required to on Form 100, line 38 or line 39, as applicable The additional tax resulting from inclusion of
include installment payments of “add-on” by the amount from Schedule J, line 6. the LIFO recapture in income is payable in
taxes from: four equal installments. The first installment
Installment payment of tax attributable to
• Last-in, first-out (LIFO) recapture resulting last-in, first-out (LIFO) recapture for is due on the original due date of Form 100 of
from an S corporation election; corporations making an S corporation the electing corporation’s last year as a
• Interest computed under the look-back election. A corporation that uses the LIFO C corporation.
method for completed long-term inventory pricing method and makes an To determine the additional tax due to LIFO
contracts; S corporation election must include a “LIFO recapture, the corporation must complete
• Interest on tax attributable to installment recapture amount” in income for its last year Form 100, Side 1, through line 33, based on
sales of certain property or use of the as a C corporation. The corporation’s LIFO income that does not include the LIFO
installment method for non-dealer recapture amount is equal to the excess of the recapture amount.
installment obligations; or inventory amount using the first-in, first-out

Page 12 Form 100 Booklet 2000


On a separate worksheet using the Form 100 from the disposition of certain timeshares and Schedule M-1 – Reconciliation
format, the corporation must complete the residential lots under IRC Section 453(l)(3), it
equivalent of Form 100, Side 1, line 18 must include the interest due on Schedule J, of income (loss) per books with
through line 33, based on taxable income line 3a. For the applicable interest rates, get income (loss) per return.
including the LIFO recapture amount. FTB Pub. 1138, Refund/Billing Information. Schedule M-1 is used to reconcile the
Form 100, Side 1, line 33, must then be Attach a schedule showing the computation. difference between book and tax accounting
compared to line 33 of the worksheet. The Interest on tax deferred under the install- for an income or expense item. The corpora-
difference is the additional tax due to LIFO ment method for certain nondealer install- tion must complete Schedule M-1 if total
recapture. ment obligations. If an obligation arising assets of the entity are at least $25,000. The
Since Form 100, Side 1, line 33, does not from the disposition of property to which IRC federal and state Schedule M-1 may be the
include the additional tax due to LIFO Section 453A(c) applies is outstanding at the same when you use the federal reconciliation
recapture, corporations must include 1/4 of close of the year, the corporation must include method for net income computation. See
the additional tax on Schedule J, line 1 and the interest due under IRC Section 453A on General Information I, Net Income Computa-
adjust line 38 or line 39 accordingly. Attach Schedule J, line 3b. For the applicable interest tion, for more information. The Schedule M-1
the worksheet showing the computation. rates, get FTB Pub. 1138. will be different from the federal Form 1120,
Note: The electing S corporations must pay IRC Section 197(f)(9)(B)(ii) election. Schedule M-1, if using the California
the remaining three installments of deferred Complete Schedule J, line 4 if the corporation computation method for net income. The
tax with Form 100S. elected to pay tax on the gain from the sale of California computation method is generally
an intangible under the related person used when the corporation has no federal
Long-term contracts. If the corporation must filing requirement, or if the corporation
compute interest under the look-back method exception to the anti-churning rules.
maintains separate records for state
for completed long-term contracts, complete Credit recapture. Complete Schedule J,
purposes.
and attach form FTB 3834, Interest Computa- line 5, if the corporation completed the credit
tion Under the Look-Back Method for recapture portion of:
Completed Long-Term Contracts. Include the • FTB 3501, Employer Child Care Program/
amount of interest the corporation owes or Contribution Credit; or
the amount of interest to be credited or • FTB 3805Z, Part VI, Enterprise Zone
refunded to the corporation on Schedule J, Recapture of Deduction and Credits; or
line 2. If interest is to be credited or refunded, • FTB 3806, Part IV, Los Angeles Revitaliza-
enter as a negative amount. Attach form tion Zone Recapture of Deduction and
FTB 3834 to Form 100. Credits; or
Interest on tax attributable to payments • FTB 3807, Part VI, Local Agency Military
received on installment sales of certain Base Recovery Area Recapture of
timeshares and residential lots. If the Deduction and Credits; or
corporation elected to pay interest on the • FTB 3809, Targeted Tax Area (TTA) Hiring
amount of tax attributable to payments Credit & Sales or Use Tax Credit; or
received on installment obligations arising • FTB 3808, Manufacturing Enhancement
Area (MEA) Hiring Credit; or
• FTB 3535, Manufacturers’ Investment
Credit.

Form 100 Booklet 2000 Page 13


CREDIT NAME CODE DESCRIPTION
Community Development Financial Institution 209 20% of a qualified deposit made into a community development financial institution
Deposits – Obtain certification from:
CALIFORNIA ORGANIZED INVESTMENT
NETWORK (COIN)
DEPARTMENT OF INSURANCE
300 CAPITOL MALL, STE 1460
SACRAMENTO CA 95814
Disabled Access for Eligible Small Businesses – 205 Similar to the federal credit, but limited to $125 per eligible small business, and based
FTB 3548 on 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
FTB 3547 donated to 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 Use Tax – 176 Business incentives for enterprise zone businesses
FTB 3805Z
Farmworker Housing – Construction 207 50% of qualified costs paid or incurred to construct or rehabilitate qualified farmworkers
Farmworker Housing – Loan housing
Obtain certification from: 208 Banks and financial corporations: 50% of foregone interest income on qualified
FARMWORKER HOUSING ASSISTANCE farmworker housing loans
PROGRAM, CALIFORNIA TAX CREDIT
ALLOCATION COMMITTEE
916 CAPITOL MALL, ROOM 485
SACRAMENTO CA 95814
Local Agency Military Base Recovery Area 198 Business incentives for LAMBRAs
(LAMBRA) Hiring & Sales or Use Tax – FTB 3807
Low-Income Housing – FTB 3521 172 Similar to the federal credit but limited to low-income housing in California
Manufacturers’ Investment – FTB 3535 199 6% of the cost of qualified property
Manufacturing Enhancement Area – FTB 3808 211 Hiring Credit for Manufacturing Enhancement Area
Natural Heritage Preservation 213 55% of the fair makret value of the qualified contribution of property donated to the state,
any local government, or any nonprofit organization designated by a local government.
Prior Year Alternative Minimum Tax – FTB 3510 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
Rice Straw 206 $15 per ton of rice straw grown in California
Obtain certification from:
DEPARTMENT OF FOOD AND AGRICULTURE
1220 N STREET, ROOM 409
SACRAMENTO CA 95814
Targeted Tax Area (TTA) Hiring & Sales or Use 210 Business incentives for TTA businesses
Tax – FTB 3809
Agricultural Products 175
Commercial Solar Electric System 196
Commercial Solar Energy 181 The expiration dates for these credits have passed. However, these credits had carryover
Contribution of Computer Software 202 features. You may claim these credits if there is a carryover available from prior years. If
Employer Ridesharing – Large employer 191 you are not required to complete Schedule P (100), get form FTB 3540, Credit
Employer Ridesharing – Small employer 192 Carryover Summary, to figure your credit carryover to future years.
Employer Rideshare – Transit 193
Energy Conservation 182
Los Angeles Revitalization Zone (LARZ) Hiring
& Sales or Use Tax 159
Low Emission Vehicles 160
Orphan Drug 185
Recycling Equipment 174
Ridesharing 171
Salmon & Steelhead Trout Habitat Restoration 200
Solar Energy 180
Solar Pump 179
Technology Property Contributions 201

Page 14 Form 100 Booklet 2000


Code Code
Principal Business Activity Codes 315230 Women’s & Girls’ Cut & Sew 332900 Other Fabricated Metal
This list of principal business activities and their associated codes is designed to Apparel Mfg Product Mfg
classify a business by the type of activity in which it is engaged to facilitate the 315290 Other Cut & Sew Apparel Mfg Machinery Manufacturing
administration of the California Revenue and Taxation Code. For taxable years 315990 Apparel Accessories & Other 333100 Agriculture, Construction, &
beginning on or after January 1, 1998, these principal business activity codes are Apparel Mfg Mining Machinery Mfg
based on the North American Industry Classification System. Leather and Allied Product 333200 Industrial Machinery Mfg
Manufacturing 333310 Commercial & Service
Using the list of activities and codes below, determine from which activity the
company derives the largest percentage of its ‘’total receipts.’’ Total receipts is 316110 Leather & Hide Tanning & Industry Machinery Mfg
Finishing 333410 Ventilation, Heating, Air-
defined as the sum of gross receipts or sales (Side 3, Schedule F, line 1a) plus all 316210 Footwear Mfg (including rubber Conditioning, & Commercial
other income (Side 3, Schedule F, lines 4 through 10). If the company purchases raw & plastics) Refrigeration Equipment Mfg
materials and supplies them to a subcontractor to produce the finished product, but 316990 Other Leather & Allied Product 333510 Metalworking Machinery Mfg
retains title to the product, the company is considered a manufacturer and must use Mfg 333610 Engine, Turbine, & Power
one of the manufacturing codes (311110-339900). Wood Product Manufacturing Transmission Equipment Mfg
Once the principal business activity is determined, entries must be made on 321110 Sawmills & Wood Preservation 333900 Other General Purpose
Form 100, Question E. For the business activity code number, enter the six-digit 321210 Veneer, Plywood, & Engi- Machinery Mfg
code selected from the list below. On the next line enter a brief description of the neered Wood Product Mfg Computer and Electronic Product
company’s business activity. Finally, enter a description of the principal product or 321900 Other Wood Product Mfg Manufacturing
service of the company on the next line. Paper Manufacturing 334110 Computer & Peripheral
Equipment Mfg
322100 Pulp, Paper, & Paperboard
Mills 334200 Communications Equipment
Mfg
322200 Converted Paper Product Mfg
334310 Audio & Video Equipment Mfg
Printing and Related Support 334410 Semiconductor & Other
Agriculture, Forestry, Construction Activities Electronic Component Mfg
Fishing, and Hunting Code 323100 Printing & Related Support 334500 Navigational, Measuring,
Code Building, Developing, and General Activities Electromedical, & Control
Crop Production Contracting Petroleum and Coal Products Instruments Mfg
111100 Oilseed & Grain Farming 233110 Land Subdivision & Land Manufacturing 334610 Manufacturing & Reproducing
111210 Vegetable & Melon Farming Development 324110 Petroleum Refineries Magnetic & Optical Media
(including potatoes & yams) 233200 Residential Building (including integrated) Electrical Equipment, Appliance, and
111300 Fruit & Tree Nut Farming Construction 324120 Asphalt Paving, Roofing, & Component Manufacturing
111400 Greenhouse, Nursery, & 233300 Nonresidential Building Saturated Materials Mfg 335100 Electric Lighting Equipment
Floriculture Production Construction 324190 Other Petroleum & Coal Mfg
111900 Other Crop Farming (including Heavy Construction Products Mfg 335200 Household Appliance Mfg
tobacco, cotton, sugarcane, 234100 Highway, Street, Bridge, & Chemical Manufacturing 335310 Electrical Equipment Mfg
hay, peanut, sugar beet, & all Tunnel Construction 325100 Basic Chemical Mfg 335900 Other Electrical Equipment &
other crop farming) 234900 Other Heavy Construction 325200 Resin, Synthetic Rubber, & Component Mfg
Animal Production Special Trade Contractors Artificial & Synthetic Fibers & Transportation Equipment
112111 Beef Cattle Ranching & 235110 Plumbing, Heating, & Air- Filaments Mfg Manufacturing
Farming Conditioning Contractors 325300 Pesticide, Fertilizer, & Other 336100 Motor Vehicle Mfg
112112 Cattle Feedlots 235210 Painting & Wall Covering Agricultural Chemical Mfg 336210 Motor Vehicle Body & Trailer
112120 Dairy Cattle & Milk Production Contractors 325410 Pharmaceutical & Medicine Mfg
112210 Hog & Pig Farming 235310 Electrical Contractors Mfg 336300 Motor Vehicle Parts Mfg
112300 Poultry & Egg Production 235400 Masonry, Drywall, Insulation, & 325500 Paint, Coating, & Adhesive Mfg 336410 Aerospace Product & Parts
112400 Sheep & Goat Farming Tile Contractors 325600 Soap, Cleaning Compound, & Mfg
235500 Carpentry & Floor Contractors Toilet Preparation Mfg 336510 Railroad Rolling Stock Mfg
112510 Animal Aquaculture (including
shellfish & finfish farms & 235610 Roofing, Siding, & Sheet Metal 325900 Other Chemical Product & 336610 Ship & Boat Building
hatcheries) Contractors Preparation Mfg
336990 Other Transportation
112900 Other Animal Production 235710 Concrete Contractors Plastics and Rubber Products Equipment Mfg
235810 Water Well Drilling Contractors Manufacturing
Forestry and Logging Furniture and Related Product
235900 Other Special Trade 326100 Plastics Product Mfg Manufacturing
113110 Timber Tract Operations
Contractors 326200 Rubber Product Mfg 337000 Furniture & Related Product
113210 Forest Nurseries & Gathering
of Forest Products Nonmetallic Mineral Product Manufacturing
113310 Logging Manufacturing Manufacturing Miscellaneous Manufacturing
Food Manufacturing 327100 Clay Product & Refractory Mfg 339110 Medical Equipment & Supplies
Fishing, Hunting and Trapping
311110 Animal Food Mfg 327210 Glass & Glass Product Mfg Mfg
114110 Fishing
311200 Grain & Oilseed Milling 327300 Cement & Concrete Product 339900 Other Miscellaneous
114210 Hunting & Trapping Mfg
311300 Sugar & Confectionery Product Manufacturing
Support Activities for Agriculture and Mfg 327400 Lime & Gypsum Product Mfg
Forestry 311400 Fruit & Vegetable Preserving & 327900 Other Nonmetallic Mineral Wholesale Trade
115110 Support Activities for Crop Specialty Food Mfg Product Mfg
Production (including cotton Wholesale Trade, Durable Goods
311500 Dairy Product Mfg Primary Metal Manufacturing 421100 Motor Vehicle & Motor Vehicle
ginning, soil preparation,
planting, & cultivating) 311610 Animal Slaughtering and 331110 Iron & Steel Mills & Ferroalloy Parts & Supplies Wholesalers
Processing Mfg 421200 Furniture & Home Furnishing
115210 Support Activities for Animal
Production 311710 Seafood Product Preparation & 331200 Steel Product Mfg from Wholesalers
Packaging Purchased Steel 421300 Lumber & Other Construction
115310 Support Activities for Forestry
311800 Bakeries & Tortilla Mfg 331310 Alumina & Aluminum Materials Wholesalers
Mining 311900 Other Food Mfg (including Production & Processing 421400 Professional & Commercial
coffee, tea, flavorings, & 331400 Nonferrous Metal (except Equipment & Supplies
211110 Oil & Gas Extraction seasonings) Aluminum) Production & Wholesalers
212110 Coal Mining Processing
212200 Metal Ore Mining Beverage and Tobacco Product 421500 Metal & Mineral (except
Manufacturing 331500 Foundries Petroleum) Wholesalers
212310 Stone Mining & Quarrying
312110 Soft Drink & Ice Mfg Fabricated Metal Product 421600 Electrical Goods Wholesalers
212320 Sand, Gravel, Clay, & Ceramic
& Refractory 312120 Breweries Manufacturing 421700 Hardware & Plumbing &
312130 Wineries 332110 Forging & Stamping Heating Equipment & Supplies
Minerals Mining & Quarrying 312140 Distilleries 332210 Cutlery & Handtool Mfg Wholesalers
212390 Other Nonmetallic Mineral 312200 Tobacco Manufacturing 332300 Architectural & Structural 421800 Machinery, Equipment, &
Mining & Quarrying Metals Mfg Supplies Wholesalers
213110 Support Activities for Mining Textile Mills and Textile Product Mills 421910 Sporting & Recreational
332400 Boiler, Tank, & Shipping
313000 Textile Mills Container Mfg Goods & Supplies Wholesalers
Utilities 314000 Textile Product Mills 332510 Hardware Mfg 421920 Toy & Hobby Goods &
221100 Electric Power Generation, 332610 Spring & Wire Product Mfg Supplies Wholesalers
Transmission & Distribution Apparel Manufacturing 421930 Recyclable Material
315100 Apparel Knitting Mills 332700 Machine Shops, Turned
221210 Natural Gas Distribution Product, & Screw, Nut, & Bolt Wholesalers
221300 Water, Sewage, & Other 315210 Cut & Sew Apparel 421940 Jewelry, Watch, Precious
Contractors Mfg
Systems 332810 Coating, Engraving, Heat Stone, & Precious Metal
315220 Men’s & Boys’ Cut & Sew Wholesalers
Apparel Mfg Treating, & Allied Activities
421990 Other Miscellaneous Durable
Goods Wholesalers

Form 100 Booklet 2000 Page 15


Code Code Code Code
Wholesale Trade, Nondurable Goods Clothing and Clothing Accessories Support Activities for Transportation 523210 Securities & Commodity
422100 Paper & Paper Product Stores 488100 Support Activities for Air Exchanges
Wholesalers 448110 Men’s Clothing Stores Transportation 523900 Other Financial Investment
422210 Drugs & Druggists’ Sundries 448120 Women’s Clothing Stores 488210 Support Activities for Rail Activities (including portfolio
Wholesalers 448130 Children’s & Infants’ Clothing Transportation management & investment
422300 Apparel, Piece Goods, & Stores 488300 Support Activities for Water advice)
Notions Wholesalers 448140 Family Clothing Stores Transportation Insurance Carriers and Related
422400 Grocery & Related Product 448150 Clothing Accessories Stores 488410 Motor Vehicle Towing Activities
Wholesalers 448190 Other Clothing Stores 488490 Other Support Activities for 524140 Direct Life, Health, & Medical
422500 Farm Product Raw Material 448210 Shoe Stores Road Transportation Insurance & Reinsurance
Wholesalers 448310 Jewelry Stores 488510 Freight Transportation Carriers
422600 Chemical & Allied Products 448320 Luggage & Leather Goods Arrangement 524150 Direct Insurance & Reinsur-
Wholesalers Stores 488990 Other Support Activities for ance (except Life, Health, &
422700 Petroleum & Petroleum Transportation Medical) Carriers
Products Wholesalers Sporting Goods, Hobby, Book, and 524210 Insurance Agencies &
Music Stores Couriers and Messengers
422800 Beer, Wine, & Distilled Brokerages
451110 Sporting Goods Stores 492110 Couriers
Alcoholic Beverage 524290 Other Insurance Related
Wholesalers 451120 Hobby, Toy, & Game Stores 492210 Local Messengers & Local Activities
451130 Sewing, Needlework, & Piece Delivery
422910 Farm Supplies Wholesalers Funds, Trusts, and Other Financial
422920 Book, Periodical, & Newspaper Goods Stores Warehousing and Storage Vehicles
Wholesalers 451140 Musical Instrument & Supplies 493100 Warehousing & Storage 525100 Insurance & Employee Benefit
422930 Flower, Nursery Stock, & Stores (except lessors of Funds
Florists’ Supplies Wholesalers 451211 Book Stores miniwarehouses & self-
storage units) 525910 Open-End Investment Funds
422940 Tobacco & Tobacco Product 451212 News Dealers & Newsstands (Form 1120-RIC)
Wholesalers 451220 Prerecorded Tape, Compact 525920 Trusts, Estates, & Agency
422950 Paint, Varnish, & Supplies Disc, & Record Stores Information Accounts
Wholesalers General Merchandise Stores Publishing Industries 525930 Real Estate Investment Trusts
422990 Other Miscellaneous 452110 Department stores 511110 Newspaper Publishers (Form 1120-REIT)
Nondurable Goods 452900 Other General Merchandise 511120 Periodical Publishers 525990 Other Financial Vehicles
Wholesalers Stores 511130 Book Publishers
Miscellaneous Store Retailers 511140 Database & Directory Real Estate and Rental and
Retail Trade Publishers Leasing
453110 Florists
Motor Vehicle and Parts Dealers 511190 Other Publishers
453210 Office Supplies & Stationery Real Estate
441110 New Car Dealers Stores 511210 Software Publishers
531110 Lessors of Residential
441120 Used Car Dealers 453220 Gift, Novelty, & Souvenir Motion Picture and Sound Recording Buildings & Dwellings
441210 Recreational Vehicle Dealers Stores Industries 531120 Lessors of Nonresidential
441221 Motorcycle Dealers 453310 Used Merchandise Stores 512100 Motion Picture & Video Buildings (except
441222 Boat Dealers 453910 Pet & Pet Supplies Stores Industries (except video rental) Miniwarehouses)
441229 All Other Motor Vehicle 453920 Art Dealers 512200 Sound Recording Industries 531130 Lessors of Miniwarehouses &
Dealers 453930 Manufactured (Mobile) Home Broadcasting and Self-Storage Units
441300 Automotive Parts, Accessories, Dealers Telecommunications 531190 Lessors of Other Real Estate
& Tire Stores 453990 All Other Miscellaneous Store 513100 Radio & Television Property
Furniture and Home Furnishings Retailers (including tobacco, Broadcasting 531210 Offices of Real Estate Agents
Stores candle, & trophy shops) 513200 Cable Networks & Program & Brokers
442110 Furniture Stores Nonstore Retailers Distribution 531310 Real Estate Property
442210 Floor Covering Stores 513300 Telecommunications (including Managers
454110 Electronic Shopping & Mail-
442291 Window Treatment Stores Order Houses paging, cellular, satellite, & 531320 Offices of Real Estate
442299 All Other Home Furnishings other telecommunications) Appraisers
454210 Vending Machine Operators
Stores Information Services and Data 531390 Other Activities Related to
454311 Heating Oil Dealers Real Estate
Electronics and Appliance Stores 454312 Liquefied Petroleum Gas Processing Services
443111 Household Appliance Stores (Bottled Gas) Dealers 514100 Information Services (including Rental and Leasing Services
443112 Radio, Television, & Other 454319 Other Fuel Dealers news syndicates, libraries, & 532100 Automotive Equipment Rental
Electronics Stores 454390 Other Direct Selling Establish- on-line information services) & Leasing
443120 Computer & Software Stores ments (including door-to-door 514210 Data Processing Services 532210 Consumer Electronics &
retailing, frozen food plan Appliances Rental
443130 Camera & Photographic
Supplies Stores providers, party plan Finance and Insurance 532220 Formal Wear & Costume
merchandisers, & coffee-break Depository Credit Intermediation Rental
Building Material and Garden service providers) 532230 Video Tape & Disc Rental
Equipment and Supplies Dealers 522110 Commercial Banking
522120 Savings Institutions 532290 Other Consumer Goods Rental
444110 Home Centers Transportation and 532310 General Rental Centers
444120 Paint & Wallpaper Stores 522130 Credit Unions
Warehousing 522190 Other Depository Credit 532400 Commercial & Industrial
444130 Hardware Stores Machinery & Equipment
444190 Other Building Material Air, Rail, and Water Transportation Intermediation
Rental & Leasing
Dealers 481000 Air Transportation Nondepository Credit Intermediation
482110 Rail Transportation Lessors of Nonfinancial Intangible
444200 Lawn & Garden Equipment & 522210 Credit Card Issuing Assets (except copyrighted works)
Supplies Stores 483000 Water Transportation 522220 Sales Financing 533110 Lessors of Nonfinancial
Food and Beverage Stores Truck Transportation 522291 Consumer Lending Intangible Assets (except
445110 Supermarkets and Other 484110 General Freight Trucking, Local 522292 Real Estate Credit (including copyrighted works)
Grocery (except Convenience) 484120 General Freight Trucking, mortgage bankers &
Stores Long-distance originators) Professional, Scientific, and
445120 Convenience Stores 484200 Specialized Freight Trucking 522293 International Trade Financing Technical Services
445210 Meat Markets Transit and Ground Passenger 522294 Secondary Market Financing
522298 All Other Nondepository Credit Legal Services
445220 Fish & Seafood Markets Transportation
Intermediation 541110 Offices of Lawyers
445230 Fruit & Vegetable Markets 485110 Urban Transit Systems 541190 Other Legal Services
445291 Baked Goods Stores 485210 Interurban & Rural Bus Activities Related to Credit
445292 Confectionery & Nut Stores Transportation Intermediation Accounting, Tax Preparation,
445299 All Other Specialty Food 485310 Taxi Service 522300 Activities Related to Credit Bookkeeping, and Payroll Services
Stores 485320 Limousine Service Intermediation (including loan 541211 Offices of Certified Public
445310 Beer, Wine, & Liquor Stores brokers) Accountants
485410 School & Employee Bus
Transportation Securities, Commodity Contracts, and 541213 Tax Preparation Services
Health and Personal Care Stores 541214 Payroll Services
446110 Pharmacies & Drug Stores 485510 Charter Bus Industry Other Financial Investments and
485990 Other Transit & Ground Related Activities 541219 Other Accounting Services
446120 Cosmetics, Beauty Supplies, &
Perfume Stores Passenger Transportation 523110 Investment Banking & Architectural, Engineering, and
Securities Dealing Related Services
446130 Optical Goods Stores Pipeline Transportation
523120 Securities Brokerage 541310 Architectural Services
446190 Other Health & Personal Care 486000 Pipeline Transportation Scenic
Stores & Sightseeing Transportation 523130 Commodity Contracts Dealing 541320 Landscape Architecture
487000 Scenic & Sightseeing 523140 Commodity Contracts Services
Gasoline Stations Brokerage 541330 Engineering Services
447100 Gasoline Stations (including Transportation
541340 Drafting Services
convenience stores with gas)
541350 Building Inspection Services

Page 16 Form 100 Booklet 2000


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

Form 100 Booklet 2000 Page 17


THIS PAGE INTENTIONALLY LEFT BLANK

visit our website:

www.ftb.ca.gov

Page 18 FTB 100 Booklet 2000


TAXABLE YEAR
California Corporation FORM

2000 Franchise or Income Tax Return (NOT TO BE USED BY WATER’S-EDGE ELECTORS) 100
For calendar year 2000 or fiscal year beginning month _______ day _______ year 2000, and ending month _______ day _______ year 20 ____ .
California corporation number Federal employer identification number (FEIN) A Final return?   Dissolved  Surrendered (withdrawn)  Merged/Reorganized

Corporation name
- B
 IRC Section 338 sale  QSub election. Enter date  _____________________
Is income included in a combined report of a unitary group? . . . .   Yes  No
If yes, indicate:  wholly within CA (R&TC 25101.15)  within and outside of CA

Address PMB no. C If the corp. filed on a water’s-edge basis pursuant to R&TC Sections 25110 and 25111
in previous years, enter the date the water’s-edge election ended  ______________
City State ZIP Code D Was the corporation’s income included in a consolidated
federal return? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .   Yes  No
Questions continued on Side 2
1 Net income (loss) before state adjustments. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1
2 Amount deducted for foreign or domestic tax based on income or profits . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2
3 Amount deducted for tax under the provisions of the Bank and Corporation Tax Law . . . . . . . . . . . . . . . . . . . .  3
4 Interest on government obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
5 Net California capital gain from Schedule D, line 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5
6 Depreciation and amortization in excess of amount allowed under California law. Attach form FTB 3885 . . . . . .  6
State 7 Net income of corporations not included in federal consolidated return. See instructions . . . . . . . . . . . . . . . . .  7
Adjust-
8 Other additions. Attach schedule(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  8
ments
9 Total. Add line 1 through line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1234567890123456789012345
9
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10 Intercompany dividend deduction. Attach Schedule H (100) . . . . . . . . . . .  10 1234567890123456789012345
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11 Other dividend deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  11
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12 Capital gain from federal Form 1120 or Form 1120A, line 8 . . . . . . . . . . .  12
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13 Contributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  13 1234567890123456789012345
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14 EZ, LAMBRA, or TTA business expense and net interest deduction . . . . . .  14 1234567890123456789012345
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15 Other deductions. Attach schedule(s) . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15
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16 Total. Add line 10 through line 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16
17 Net income (loss) after state adjustments. Subtract line 16 from line 9. See instructions . . . . . . . . . . . . . . . . .  17
If income is from sources both within and outside California, complete Schedule R.
18 Net income (loss) for state purposes. If net loss, see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1234567890123456789012345
 18
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Calif. 19 Net operating loss (NOL) carryover deduction. See instructions . . . . . . . .  19 1234567890123456789012345
20 EZ, LARZ, TTA, or LAMBRA NOL carryover deduction. See instructions .  20 1234567890123456789012345
Net
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Income
21 Disaster loss carryover deduction. See instructions . . . . . . . . . . . . . . . . .  21 1234567890123456789012345
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22 Net income for tax purposes. Combine line 19 through line 21, then subtract from line 18 . . . . . . . . . . . . . . . .  22
23 Tax. __________% x line 22 (not less than minimum franchise tax, if applicable) . . . . . . . . . . . . . . . . . . . . . . .1234567890123456789012345  23
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24 Enter credit name __________________code no. __ __ __ and amount .  24 1234567890123456789012345
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25 Enter credit name __________________code no. __ __ __ and amount .  25
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26 Enter credit name __________________code no. __ __ __ and amount .  26
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Taxes 27 To claim more than three credits, see instructions . . . . . . . . . . . . . . . . . .  27 1234567890123456789012345
28 Add line 24 through line 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  28
29 Balance. Subtract line 28 from line 23 (not less than minimum franchise tax, if applicable) . . . . . . . . . . . . . . .  29
30 Alternative minimum tax. Attach Schedule P (100). See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  30
31 Total tax. Add line 29 and line 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  31
32 Additional SOS prepayment tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  32
33 Adjusted total tax. Add line 31 and line 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1234567890123456789012345
 33
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34 Overpayment from prior year allowed as a credit . . . . . . . . . . . . . . . . . . .  34 1234567890123456789012345
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35 2000 estimate tax payments/excess SOS prepayment tax. See instructions .  35 1234567890123456789012345
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Pay- 1234567890123456789012345
ments 36 Amount paid with extension of time to file return . . . . . . . . . . . . . . . . . . .  36 1234567890123456789012345
37 Total payments. Add line 34 through line 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  37
38 Tax due. If line 33 is more than line 37, subtract line 37 from line 33. Go to line 42 . . . . . . . . . . . . . . . . . . . . .  38
39 Overpayment. If line 37 is more than line 33, subtract line 33 from line 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . .  39
40 Amount of line 39 to be credited to 2001 estimated tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  40
Amount
Due or
Refund 41 Amount of line 39 to be refunded . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  41 .
42 Penalties and interest. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  42
43   Check if estimate penalty computed using Exception B or C. Attach form FTB 5806.
44 Total amount due. Add line 38 and line 42. Pay this amount . . . . . . . . . . . . . . . . 44 .
10000109 Form 100 C1 2000 (REV 03-04) Side 1
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) Kind of property and description (b) Date acquired (c) Date sold (d) Gross sales price (e) Cost or other basis (f) Gain (loss)
(Example, 100 shares of Z Co.) (mo., day, yr.) (mo., day, yr.) plus expense of sale ((d) less (e))

2 Short-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Unused capital loss carryover from 1999 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Net short-term capital gain (loss). Combine line 1 through line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Part II Long-Term Capital Gains and Losses – Assets held More Than One Year. Use additional sheet(s) if necessary.
5

6 Enter gain from Schedule D-1, line 9 and/or any capital gain distributions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Long-term capital gain from installment sales from form FTB 3805E, line 26 or line 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
8 Net long-term capital gain (loss). Combine line 5 through line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Enter excess of net short-term capital gain (line 4) over net long-term capital loss (line 8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Net capital gain. Enter excess of net long-term capital gain (line 8) over net short-term capital loss (line 4) . . . . . . . . . . . . . . . . 10
11 Total line 9 and line 10. Enter here and on Form 100, Side 1, line 5. Note: If losses exceed gains, carry forward losses to 2001 11
Schedule J Add-On Taxes and Recapture of Tax Credits. See instructions.
1 LIFO recapture due to S corporation election (IRC Sec. 1363(d) deferral: $____________________) . . . . . . . . . . . . . . . . . . .  1
2 Interest computed under the look-back method for completed long-term contracts (Attach form FTB 3834) . . . . . . . . . . . . . .  2
3 Interest on tax attributable to installment: a Sales of certain timeshares and residential lots . . . . . . . . . . . . . . . . . . . . . . . .  3a
b Method for nondealer installment obligations . . . . . . . . . . . . . . . . . . . . . . . . .  3b
4 IRC Section 197(f)(9)(B)(ii) election . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
5 Credit recapture name:_____________________________________________________________________ . . . . . . . . . . .  5
6 Combine line 1 through line 5, Revise Side 1, line 38 or line 39, whichever applies, by this amount. Write
“Schedule J” to the left of line 38 or line 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
Questions (continued from Side 1) M Is this corporation apportioning income to California using Schedule R? . .   Yes  No
E Principal business activity code. (Do not leave blank): . . . .  N How many affiliates in the combined report are claiming
Business activity __________________________________________________________ immunity from taxation in California under Public Law 86-272?  _____________________
Product or service _________________________________________________________ O Corporation headquarters are:  (1)  Within California
F Date incorporated:_____________  Where: State Country_______________ (2)  Outside of California, within the U.S. (3)  Outside of the U.S.
G Date business began in California or date income was first derived from
P Location of principal accounting records _________________________________________
California sources  _______________________________________________________
H First return?   Yes  No If “Yes” and this corporation is a successor to a Q Accounting method:  (1)  Cash (2)  Accrual (3)  Other
previously existing business, check the appropriate box. R Did this corporation or one of its subsidiaries make a federal election
 (1)  sole proprietorship (2)  partnership (3)  joint venture (4)  corporation (5)  other to be treated as a foreign sales corporation (FSC) or a domestic
(attach statement showing name, address and FEIN of previous business) international sales corporation (DISC): . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  Yes  No
I “Doing business as” name:  ________________________________________________ S Is this corporation a RIC for California purposes? . . . . . . . . . . . . . . . . . . .   Yes  No
J Did this corporation or its subsidiary(ies) have a change in control or ownership, T Is this corporation treated as a REMIC for California purposes? . . . . . . . .   Yes  No
or acquire ownership or control of any other legal entity this year? . . . . .   Yes  No U Is this corporation a REIT for California purposes? . . . . . . . . . . . . . . . . . .   Yes  No
K At any time during the taxable year, was more than 50% of the voting stock: V Is this corporation an LLC or limited partnership electing to be taxed
a Of the corporation owned by any single interest? . . . . . . . . . . . . . . .   Yes  No
as a corporation for federal purposes? . . . . . . . . . . . . . . . . . . . . . . . . . . . .   Yes  No
b Of another corporation owned by this corporation? . . . . . . . . . . . . .   Yes  No
c Of this and one or more other corporations owned or controlled, W Is this corporation to be treated as a credit union? . . . . . . . . . . . . . . . . . . .   Yes  No
directly or indirectly, by the same interests? . . . . . . . . . . . . . . . . . .   Yes  No X Is the corporation under audit by the IRS or
If a or c is “Yes,” enter the country of the ultimate parent  _____________________ has it been audited by the IRS in a prior year? . . . . . . . . . . . . . . . . . . . . . .   Yes  No
If a, b or c is “Yes,” furnish a statement of ownership indicating pertinent names, Y Have all required information returns (e.g. Federal Forms 1099, 5471,
addresses, and percentages of stock owned. If the owner(s) is an individual, provide 5472, 8300, 8865, etc.) been filed with the Franchise Tax Board? . .  N/A  Yes  No
the SSN. Z During the taxable year, were gross receipts (less returns and allowances)
L Was 50% or more of the stock of this corporation owned by another of this corporation more than $1 million? . . . . . . . . . . . . . . . . . . . . . . . . . .   Yes  No
corporation during this taxable year? . . . . . . . . . . . . . . . . . . . . . . . . . . .   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
Please true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Sign
Signature
Here of officer  Title Date Telephone ( )
Date Preparer’s SSN/PTIN
Preparer’s Check if self-
signature  employed  
Paid FEIN
Preparer’s
Use Only Firm’s name (or yours,
if self-employed) 
-
and address
Telephone ( )

Side 2 Form 100 C1 2000 (REV 03-04) 10000209 For Privacy Act Notice, get form FTB 1131.
Schedule A Taxes Deducted. Use additional sheet(s) if necessary.
(a) Nature of tax (b) Taxing authority (c) Total amount (d) Nondeductible amount

Total. Enter total of column (c) on Schedule F, line 17, and amounts in column (d) on Side 1, line 2 or line 3
Schedule F Computation of Net Income. See instructions.
1 a) Gross receipts or gross sales____________ b) Less returns and allowance____________ Balance . .  1c
2 Cost of goods sold. Attach federal Schedule A (California Schedule V) . . . . . . . . . . . . . . . . . . . . . . . . . . . .  2
3 Gross profit. Subtract line 2 from line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3
4 Dividends. Attach federal Schedule C (California Schedule H) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4
5 a Interest on obligations of the United States and U.S. instrumentalities . . . . . . . . . . . . . . . . . . . . . . . . . .  5a
Income b Other interest. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  5b
6 Gross rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  6
7 Gross royalties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7
8 Capital gain net income. Attach federal Schedule D (California Schedule D) . . . . . . . . . . . . . . . . . . . . . . . . .  8
9 Ordinary gain (loss). Attach federal Form 4797 (California Schedule D-1) . . . . . . . . . . . . . . . . . . . . . . . . . .  9
10 Other income (loss). Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  10
11 Total income. Add line 3 through line 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  12345678901234567890123456
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11
12 Compensation of officers. Attach federal schedule E or equivalent schedule  12 12345678901234567890123456
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13 Salaries and wages (not deducted elsewhere) . . . . . . . . . . . . . . . . .  13
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14 Repairs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 12345678901234567890123456
12345678901234567890123456
12345678901234567890123456
15 Bad debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  15 12345678901234567890123456
16 Rents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  16 12345678901234567890123456
12345678901234567890123456
17 Taxes (California Schedule A) . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  17
12345678901234567890123456
12345678901234567890123456
12345678901234567890123456
18 Interest. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  18 12345678901234567890123456
12345678901234567890123456
19 Contributions. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . .  1234567890123456789012345
123456789012345678901234512345678901234567890123456
19 12345678901234567890123456
Deduc- 20 Depreciation. Attach federal 1234567890123456789012345
123456789012345678901234512345678901234567890123456 12345678901234567890123456
tions 1234567890123456789012345
123456789012345678901234512345678901234567890123456 12345678901234567890123456
Form 4562 and FTB 3885) . . . 20
12345678901234567890123456
12345678901234567890123456
21 Less depreciation claimed 12345678901234567890123456
12345678901234567890123456
elsewhere on return . . . . . . . . 21a  21b 12345678901234567890123456
22 Depletion. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  22
12345678901234567890123456
12345678901234567890123456
12345678901234567890123456
12345678901234567890123456
23 Advertising . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
12345678901234567890123456
12345678901234567890123456
24 Pension, profit-sharing, etc., plans . . . . . . . . . . . . . . . . . . . . . . . . . . 24 12345678901234567890123456
25 Employee benefit plans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 12345678901234567890123456
12345678901234567890123456
26 a) Total travel and entertainment_____________ b) Deductible amounts  26b
12345678901234567890123456
12345678901234567890123456
12345678901234567890123456
27 Other deductions. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . .  27 12345678901234567890123456
12345678901234567890123456
28 Specific deduction for 23701r or 23701t organizations. See instructions .  28 12345678901234567890123456
29 Total deductions. Add line 12 through line 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  29
30 Net income before state adjustments. Subtract line 29 from line 11. Enter here and one Side 1, line 1 . . . .  30
Schedule V Cost of Goods Sold
1 Inventory at beginning of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Cost of labor . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  3
4 a Additional IRC Section 263A costs. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4a
b Other costs. Attach schedule . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  4b
5 Total. Add line 1 through line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
6 Inventory at end of year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 Cost of goods sold. Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
Method of inventory valuation  __________________________________________________________________________________________________
Was there any change in determining quantities, costs of valuations between opening and closing inventory? If “Yes,” attach an explanation . . . .  Yes  No
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

10000309 Form 100 C1 2000 (REV 03-04) Side 3


Schedule L Balance Sheets Beginning of taxable year End of taxable year
Assets 123456789012345678
(a)
123456789012345678 (b) 12345678901234567
(c)
12345678901234567 (d)
1 Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .123456789012345678 123456789012345678
123456789012345678
12345678901234567 
123456789012345678
2 a Trade notes and accounts receivable . . . . . . . . . . .
123456789012345678
123456789012345678 123456789012345678
123456789012345678
b Less allowance for bad debts . . . . . . . . . . . . . . . . .123456789012345678( ) 12345678901234567
( ) 
123456789012345678 12345678901234567
3 Inventories . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123456789012345678
123456789012345678
. 12345678901234567 
12345678901234567
4 Federal and state government obligations . . . . . . . . .123456789012345678 123456789012345678 12345678901234567 
12345678901234567
5 Other current assets. Attach schedule(s) . . . . . . . . . .123456789012345678
123456789012345678 12345678901234567
12345678901234567
123456789012345678 12345678901234567
6 Loans to stockholders/officers. Attach schedule . . . .123456789012345678 123456789012345678 12345678901234567
12345678901234567 
123456789012345678
7 Mortgage and real estate loans . . . . . . . . . . . . . . . . .123456789012345678 12345678901234567
12345678901234567 
8 Other investments. Attach schedule(s) . . . . . . . . . . .123456789012345678
123456789012345678 123456789012345678 12345678901234567 
12345678901234567123456789012345678
123456789012345678
123456789012345678 123456789012345678
123456789012345678
9 a Buildings and other fixed depreciable assets . . . . .
b Less accumulated depreciation . . . . . . . . . . . . . . . ( ) 12345678901234567 ( 123456789012345678
) 
12345678901234567
12345678901234567 123456789012345678
123456789012345678
10 a Depletable assets . . . . . . . . . . . . . . . . . . . . . . . . . . 12345678901234567 123456789012345678
b Less accumulated depletion . . . . . . . . . . . . . . . . . .123456789012345678 ( ) 12345678901234567
( )
123456789012345678
123456789012345678 1234567890123456712345678901234567
12345678901234567 123456789012345678
11 Land (net of any amortization) . . . . . . . . . . . . . . . . . .
12345678901234567 
123456789012345678
12 a Intangible assets (amortizable only) . . . . . . . . . . . 12345678901234567  123456789012345678
b Less accumulated amortization . . . . . . . . . . . . . . .123456789012345678 123456789012345678
( ) 123456789012345678
123456789012345678
( )
123456789012345678
13 Other assets. Attach schedule(s) . . . . . . . . . . . . . . . .123456789012345678
123456789012345678
123456789012345678 
123456789012345678 123456789012345678
14 Total assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123456789012345678
.
123456789012345678 12345678901234567
12345678901234567123456789012345678
123456789012345678 123456789012345678

123456789012345678
123456789012345678 12345678901234567123456789012345678 123456789012345678
Liabilities and stockholders’ equity 123456789012345678
123456789012345678 123456789012345678
123456789012345678
15 Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . .123456789012345678 123456789012345678
123456789012345678 123456789012345678
16 Mortgages, notes, bonds payable in less than 1 year 123456789012345678 123456789012345678
123456789012345678
123456789012345678 123456789012345678
123456789012345678
17 Other current liabilities. Attach schedule(s) . . . . . . . .123456789012345678 123456789012345678
123456789012345678
18 Loans from stockholders . . . . . . . . . . . . . . . . . . . . . .123456789012345678 123456789012345678
123456789012345678
19 Mortgages, notes, bonds payable in 1 year or more 123456789012345678
123456789012345678 123456789012345678
123456789012345678
123456789012345678
123456789012345678 123456789012345678
20 Other liabilities. Attach schedule(s) . . . . . . . . . . . . . . 12345678901234567
12345678901234567
12345678901234567812345678901234567

12345678901234567
21 Capital stock: a Preferred stock . . . . . . . . . . . . . . . 12345678901234567  12345678901234567
b Common stock . . . . . . . . . . . . . . .123456789012345678 
123456789012345678 
22 Paid-in or capital surplus. Attach reconciliation . . . . .123456789012345678
123456789012345678 123456789012345678
123456789012345678 123456789012345678
123456789012345678

23 Retained earnings – Appropriated. Attach schedule 123456789012345678 123456789012345678 123456789012345678
123456789012345678
24 Retained earnings – Unappropriated . . . . . . . . . . . . .123456789012345678 123456789012345678
123456789012345678
123456789012345678
25 Adjustments to shareholders’ equity (attach schedule) 123456789012345678
123456789012345678 123456789012345678
123456789012345678
123456789012345678 )123456789012345678
26 Less cost of treasury stock . . . . . . . . . . . . . . . . . . . 123456789012345678
. ( 123456789012345678( )
123456789012345678
123456789012345678 123456789012345678
123456789012345678
27 Total liabilities and stockholders’ equity.
Schedule M-1 Reconciliation of income (loss) per books with income (loss) per return.
This schedule does not have to be completed if the amount on Schedule L, line 14, column (d), is less than $25,000. 123456789012345
123456789012345
1 Net income per books . . . . . . . . . . . . . . . . . . . . . . . . . . . .  7 Income recorded on books this year not 123456789012345
123456789012345
2 Federal income tax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .  included in this return (itemize)
123456789012345
123456789012345
123456789012345
3 Excess of capital losses over capital gains . . . . . . . . . . . . .  123456789012345 a Tax-exempt interest $______________________ 123456789012345
123456789012345
123456789012345 123456789012345
4 Taxable income not recorded on books this year 123456789012345 ________________________________________ 123456789012345
(itemize) _________________________________________ 123456789012345 123456789012345 _______________________________________123456789012345
______________________________________________  123456789012345 8
123456789012345
123456789012345
Deductions in this return not charged 123456789012345
123456789012345
5 Expenses recorded on books this year not deducted 123456789012345
123456789012345 against book income this year (itemize) 123456789012345
123456789012345
123456789012345 a Depreciation . . . . . . . . . . . . . . $_______________123456789012345
in this return (itemize) 123456789012345
123456789012345 123456789012345
123456789012345
a Depreciation . . . . . . . . . . . . . . . . . . . . $_______________ 123456789012345 b State tax refunds . . . . . . . . . $_______________123456789012345
123456789012345 123456789012345
b State taxes . . . . . . . . . . . . . . . . . . . . . $_______________ 123456789012345 ________________________________________ 123456789012345
123456789012345
c Travel and entertainment . . . . . . . . . . $_______________ 123456789012345 _______________________________________ 
______________________________________________  9 Total. Add line 7 and line 8 . . . . . . . . . . . . . . . . . . . . .
6 Total. Add line 1 through line 5 . . . . . . . . . . . . . . . . . . . . . . . . 10 Net income per return. Subtract line 9 from line 6 . . .
Schedule M-2 Analysis of unappropriated retained earnings per books (Schedule L, line 24)
This schedule does not have to be completed if the amount on Schedule L, line 14, column (d), is less than $25,000.
1 Balance at beginning of year . . . . . . . . . . . . . . . . . . . . . . .  5 Distributions: a Cash . . . . . . . . . . . . . . . . . . . . . 
2 Net income per books . . . . . . . . . . . . . . . . . . . . . . . . . . . .  123456789012345
123456789012345 b Stock . . . . . . . . . . . . . . . . . . . . . 
3 Other increases (itemize)__________________________
123456789012345
123456789012345 c Property . . . . . . . . . . . . . . . . . . .  123456789012345
123456789012345
1234567890123456 Other decreases (itemize)______________________ 123456789012345
123456789012345
_____________________________________________
123456789012345
123456789012345
_____________________________________________ _______________________________________ 
_____________________________________________  7 Total. Add line 5 and line 6 . . . . . . . . . . . . . . . . . . . . .
4 Total. Add line 1 through line 3 . . . . . . . . . . . . . . . . . . . . . . . . 8 Balance at end of year. Subtract line 7 from line 4

Side 4 Form 100 C1 2000 (REV 03-04) 10000409


TAXABLE YEAR
CALIFORNIA SCHEDULE

2000 Dividend Income Deduction H (100)


See instructions for Schedule H (100). Use and attach additional sheets if necessary.
Part I Elimination of Intercompany Dividends (R&TC Section 25106)
(a) Dividend payer (b) Dividend (c) Total amount (d) Amount that (e) Amount from (f) Amount from (g) Balance
payee of dividends qualifies column (d) paid column (d) paid column (c)
received for 100% out of current out of prior minus
elimination year E&P year E&P column (d)

1
2
3
4
5
6
7 Total amounts in each column. Enter amount from Part I,
column (d) on Form 100, Side 1, line 10 . . . . . . . . . . . . . .

What's Changed Forms and instructions impacted by the court Part I – Intercompany Dividends
decision in Ceridian v. Franchise Tax Board A corporation may eliminate dividends
Forms and instructions impacted by the court (2000) have been revised to disallow any received from unitary subsidiaries but only to
decision in Farmer Bros. Co. v. Franchise Tax deduction taken based on Section 24410. In the extent that the dividends are paid from
Board (2003) have been revised to disallow Ceridian v. Franchise Tax Board (2000) 85 unitary earnings and profits accumulated
any deduction taken based on Section 24402. Cal.App.4th 875, the Court of Appeal has while both the payee and payer were
In Farmer Bros. Co. v. Franchise Tax Board determined that Section 24410, which members of the combined report (R&TC
(2003) 108 Cal App 4th, 134 Cal Rptr. 2nd provides a limited deduction for dividends Section 25106).
390, the California Court of Appeal found that received from an insurance company, is Complete Schedule H (100), Part I and enter
the R&TC Section 24402 deductible dividend unconstitutional. As such, the statute is the total of column (d) on Form 100, Side 1,
provision discriminated against interstate invalid and unenforceable. Therefore, the line 10.
commerce in violation of the Commerce deduction is not available.
Clause of the United States Constitution. Part II and Part III – Other Dividends
R&TC Section 24402 provided for a deduction Specific Instructions Part II has been deleted due to the Farmer
to the extent that the dividend payer was Bros. Co. v. Franchise Tax Board decision
taxable in California. A statute that is held to A corporation may eliminate or deduct (2003). See What's Changed paragraph.
be unconstitutional is invalid and unenforce- dividend income when certain requirements Part III has been deleted due to the Ceridian v.
able. Therefore, the deduction is not available. are met. The available eliminations or Franchise Tax Board decision (2000). See
deductions are described below. What's Changed paragraph.

H10000109 Schedule H (100) 2000 (REV 03-04)


THIS PAGE INTENTIONALLY LEFT BLANK

visit our Website:

www.ftb.ca.gov

Page 24 Form 100 Booklet 2000 (REV 03-04)


TAXABLE YEAR
Alternative Minimum Tax and CALIFORNIA SCHEDULE

2000 Credit Limitations — Corporations P (100)


Corporation name California corporation number

Part I Tentative Minimum Tax (TMT) and Alternative Minimum Tax (AMT) Computation
1 Net income (loss) after state adjustments. Enter the amount from Form 100, line 17 or Form 109, line 6 . . . . . . . . . . . . . . . 1
2 Adjustments. See instructions
a Depreciation of tangible property placed in service after 1986 . . . . . . . . . . . . . . . . . . . . 쐌 2a
b Amortization of certified pollution control facilities placed in service after 1986 . . . . . . . 2b
c Amortization of mining exploration and development costs incurred after 1987 . . . . . . . 2c
d Basis adjustments in determining gain or loss from sale or exchange of property . . . . . . 2d
e Long-term contracts entered into after February 28, 1986 . . . . . . . . . . . . . . . . . . . . . . . . 2e
f Installment sales of certain property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2f
g Tax shelter farm activities (personal service corporations only) . . . . . . . . . . . . . . . . . . . . 2g
h Passive activities (closely held corporations and personal service corporations only) . . . 2h
i Certain loss limitations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2i
j Beneficiaries of estates and trusts. Enter the amount from Schedule K-1 (541), line 8 . . 2j
k Merchant marine capital construction funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2k
l Combine line 2a through line 2k . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2l
3 Tax preference items. See instructions
a Depletion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3a
b Appreciated property charitable deduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 쐌 3b
c Intangible drilling costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3c
d Reserves for losses on bad debts of savings and loan associations, banks, and financial corporations 3d
e Accelerated depreciation of real property placed in service before 1987 . . . . . . . . . . . . . 3e
f Amortization of certified pollution control facilities placed in service before 1987 . . . . . . 3f
g Add line 3a through line 3f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3g
4 Pre-adjustment alternative minimum taxable income (AMTI):
a Combine line 1, line 2l, and line 3g . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4a
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
5 Adjusted current earnings (ACE) adjustment:
a Enter ACE. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 쐌 5a
b Subtract line 4b from line 5a (even if one or both of the figures are negative).
If negative, use brackets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5b
c Multiply line 5b by 75% (.75) and enter the result as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5c
d 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. Note: Enter an amount on line 5d (even if line 5b is positive) . . . . 5d
e ACE adjustment:
• If line 5b is a positive amount or zero, enter the amount from line 5c on line 5e as a positive amount.
• If line 5b is a negative amount, enter the smaller of line 5c or line 5d on line 5e as a negative amount . . . . . . . . . . . . . 5e
6 Combine line 4b and line 5e. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
7 a Reduction for disaster loss carryover deduction, if any, from Form 100, line 21 . . . . . . . 7a
b AMT net operating loss (NOL) deduction. See instructions . . . . . . . . . . . . . . . . . . . . . . . 쐌 7b
c Combine line 7a and line 7b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7c
8 AMTI. Subtract line 7c from line 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
9 Enter $40,000 exemption. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
10 Enter $150,000 limitation. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
11 Subtract line 10 from line 8. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
12 Multiply line 11 by 25% (.25) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
13 Exemption. Subtract line 12 from line 9. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
14 Subtract line 13 from line 8. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
15 Multiply line 14 by 6.65% (.0665) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
16 Banks and financial corps. Multiply Form 100, line 22, by 2.00% (.0200). See instructions . . . . . . . 16
17 TMT. Add line 15 and line 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
18 Regular tax before credits. Enter amount from Form 100, line 23 or Form 109, line 7. See instructions . . . . . . . . . . . . . . . . 18
19 AMT. Subtract line 18 from line 17. If zero or less, enter -0-. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

P10000109 Schedule P (100) 2000 Side 1


Part II Credits that Reduce Tax
1 Regular tax from Form 100, line 23; or Form 109, line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
2 Tentative minimum tax (before credits) from Part I, line 17 (but not less than the minimum franchise tax, if applicable) . . . 2
(a) Credit (b) Credit
(c) Tax balance (d) Credit
amount used this
that may be carryover
year
offset by
Section A – Credits that reduce excess regular tax. 12345678901234567890123 credits
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3 Subtract line 2 from line 1. If zero or less, enter -0- and see instructions. 12345678901234567890123
12345678901234567890123 123456789012
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This is your excess regular tax which may be offset by credits . . . . . . . . . . . . . 3 12345678901234567890123
12345678901234567890123 123456789012
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A1 Credits that reduce excess regular tax and have no carryover provisions.
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4 Code: 162 Prison inmate labor credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 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 alternative minimum tax from Part III, line 3 . 9 12345678901234567890123 123456789012
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Section B – Credits that may reduce regular tax below 12345678901234567890123
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tentative minimum tax. 12345678901234567890123
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10 If Part II, line 3 is zero, enter the amount from line 1 minus the minimum 12345678901234567890123
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franchise tax, if applicable. If line 3 is more than zero, enter the total of Part II, 12345678901234567890123
12345678901234567890123 123456789012
123456789012
line 2, minus the minimum franchise tax, if applicable plus line 9, column (c) . . 10 1234567890123456789012312345678901234567890123 123456789012
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B Credits that reduce net tax and have carryover provisions.
See instructions.
11 Code: ___ ___ ___ Credit Name: ____________________________________ 11
12 Code: ___ ___ ___ Credit Name: ____________________________________ 12
13 Code: ___ ___ ___ Credit Name: ____________________________________ 13
14 Code: ___ ___ ___ Credit Name: ____________________________________ 14 12345678901234567890123
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Section C – Credits that may reduce alternative minimum tax. 12345678901234567890123
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15 Enter your alternative minimum tax from Side 1, Part I, line 19 . . . . . . . . . . . . . 15 12345678901234567890123
12345678901234567890123 123456789012
123456789012
16 Code: 180 Solar energy credit carryover from Section B, column (d) . . . . . . . 16
17 Code: 181 Commercial solar energy credit carryover from
Section B, column (d) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 12345678901234567890123 123456789012
123456789012
18 Adjusted AMT. Enter the balance from line 17, column (c) here and on
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12345678901234567890123 123456789012
Form 100, line 30; or Form 109, Side 1, line 19 . . . . . . . . . . . . . . . . . . . . . . . . . 18 12345678901234567890123 123456789012
Part III Credit for Prior Year AMT
1 Enter the alternative minimum tax from the 1999 Schedule P (100), Part I, line 19. See instructions . . . . . . . . . . . . . . . . . 1
2 Carryover of unused credit for prior year alternative minimum tax. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Total available credit. Add line 1 and line 2. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Side 2 Schedule P (100) 2000 P10000209


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, 1998, and to the California Revenue and Taxation Code (R&TC).

What’s New taxable years beginning on or after manner as net income for purposes of regular
January 1, 1988. tax. A separate AMT calculation is required for
Newly Formed Corporations • The treatment of merchant marine capital each member of a combined report. Complete
For corporations that incorporate or qualify to construction account funds as an a separate Schedule P (100), Side 1 and
do business in California on or after adjustment item for AMT. Side 2, for each taxpayer included in the
January 1, 2000, the prepayment of the combined report. Attach the Schedule P (100)
California does not conform to the following
minimum franchise tax to the Secretary of for each taxpayer member in the combined
federal AMT provisions: report behind the combined Schedule P (100)
State (SOS) is no longer required. For the first • The elimination of AMT for small
taxable year the corporation will compute its for all members. See instructions for Part I,
businesses. line 4b, line 5a, line 5d, line 7b, line 9, and
tax liability by multiplying its state net income • The contribution deduction in excess of
by the appropriate tax rate and will not be line 10.
adjusted basis for appreciated property is
subject to the minimum franchise tax. The still a tax preference item for California Short Period Return
corporation will become subject to minimum purposes. For a short period return, use the formula in IRC
franchise tax beginning in its second taxable • The federal repeal of the installment Section 443(d) to determine AMTI and AMT.
year. The corporation will be required to make method for accrual basis taxpayers (IRC Credit for Prior Year AMT
estimated tax payments based on the Section 536(a)). Accrual basis taxpayers If the corporation paid AMT for 1999 or has a
projected measured tax for its second and may still use the installment method for carryover of credit for prior year AMT and has
third taxable years. California. no AMT liability for 2000, the corporation may
New Natural Heritage Preservation Tax use this credit in 2000 to reduce its regular tax
Credit (NHPTC) General Information liability. Complete Part III to figure this credit.
The NHPTC is 55% of the fair market value of
Unless stated otherwise, the term “corpora-
the qualified contribution of property donated
tion” as used in Schedule P (100) and in Specific Line Instructions
to the state, any local government, or to any
these instructions, includes banks, financial
designated nonprofit organization. The credit
corporations, limited liability companies Part I — Tentative Minimum
is figured on FTB Form 3503, Natural Heritage
Preservation Tax Credit. (LLCs) classified as corporations, and exempt Tax (TMT) and Alternative Mini-
organizations other than exempt trusts, but
not S corporations. mum Tax (AMT) Computation
Important Information Line 2a – Depreciation of tangible property
California tax laws give special treatment to
In general, California tax law conforms to the some types of income and allow special placed in service after 1986
Internal Revenue Code (IRC) as of deductions and credits for some types of Do not include depreciation adjustments
January 1, 1998. However, there are continu- expenses. Corporations that benefit from attributable to a tax shelter farm activity or a
ing differences between California and federal these laws may have to pay AMT in addition passive activity on this line. Instead, include
tax law. California has not conformed to most to the minimum franchise tax. the adjustment on line 2g or line 2h.
of the changes made to the IRC by the federal Also use this schedule to figure credits that Refigure the depreciation as follows: For
Internal Revenue Service Restructuring and are limited by the tentative minimum tax property other than real property and property
Reform Act of 1998 (Public Law 105-206) (TMT) or that may reduce AMT. on which the straight-line method was used,
and has not conformed to any of the changes use the 150% declining balance method,
See IRC Sections 55 through 59 for more switching to straight-line for the first taxable
made by the Tax and Trade Relief Extension
Act of 1998 (Public Law 105-277), the information on figuring AMT. But note that year in which that method will give a higher
Miscellaneous Trade and Technical Correc- R&TC Sections 23455, 23456, 23457, and depreciation deduction. Use the same life
tions Act of 1999 (Public Law 106-36), and 23459 modify IRC Sections 55 through 59. classes as used on the federal Form 4626,
the Ticket to Work and Work Incentives Who Must File Alternative Minimum Tax – Corporations. For
Improvement Act of 1999 (Public Law 106- Banks and corporations should file personal property having no asset deprecia-
170). Schedule P (100) if the sum of: AMT tion range (ADR) class life, use 12 years. For
California law conforms to federal law adjustments, preference items, loss denials, residential rental and nonresidential real
regarding: other items as specified under IRC property, use the straight-line method over 40
• The removal of the adjusted current Section 59, and state net income exceeds years. Determine the depreciation adjustment
earnings (ACE) depreciation adjustment. $40,000. Exempt organizations, other than by subtracting the recomputed depreciation
• The use of the same depreciation recovery exempt trusts with unrelated business from the California depreciation on form
periods for regular tax and alternative income, should file Schedule P (100) if the FTB 3885, Corporation Depreciation and
minimum tax (AMT). sum of: AMT adjustments, preference items, Amortization. Enter the difference on this line.
• The election by small property and loss denials, items specified under IRC If the corporation elected to depreciate a
casualty insurance companies to be taxed Section 59, and state net unrelated business grapevine that was replanted in a vineyard as
only on their taxable investment income, taxable income exceeds $40,000. Exempt a result of phylloxera or Pierce’s Disease
and to compute the ACE adjustment trusts should use Schedule P (541), Alterna- infestation over 5 years instead of 20 years
without regard to all other items of income tive Minimum Tax and Credit Limitations – for regular tax, it must depreciate the
and expense not included in gross Fiduciaries. grapevine over 10 years for AMT.
investment income. In addition, if the corporation claims credits Note: Depreciation that is capitalized to
• The repeal of the installment method AMT that are limited by TMT (Part I, line 17), or if inventory under the uniform capitalization
adjustment for farmers. Farmers are the corporation claims credits that reduce the rules must be refigured using the rules
allowed to use the installment method of AMT (Part I, line 19), the corporation must described above.
accounting for purposes of AMT for file Schedule P (100).
payments received in taxable years Line 2b – Amortization of certified pollution
Members of a Combined Report control facilities placed in service after
beginning on or after January 1, 1997, for Alternative minimum taxable income (AMTI)
installment sales related to the sale or 1986
and ACE are apportioned and allocated to
disposition of farm property made in For any certified pollution control facility
California and to each taxpayer in the same
placed in service in California after 1986,

Schedule P (100) Instructions 2000 Page 27


figure the entry for this line in the same of certain property. For AMT, corporations may unallowed losses that apply to the passive
manner as line 2a (without reducing the basis not determine income from dispositions of activity.
by 20% under IRC Section 291(a)(5)), using inventory or other property described in IRC Tax shelter passive farm activities. Refigure
the straight-line method of depreciation Section 1221(1) using the installment method, any gain or loss from a tax shelter passive
instead of 150% declining balance. except for certain dispositions of timeshares or farm activity taking into account all AMT
Line 2c – Amortization of mining exploration residential lots, if the corporation elected to pay adjustments, tax preference items, and AMT
and development costs incurred after 1987 interest under IRC Section 453(l)(2)(B) (R&TC prior year unallowed losses. If the amount is a
If the corporation elected the optional 10-year Section 24667). gain, it may be included on form FTB 3802,
write-off under IRC Section 59(e) for all If the corporation used the installment method Corporate Passive Activity Loss and Credit
assets in this category, skip this line. for regular tax purposes, but was required for Limitations, but if it is a loss, the adjustment
With respect to each mine or other natural AMT purposes to report the entire gain in the for tax shelter passive farm activity is the loss
deposit, (other than an oil, gas, or geothermal year of disposition, the corporation may have the corporation reported for regular tax. The
well) refigure the expenses (before the 30% adjustments with respect to those dispositions. AMT loss carryover is the refigured AMT loss.
reduction under IRC Section 291(b)) by Enter on this line as a negative amount the Note: If, at the end of the taxable year, the
amortizing them over 10 years beginning with current year income the corporation reported corporation’s liabilities exceed the fair market
the year in which the expenses were paid or for regular tax. value of the corporation’s assets (insolvency),
incurred. Figure the adjustment by subtracting Farmers that received payments for a taxable increase the passive activity loss allowed by
the refigured amount from the deduction year beginning on or after January 1, 1997, for that excess (but not more than the total loss).
taken under IRC Section 616(a) or 617(a) qualified installment sales made in taxable years See IRC Section 58(c)(1).
after the 30% reduction. Enter the amount on beginning on or after January 1, 1988, do not Line 2i – Certain loss limitations
this line. If a loss resulted with respect to need to make an adjustment on this line. Refigure the allowable losses from at-risk
those expenses, see IRC Section 56(a)(2)(B). Line 2g – Tax shelter farm activities activities and basis limitations applicable to
Line 2d – Basis adjustments in determining (personal service corporations only) partnerships, taking into account the AMT
gain or loss from sale or exchange of Caution: To avoid duplication, if the corpora- adjustments and tax preference items. See
property tion included AMT adjustments or tax IRC Sections 59(h), 465, and 704(d). If the
preference items on this line, do not include refigured loss is more than the loss reported
If the corporation disposed of property during for purposes of the regular tax, enter on this
the year, refigure the gain or loss from such them on any other line of this schedule.
line as a negative amount the difference
sale taking into account the AMT adjustments Complete this line only if the corporation has between the loss reported on the tax return
on line 2a through line 2c. Enter the differ- a gain or loss from a tax shelter farm activity, for purposes of the regular tax and the
ence between the gain or loss reported for as defined in IRC Section 58(a)(2), that is not refigured loss.
regular tax and the recomputed gain or loss. a passive activity. If the tax shelter farm
If the recomputed gain is less, or the loss is activity is a passive activity, the corporation Line 2k – Merchant marine capital
more, enter the difference as a negative must include the gain or loss with its other construction funds
amount. Otherwise, enter a positive amount. passive activities on line 2h. Amounts deposited in these funds are not
deductible for AMT. Earnings on these funds
Line 2e – Long-term contracts entered into Refigure all gains and losses reported for are not excludable from gross income for
after February 28, 1986 regular tax purposes from tax shelter farm AMT. If the corporation deducted these
If the corporation entered into a long-term activities using the AMT adjustments and tax amounts or excluded them from income for
contract after February 28, 1986, determine preference items. regular tax, add them back on line 2k.
the taxable income from the contract under Figure the tax shelter farm activity gain or loss
the percentage of completion method of
accounting as modified by IRC Section 460(b)
for AMT using the same rules the corporation Tax Preference Items
used for regular tax except:
and R&TC Section 24673.2 using AMT • Do not take any refigured loss unless the Line 3a – Depletion
adjustments and tax preference items. corporation is insolvent. See IRC In the case of mines, wells, and other natural
Determine the difference between that result Section 58(c)(1); and deposits, enter the amount by which the
and the amount determined for the contract in • Do not offset gains from other tax shelter deduction for depletion under IRC
figuring the regular tax and enter the activities with any refigured loss. Section 611 is more than the adjusted basis
difference on this line. If the refigured taxable of the property at the end of the corporation’s
Instead, suspend and carry over the loss to taxable year. Figure the adjusted basis without
income is less than the result when determin- future taxable years until:
ing the regular tax, enter the difference as a regard to the depletion deduction and figure
• The corporation has a gain in a future the excess separately for each property.
negative amount. taxable year from that same tax shelter
California has conformed to IRC farm activity; or California conformed in 1993 to the federal
Section 460(b)(2). This section requires the • The corporation disposes of the activity. repeal of the AMT depletion adjustment for
taxpayer to “look-back” to previous years independent oil and gas producers and royalty
Enter on this line the difference between the owners. See federal Form 4626, Alternative
during which the contract work for certain AMT tax shelter farm loss and the regular tax
contracts was in progress. The taxpayer must Minimum Tax, Corporations. However, your
shelter farm loss. California depletion costs may continue to be
compute interest on the difference between
the tax that was actually paid and the tax that Line 2h – Passive activities (closely held different from the federal amounts because of
would have been paid if the taxpayer had corporations and personal service prior differences in law and differences in
known the actual contract prices and costs corporations only) basis.
that would finally result. Caution: To avoid duplication, if the corpora- See IRC Section 291(a)(2) for reduction in the
Get form FTB 3834, Interest Computation tion included AMT adjustments or tax amount allowable as a deduction in the case
Under the Look-Back Method for Completed preference items on this line, do not include of iron ore and coal.
Long-Term Contracts, to figure the interest them on any other line of this schedule. Line 3b – Appreciated property charitable
due or to be refunded under the “look-back Corporations may enter two kinds of deduction
method.” adjustments on this line: Contributions deducted in excess of adjusted
Line 2f – Installment sales of certain Regular passive activities. Refigure passive basis for regular tax purposes must be
property activity gains and losses for AMT by taking included as a tax preference item.
For regular tax purposes, corporations may use into account all AMT adjustments, tax Refigure the charitable contributions
the installment method of accounting for sales preference items and AMT prior year deduction for AMT. Use only income and

Page 28 Schedule P (100) Instructions 2000


deductions allowed for AMT purposes when Line 3f – Amortization of certified pollution Section 24354.2) that the corporation has
refiguring the limit based on taxable income control facilities placed in service before held the property.
under IRC Section 170(b)(2). Any AMT 1987 For property placed in service on or after
carryover of charitable contributions is limited For any certified pollution control facility in January 1, 1987, and before January 1, 1990,
to the cost or other basis for any contribution California placed in service before 1987 (or the amount allowable as depreciation or
in excess of adjusted basis with the exception before August 1, 1986, if an election was amortization must be determined by using the
of the Natural Heritage Preservation Tax made), figure the amount by which the state AMTI depreciable basis as of the close of
Credit. amortization allowable under IRC Section 169 the taxable year beginning before January 1,
Line 3c – Intangible drilling costs is more than the depreciation deduction 1990, and applying IRC Section 168(g). For
If the corporation elected the optional otherwise allowable. Before figuring this tax property placed in service on or after
60-month write-off under IRC Section 59(e) preference item, reduce the amortizable basis January 1, 1990, and before January 1, 1998,
for all property in this category, skip this line. by 20% (15% if the facility was placed in use the ADS described in IRC Section 168(g).
service in 1983 or 1984, 0% if placed in For property placed in service on or after
Enter the amount by which excess intangible
service before 1983), as required under IRC January 1, 1998, the ACE depreciation is the
drilling costs exceed 65% of net income from
Section 291. Multiply the difference above by same as the AMT depreciation.
oil, gas, and geothermal properties.
59.6% (71.6% if the facility was placed in Dividends. Dividends deductible for regular
Figure excess intangible drilling costs as service in 1983 or 1984, 100% if placed in
follows: From the intangible drilling and California tax purposes are deductible from E&P.
service before 1983). Enter only positive
development costs allowable under IRC amounts. The provision of IRC Section 56(g)(4)(C)(ii),
Section 263(c) or 291(b) (except costs in for 100% dividend, does not apply.
drilling a nonproductive well), subtract the Line 4b – Apportioned pre-adjustment
alternative minimum taxable income (AMTI) The provisions of IRC Sections 56(g)(4)(C)(iii)
amount that would have been allowable if and (iv), for dividends from IRC Section 936
these costs had been capitalized and either For taxpayers required to apportion their
income, pre-adjusted current earnings (ACE) companies and certain dividends received by
amortized over 120 months starting when certain cooperatives, do not apply.
production began or treated according to an adjusted AMTI is apportioned and allocated to
election made under IRC Section 57(b)(2). California in the same manner as net income Certain amortization provisions. IRC
for purposes of the regular tax. This may be Section 56(g)(4)(D)(ii) was modified to
Net income from oil, gas, and geothermal done by transferring the amount from line 4a specify that circulation expenditures under
properties is gross income from them, minus to Schedule R, Apportionment and Allocation R&TC Section 24364 and organizational
the deductions allocable to them, except for of Income, line 1a. Refigure the Schedule R expenditures under R&TC Section 24407 do
excess intangible drilling costs and nonpro- taking into account any AMT adjustments, then not apply to expenditures paid or incurred in
ductive well costs. transfer the refigured net income from taxable years beginning on or after
Figure the line 3c amount separately for oil Schedule R, line 24 to Schedule P (100), January 1, 1990, for E&P calculations.
and gas properties that are not geothermal line 4b. Interest income. For entities not subject to
deposits and for oil and gas properties that For combined reports, each taxpayer’s pre- the minimum franchise tax, interest income
are geothermal deposits. ACE adjusted AMTI is the sum of (1) that included in E&P must not exceed the amount
Note: California conformed in 1993 to the corporation’s apportioned share of combined of interest income included for regular tax
limited federal repeal of intangible drilling business pre-ACE adjusted AMTI and (2) any purposes.
costs preferences for independent producers. of that corporation’s California source pre- Appropriate adjustments must be made to
California now conforms to the limit on the ACE adjusted AMTI. For additional guidance in limit deductions from ACE for interest
benefit of the exclusion of the preference for making these computations, get FTB expense in accordance with the provisions of
intangible drilling costs of 40% of AMTI. See Pub. 1061, Guidelines for Corporations Filing R&TC Sections 24344 and 24425.
the instructions for federal Form 4626. Also, a Combined Report.
note that your intangible drilling costs Apportioning taxpayers and members of a
Line 5a – ACE adjustment combined report. ACE is apportioned and
amounts may differ from federal amounts If this schedule is for a regulated investment
because of prior differences in the law. allocated to California in the same manner as
company or a real estate investment trust, net income for purposes of the regular tax and
Line 3d – Reserves for losses on bad debts skip this line. AMTI (FTB Legal Ruling 94-3). The method
of savings and loan associations, banks, The ACE adjustment is the pre-adjustment described in the instructions for line 4b may be
and financial corporations AMTI from line 4b with additional adjust- used to compute the California ACE.
Use this line to adjust the reserves of savings ments. California’s ACE adjustment generally Line 5d – Excess of AMTI increases over
and loan associations and banks and financial follows the federal ACE adjustment rules in
institutions to which IRC Section 593 applies. AMTI reductions from prior year ACE
IRC Section 56(g). To compute the California adjustments
Enter the excess of the deduction allowable ACE, the federal ACE worksheet included in
for a reasonable addition to a reserve for bad For combined reports, each taxpayer
the instructions for the federal Form 4626 can corporation enters the excess of its prior year
debts, over the amount that would have been be used by taking into account the modifica-
allowable had the institution always main- positive California ACE adjustments over its
tions of R&TC Sections 23456 (e) and (f), if prior year negative California ACE
tained its bad debt reserve based on actual applicable. For example:
experience. adjustments.
Taxes. Taxes on, according to, or measured
Line 3e – Accelerated depreciation of real Line 7a
by income are not deductible from earnings
property placed in service before 1987 If a disaster loss carryover is claimed in 2000,
and profits (E&P). Foreign taxes on, accord-
Enter on this line, but not less than zero, the enter the amount on this line.
ing to, or measured by income are not
difference between the depreciation taken for deductible even though a foreign tax credit is Line 7b – AMT net operating loss (NOL)
this property in determining the regular tax not taken for federal purposes. Environmental deduction.
and depreciation as refigured using the taxes imposed by IRC Section 59A are not The AMT net operating loss is the NOL
straight-line method. Figure this amount deductible from E&P. determined for regular tax except:
separately for each property and include only Depreciation and amortization. For property 1. For any taxable year beginning before
positive adjustments. Use the straight-line placed in service on or after January 1, 1981, 1988, reduce the NOL amount by any
method over the life of the property using the and before January 1, 1987, the amount preference items attributable to the
half-year convention and no salvage value. allowable as depreciation or amortization deferred tax that has not been paid;
must be determined using the straight-line 2. In the case of a loss year beginning
method for each taxable year of useful life after 1987, the NOL determined for regular
(determined without regard to R&TC tax for such year must be:

Schedule P (100) Instructions 2000 Page 29


(a) Reduced by the positive AMT adjust- Note: Credits are applied against the tax on a corporation may carry over and use
ments and increased by the negative separate entity basis. Unless otherwise in future years.
AMT adjustments; and provided by statutory authority, specific No. Do not take the credit this year or in
(b) Reduced by the tax preference items credit(s) are only available to the corporation future years.
(but only to the extent they increased that incurred the expense that generated the
credit(s). Section A1 Instructions
the NOL as determined for regular tax);
3. Reduce the AMT NOL by any expired Line 4 – If the corporation has the credit
Before you begin Part II:
losses; and • Complete Form 100 through line 23. listed in this section, complete column (a)
4. The AMT NOL may not offset more • Figure the amount of credit(s) using a through column (c).
than 90% of the AMTI, Part I, line 6. schedule or the credit form identified in Section A2 Instructions
Enter on line 7b the smaller of the AMT NOL the Credit Table on the next page. Be sure Line 5 through Line 9 – Follow the Credit
or 90% of the amount on line 6. to attach the credit form or schedule to the Table Instructions to find out in which section
tax return, if applicable. to claim the credit. Then complete column (a)
Taxpayers that are members of a unitary group
filing a combined report must separately To complete Part II: through column (d) for each credit in each
compute the NOL carryover and application of • Complete line 1 through line 3 to figure section before going to the next section.
the NOL carryover for each corporation in the the amount of excess tax the corporation Note: Generally, it is to the corporation’s
group (R&TC Section 25108). may offset by credits. advantage to apply credits with limited
• Identify in which section(s) of Part II the carryovers before credits with no limitation on
The amount carried over for AMT is likely to corporation may take tax credit(s). Credits
differ from the amount (if any) that is carried the carryover. However, the corporation may
without carryover provisions are listed on want to apply credits with no limitation on
over for regular tax; therefore, it is essential
Schedule P (100) in Section A1 and may carryover first if that is more advantageous.
that the corporation retain adequate records
be taken only in that section. Credits with Corporations may use these credits to reduce
for both AMT and regular tax.
carryover provisions are listed on the regular tax but not below TMT. The corporation
If you had a loss from a business activity Credit Table on the next page. The table
within an enterprise zone, the former may be able to, if applicable, use them in
identifies the section(s) of Part II in which
Los Angeles Revitalization Zone (LARZ), a Section B or Section C or carry them over to
the corporation may take these tax credits.
Local agency military base recovery area future years. The credits that do not have
• If the corporation has credit(s) in shading in column (d) can be used in
(LAMBRA), or the Targeted Tax Area (TTA), Section B, be sure to complete line 10 in
get FTB 3805Z, Enterprise Zone Business Section B, or carried over to future years, if
addition to the line(s) for the corporation’s applicable, after reducing the regular tax down
Booklet; FTB 3806, Los Angeles Revitalization credit(s).
Zone Booklet; FTB 3807, Local Agency to TMT.
• If the corporation’s credit is taken in
Military Base Recovery Area Booklet; or Section A2 or Section B, enter the credit Section B — Credits that may reduce
FTB 3809, Targeted Tax Area Booklet. code and the credit name in the space regular tax below tentative minimum tax
Line 9 and Line 10 provided. Refer to the Credit Table for the Corporations may use these credits to reduce
The $40,000 exemption and the $150,000 credit code. the regular tax below TMT. And corporations
limitation apply to each bank or corporation • Complete column (a) through column (d) for may carry over to future taxable years any
included in the combined report that has a each line on which the corporation is taking credits remaining after reducing the regular
filing requirement in California, to the extent a credit. Refer to “column instructions.” tax down to the minimum franchise tax, if
that each bank or corporation has AMTI. • If the corporation credit(s) are taken in applicable. But, if the corporation has a tax
more than one section, complete each balance and can continue to use the credit in
Line 16 – Banks and financial corporations section before going to the next section. Section C, apply the carryover in Section C.
Corporations with negative or zero taxable • Once the corporation has completed
income on Form 100, line 22, enter -0-. Section B Instructions
Part II, see “How to Claim Credits” on the
Line 18 – Regular tax before credits next page. Line 11 through Line 14 – Follow the Credit
For installment obligations subject to IRC Table Instructions to find out in which section
Section A — Credits that reduce excess to claim your credit. Then complete
Section 453(l)(2)(B) (Timeshares and regular tax
Residential Lots) and IRC Section 453A column (a) through column (d) for each credit
(Nondealer dispositions greater than Section A Instructions in each section before going to the next
$150,000), do not include tax increases for Line 3 – Subtract line 2 from line 1. If the section.
interest on the deferred tax liability. amount is zero or less than zero, continue to Section C — Credits that may reduce
Line 19 – AMT Question 1. If the amount is greater than zero, alternative minimum tax
If line 17 is more than zero and if the go to the Section A1 instructions. If the corporation has AMT and remaining
corporation has credits or credit carryovers, 1. Does the Credit Table show that the solar energy credit carryover and commercial
continue to Part II. Otherwise, stop here and corporation may take the credit ONLY in solar energy credit carryover after reducing
enter the amount, if any, from line 19 on Sections A1 or A2? the regular tax down to the minimum
Form 100, line 30; or Form 109, line 19. franchise tax, if applicable, the corporation
Yes. Do not take the credit this year. Go may reduce AMT using these credits. Also,
to question 2. corporations may carry over to future taxable
Part II — Credits that Reduce No. Go to Section B to figure the years any credits remaining after reducing the
Tax amount of credit the corporation AMT to zero.
Complete Part II only if the corporation has may take this year. Then continue to Section C Instructions
tax credits. Section C if the corporation’s credit
is listed in that section. Line 16 and Line 17 – If the corporation has
Use Part II to determine: any of the credits listed in this section,
• The amount of credit that may be used to 2. Does the credit have carryover provisions? complete column (a) through column (d) for
offset tax; Yes. Enter the credit code, credit name each credit in the order listed.
• The tax that may be offset; and credit amount (column (a)) in
• The amount of credit, if any, that may be the section indicated by the table.
carried over to future years; and Enter -0- in column (b). Enter the
• The order in which to claim credits, if the credit amount in column (d). This is
corporation has more than one credit to the amount of the credit the
claim.

Page 30 Schedule P (100) Instructions 2000


Column Instructions – In column: Line 1 Line 2
(a) Enter the amount of credit available to Enter the AMT from the 1999 Enter the credit for prior year carryover from
offset AMT; Schedule P (100), Part I, line 19. If this the 1999 Schedule P (100), Part II, line 9,
(b) Figure the amount of credit the corpora- amount was reduced by any commercial solar column (d).
tion is able to use this year by entering the energy credit carryover or solar energy credit Line 3
smaller of the amount in column (a) or the carryover, use the AMT from Section C, Enter this amount on Part II, line 9, column (a).
amount in column (c) from the previous line 18 of the 1999 Schedule P (100.)
line;
(c) Figure the amount of AMT remaining to be Credit Table
offset by other credits by subtracting the
amount in column (b) from the balance in Code Current Credits Form Offset Tax in Section
column (c) of the previous line; and 209 Community Development Financial N/A A2
(d) Enter the amount of credit carryover Institution Deposits
available to use in future years by 205 Disabled Access for Eligible Small FTB 3548 A2
subtracting the amount in column (b) from Businesses
the amount in column (a). 204 Donated Agricultural Products FTB 3547 A2
How to Claim Credits Transportation
Claim credits by transferring them to 190 Employer Child Care Contribution FTB 3501 A2
Form 100 or Form 109 as follows: 189 Employer Child Care Program FTB 3501 A2
Credits on line 4 through line 17 203 Enhanced Oil Recovery FTB 3546 A2
Form 100 – If the corporation claims only 176 Enterprise Zone Hiring & FTB 3805Z A21 B1
one, two, or three credits, enter the name, Sales or Use Tax A22 B2
code number, and amount of the credit from 1 = hiring
column (b) on Form 100, line 24, line 25, and 2 = sales or use tax
line 26. To claim credits that are listed in more 207 Farmworker Housing – Construction N/A A2
than one section, total column (b) for the
208 Farmworker Housing – Loan N/A A2
credits that have the same code numbers.
Then enter the name, code number, and 198 Local Agency Military Base Recovery FTB 3807 A2
amount of the credit on Form 100, line 24, Area (LAMBRA) Hiring & Sales
line 25, and line 26. or Use Tax
172 Low-Income Housing FTB 3521 A2 B
If the corporation has any other credits to
199 Manufacturers’ Investment FTB 3535 A2 B
claim, add the amounts from column (b) for
those credits. Enter the total on Form 100, 211 Manufacturing Enhancement Area FTB 3808 A2
line 27. (MEA) Hiring
213 Natural Heritage Preservation FTB 3503 A2 B
Form 109 – If the organization claims only
one to six credits, enter the name, code 188 Prior Year Alternative Minimum Tax FTB 3510 A2
number, and amount of the credit from 162 Prison Inmate Labor FTB 3507 A1
column (b) on Form 109, Schedule B, line 1 183 Research FTB 3523 A2 B
through line 6. To claim credits that are listed 210 Targeted Tax Area (TTA) FTB 3809 A2 B
in more than one section, total column (b) for Hiring & Sales or Use Tax
the credits that have the same code numbers. 206 Rice Straw N/A A2
Then enter the name, code number, and Code Repealed Credits with Carryover Provisions Form Offset Tax in Section:
amount of the credit on Form 109,
175 Agricultural Products FTB 3540 A2
Schedule B, line 1 through line 6.
196 Commercial Solar Electric System FTB 3540 A2 B
If the organization has any other credits to
181 Commercial Solar Energy FTB 3540 A2 B C
claim, add the amounts from column (b) for
those credits. Enter the total on Form 109, 202 Contribution of Computer Software FTB 3540 A2
Schedule B, line 7. Employer Ridesharing
191 Large Employer
Credit Table Instructions. To use the table:
192 Small Employer FTB 3540 A2
1. Find the corporation’s credit(s) listed in 193 Transit
the table.
182 Energy Conservation FTB 3540 A2
2. See which sections are identified in the
columns under “Offset Tax in Section.” 159 Los Angeles Revitalization FTB 3806 A2 B
3. Take the credit only in sections the table Zone (LARZ) Hiring & Sales or
identifies for the corporation’s credit. Use Tax
4. Use the credit in the earliest section 160 Low-Emission Vehicles FTB 3540 A2
possible. 185 Orphan Drug FTB 3540 A2 B
5. Complete each section before going to the 184 Political Contributions FTB 3540 A2
next section. 174 Recycling Equipment FTB 3540 A2
171 Ridesharing FTB 3540 A2
Part III — Credit for Prior Year 200 Salmon & Steelhead Trout N/A A2
AMT Habitat Restoration
Use this part to figure the 2000 credit for 180 Solar Energy FTB 3540 A2 B C
prior year AMT if the corporation paid AMT 179 Solar Pump FTB 3540 A2
for 1999 or had an alternative minimum tax 201 Technological Property Contribution FTB 3540 A2
credit carryover from 1999.
For members of a unitary group filing a
combined report, compute the credit for prior
year AMT for each entity in the current year’s
group.

Schedule P (100) Instructions 2000 Page 31


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visit our website:

www.ftb.ca.gov

Page 32 Form 100 Booklet 2000


TAXABLE YEAR
Net Operating Loss (NOL) Computation and NOL CALIFORNIA FORM
2000 and Disaster Loss Limitations — Corporations 3805Q
Attach to your California tax return (Form 100, Form 100S, Form 100W, or Form 109).
Corporation name California corporation number

During the year the corporation incurred the NOL, the corporation was a(n): 첸 C Corporation 첸 S Corporation FEIN
첸 Exempt Organization 첸 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:
_________________________________________________________________________________________________________________________________
Note: If the corporation is included in a combined report of a unitary group, see instructions, General Information C.

PART I Computation of current year NOL. If you do not have a current year NOL, go to Part II.
1 Net loss from Form 100, line 18; Form 100W, line 18; Form 100S, line 16; or Form 109, line 2.
Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 _________________
2 2000 disaster loss from line 1. Enter as a positive number . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 _________________
3 Subtract line 2 from line 1. If zero or less, enter -0- and see instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 _________________
4 a Enter the amount of the loss incurred by a new business included in line 3 . . . . . . . . . . . . . . . . . . . 4a_________________
b Enter the amount of the loss incurred by an eligible small business included in line 3 . . . . . . . . . . . 4b_________________
c Add line 4a and line 4b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4c_________________
5 Subtract line 4c from line 3. If zero, skip to line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 _________________
6 General NOL. Multiply line 5 by 55% (.55) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 _________________
7 2000 NOL carryover. Add line 2, line 4c, and line 6. See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 _________________

PART II NOL carryover and disaster loss carryover limitations. See Instructions. 123456789012345
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(g)
1 Net income (loss) – Enter the amount from Form 100, line 18; Form 100W, line 18; Form 100S, line 16; 123456789012345
Available balance
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less line 17 (but not less than -0-); or Form 109, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123456789012345
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Prior Year NOLs 123456789012345
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(a) (b) (c) (d) (e) (f) 123456789012345
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Year of Code (See instructions for Type of NOL Initial loss Carryover Amount used 123456789012345
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Carryover to 2001
loss Part II, column (b)) (See below) from 1999 in 2000 123456789012345
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(col. (e) - col. (f))

Current Year NOLs 123456789012345


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3 2000 21 DIS
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4 2000 123456789012345
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2000 123456789012345
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2000 123456789012345
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2000

Type of NOL: General (GEN), New Business (NB), Eligible Small Business (ESB), Title 11 (T11), or Disaster (DIS).

PART III 2000 NOL deduction


1 Total the amounts in column (f) from Part II, line 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 __________________
2 Enter the total amount from column (f) that represents disaster loss carryover deduction here and on Form 100, line 21;
Form 100W, line 21; or Form 100S, line 20. Form 109 filers enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 __________________
3 Subtract line 2 from line 1. Enter this amount on Form 100, line 19; Form 100W, line 19; Form 100S, line 18;
or Form 109, line 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 __________________

3805Q00109 FTB 3805Q 2000


2000 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, 1998, and to the California Revenue and Taxation Code (R&TC).

What’s New loss carryover may be deducted from income of that


A Purpose corporation apportioned and allocable to California in
The general Net Operating Loss (NOL) carryover Use form FTB 3805Q to figure the current year NOL
percentage has changed. For taxable years beginning subsequent years.
and to limit NOL and disaster loss carryover
on or after:
• January 1, 2000 and before January 1, 2002, 55%
deductions. C Combined Reporting
Note: Exempt trusts should use form FTB 3805V, Net Corporations that are members of a unitary group
of the NOL may be carried forward; filing a single return must use intrastate apportion-
Operating Loss (NOL) Computation and NOL and
• January 1, 2002 and before January 1, 2004, 60% ment, separately computing the loss carryover for
Disaster Loss Limitations – Individuals, Estates, and
of the NOL may be carried forward; and each corporation in the group using its individual
Trusts.
• After January 1, 2004, 65% of the NOL may be apportionment factors (R&TC Section 25108).
carried forward. The California NOL is figured the same way as the
Complete a separate form FTB 3805Q for each
federal NOL, except that for California:
Also, any NOL incurred in any taxable year beginning taxpayer included in the combined report. Attach the
• An NOL may be carried over only to future years
on or after January 1, 2000 may be carried forward form FTB 3805Q for each taxpayer member included
(no carrybacks are allowed); and
for 10 years. in the combined report behind the combined form
• The carryover period and the amount to be carried
FTB 3805Q for all members.
General Information over differ from federal allowances.
Unlike the loss treatment for a federal consolidated
Only a portion of the NOL may be eligible for
In general, California tax law conforms to the Internal return, a California loss carryover for one member in a
carryover to future years because California has
Revenue Code (IRC) as of January 1, 1998. However, combined report may not be applied to the income of
established different categories of NOL. See General
there are continuing differences between California another member included in the combined report. Get
Information F, Types of NOLs, for more information.
and federal tax law. California has not conformed to FTB Pub. 1061, Guidelines for Corporations Filing a
most of the changes made to the IRC by the federal Note: If the corporation has a current year NOL under Combined Report, for more information.
Internal Revenue Service (IRS) Restructuring and R&TC Section 24416.2, 24416.5, and 24416.6
Reform Act of 1998 (Public Law 105-206) and has not (relating to EZ, LAMBRA, or TTA NOLs), the D Water’s-Edge
conformed to any of the changes made by the Tax and corporation must elect on its return for the taxable Each taxpayer’s NOL carryover is limited to the
Trade Relief Extension Act of 1998 (Public Law year in which the loss is incurred to carry over the amount determined by recomputing the income and
105-277), the Miscellaneous Trade and Technical loss either under that section or the loss under R&TC factors of the original worldwide combined reporting
Corrections Act of 1999 (Public Law 106-36), and the Section 24416 (relating to general NOLs). If the group as if the water’s-edge election had been in force
Ticket to Work and Work Incentives Improvement Act corporation elects to compute the NOL under R&TC for the year of the loss. The NOL carryover may not be
of 1999 (Public Law 106-170). Section 24416.1(c) (relating to EZ, LAMBRA, or TTA increased as a result of the recomputation.
NOLs), the corporation must:
In 1998, the Franchise Tax Board (FTB) implemented • Make the election in a statement attached to the E S Corporations
the new principal business activity (PBA) code chart original return; and An S corporation is allowed to carry over a loss that is
that is based on the North American Industry • Use the applicable economic development area incurred during a year in which it has in effect a valid
Classification System (NAICS) in the corporate tax (EDA) form to calculate the NOL. election to be treated as an S corporation. The loss is
booklets. However, the California R&TC still uses the also passed through to the shareholders in the year
Standard Industrial Codes (SIC) for purposes of the The election is irrevocable. Get form FTB 3805Z, form incurred and is taken into account in determining each
new business and eligible small business NOL. FTB 3807, or form FTB 3809 for more information. shareholder’s NOL carryover, if any.
The Los Angeles Revitalization Zone (LARZ) expired B Apportioning Corporations If a corporation changes from a C corporation to an
on December 1, 1998. No new LARZ NOLs may be The loss carryover for a corporation that apportions S corporation, the loss incurred while the corporation
generated. However, LARZ NOL carryovers can be income is the amount of the corporation’s loss, if any, was a C corporation may not be applied to offset
utilized to the extent of business income apportioned after adding income or loss apportioned to California income subject to the 1.5% tax imposed on an S
to the former LARZ. Get FTB 3806, Los Angeles with income or loss allocable to California under corporation. However, losses incurred while the
Revitalization Zone Business Booklet, for more Chapter 17 of the Bank and Corporation Tax Law. The corporation was a C corporation may be applied
information.

Taxable Year NOL Carryover


Type of NOL and Description NOL Incurred Carried Over Period
General NOL (GEN)
Available as a result of a loss incurred in years after 1986 and allowed under R&TC Section 24416. 2000 55% 10 Years
Does not include losses incurred from activities that qualify as a new business, an eligible small business, EZ, 1995-1999 50% 5 Years
LARZ, LAMBRA, TTA, or disaster loss. 1987-1994 None Expired
New Business NOL (NB)
Get FTB Legal Ruling 96-5 for more information.
On or after
Incurred by a trade or business that first commenced in California on or after January 1, 1994. 01/01/2000 100% 10 Years
During the first three years of business, 100% of an NOL may be carried over for an extended period, but only to the extent
of the net loss from the new business. The term ‘’new business’’ also includes any taxpayer engaged in biopharmaceutical Before
activities or other biotechnology activities described in Codes 2833 to 2836 of the SIC Manual. It also includes any taxpayer 01/01/2000
that has not received regulatory approval for any product from the United States Food and Drug Administration. See
R&TC Section 24416(g)(7)(A) for more information. Year of
Business
If a taxpayer’s NOL exceeds the net loss from the new business, the excess may be carried over as a general NOL.
If a taxpayer acquires assets of an existing trade or business which is doing business in California, the trade or business Year 1 100% 8 Years
thereafter conducted by the taxpayer or related person is not a new business if the fair market value (FMV) of the acquired Year 2 100% 7 Years
assets exceeds 20% of the FMV of the total assets of the trade or business conducted by the taxpayer or any related person. Year 3 100% 6 Years
To determine whether the acquired assets exceed 20% of the total assets, include only the assets that continue to be used in
the sa e trade or business activity as were used immediately prior to the acquisition. For this purpose, the same 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 and
thereafter commences an additional trade or business in California, the additional trade or business qualifies as a new
business only if the activity is classified under a different division classification of the SIC Manual.
Business activities conducted by the taxpayer or related persons wholly outside California are disregarded in determining
whether the trade or business conducted within California is a new business. Related persons are defined in IRC Sections
267 or 318.
(continued on next page)

Page 34 FTB 3805Q Instructions 2000


Taxable Year NOL Carryover
Type of NOL and Description (continued) NOL Incurred Carried Over Period
Eligible Small Business (ESB) On or After
Get Legal Ruling 96-5 for more information. 01/01/2000 100% 100%
Incurred in a trade or business activity that has gross receipts, less returns and allowances, of less than $1 million during
On or after
the taxable year.
01/01/1994
100% of an NOL may be carried over, but only to the extent of the net loss from the eligible small business. If a taxpayer’s and before
NOL exceeds the net loss from an eligible small business, the excess may be carried over as a general NOL. 01/01/2000 100% 5 Years
The corporation should use the same SIC Code division classifications described in the new business NOL section to
determine what constitutes a trade or business activity.
Title 11 Bankruptcy (T11)
1987-1993 50% 10 Years
If the corporation is claiming an NOL carryover deduction under the provisions of R&TC Section 24416(e)(4)(A), enter the
carryover amount on Part II, line 2.
Disaster Losses (DIS)
See 100% First
Casualty losses in areas of California declared by the President of the United States or the Governor of California to be in a “ Designated 5 Years
state of disaster. Disasters”
An election may be made under IRC 165(i) permitting the disaster loss to be taken against the previous year’s income. If you below 50% 10 Years
made this election, see current year NOLs, Part II, line 3. If special legislation is enacted under R&TC Section 24347.5 and Thereafter
the specified disaster loss exceeds income in the year it is claimed, 100% of the excess may be carried over for up to 5
taxable years. If any excess loss remains after the 5-year period, 50% of that remaining loss may be carried over for up to 10
additional taxable years.

against the built-in gains which is subject to tax. If the record all of the corporation’s loss carryover Year Code Event
corporation incurred losses while it was a C information. 1990 5 Santa Barbara fires and other related
corporation and an S corporation, and the S If the corporation has losses from more than one casualties
corporation is using C corporation losses to offset its source and/or more than one category, the corpora- 1989 4 Bay Area earthquake and other related
built-in gains, the corporation must complete two tion must compute the allowable NOL carryover for casualties
forms FTB 3805Q and attach them to Form 100S, each loss separately. 1987 3 Forest fires, October earthquake, and other
California S Corporation Franchise or Income Tax
When to use an NOL carryover related casualties
Return. The unused losses incurred while the
corporation was a C corporation are “ unavailable” Use your NOLs in the order the losses were incurred. 1986 2 Storms, floods, and other related casualties
except as provided for above unless and until the S There is no requirement to deduct NOL carryovers 1985 1 Forest fires and related casualties occurring in
corporation reverts back to a C corporation or the before disaster loss carryovers. California
carryover period expires. Prior Year NOLs *Carryover period and percentage are limited to the NOL rules. No
special legislation was enacted.
F Types of NOLs Column (a) – Enter the year the loss was incurred.
The table that begins on page 1 shows the types of Column (b) – If the loss is due to a disaster, enter the Column (c) – Enter the type of NOL from the table in
NOL available, a description, and the percentages and disaster code from the list below. If the loss is from a General Information F, Types of NOLs. If using an EDA
carryover periods for each type of loss. new business or eligible small business, enter the SIC NOL, get the applicable form for the NOL type.
Code for the new business or eligible small business
Specific Line Instructions from the Standard Industrial Classification Manual. DO Column (d) – Enter the amount of the initial loss for
NOT enter the code from the PBA chart available in the the year given in column (a).
Part I 2000 Form 100, Form 100W, or Form 100S booklets. Column (e) – Enter the carryover amount from the
Use Part I of this form to figure the current year NOL If the loss was from an S Corporation, enter the 1999 form FTB 3805Q, Part II, column (h).
eligible for carryover. entity’s federal employer identification number from Column (f) – Enter the smaller of the amount in
Schedule K-1 (100S). column (e) or the amount in column (g) of the
Line 2 – If the corporation incurred a disaster loss
during 2000, enter the amount of the loss on this line. Following is a list of events that have been declared previous line.
Enter as a positive number. disasters: Column (g) – Enter the result of subtracting column
Line 3 – If the amount is zero or less, the corporation Year Code Event (f) from the balance in column (g) of the previous line.
does not have a current year general NOL. Go to Part 2000 21 Napa County earthquake* Column (h) – Subtract the amount in column (f) from
II for computation of general NOL carryovers, the 1999 20 Wildfires and other related casualties* the amount in column (e) and enter the result.
current year disaster loss, and carryover from disaster 1999 19 Winter Freeze 98/99 Current Year NOLs
losses. 1998
Line 3 – Current year Disaster Loss
Line 7 – Go to Part II, Current Year NOLs, to record 1998 18 El Niño 98
If you did not elect to deduct your current year
your 2000 NOL carryover to 2001. Complete columns 1997 17 Disaster floods 96/97 disaster loss in the prior year, skip column (a), (b),
(b), (c), (d), and (h) only, for each type of loss that 1996 and (c). In column (a), the year the loss was incurred
you incurred. 1996 16 Firestorms 96* -2000- is entered. In column (b), the disaster loss
If you have an eligible qualified new business or a 1995 15 Storms, flooding, and other related casualties code -21- is entered. In column (c), the type of NOL
small business and your NOL is greater than the 1994 14 San Luis Obispo fire and other related -DIS- is entered.
amount of net loss from such a business, use the casualties • In column (d), enter your 2000 disaster loss from
general NOL first. If you operate one or more new 1994 13 Los Angeles, Orange, and Ventura County Part I, line 2.
businesses and one or more eligible small businesses, earthquake and other related casualties • In column (f), enter the disaster loss used in 2000.
determine the amount of the loss attributable to the • In column (h), enter column (d) less column (f).
1993 12 Storms, floods, and other related casualties
new business(es), the small business(es), and the
general NOL in the following manner. The NOL is first 1992 11 Wildfires and other related casualties in If you elected to deduct your 2000 disaster loss on
treated as a new business NOL to the extent of the Calaveras and Shasta Counties your 1999 tax return, and you have an excess amount
loss from the new business. Any remaining NOL is 1992 10 San Bernardino County earthquake and other to be carried over to 2000, enter the carryover amount
then treated as an eligible small business NOL to the related casualties from your 1999 form FTB 3805Q, Part II, line 3,
extent of the loss from the eligible small business. 1992 9 Riots, arson, and related casualties in column (h), in Part II, line 2, column (e). Use the Prior
Any further remaining NOL is treated as an NOL under California during April and May Year NOL instructions for column (a) through
the general rules. 1992 8 Humboldt County earthquake and related column (h) except:
casualties • In column (a), enter 2000;
Part II 1992 7 Storms, floods, and other related casualties • In column (b), enter the new disaster code; and
Use Part II to limit current year disaster loss and loss 1991 6 Oakland/Berkeley fire and other related • In column (d), enter the total disaster loss incurred
carryover deductions to current year income and to casualties in 2000.

FTB 3805Q Instructions 2000 Page 35


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visit our website:

www.ftb.ca.gov

Page 36 Form 100 Booklet 2000


TAXABLE YEAR
CALIFORNIA FORM

2000 Corporation Depreciation and Amortization 3885


Attach to Form 100 or Form 100W.
Corporation name California corporation number

Part I Depreciation
(a) Description of property (b) Date (c) Cost or (d) Depreciation (e) Method (f) Life (g) Depreciation (h) Additional first
acquired other basis allowed or of figur- or for this year year depreciation
allowable ing de- rate
in earlier years precia-
tion

2 Add the amounts in column (g) and column (h). The combined total of column (h) may not exceed $2,000.
See instructions for line 1, column (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
3 Total. Add the amounts on line 2, column (g) and column (h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Total depreciation claimed for federal purposes from federal Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
5 Depreciation adjustment. If line 4 is greater than line 3, enter the difference here and on Form 100 or Form 100W, Side 1, line 6.
If line 4 is less than line 3, enter the difference here and on Form 100 or Form 100W, Side 1, line 15. (If California depreciation
amounts are used to determine net income before state adjustments on Form 100 or Form 100W, no adjustment is necessary.) 5
Part II Amortization
(a) Description of property (b) Date (c) Cost or (d) Amortization allowed (e) R&TC (f) Period or (g) Amortization
acquired other basis or allowable in section percentage for this year
earlier years

2 Total. Add the amounts in column (g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2


3 Total amortization claimed for federal purposes from federal Form 4562 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
4 Amortization adjustment. If line 3 is greater than line 2, enter the difference here and on Form 100 or Form 100W,
Side 1, line 6. If line 3 is less than line 2, enter the difference here and on Form 100 or Form 100W, Side 1, line 15 . . . . . 4
General Information of income limitations on percentage depletion for Depreciation and amortization are deductions
production from marginal wells. The percentage corporations claim for reasonable exhaustion, wear
In general, California tax law conforms to the depletion deduction may not exceed 65% of the and tear, and normal obsolescence of property
Internal Revenue Code (IRC) as of taxpayer’s taxable income and cannot used in a trade or business or held for the
January 1, 1998. However, there are continuing exceed 100% of the net income derived from the production of income.
differences between California and federal tax law. oil or gas well property. For purposes of this form, depreciation is used in
California has not conformed to most of the connection with tangible property, while amortiza-
changes made to the IRC by the federal Internal
A Purpose tion is used for intangible assets.
Revenue Service (IRS) Restructuring and Reform Use this form to figure California depreciation and
amortization for corporations, and for partnerships Note: For amortizing the cost of certified pollution
Act of 1998 (Public Law 105-206) and has not control facilities, use form FTB 3580, Application
conformed to any of the changes made by the Tax and limited liability companies (LLCs) classified as
corporations. S corporations must use Schedule B to Amortize Certified Pollution Control Facility.
and Trade Relief Extension Act of 1998 (Public
Law 105-277), the Miscellaneous Trade and (100S). Individuals must use form FTB 3885A, Important differences between federal and
Technical Corrections Act of 1999 (Public Depreciation and Amortization – Individuals. California laws affect the calculation of deprecia-
Law 106-36), and the Ticket to Work and Work Fiduciaries and exempt trusts must use form tion and amortization. Some of the major
Incentives Improvement Act of 1999 (Public FTB 3885F, Depreciation and Amortization – differences are briefly described, as follows:
Law 106-170). Fiduciaries. Partnerships must use form • California law allows additional first-year
FTB 3885P, Depreciation and Amortization – depreciation under Revenue and Taxation Code
For any taxable year beginning on or after
Partnerships. LLCs classified as partnerships must (R&TC) Section 24356, rather than an election
January 1, 2000, California law does not conform
use form FTB 3885L, Depreciation and Amortiza-
to federal law regarding the temporary suspension
tion – Limited Liability Companies.

388500109 FTB 3885 2000


to expense the cost of the property as provided property is not more than the amount that would The Guideline Class Life System of depreciation
in IRC Section 179; have resulted from using the declining balance may be used for certain classes of assets placed in
• California law has not conformed to federal method. service before 1971.
statutes allowing accelerated depreciation for The Class Life ADR System of depreciation may be
property on Indian Reservations; C Period of Depreciation used for designated classes of assets placed in
• California law allows a useful life of five years, Use the following information as a guide to service after 1970.
instead of ten years, for grapevines planted as determine reasonable periods of useful life for
replacements for vines subject to Phylloxera or purposes of calculating depreciation. Actual facts E Amortization
Pierce’s Disease; and circumstances will determine useful life. California conformed to the 1993 federal Revenue
• California bank and corporation tax law has not Note, however, that the figures listed below Reconciliation Act (Public Law 103-66) for the IRC
conformed to the federal special class life for represent the normal periods of useful life for the Section 197 amortization of intangibles for taxable
gas station convenience stores and similar types of property listed as shown in IRS Rev. years beginning on or after January 1, 1994.
structures; Proc. 83-35. Generally, assets that meet the definition under
• California has not conformed to federal statutes
• Office furniture, fixtures, machines, IRC Section 197 are amortized on a straight-line
allowing depreciation under Modified Acceler-
and equipment . . . . . . . . . . . . . . . . . . . . . 10 yrs. basis over 15 years. There may be differences in
ated Cost Recovery System (MACRS) for
This category includes furniture and fixtures the federal and California amounts for intangible
corporations, except to the extent such
(that are not structural components of a assets acquired in taxable years beginning prior to
depreciation is passed through from a
building) and machines and equipment used in January 1, 1994. See R&TC Section 24355.5 for
partnership or LLC treated as a partnership;
the preparation of paper or data. more information.
• California has adopted provisions of the federal
Class Life Asset Depreciation Range System Examples include: desks; files; safes; typewrit- Amortization of the following assets is governed
(ADR), which specifies a useful life for various ers, accounting, calculating, and data process- by California law:
types of property. However, California law does ing machines; communications equipment; and Bond premiums R&TC 24360 – 24363.5
not allow the corporation to choose a deprecia- duplicating and copying equipment. Research expenditures R&TC 24365
tion period that varies from the specified asset Reforestation expenses R&TC 24372.5
• Computers and peripheral Organizational expenditures R&TC 24407 – 24409
guideline system.
equipment (printers, etc.) . . . . . . . . . . . . . 6 yrs. Start-up expenses R&TC 24414
B Depreciation Calculation • Transportation equipment and Other intangible assets may be amortized if it is
Methods automobiles (including taxis) . . . . . . . . . . 3 yrs. proved with reasonable accuracy that the asset has
General-purpose trucks: an ascertainable value that diminishes over time
Depreciation methods are defined in R&TC Light (unloaded weight less than
Sections 24349 through 24354. Depreciation and has a limited useful life.
13,000 lbs.) . . . . . . . . . . . . . . . . . . . . . . . . 4 yrs.
calculation methods, described in R&TC Heavy (unloaded weight 13,000 lbs.
Section 24349, are as follows: or more) . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 yrs.
Specific Line Instructions
Straight-Line. The straight-line method divides the • Buildings Line 1
cost or other basis of property, less its estimated Corporations may enter each asset separately or
salvage value, into equal amounts over the estimated This category includes the structural shell of a
building and all of its integral parts that service group assets into depreciation accounts. Figure
useful life of the property. An asset may not be the depreciation separately for each asset or group
depreciated below a reasonable salvage value. normal heating, plumbing, air conditioning, fire
prevention and power requirements, and of assets. The basis for depreciation is the cost or
Declining Balance. Under this method, deprecia- equipment such as elevators and escalators. other basis reduced by a reasonable salvage value
tion is greatest in the first year and smaller in each (except when using the declining balance method),
succeeding year. The property must have a useful Type of building: additional first-year depreciation (if it applies), and
life of at least three years. Salvage value is not Apartments . . . . . . . . . . . . . . . . . . . . . . . . 40 yrs. tax credits claimed on depreciable property (where
taken into account in determining the basis of the Dwellings (including rental specified). This may cause the California basis to
property, but the property may not be depreciated residences) . . . . . . . . . . . . . . . . . . . . . . 45 yrs. be different from the federal basis.
below a reasonable salvage value. Office buildings . . . . . . . . . . . . . . . . . . . . 45 yrs.
Warehouses . . . . . . . . . . . . . . . . . . . . . . . 60 yrs. If the Guideline Class Life System or Class Life
The amount of depreciation for each year is ADR System is used, enter the amount, from a
subtracted from the basis of the property and a D Depreciation Methods to Use schedule showing the computation, on form
uniform rate of up to 200% of the straight-line rate Corporations may use the straight-line method for FTB 3885, column (g), and identify as such.
is applied to the remaining balance. any depreciable property. Before using other Line 1, Column (h), Additional first-year
For example, the annual depreciation allowances methods, consider the kind of property, its useful depreciation
for property with an original basis of $100,000 are: life, whether it is new or used, and the date it was Corporations may deduct up to 20% of the cost of
Declining- acquired. Use the following chart as a general guide “qualifying property” in the year acquired in
Remaining balance Depreciation to determine which method to use: addition to the regular depreciation deduction. The
Year basis rate allowance Maximum maximum additional first-year depreciation
First . . . . . . $100,000 20% $20,000 Property description depreciation method deduction is $2,000. Corporations must reduce the
Second . . . 80,000 20% 16,000 Real estate acquired 12/31/70 or earlier basis used for regular depreciation by the amount
Third . . . . . 64,000 20% 12,800 New (useful life 3 yrs. or more) . . . 200% Declining balance of additional first-year depreciation claimed.
Used (useful life 3 yrs. or more) . . 150% Declining balance
Fourth . . . . 51,200 20% 10,240 “Qualifying property” is tangible personal property
Real estate acquired 1/1/71 or later used in business and having a useful life of at least
Sum-of-the-years-digits method. This method Residential Rental:
may be used whenever the declining balance New . . . . . . . . . . . . . . . . . . . . . . . . 200% Declining balance
six years. Land, buildings, and structural
method is allowed. The depreciation deduction is Used (useful life 20 yrs. or more) . 125% Declining balance components do not qualify. Property converted
figured by subtracting the salvage value from the Used (useful life less than 20 yrs.) Straight-line from personal use, acquired by gift, inheritance, or
cost of the property and multiplying the result by a Commercial and industrial: from related parties also does not qualify.
New (useful life 3 yrs. or more) . . 150% Declining balance*
fraction. The numerator of the fraction is the Used . . . . . . . . . . . . . . . . . . . . . . . Straight-line See R&TC Section 24356 and the applicable
number of years remaining in the useful life of the Personal property regulations for more information.
property. Therefore, the numerator changes each New (useful life 3 yrs. or more) . . . 200% Declining balance*
Note: An election may be made to expense up to
year as the life of the property decreases. The Used (useful life 3 yrs. or more) . . 150% Declining balance
40% of the cost of property described in R&TC
denominator of the fraction is the sum of the digits *Other depreciation methods may be used as long Sections 24356.6, 24356.7, and 24356.8. For
representing the years of useful life. The as the total accumulated depreciation at the end of more information, get form FTB 3809, Targeted Tax
denominator remains constant every year. any taxable year during the first 2/3 of the useful Area Deduction and Credit Summary; form
Other consistent methods. Other depreciation life of the property is not more than the amount FTB 3805Z, Enterprise Zone Deduction and Credit
methods may be used as long as the total that would have resulted from using the declining Summary; or form FTB 3807, Local Agency
accumulated depreciation at the end of any taxable balance method. Military Base Recovery Area Deduction and Credit
year during the first 2/3 of the useful life of the Summary.

Page 38 FTB 3885 2000


Instructions for Form FTB 3539
Automatic Extension for Corporations and Exempt Organizations
General Information or the 15th day of the 5th month (fiscal year exempt
organizations) following the close of the taxable year or
Use form FTB 3539 only if: March 15, 2001 (calendar year corporations), or May 15,
• You cannot file your 2000 California (CA) return by the 2001 (calendar year exempt organizations). Employees’
original due date; and trusts and IRAs must pay 100% of the tax liability by the
• You owe tax for the 2000 taxable year. 15th day of the 4th month after the end of the taxable year.
Use the worksheet on the following page to determine if you Save the completed worksheet as a permanent part of the
owe tax. corporation’s or exempt organization’s tax records along
with a copy of the CA tax return.
• If you do not owe tax, there is nothing to file at this time
and no need to complete or mail this voucher.
• If you owe tax, complete the voucher and mail it along
Electronic Funds Transfer (EFT)
with your check or money order to the Franchise Tax Corporations or exempt organizations that meet certain
Board by the original due date of the CA tax return. requirements must remit all of their payments through EFT
If a corporation, including real estate investment trusts rather than by paper checks. Corporations or exempt
(REITs), real estate mortgage investment conduits organizations that remit an estimated tax payment or
(REMICs), regulated investment companies (RICs), limited extension payment in excess of $20,000 or that have a total
liability companies (LLCs) electing to be treated as corpora- tax liability in excess of $80,000 must pay through EFT. The
tions, or an exempt organization in good standing, cannot FTB will notify corporations or exempt organizations that
file its CA tax return by the original due date, a seven month are subject to this requirement. If you are an EFT taxpayer,
extension to file will be allowed automatically without filing DO NOT USE THIS FORM. Those that wish to participate on
a written request. To qualify for the automatic extension, the a voluntary basis may do so. For more information, call
corporation or exempt organization must file its CA tax (800) 852-2753 or get FTB Pub. 3817, Electronic Funds
return by the due date. Its powers, rights, and privileges Transfer Program Information Guide.
must not be suspended or forfeited by the Franchise Tax
Board (FTB) or the Secretary of State (SOS) as of the Where to File
original due date.
If tax is due and the corporation or exempt organization is
The extended due date for corporations is the 15th day of
not required to use EFT, attach a check or money order for
the 10th month following the close of the taxable year
the tax due to form FTB 3539. Write the California corpora-
(fiscal year filers) or October 15, 2001 (calendar year filers).
tion number or FEIN and 2000 FTB 3539 on the check or
The extended due date for exempt organizations filing
money order. Mail only the voucher portion with the
Form 199 or Form 109 is the 15th day of the 12th month
payment to:
following the close of the taxable year (fiscal year filers) or
December 17, 2001 (calendar year filers). FRANCHISE TAX BOARD
PO BOX 942857
The extended due date for an employees’ trust defined in
SACRAMENTO CA 94257-0551
IRC Section 401(a) and an IRA filing Form 109 is the 15th
day of the 11th month after the end of the taxable year Private Mailbox (PMB) Number
(fiscal year filers) or November 15, 2001 (calendar year If you lease a mailbox from a private business rather than
filers). from the United States Postal Service, enter the box number
An extension of time to file the CA tax return is not an in the special field on the voucher labeled “PMB no.”
extension of time to pay the tax. To avoid late payment
penalties and interest, 100% of the tax liability must be paid
by the 15th day of the 3rd month (fiscal year corporations),

DETACH HERE
(Calendar year corporations — Due March 15, 2001) (Fiscal year filers – see instructions)
(Employees’ trust and IRA — Due April 16, 2001)
(Calendar year exempt organizations — Due May 15, 2001)
TAXABLE YEAR
Payment Voucher for Automatic Extension CALIFORNIA FORM

2000 for Corporations and Exempt Organizations 3539 (CORP)


For calendar year 2000 or fiscal year beginning month _____ day ____ year 2000, and ending month _____ day ____ year ____ .
California corporation number Federal employer identification number

- Tax Due
.

EXT-C
Corporation/exempt organization name

Address PMB no. Type of form filed.


첸 Form 100/100W
City State ZIP Code 첸 Form 100S
첸 Form 109
첸 Form 199
IF NO PAYMENT IS DUE, DO NOT FILE THIS FORM

EFT TAXPAYERS, DO NOT USE THIS FORM 353900109 FTB 3539 2000
Penalties and Interest Exempt Organizations
• If the corporation or exempt organization fails to pay its • Form 100 filers:
total tax by the original due date, a late payment penalty The due dates for corporations also apply to the filing of
plus interest will be added to the tax due. Form 100, California Corporation Franchise or Income
• If the corporation or exempt organization does not file its Tax Return, by political action committees and exempt
CA tax return by the extended due date, or the homeowners’ associations.
corporation’s powers, rights, and privileges have been Political action committees and exempt homeowners’
suspended or forfeited by the FTB or the California SOS, associations that file Form 100 should not enter the
as of the original due date, the automatic extension will minimum franchise tax on line 1 of the Tax Payment
not apply and a delinquency penalty plus interest will be Worksheet.
assessed from the original due date of the CA tax return. • Form 199 Filers:
Generally, Form 199, California Exempt Organization
Combined Reports Annual Information Return, requires a $10 filing fee to be
paid with the return on the original or extended due date.
• If members of a combined unitary group have made or
intend to make an election to file a Combined Unitary Use form FTB 3539 only if paying the fee early. Enter the
Group Single Return, only the key corporation desig- amount of the fee on line 3 of the Tax Payment
nated to file the return should submit form FTB 3539. Worksheet.
The key corporation must include payment of at least the • Form 109 Filers:
minimum franchise tax for each corporation of the The due dates for filing Form 109, California Exempt
combined unitary group that is subject to the franchise Organization Business Income Return, depend on the
tax in California. type of organization filing the return. Employees’
• If members of a combined unitary group intend to file pension trusts and IRAs (including education IRAs)
separate returns with the FTB, each member must must file on or before the 15th day of the 4th month
submit its own form FTB 3539 if there is an amount after the close of their taxable year. All other exempt
entered on line 3 of the Tax Payment Worksheet. 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
2 Estimated tax payments including prior year overpayment applied as a credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
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

How to Complete the Tax Payment Worksheet Line 2 – Enter the estimated tax payments, including prior
year overpayment applied as a credit. S corporations include
Line 1 – Enter the total tentative tax, including the alterna- any QSub annual tax payments.
tive minimum tax, if applicable, for the taxable year.
• If filing Form 100, Form 100W, or Form 100S and subject Line 3
to franchise tax, the tentative tax may not be less than the Tax due. If the amount on line 1 is more than the amount on
minimum franchise tax and Qualified Subchapter S line 2, then the corporation’s or exempt organization’s
Subsidiary (QSub) annual tax (S corporations only). tentative tax is more than its payments and credits. The
• If filing Form 100, Form 100W, or Form 100S, and corporation or exempt organization has tax due.
subject to income tax, enter the amount of tax. Corpora- Subtract line 2 from line 1. Enter this amount on line 3 and
tions subject to the income tax do not pay the minimum on form FTB 3539.
franchise tax. If the amount on line 2 is more than the amount on line 1,
• If a corporation incorporates or qualifies to do business the payments and credits are more than the tentative tax.
in California on or after January 1, 2000, the corporation The corporation or exempt organization has no tax due. DO
will compute its tax liability for the first taxable year by NOT SEND THE PAYMENT VOUCHER. The corporation or
multiplying its state net income by the appropriate tax exempt organization will automatically qualify for an
rate and will not be subject to the minimum franchise extension if the CA tax return is filed by the extended due
tax. The corporation will become subject to minimum date.
franchise tax beginning in its second taxable year.
• If filing Form 109, enter the amount of tax. Form 109
filers are not subject to the minimum franchise tax.

Page 40 FTB 3539 2000


TAXABLE YEAR
CALIFORNIA FORM

2000 Small Business Stock Questionnaire 3565


Corporation name California corporation number

Address PMB no. Federal employer identification 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 P 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 첸 No 첸
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 첸 No 첸
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? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
J. 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 첸 No 첸
K. Was at least 80% of the corporation’s payroll in California at the date of issuance of the non-treasury stock? . . . . . . . Yes 첸 No 첸
L. Was the corporation a domestic corporation at the date of issuance of the non-treasury stock? . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
M. Since the issuance of non-treasury stock, was this corporation a C corporation for California purposes? . . . . . . . . . . . Yes 첸 No 첸
N. Since the issuance of non-treasury stock, was this a corporation with a classification other than a:
• RIC, REIT, or REMIC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
• DISC or former DISC? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
• Corporation with an IRC Section 936 election in effect or a direct or indirect subsidiary with an election? . . . . . . . . Yes 첸 No 첸
• Cooperative? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
O. Since the issuance of non-treasury stock, were at least 80% (by value) of the assets of the corporation used in
the active conduct of one or more qualified trades or businesses in California? See instructions . . . . . . . . . . . . . . . . . Yes 첸 No 첸
P. Was at least 90% of the corporation’s total value of assets used in the active conduct of a qualified trade or
business? See instructions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yes 첸 No 첸
Q. What was the aggregate subscription amount for all non-treasury stock issuances during the corporation’s
existence prior to the current issuance? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ __________
R. What was the aggregate subscription amount of non-treasury stock issued during the current taxable year? . . . . . . . . $ __________
S. Of the amount in Question R, how much was received for qualified small business stock? . . . . . . . . . . . . . . . . . . . . . $ __________

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 will 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.
Print name and title Date
Signature
of officer 왘

356500109 FTB 3565 C3 2000


2000 Instructions for Form FTB 3565
Small Business Stock Questionnaire
General Information Failure of the corporation to file form trade or business where the principal
FTB 3565 will not disqualify the stock- asset of the trade or business is the
holder from excluding gain from the sale reputation or skill of one or more of its
A Purpose or exchange of stock. However, the employees;
Use form FTB 3565, Small Business stockholder bears the burden of proving • Any banking, insurance, financing,
Stock Questionnaire, to provide informa- that the gain from the sale or exchange leasing, investing, or similar business;
tion regarding issuance of stock pursuant qualifies for exclusion pursuant to R&TC • Any farming business (including the
to Revenue and Taxation Code (R&TC) Section 18152.5. business of raising or harvesting
Section 18152.5. trees);
Private Mailbox (PMB) Number
If you lease a mailbox from a private • Any business involving the production
B Who Must File or extraction of products of a charac-
business rather than from the United
A corporation must file form FTB 3565 if States Postal Service, enter the box ter with respect to which a percentage
it qualifies as a “qualified small business” number in the special field on the form depletion deduction is allowable under
and issued stock pursuant to R&TC labeled “PMB no.” IRC Sections 613 or 613A; and
Section 18152.5 during the current • Any business of operating a hotel,
taxable year. Specific Instructions motel, restaurant, or similar business.
Note: If there was more than one issu- Question P – If more than 10 percent of
ance of small business stock during the Item F – Principal business activity
the total value of the corporation’s assets
taxable year, fill out a separate form (PBA) code – Do not leave blank. Enter
consists of real property that is not used
FTB 3565 for each issuance. For pur- the 6 digit PBA code from the chart in the active conduct of a qualified trade
poses of this form, all corporations which included in the 2000 Form 100, Corpora-
or business, the stock issuance is not
are members of the same parent- tion Tax Booklet or Form 100W, Water’s-
qualified. For the purpose of calculating
subsidiary controlled group shall be Edge Booklet. The code should be the the total value of the assets, any owner-
treated as one corporation. A parent- number for the specific industry group
ship of, dealing in, or renting of, real
subsidiary controlled group is defined in from which the greatest percentage of
property shall not be treated as the active
Internal Revenue Code (IRC) California “total receipts” is derived. conduct of a qualified trade or business.
Section 1563(a)(1), except that “more “Total receipts” means gross receipts
plus all other income. The California PBA Question R – Enter the aggregate
than 50%” shall be substituted for “at subscription amount of non-treasury
least 80%.” code number may be different than the
federal PBA code number. stock issued by the corporation during
the entire taxable year.
C When and Where to File Questions G through P – If the answer to
For taxable years beginning on or after any of these questions is “No,’’ stop. The Question S – Enter the amount included
stock issuance does not qualify under in Question R, that was received for that
January 1, 1996, a corporation is
R&TC Section 18152.5. You do not need part of the stock issuance that qualifies as
required to file form FTB 3565 along with
Form 100, Corporation Franchise or to complete the rest of this form. Do not small business stock under the provi-
attach this form to the Form 100 or sions of R&TC Section 18152.5.
Income Tax Return. Attach form FTB 3565
to Form 100 and file on or before the due Form 100W if you do not need to Note: Records should be maintained
date of the corporate return, including complete this form. showing that the stock issuance met the
extensions. Question I – Disregard the stock and debt requirements of R&TC Section 18152.5.
Under authority granted in R&TC of any subsidiary corporation. Include the The amount that is entered in Question R
Section 18152.5, the Franchise Tax Board ratable share of the subsidiary’s assets and Question S should not include the
(FTB) requires the corporation to provide and the value of property received for this value of stock issued in exchange for
a copy of any completed form FTB 3565 stock in determining the corporation’s stock.
to each shareholder that acquired aggregate gross assets at the date of Question T – If there was more than one
qualified small business stock as part of issuance of the non-treasury stock. issuance of small business stock during
the stock issuance that is reported on the Question L – A domestic corporation is the current taxable year, enter the date of
completed form FTB 3565 during the defined in IRC Section 7701(a)(4) as any the 1st issuance in Question T.
current taxable year. corporation created or organized in any Question U – If there was more than one
Failure to file this form by the state in the United States. issuance of small business stock during
corporation’s original or extended return Question O – A qualified trade or busi- the current taxable year, enter the date of
due date for the current taxable year may ness is defined as any trade or business the last issuance in Question U.
result in a penalty being assessed to the other than:
corporation pursuant to R&TC • Any trade or business involving the
Section 19133.5. The penalty amount is performance of services in the fields of
$50 per failure to file unless the failure is health, law, engineering, architecture,
due to negligence or intentional disre- accounting, actuarial science, perform-
gard, then the penalty amount is $100 per ing arts, consulting, athletics, financial
failure to file the form. services, brokerage services, or any

Page 42 FTB 3565 C3 2000


How To Get California Tax Information
Where To Get Tax Forms and Publications California Tax Forms and Publications
By Internet – You may download, view, and print 1994 through 2000 817 California Corporation Tax Forms and Instructions.
California income tax forms, instructions, and publications. Legal This booklet contains: Form 100, California Corporation
Notices and Rulings dated 96-1 and later are also available. Go to our Franchise or Income Tax Return; and the following forms which
website at: www.ftb.ca.gov are also available separately:
By phone – To order 1999-2000 California tax forms: 821 Schedule P (100), Alternative Minimum Tax and Credit
Limitations — Corporations
• Refer to the list in the right column and find the code number for the 822 FTB 3885, Corporation, Depreciation and Amortization
form you want to order.
807 FTB 3805Q, Net Operating Loss (NOL) Computation
• Call (800) 338-0505. and NOL and Disaster Loss Limitations — Corporations
• Select business entity tax information. 808 FTB 3539, Payment Voucher for Automatic Extension for
• Select order forms and publications.
Corporations and Exempt Organizations
• Enter the three-digit code shown to the left of the form title when 816 California S Corporation Tax Forms and Instructions.
you are instructed to do so. This booklet contains: Form 100S, California S Corporation
Please allow two weeks to receive your order. If you live outside Franchise or Income Tax Return; Schedule QS, Qualified
California, please allow three weeks to receive your order. Subchapter S Subsidiary (QSub) Information Worksheet; and the
For prior year California tax forms, call our toll-free number listed under following forms which are also available separately:
“General Toll-Free Phone Service.” 823 Schedule B (100S), S Corporation Depreciation and
Amortization
In person – Many libraries and some quick print businesses have forms
Schedule C (100S), S Corporation Tax Credits
and schedules for you to photocopy (a nominal fee may be required).
Note: Employees at libraries, post offices, banks, and quick print Schedule H (100S), Dividend Income
Schedule D (100S), S Corporation Capital Gains and
businesses cannot provide tax information or assistance.
Losses and Built-In Gains
By mail – Write to: TAX FORMS REQUEST UNIT, FRANCHISE TAX 825 Schedule K-1 (100S), Shareholder’s Share of Income,
BOARD, PO BOX 307, RANCHO CORDOVA CA 95741-0307. Deductions, Credits, etc.
826 FTB 3830, S Corporation’s List of Shareholders and
Letters Consents
If you write to us, be sure to include your California corporation 808 FTB 3539, Payment Voucher for Automatic Extension for
number or federal employer identification number, your daytime and Corporations and Exempt Organizations
evening telephone numbers, and a copy of the notice with your letter. 814 Form 109, Exempt Organization Business Income Tax Return
Send your letter to: 818 Form 100-ES, Corporation Estimated Tax
FRANCHISE TAX BOARD 813 Form 100X, Amended Corporation Franchise or Income Tax
PO BOX 942857 Return
SACRAMENTO CA 94257-0540 815 Form 199, Exempt Organization Annual Information Return
We will respond to your letter within six weeks. In some cases, we may 819 Schedule R, Apportionment and Allocation of Income
need to call you for additional information. Do not attach correspon- 812 FTB Pub. 1038, Instructions for Corporations Requesting a Tax
dence to your tax return unless the correspondence relates to an item Clearance Certificate
on the return. 805 FTB Pub. 1038A, Instructions for Exempt Organizations
Requesting a Tax Clearance Certificate
General Toll-Free Phone Service 809 FTB Pub. 1060, Guide for Corporations Starting Business
Between January 2 – April 16, 2001 , our general toll-free phone in California
service is available: 810 FTB Pub. 1061, Guidelines for Corporations Filing a Combined
Report
• Monday – Friday, 6 a.m. until midnight; and 827 Form 100W, Water’s-Edge Booklet
• Saturdays and holidays, 7 a.m. until 4 p.m. 829 FTB 3564, Authorization of Agent Under Revenue and
After April 16, 2001, our general toll-free phone service is available: Taxation Code Section 19141.6
• Monday – Friday, 7 a.m. until 8 p.m. 820 FTB Pub. 1068, Exempt Organizations Requirements for Filing
• Saturdays, 7 a.m. until 4 p.m. Returns and Paying Filing Fees
802 FTB 3500, Exemption Application
Note: We may modify these hours without notice to meet operational 803 FTB 3555, Request for Tax Clearance – Corporations
needs.
804 FTB 3557, Application for Revivor
From within the United States . . . . . . . . . . . . . . . . . . . (800) 852-5711 811 FTB 3560, S Corporation Election or Termination/Revocation
From outside the United States (not toll-free) . . . . . . . (916) 845-6500 806 FTB 5806, Underpayment of Estimated Tax by Corporations
For federal tax questions, call the IRS at . . . . . . . . . . . (800) 829-1040 800 FTB Pub. 1028, Guidelines for Homeowners’ Associations
Assistance for persons with disabilities 801 FTB Pub. 1075, Exempt Organizations – Guide for Political
The FTB complies with provisions of the Americans with Disabilities Organizations
Act. Persons with hearing or speech impairment call: 832 FTB 3555A, Request for Tax Clearance Exempt Organizations
From voice phone (California Relay Service) . . . . . . . . (800) 735-2922
From TTY/TDD (Direct line to FTB customer service) . (800) 822-6268 Your Rights As A Taxpayer
For all other assistance or special accommodations . . (800) 852-5711 Our goal at the FTB is to make certain that your rights are protected so
Asistencia bilingue en espanol that you will have the highest confidence in the integrity, efficiency, and
fairness of our state tax system. FTB Pub. 4058, California Taxpayers’
Para obtener servicios en espanol y asistencia para completar su
declaracion de impuestos/formularios, llame al numero de telefono Bill of Rights, includes information on your rights as a California
(anotado arriba) que le corresponde. taxpayer, the Taxpayers’ Rights Advocate Program, and how you can
request written advice from the FTB on whether a particular transaction
is taxable.
See “Where to Get Income Tax Forms” on this page.
Form 100 Booklet 2000 Page 43
 Automated Toll-Free Phone Service (Keep This Booklet For Future Use)
Our automated toll-free phone service is available 24 hours a day, 7 702 Can you send me an employer’s tax guide?
days a week, in English and Spanish to callers with touch-tone 703 How do I incorporate?
telephones. To order business entity forms, the automated service is 719 How do I properly identify my corporation when dealing with
available from 6 a.m. to 8 p.m. Monday through Friday, except state the Franchise Tax Board?
holidays. You can: 720 How do I obtain information about changing my corporation’s
• Order current year California income tax forms, and name?
• Hear recorded answers to many of your questions about California 721 How do I change my accounting period?
taxes. 737 Where do I send my payment?
738 What is electronic funds transfer?
Have paper and pencil ready to take notes. 739 How do I get a copy of my state corporate tax return?
Call from within the United States (toll-free) . . . . . . . . (800) 338-0505 740 What requirements do I have to report municipal bond interest
Call from outside the United States (not toll-free) . . . . (916) 845-6600 paid by a state other than California?
750 How do I organize or register an LLC?
To Order Forms 751 How do I cancel the registration of my LLC?
752 What tax forms do I use to file as an LLC?
See “Where to Get Tax Forms and Publications” on the previous page.
753 When is the annual tax payment due?
754 What extension voucher do I use to pay the LLC fee and/or
To Get Information member tax?
If you need an answer to any of the following questions, call 755 Where does an LLC send its tax payments?
(800) 338-0505, select business entity tax information, then general tax 756 As an LLC I never did any business or even opened a door, bank
information, follow the recorded instructions, and enter the three-digit account, or anything. Why do I owe the $800 annual tax?
code when instructed to do so. 757 How are the LLC fees calculated?
Code Filing Assistance 758 If a corporation converted to an LLC during the current year, is
715 If my actual tax is less than the minimum franchise tax, the corporation liable for tax as a corporation and an LLC
what figure do I put on line 23 of Form 100? tax/fee in the same year?
717 What are the current tax rates for corporations? 759 If I have nonresident members and cannot get all their signatures
718 How do I get an extension of time to file? on the consent release form, can I still file the return?
722 When do I have to file a short-period return?
734 Is my corporation subject to franchise tax or income tax? Field Offices
S Corporations You can get information, pick up California tax forms, and resolve
704 Is an S corporation subject to the minimum franchise tax? problems on your account if you visit one of our field offices. FTB field
705 Are S corporations required to file estimated payments? office locations are open Monday through Friday from 8 a.m. to 5 p.m.
706 What forms do S corporations file? The offices will remain open additional hours and days January 16
707 The tax for my S corporation is less than the minimum through April 16, 2001. For the extended hours of the office nearest
franchise tax. What figure do I put on line 22 of Form 100S? you, call (800) 338-0505, select personal income tax information, then
708 Where do S corporations make adjustments for state and select general information, and enter code 110 when instructed.
federal law differences on Schedule K-1 (100S) and where do Field Office Address
nonresident shareholders find their California source income on Bakersfield 1800 30th St., Ste. 370
their Schedule K-1 (100S)? Fresno 2550 Mariposa St., Rm. 3002
Exempt Organizations Long Beach 4300 Long Beach Blvd., Ste. 700B
709 How do I get tax exempt status? Los Angeles 300 S. Spring St., Ste. 5704
710 Does an exempt organization have to file Form 199? Oakland 1515 Clay St., Ste. 305
735 How can an exempt organization incorporate without Sacramento 3321 Power Inn Road, Ste. 250
paying corporation fees and costs? San Bernardino 464 W. 4th St., Ste. 454
736 I have exempt status. Do I need to file Form 100 or Form 109 San Diego 7575 Metropolitan Dr., Ste. 201
in addition to Form 199? San Francisco 455 Golden Gate Avenue, Ste. 7400
Minimum Tax and Estimate Tax San Jose 96 N. Third St., 4th Floor
712 What is the minimum franchise tax? Santa Ana 600 W. Santa Ana Blvd., Ste. 300
714 My corporation is not doing business; does it have to pay the Santa Rosa 50 D St., Rm. 100
minimum franchise tax? Stockton 31 East Channel St., Rm. 219
716 When are my estimated payments due? Van Nuys 15350 Sherman Way, Ste 100
Ventura 4820 McGrath St., Ste. 270
Billings and Miscellaneous Notices West Covina 100 N. Barranca St., Ste. 600
723 I received a bill for $250. What is this for?
728 Why was my corporation suspended? Out of State Offices
729 Why is my subsidiary getting a request for a return when we Chicago 1 N. Franklin, Ste. 400
filed a combined report? Chicago, IL 60606-3401
Houston 1415 Louisiana, Ste. 1515
Tax Clearance Houston, TX 77002-7351
724 How do I dissolve my corporation? Long Island 1325 Franklin Avenue, Ste. 560
725 What do I have to do to get a tax clearance? Garden City, NY 11530
726 How long will it take to get a tax clearance certificate? Manhattan 1212 Avenue of the Americas, 4th Floor
727 My corporation was suspended/forfeited. Can I still get a New York, NY 10036-1601
tax clearance?
Miscellaneous
700 Who do I need to contact to start a business?
Recycled
701 I need a state ID number for my business. Who do I contact?
Recyclable

Page 44 Form 100 Booklet 2000