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Changes to 2004 Forms

Updates to 2004 Schedule K-1 (100S) Instructions - Shareholders Share of Income, Deductions, Credits, etc.

The revised Internet version is available for download as of 03/06/2008.

Revision Details: The instructions are incorrect because they reference the incorrect lines of Schedule CA (540 or 540NR).
Similar revisions were made to the 2004 - 2007 Schedule K-1 (100S) instructions.

  • Page 37 of the 100S booklet, page 3, 2nd column, Line 7, 3rd paragraph and page 121 of the Package X

Previously read:

Line 7-Charitable contributions
If there is an amount on Schedule K-1 (100S), line 7, column (c ), enter this amount on Schedule CA (540 or 540NR), line 38.

Revised to:

Line 7-Charitable contributions
If there is an amount on Schedule K-1 (100S), line 7, column (c ), enter this amount on Schedule CA (540 or 540NR), line 40.

lnstructions incorrectly instruct taxpayer's to enter the K-1 "Charitable contributions" in the "Total of federal Schedule A line instead of the "Other adjustments" line of the Schedule CA (540 or 540NR). The incorrect line reference may cause taxpayer's to compute the incorrect California taxable income.
This revision will help taxpayer's report the correct amount of income, which will result in a correct tax liability.


2004 Updates to Form 100S Booklet

Revision Date: 05/11/2005
Revision Details: Form 100S Booklet, page 3 , column 1 and page 93 of the Package X.

  • FTB 100S Booklet, page 3 , column 1, What's New/Tax Law Changes section

It should read:

Charitable Contributions for 2004 Tsunami Disaster- California conforms to the federal law which allows a 2004 charitable contribution deduction for cash contributions make during January 2005 toward the relief of the Tsunami Disaster victims in the Indian Ocean. Corporations may claim the deduction in either the 2004 or 2005 tax year.

This could impact the taxpayers' by decreasing their tax liability.
The revised internet version is available for download.


2004 Updates to Form 100S Booklet

Revision Date: 02/21/2005
Revision Details: Form 100S Corporation Tax Booklet – California S Corporation Franchise or Income Tax Return Instructions

These revisions occur in the 100S Booklet, pages, 10, 12, and 31; Package X on pages 100, 102 and 115.

  • Page 10, column 3 in the Booklet and page 100, column 3 in Package X

It should read:

"To accomplish this, the S corporation will need to compute two sets of Schedule D-1 and Schedule D (100S). One set of Schedule D-1 and Schedule D (100S) will include the sale or disposition of both IRC Section 179 assets and the sale of non-Section 179 business assets with the amount reported on Form 100S, Side 1, line 4.

The second set of Schedule D-1 and Schedule D (100S) will include the sale or disposition of the non-Section 179 assets on, with the amount reported on the Schedules K (100S) and K-1 (100S)."

  • Page 12, column 1 in the 100S Booklet and Page 102, column 1 in the Package X

It should read:

"The S corporation should complete two sets of Schedule D-1 and Schedule D (100S). One set of Schedule D-1 and Schedule D (100S) will include the gain or loss from the sale or disposition of IRC Section 179 assets as well as gain or loss from non-Section 179 business assets, and will be reported on the Form 100S indicate at the top of this Schedule D-1 and Schedule D (100S) "IRC Sec. 179 and Bus. Assets". When completing Schedule D-1 and Schedule D (100S) for the 100S, skip any instruction to report the gain or loss on Schedule K (100S) or Schedule K-1 (100S). Transfer the gain amount to Form 100S, Side 1, line 4.

The second set of Schedule D-1 and Schedule D (100S) is to report the gain or loss on non-Section 179 business assets for use on the Schedule K (100S) and K-1 (100S). To accomplish this, the S corporation should complete a Schedule D-1 and Schedule D (100S) with the gain or loss for the non-Section 179 business assets only. The amounts from this Schedule D-1 and Schedule D (100S) will be reported on the Schedule K (100S) and Schedule K-1 (100S). Indicate at the top of the Schedule D-1 and Schedule D (100S) set "Non-Section 179 Business Assets Only".

  • Page 31, column 2 in the 100S Booklet and Page 115, column 2 in the Package X

It should read:

"Gain on property subject tot he IRC Section 179 expense deduction recapture must be included in the taxable income of the S corporation. To accomplish this, the S corporation should complete two sets of Schedule D-1 and Schedule D (100S). One set of Schedule D-1 and Schedule D (100S) will include the gain or loss from the sale or disposition of IRC Section 179 assets as well as gain or loss from non-Section 179 business assets, and will be reported on the form 100S. Indicate at the top of this Schedule D-1 and Schedule D (100S) "IRC Sec. 179 and Bus. Assets". When completing Schedule D-1 and Schedule D (100S) for the 100S, skip any instructions to report the gain or loss on Schedule K (100S) or Schedule K-1 (100S). Transfer the gain amount to form 100S, Side 1, line 4.

The second set of Schedule D-1 and Schedule D (100S) is to report the gain or loss on non-Section 179 business assets for use on the Schedule K (100S) and K-1 (100S). To accomplish this, the S corporation should complete a Schedule D-1 and Schedule D (100S) with gain or loss for the non-Section 179 business assets only. The amounts from the Schedule D-1 and Schedule D (100S) will be reported on the Schedule K (100S) and Schedule K-1 (100S). Indicate at the top of this Schedule D-1 and Schedule D (100S) set "Non-Section 179 Business Assets Only"."

The revised internet version is available for download.


2004 Updates to Schedule D (100S)

Revision Date: 01/21/2005
Revision Details: 2004 Schedule D (100S) - S Corporation Capital Gains and Losses and Built-in Gains

Revisions were made to the Schedule D (100S). These revisions are required in the 100S Booklet, page 28; the flat on Side 2 and Package X, page 112.

  • Section A, Part III, line 11

It should read:

"Subtract line 10 from line 9."

  • Section B, Part I, line 2c

It should read:

"2003"

  • Section B, Part II, line 10

It should read:

"Total line 8 and 9."

This could have a tax impact to the taxpayers by giving them an increased tax liability which would be more than it should be.

The revised internet version is available for download.

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