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Changes to 2005 Forms

2005 Updates to Form 3805V-Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations-Individuals, Estates, and Trusts

Revision Date: 04/27/2007

Revision Details: We revised the NOL reference to instruct the taxpayer to only claim the disaster losses on FTB 3805V for 2002 and 2003 taxable years, since the NOLs were suspended for these years. In 2004 we modified the form to reflect that the taxpayer could now use their NOLs; however, not all of the instructions were revised to show that the taxpayer could use their NOLs. Thus, this situation may have confused the taxpayers.

Page 3, FTB 3805V flat; and page 610 of the Package X

  • FTB 3805V, page 3 of the instructions, column 2, line 2 (b)

It should read:

Column (b)-If the loss is due to a disaster, enter the disaster code from the list of designated disasters on page 2.

  • FTB 3805V, page 3 of the instructions, column 2, line 2 (e)

It should read:

Column (e)-Enter the amount from your 2005 form FTB 3805V, part III, column (h). You should have already reduced by 50% any remaining 2000 disaster loss carryover.

  • FTB 3805V, page 3 of the instructions, column 3, line 2 (f)

It should read:

Column (f)-Enter the smaller of the amountin column (e) or the balance in column (g). If column (g) of the previous line has been reduced to zero, your remaining NOL carryover may be eligible for carryover to 2007. See General Information B, Types of NOLs.

  • FTB 3805V, page 3 of the instructions, column 3, line 2 (h)

It should read:

Column (h)-Subtract the amount in column (f) from the amount in column (e) and enter the result. Any remaining 2001 disaster loss carryover to 2007 must be reduced by 45%. If you have a current year NOL relating to one of the following areas or zones and need more information:

  • EZ (R&TC Section 17276.2), get form FTB 3805Z
  • LAMBRA (R&TC Section 17276.5), get form FTB 3807
  • TTA (R&TC Section 17276.6), get form FTB 3809

Then you must:

  • Make the election in a statement attached to the original return to carry over only one of these losses or the loss under R&TC Section 17276 (relating to general NOLs).
  • Use the applicable economic development area form to calculate the NOL.

This election is irrevocable.

This revision will impact tax liability by decreasing the taxpayer tax liability.
The revised internet version is available for download.


2005 Updates to Form 3805V

Revision Date: 03/03/06

Revision Details: FTB 3805V Instructions, Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations - Individuals, Estates, and Trusts

The current chart of designated disasters in the printed flats and 2005 Package X, page 2, did not contain information regarding the Northern California flooding, mudslides, and landslides.

  • FTB 3805V, Page 2, column 2, Designated Disasters chart

It should read:

2006 27 Northern California flooding, mudslides, and
             landslides
2005

These changes must be made to the instruction in 2005 Package X, page 609; and the flat version of the instructions for form FTB 3805V, page 2.

This revision will lower taxpayer's tax liability, if they have suffered from this disaster. Also, the taxpayer could decide to claim this disaster on their 2004 amended tax return if the disaster occurred in 2005 as opposed to claiming it on their 2005 tax return.

The revised internet version is available for download.

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