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Changes to 2005 Forms

Updates to 2005 FTB 3805Z Booklet

Revision Date: 12/20/2007

Revision Details: Our current instructions instruct the taxpayer to add the amount of sale or use tax credit into income, which results in an incorrect amount of tax liability. This revision will allow the taxpayer to report the correct amount of income, which results in a correct amount of tax liability. R&TC Sections 17053.70 and 23612.2 allows a credit against the tax for the taxable year an amount equal to the sales or use tax paid or incurred during the taxable year by the taxpayer in connection with the taxpayer's purchase of qualified property. Taxpayer means a taxpayer engaged in a trade or business within an enterprise zone. Also, any taxpayer that elects to claim this credit cannot increase the depreciable basis of the property as required by IRC Section 164(a) with respects to sales or use tax paid or incurred in connection with the purchase of qualified property. However, the law does not provide for adding the entire amount of credit back into income. This sentence was placed under the Sale and Use Tax Section in error and should only be under the Hiring Credit Section.

  • This update is located on Page 7, 3rd column, Instructions for Worksheet II, Line 2, column (c)

It should read:

For partnerships, enter the amount from line 2, column (c), on form FTB 3805Z, current year sales or use tax credit amount on Forms 565 and 568, Schedule K, line 14 and the distributive share of the credit to partners and members on Schedule K-1 line 14.

The revised form is available for download.


2005 Updates to Form 3805Z Booklet

Revision Date: 04/07/06

Revision Details: Enterprise Zone Deduction and Credit Summary Instructions

A revision is required to the Booklet, page 2, column 1 and page 3 column 1, etc.

A new paragraph is added to page 2, Column 1, because new Enterprise Zones (EZ) were designated in Stanislaus (including Ceres, Modesto,

  • Turlock and Stanislaus County) and to the table on page 3, column 1

It should read:

WHAT'S NEW

Enterprise Zone       Designation Date       Expiration Date
Stanislaus (including          11/16/2005             11/15/2020
Ceres, Modesto, Turlock,
and Stanislaus County)

This revision is required in the printed products 2005 Package X, pages 613 and 614, and the 3805Z Booklet, pages 2 and 3, column 1.

Because EZ credit reduces tax liability, qualified taxpayers in Stanislaus (including Ceres, Modesto, Turlock and Stanislaus County may overstate their tax liability if they did not claim the credit, if eligible.

The revised internet version is available for download.

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