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Changes to 2010 Forms

Updates to the 100W Booklet on 02/13/2014 –– Corporation Tax Booklet Water's-Edge Filers

We replaced text on:

  1. Page 4, Column 3, under “CA does not conform to federal law list.”
  2. Page 5, Column 2, after Records Maintenance Requirements section.

Previous Version

  1. Note: new text added.
  2. Note: new text added.

Revised Version

  1. California law does not conform to the federal law for the following provisions:
    The changes in the percentage of the gain exclusion for the sale of qualified small business stock acquired after February 17, 2009.
  2. Small Business Stock
    Corporations that issue stock intended to be qualified small business stock pursuant to R&TC Section 18152.5 are required to attach form FTB 3565, Small Business Stock Questionnaire, to Form 100W.

Reason for the changes

AB 1412 (Stats.2013, ch. 546), signed by the Governor on October 4, 2013, retroactively allows the Qualified Small Business Stock (QSBS) deferral and 50 percent gain exclusion for tax years 2008 through 2012.

Impact

No tax impact.

Back to Tax Form Changes for 2010


Updates to the 100W Booklet on 02/13/2013 –– Corporation Tax Booklet Water's-Edge Filers

We replaced text on:

  1. Page 4, Column 3, under CA law does not conform to federal law, Bullet 6
  2. Page 5, Column 2, Small Business Stock
  3. Page 51, Column 2, under California Tax Forms and Publications

Previous Version

  1. The changes in the percentage of the gain exclusion for the sale of qualified small business stock acquired after February 17, 2009, and before January 1, 2011.
  2. Small Business Stock
    Corporations that issue stock intended to be qualified small business stock pursuant to R&TC Section 18152.5 are required to attach form FTB 3565, Small Business Stock Questionnaire, to Form 100W.
  3. FTB 3565, Small Business Stock Questionnaire

Revised Version

  1. Note: text deleted.
  2. Note: text deleted.
  3. Note: text deleted.

Reason for the changes

The Court of Appeal’s held in Cutler v. Franchise Tax Board (2012) 208 Cal. App. 4th 1247, that the qualified small business stock exclusion and deferral statutes under California Revenue and Taxation Code (R&TC) Sections 18152.5 and 18038.5 are unconstitutional. These sections are now invalid and unenforceable.

Impact

No tax impact.

Back to Tax Form Changes for 2010


Updates to the 100W Booklet on 02/09/2011—Corporation Tax Booklet Water's-Edge Filers

We replaced text on the 100W Booklet on:

  1. Page 28, Schedule P (100W), Side 2, Part II, Section C, after title
  2. Page 28, Schedule P (100W), Side 2, Part II, Section C, Line 16
  3. Page 28, Schedule P (100W), Side 2, Part II, Section C, Line 17
  4. Page 28, Schedule P (100W), Side 2, Part II, Section C, Line 18
  5. Page 28, Schedule P (100W), Side 2, Part III, Line 1
  6. Page 29, Instructions for Schedule P (100W), Column 1, What’s New section
  7. Page 33, Instructions for Schedule P (100W), Column 1, Section C, Paragraphs 1 and 2
  8. Page 33, Instructions for Schedule P (100W), Column 2, Credit Table, Codes 176 and 199, “Offset Tax in Section”
  9. Page 33, Instructions for Schedule P (100W), Column 1, Part III, Line 1

Previous Version

  1. Section C – Credits that may reduce AMT.

  2. 16 Code: 180 Solar energy credit carryover from Section B, column (d)

  3. 17 Code: 181 Commercial solar energy credit carryover from Section B, column (d)

  4. 18  Adjusted AMT. Enter the balance from line 17, column (c) here and on Form 100W, line 30

  5. 1 Enter the AMT from the 2009 Schedule P (100W, Part I, line 19.See instructions

  6. NASSCO AMT Reduction –The Board of Equalization recently ruled in the Appeal of NASSCO Holdings, Inc 2010-SBE-001, November 17, 2010, that a corporate taxpayer may use Enterprise Zone credits and/or the Manufacturing Investment Credit (MIC) to reduce corporate alternative minimum tax (AMT). Early in 2011, the Franchise Tax Board (FTB) will post information and filing guidelines. Go to ftb.ca.gov and search for nassco for additional information.

  7. Section C — Credits that may reduce AMT

    If the corporation has AMT and remaining solar energy credit carryover or commercial solar energy credit carryover after reducing the regular tax down to the minimum franchise tax, if applicable, the corporation may reduce AMT using these credits. Corporations may carryover to future taxable years any credits remaining after reducing the AMT to zero.

    Section C Instructions

    Line 16 and Line 17 – If the corporation has any of the credits listed in this section, complete column (a) through column (d) for each credit in the order listed.


  8. 176

    Enterprise Zone Hiring & Sales or Use Tax
    1 = hiring
    2 = sales or use tax

    FTB 3805Z

    B1
    B2


    199

    Manufacturers’ Investment

    FTB 3540

    B



  9. Line 1– Enter the AMT from the 2009 Schedule P (100W), Part I, line 19. If this amount was reduced by any commercial solar energy credit carryover or solar energy credit carryover, use the AMT from Section C, line 18 of the 2009 Schedule P (100W).

Revised Version

  1. Section C – Credits that may reduce AMT. See instructions.

  2. 16a Code: 180 Solar energy credit carryover from Section B, column (d)

  3. 16b Code: 181 Commercial solar energy credit carryover from Section B, column (d)

    17a Code: 176  Enterprise zone hiring & sales or use tax credit carryover from Section B, column (d).............

    17b Code: 199  Manufacturers' investment credit carryover from Section B, column (d)....................................

  4. 18  Adjusted AMT. Enter the balance from line 17b, column (c) here and on Form 100W, line 30

  5. 1 Enter the AMT from the 2009 Schedule P (100W). See instructions

  6. NASSCO AMT Reduction – The Board of Equalization recently ruled in the Appeal of NASSCO Holdings, Inc 2010-SBE-001, November 17, 2010, that a corporate taxpayer may use Enterprise Zone (EZ) credits and/or the Manufacturing Investment Credit (MIC) to reduce alternative minimum tax (AMT). For more information, see the instructions for Part II, Section C or go to ftb.ca.gov and search for nassco.

  7. Section C — Credits that may reduce AMT
    If the corporation has AMT, the corporation may reduce AMT using current EZ credit and/or remaining credit carryover from either the solar energy, commercial solar energy, EZ hiring & sales or use tax, or MIC after reducing the regular tax down to the minimum franchise tax (if applicable). Corporations may carryover to future taxable years any credits remaining after reducing the AMT to zero.

    Section C Instructions
    Lines 16a, 16b, 17a and 17b If the corporation has any of the credits listed in this section, complete column (a) through column (d) for each credit in the order listed.


  8. 176

    Enterprise Zone Hiring & Sales or Use Tax
    1 = hiring
    2 = sales or use tax

    FTB 3805Z

    B1
    B2

    C1
    C2



    199

    Manufacturers’ Investment

    FTB 3540

    B

    C




  9. Line 1– Enter the AMT from the 2009 Schedule P (100W), Part I, line 19. If this amount was reduced by any credits from Part II, Section C, use the AMT from Section C, line 18 of the 2009 Schedule P (100W).

Reason for the changes

The Board of Equalization recently ruled in the Appeal of NASSCO Holdings, Inc 2010-SBE-001, November 17, 2010, that a corporate taxpayer may use Enterprise Zone (EZ) credits and/or the Manufacturing Investment Credit (MIC) to reduce corporate alternative minimum tax (AMT).

We revised the Schedule P (100W) and instructions to: (1) allow corporate taxpayers to use the EZ credits and MIC to reduce the AMT and (2) provide instructions for corporate taxpayers to claim the above credits.

Impact

This revision will allow corporate taxpayers to use the EZ credits and MIC to reduce the AMT, which will result in a reduction to the total tax liability.

Back to Tax Form Changes for 2010