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Changes to 2011 Forms

Updates to the Form 3805V on 03/07/2014 –– Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations - Individuals, Estates, and Trusts

We replaced text on:

Revision 1: Side 1, Section A, Line 3a

Revision 2: Side 1, Section A, instructions above Line 4

Revision 3: Side 1, Section A, Line 18 through Line 25

Revision 4: Side 2, Section B, Line 3a

Revision 5: Side 2, Section B, instructions above Line 4

Revision 6: Side 2, Section B, Lines 18 through 25

Previous Version

Revision 1:
3 a Combine line 1 and line 2. (Estates and Trusts, enter taxable income, see instructions.) If negative, use brackets. If positive, enter -0- here and on line 25. Do not complete the rest of Section A. You do not have a current year NOL. Complete Part II and Part III if you have a carryover from prior years.

Revision 2:
Enter amounts on line 4 through line 24 as if they were all positive numbers. See instructions.

Revision 3:

18 Enter the loss, if any, from line 8 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 9, column (c), of Schedule D (541). If you do not have a loss on that line, skip line 18 through line 21 and enter on line 22 the amount from line 17...



18




| 00
19 Enter the loss, if any, from line 9 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 10 of Schedule D (541). Enter as a positive number...

19


| 00
20 If line 18 is more than line 19, enter the difference; otherwise, enter -0-...
20

| 00
21 If line 19 is more than line 18, enter the difference; otherwise, enter -0-...
21

| 00
22 Subtract line 20 from line 17. If zero or less, enter -0-... 22 | 00
23 NOL and disaster loss carryovers from prior years. See instructions...
23

| 00
24 Add lines 11, 21, 22, and 23... 24 | 00
25 2011 NOL carryover. Combine line 3c and line 24. If more than zero, enter -0-. You do not have a current year NOL to carryover...

25


| 00

Revision 4:
3 a Combine line 1 and line 2. If negative, use brackets. If positive, enter -0- here and on line 25. Complete Part II and Part III if you have a carryover from prior years.

Revision 5:
Enter amounts on line 4 through line 24 as if they were all positive numbers.

Revision 6:

18 Enter the loss, if any, from line 4 of Schedule D (540NR) worksheet for nonresidents and part-year residents. If you do not have a loss on that line, skip line 18 through line 21 and enter on line 22 the amount from line 17...



18




| 00
19 Enter the loss, if any, from line 5 of Schedule D (540NR) worksheet for nonresidents and part-year residents. Enter as a positive number...

19


| 00
20 If line 18 is more than line 19, enter the difference; otherwise, enter -0-...
20

| 00
21 If line 19 is more than line 18, enter the difference; otherwise, enter -0-...
21

| 00
22 Subtract line 20 from line 17. If zero or less, enter -0-... 22 | 00
23 NOL and disaster loss carryovers from prior years. See instructions...
23

| 00
24 Add lines 11, 21, 22, and 23... 24 | 00
25 2011 NOL carryover. Combine line 3c and line 24. If more than zero, enter -0-...
25

| 00

Revised Version

Revision 1:
3 a Combine line 1 and line 2. (Estates and Trusts, enter taxable income, see instructions.) If negative, use brackets. If positive, enter -0- here and on line 27. Do not complete the rest of Section A. You do not have a current year NOL. Complete Part II and Part III if you have a carryover from prior years.

Revision 2:
Enter amounts on line 4 through line 26 as if they were all positive numbers. See instructions.

Revision 3:

18 Enter the loss, if any, from line 8 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 9, column (c), of Schedule D (541). If you do not have a loss on that line (and do not have an R&TC Section 18152.5 exclusion), skip line 18 through line 23 and enter on line 24 the amount from line 17...



18




| 00
19 R&TC Section 18152.5 exclusion. Enter as a positive number...
19

| 00
20 Subtract line 19 from line 18. If zero or less, enter -0-... 20 | 00
21 Enter the loss, if any, from line 9 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 10 of Schedule D (541). Enter as a positive number...

21


| 00
22 If line 20 is more than line 21, enter the difference; otherwise, enter -0-...
22

| 00
23 If line 21 is more than line 20, enter the difference; otherwise, enter -0-...
23

| 00
24 Subtract line 22 from line 17. If zero or less, enter -0-... 24 | 00
25 NOL and disaster loss carryovers from prior years. See instructions...
25

| 00
26 Add lines 11, 19, 23, 24, and 25... 26 | 00
27 2011 NOL carryover. Combine line 3c and line 26. If more than zero, enter -0-. You do not have a current year NOL to carryover...

27


| 00

Revision 4:
3 a Combine line 1 and line 2. If negative, use brackets. If positive, enter -0- here and on line 27. Complete Part II and Part III if you have a carryover from prior years.

Revision 5:
Enter amounts on line 4 through line 26 as if they were all positive numbers.

Revision 6:

18 Enter the loss, if any, from line 4 of Schedule D (540NR) worksheet for nonresidents and part-year residents. If you do not have a loss on that line (and do not have an R&TC Section 18152.5 exclusion), skip line 18 through line 23 and enter on line 24 the amount from line 17...



18




| 00
19 R&TC Section 18152.5 exclusion. Enter as a positive number...
19

| 00
20 Subtract line 19 from line 18. If zero or less, enter -0-... 20 | 00
21 Enter the loss, if any, from line 5 of Schedule D (540NR) worksheet for nonresidents and part-year residents. Enter as a positive number...

21


| 00
22 If line 20 is more than line 21, enter the difference; otherwise, enter -0-...
22

| 00
23 If line 21 is more than line 20, enter the difference; otherwise, enter -0-...
23

| 00
24 Subtract line 22 from line 17. If zero or less, enter -0-... 24 | 00
25 NOL and disaster loss carryovers from prior years. See instructions...
25

| 00
26 Add lines 11, 19, 23, 24, and 25... 26 | 00
27 2011 NOL carryover. Combine line 3c and line 26. If more than zero, enter -0-...
27

| 00

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

This revision may increase the tax liability for taxpayers who did not report a QSBS exclusion or deferral for taxable years beginning on or after January 1, 2008.

Back to Tax Form Changes for 2011


Updates to the Form 3805V on 02/15/2013 –– Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations - Individuals, Estates, and Trusts

We replaced text on:

Revision 1: Side 1, Section A, Line 3a

Revision 2: Side 1, Section A, instructions above Line 4

Revision 3: Side 1, Section A, Line 18 through Line 27

Revision 4: Side 2, Section B, Line 3a

Revision 5: Side 2, Section B, instructions above Line 4

Revision 6: Side 2, Section B, Lines 18 through 27

Previous Version

Revision 1:
3 a Combine line 1 and line 2. (Estates and Trusts, enter taxable income, see instructions.) If negative, use brackets. If positive, enter -0- here and on line 27. Do not complete the rest of Section A. You do not have a current year NOL. Complete Part II and Part III if you have a carryover from prior years.

Revision 2:
Enter amounts on line 4 through line 26 as if they were all positive numbers. See instructions.

Revision 3:

18 Enter the loss, if any, from line 8 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 9, column (c), of Schedule D (541). If you do not have a loss on that line (and do not have an R&TC Section 18152.5 exclusion), skip line 18 through line 23 and enter on line 24 the amount from line 17...



18




| 00
19 R&TC Section 18152.5 exclusion. Enter as a positive number...
19

| 00
20 Subtract line 19 from line 18. If zero or less, enter -0-... 20 | 00
21 Enter the loss, if any, from line 9 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 10 of Schedule D (541). Enter as a positive number...

21


| 00
22 If line 20 is more than line 21, enter the difference; otherwise, enter -0-...
22

| 00
23 If line 21 is more than line 20, enter the difference; otherwise, enter -0-...
23

| 00
24 Subtract line 22 from line 17. If zero or less, enter -0-... 24 | 00
25 NOL and disaster loss carryovers from prior years. See instructions...
25

| 00
26 Add lines 11, 19, 23, 24, and 25... 26 | 00
27 2008 NOL carryover. Combine line 3c and line 26. If more than zero, enter -0-. You do not have a current year NOL to carryover...

27


| 00

Revision 4:
3 a Combine line 1 and line 2. If negative, use brackets. If positive, enter -0- here and on line 27. Complete Part II and Part III if you have a carryover from prior years.

Revision 5:
Enter amounts on line 4 through line 26 as if they were all positive numbers.

Revision 6:

18 Enter the loss, if any, from line 4 of Schedule D (540NR) worksheet for nonresidents and part-year residents. If you do not have a loss on that line (and do not have an R&TC Section 18152.5 exclusion), skip line 18 through line 23 and enter on line 24 the amount from line 17...



18




| 00
19 R&TC Section 18152.5 exclusion. Enter as a positive number...
19

| 00
20 Subtract line 19 from line 18. If zero or less, enter -0-... 20 | 00
21 Enter the loss, if any, from line 5 of Schedule D (540NR) worksheet for nonresidents and part-year residents. Enter as a positive number...

21


| 00
22 If line 20 is more than line 21, enter the difference; otherwise, enter -0-...
22

| 00
23 If line 21 is more than line 20, enter the difference; otherwise, enter -0-...
23

| 00
24 Subtract line 22 from line 17. If zero or less, enter -0-... 24 | 00
25 NOL and disaster loss carryovers from prior years. See instructions...
25

| 00
26 Add lines 11, 19, 23, 24, and 25... 26 | 00
27 2008 NOL carryover. Combine line 3c and line 26. If more than zero, enter -0-...
27

| 00

Revised Version

Revision 1:
3 a Combine line 1 and line 2. (Estates and Trusts, enter taxable income, see instructions.) If negative, use brackets. If positive, enter -0- here and on line 25. Do not complete the rest of Section A. You do not have a current year NOL. Complete Part II and Part III if you have a carryover from prior years.

Revision 2:
Enter amounts on line 4 through line 24 as if they were all positive numbers. See instructions.

Revision 3:

18 Enter the loss, if any, from line 8 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 9, column (c), of Schedule D (541). If you do not have a loss on that line, skip line 18 through line 21 and enter on line 22 the amount from line 17...



18




| 00
19 Enter the loss, if any, from line 9 of Schedule D (540). Estates and Trusts, enter the loss, if any, from line 10 of Schedule D (541). Enter as a positive number...

19


| 00
20 If line 18 is more than line 19, enter the difference; otherwise, enter -0-...
20

| 00
21 If line 19 is more than line 18, enter the difference; otherwise, enter -0-...
21

| 00
22 Subtract line 20 from line 17. If zero or less, enter -0-... 22 | 00
23 NOL and disaster loss carryovers from prior years. See instructions...
23

| 00
24 Add lines 11, 21, 22, and 23... 24 | 00
25 2008 NOL carryover. Combine line 3c and line 24. If more than zero, enter -0-. You do not have a current year NOL to carryover...

25


| 00

Revision 4:
3 a Combine line 1 and line 2. If negative, use brackets. If positive, enter -0- here and on line 25. Complete Part II and Part III if you have a carryover from prior years.

Revision 5:
Enter amounts on line 4 through line 24 as if they were all positive numbers.

Revision 6:

18 Enter the loss, if any, from line 4 of Schedule D (540NR) worksheet for nonresidents and part-year residents. If you do not have a loss on that line, skip line 18 through line 21 and enter on line 22 the amount from line 17...



18




| 00
19 Enter the loss, if any, from line 5 of Schedule D (540NR) worksheet for nonresidents and part-year residents. Enter as a positive number...

19


| 00
20 If line 18 is more than line 19, enter the difference; otherwise, enter -0-...
20

| 00
21 If line 19 is more than line 18, enter the difference; otherwise, enter -0-...
21

| 00
22 Subtract line 20 from line 17. If zero or less, enter -0-... 22 | 00
23 NOL and disaster loss carryovers from prior years. See instructions...
23

| 00
24 Add lines 11, 21, 22, and 23... 24 | 00
25 2008 NOL carryover. Combine line 3c and line 24. If more than zero, enter -0-...
25

| 00

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

This revision increases the tax liability for taxpayers who reported a qualified small business stock exclusion or deferral for taxable years beginning on or after January 1, 2008.

Back to Tax Form Changes for 2011