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State of California Franchise Tax Board

Net Interest Deduction - IDR Questions


We listed suggested questions to verify the credit or deduction claimed.  We may ask additional questions depending on facts and circumstances.

  1. A copy of Worksheet IV: Net Interest Deduction for Lenders - Enterprise Zones, used to compute Form FTB 3805Z.

  2. For loans, [identify sample or universe], the following information:

    1. The address of debtors for the applicable tax year.

    2. The business location of debtors for the year the debt was incurred.

    3. The use of loan proceeds.

  3. Did you have any ownership or equity interest in the debtors?  If so, please explain.

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