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State of California Franchise Tax Board

Enterprise Zone Business Expense 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 schedule supporting the Enterprise Zone Business Expense Deduction as claimed on Form 3805Z[1]. The schedule needs to include the following information:

    1. A description of the property purchased.

    2. The date the property was placed in service.

    3. The purchase amount.

    4. The qualified deduction amount.

  2. For assets [identify universe or sample]:

    1. Copies of invoices and canceled checks for property purchased.

    2. The location where the asset is used.

    3.  A copy of the depreciation schedule showing basis reduction.

[1] Local Agency Military Base Recovery Area (LAMBRA), Form 3807; Targeted Tax Area (TTA), Form 3809

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