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Changes to 2004 Forms

2004 Updates to Form 3805V-Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitations-Individuals, Estates, and Trusts

Revision Date: 04/27/2007

Revision Details: We revised the NOL reference to instruct the taxpayer to only claim the disaster losses on FTB 3805V for 2002 and 2003 taxable years, since the NOLs were suspended for these years. In 2004 we modified the form to reflect that the taxpayer could now use their NOLs; however, not all of the instructions were revised to show that the taxpayer could use their NOLs. Thus, this situation may have confused the taxpayers.

Page 3, FTB 3805V flat; and page 597 of the Package X

  • FTB 3805V, page 3 of the instructions, column 2, line 2 (b)

It should read:

Column (b)-If the loss is due to a disaster, enter the disaster code from the list of designated disasters on page 2.

  • FTB 3805V, page 3 of the instructions, column 2, line 2 (e)

It should read:

Column (e)-Enter the amount from your 2005 form FTB 3805V, part III, column (h). You should have already reduced by 50% any remaining 2000 disaster loss carryover.

  • FTB 3805V, page 3 of the instructions, column 3, line 2 (f)

It should read:

Column (f)-Enter the smaller of the amountin column (e) or the balance in column (g). If column (g) of the previous line has been reduced to zero, your remaining NOL carryover may be eligible for carryover to 2007. See General Information B, Types of NOLs.

  • FTB 3805V, page 3 of the instructions, column 3, line 2 (h)

It should read:

Column (h)-Subtract the amount in column (f) from the amount in column (e) and enter the result. Any remaining 2001 disaster loss carryover to 2007 must be reduced by 45%. If you have a current year NOL relating to one of the following areas or zones and need more information:

  • EZ (R&TC Section 17276.2), get form FTB 3805Z

  • LAMBRA (R&TC Section 17276.5), get form FTB 3807

  • TTA (R&TC Section 17276.6), get form FTB 3809

Then you must:

  • Make the election in a statement attached to the original return to carry over only one of these losses or the loss under R&TC Section 17276 (relating to general NOLs).

  • Use the applicable economic development area form to calculate the NOL.

This election is irrevocable.

This revision will impact tax liability by decreasing the taxpayer tax liability.
The revised internet version is available for download.


2004 Updates to Form 3805V

Revision Date: 12/31/2005

Revision Details: Instructions

  • Instructions page 2, column 2, after code 4 of the "Designated Disaster chart"

It should read:

1987 3 Forest fires, October earthquake, and other related casualties
1986 2 Storms, floods, and other related casualties
1985 1 Forest fires and related casualties occurring in California

Those printed instructions needing revision are the 2004 Package X, page 596, and Page 2 of the Instructions for FTB 3805V flat.

The revised internet version is available for download.


2004 Updates to Form 3805Q

Revision Date: 02/24/2005

Revision Details: Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitation - Individuals, Estates, and Trusts

These revisions occur in the Form 3805V on side 3, page 2 and page 3. Revisions also required to pages 594, 596 and 597 of the Package X.

  • Form 3805V, side 3, line 3, column b

It should read:

24

  • Form 3805 V, Page 2, column 2 (List of events that have been declared disasters, first declared disaster)

It should read:

Designated Disasters

Year Code Event

2005 25 Southern California flooding, debris flows, and mudslides*

2004

  • Form 3805V, Page 2, column 3, line 27, paragraph 2

It should read:

If you have an NOL or disaster loss from prior years (line 25), complete...future years.

  • Form 3805V, Page 3, column 1, Complete column C and D

It should read:

Complete column C and D, line...were a resident divided by 366 days. For column D...366 days.

  • Form 3805V, Page 3, column 1, Part II, paragraph 3

It should read:

Use this part to...taking any NOL carryover, disaster loss, or disaster loss carryover...

  • Form 3805V, Page 3, column 2, after line 3 instructions and before Part III instructions

It should read:

Line 4- Enter as a positive number the NOL carryover deduction from your 2004 Schedule CA (540), line 21d, column B, or Form 541, line 15a. Long Form 540NR filers: To figure your MTI, enter the disaster loss carryover deduction amount from your 2004 Schedule CA (540NR), line 21, column E.

  • Form 3805V, Page 3, column 2, Part III, 1st bullet

It should read:

Figure the NOL and disaster loss...future years.

  • Form 3805V, Page 3, column 3, line 3

It should read:

Column (b)- enter the disaster loss code.

This could have a tax impact by decreasing the tax liability.
The revised internet version is available for download.


2004 Updates to Form 3805Q

Revision Date: 01/21/2005

Revision Details: Net Operating Loss (NOL) Computation and NOL and Disaster Loss Limitation - Individuals, Estates, and Trusts

These revisions were made to the FTB 3805V, Side 1, Side 2, Page 2 and Page 3. These revisions are required in the flat Sides 1 and 2, Pages 2 and 3; Package X pages 592, 593, 596, and 597. This could have a tax impact to the taxpayers by giving them a lower liability than it should be for revisions to Side 1, Side 2 and Page 2. This could also have a tax impact to the taxpayers by giving them a higher liability than it should be for revisions to Page 3.

  • 3805V, Side 1 and 2, line 25-

It should read:

"NOL and disaster loss carryovers from prior years. See Instructions."

  • 3805V, Page 2 of the flat, Page 596 of Package X, column 3, line 25 instructions

It should read:

"Enter the amount of your prior year NOL and disaster loss carryovers from Schedule CA (540 or 540NR), line 21b, line 24d, and line 21e, column B or Form 541, line 15a."

  • 3805V, Page 3 of the flat, Page 597 of Package X, column 2, line 2(e) instructions

It should read:

"Enter the disaster loss carryover from your 2003 form FTB 3805V, Part III, column (h). You...remaining 1998 disaster loss carryover."

  • 3805V, Page 3 of the flat, Page 597 of Package X, column 3, line 2(h) instructions

It should read:

"Subtract the amount in column (f)...Any remaining 1999 disaster loss...by 50%."

The revised internet version is available for download.

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