Changes to 2005 Forms
2005 Updates to FTB 3801 Instructions
Revision Date: 06/29/2007
Revision Details:This revision is needed so that the taxpayer reports the correct amount of passive activity loss on the correct form, which is needed to arrive at the correct amount of net income after state adjustments for an S Corporation.
Page 4 of 2005 3801 Instructions; Page 584 of Package X
- Page 4 of instructions, first column, under S Corporations, number 4, last bullet
It should read:
If the result is negative, enter the result on Form 100S, line 13 as a positive amount.
If the taxpayers followed our current instruction they may report their passive activity loss for an S corporation on a C corporation's form.
The internet version is available for download.