The California 3805Z form is a crucial document for businesses operating within designated Enterprise Zones, allowing them to summarize deductions and credits related to their operations. By filling out this form, eligible businesses can potentially benefit from tax incentives designed to encourage growth and employment in economically disadvantaged areas. Ensure you take advantage of these opportunities by completing the form accurately and submitting it with your California tax return.
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The California 3805Z form is an essential tool for businesses operating within designated Enterprise Zones, providing a means to report and claim various tax deductions and credits. This form is designed to streamline the process of documenting eligible expenses, including hiring credits and sales or use tax credits, which can significantly benefit businesses looking to invest and grow in these economically challenged areas. When filling out the 3805Z, businesses must provide key information such as their entity type, the specific Enterprise Zone in which they operate, and details about their workforce and gross receipts. Sections of the form address hiring credits, business expense deductions, and net operating loss carryovers, ensuring that businesses can maximize their tax benefits. Additionally, the form includes calculations for credit limitations, helping to clarify how much can be claimed based on business income. Overall, the California 3805Z form is a vital component for businesses aiming to leverage the incentives offered by the state to encourage economic development and job creation in targeted regions.
TAXABLE YEAR
Enterprise Zone
CALIFORNIA FORM
2012
Deduction and Credit Summary
3805Z
Attach to your California tax return.
SSN or ITIN or California corporation number
Name(s) as shown on return
FEIN
California Secretary of State (SOS) file number
A.Check the appropriate box for your entity type:
▐ Individual
Estate
Trust
C corporation
S corporation Partnership
Exempt organization
Limited liability company
Limited liability partnership
B.Enter the name of the Enterprise Zone (EZ) business: __________________________________________________________________________________
C.Enter the address (actual location) where the EZ business is conducted:
____________________________________________________________________________________________________________________________
D.Enter the name of the EZ in which the business and/or investment activity is located.
E. Enter the six-digit Principal Business Activity Code of the EZ Business
______________________
Enter the six-digit Principal Business Activity Code from the chart. For the Long Beach
EZ, enter the four-digit Standard Industrial Classification (SIC) code number from the chart.
F.
Total number of employees in the EZ
G.
Number of employees included in the computation of the hiring credit, if claimed
H.
Number of new employees included in the computation of the hiring credit, if claimed
I.
Gross annual receipts of the business
J.
Total asset value of the business
Part I Credits and Recapture (Complete Schedule Z on Side 2 before you complete this part.)
1Hiring and sales or use tax credits claimed on the current year return:
a
Hiring credit from Schedule Z, line 8A, column (g) or line 10, column (f)
▐ 1a______________________
b
Hiring credit recapture from Worksheet IA, Section B, line 2, column (b)
.▐.
1b______________________
c
Sales or use tax credit from Schedule Z, line 9A, column (g) or line 11, column (f)
1c______________________
d
Add line 1a and line 1c
▐
1d______________________
Part II Business Expense Deduction and Recapture
2
a Enter the cost of qualified property purchased for the EZ that is being deducted as a current year
business expense from Worksheet II, Section A, line 5, column (b)
2a______________________
ELECTION: The act of deducting a portion of the cost of any property as a current year expense rather than adding it
to the capital account constitutes an election to treat that property in accordance with R&TC Sections 17267.2
or 24356.7. That election may not be revoked except with the written consent of the Franchise Tax Board (FTB).
b Business expense deduction recapture from Worksheet II, Section B, line 2, column (b)
2b______________________
Part III Net Interest Deduction for Lenders
3
Enter the amount of net interest received on loans to businesses located in the EZ from
Worksheet III, line 2, column (f)
3 ______________________
Part IV Portion of Business Attributable to the Enterprise Zone
4Enter the average apportionment percentage of your business that is in the EZ from Worksheet IV, Section A,
line 4. If your operation is wholly within the EZ, the average apportionment percentage is 100% (1.00)
▐ 4 ______________________
Part V Net Operating Loss (NOL) Carryover and Deduction
5 a Enter the EZ NOL carryover from prior years from Worksheet V, Section C, line 30, column (b)
. 5a ______________________
bEnter the total EZ NOL deduction used in the current year from Worksheet V, Section C, line 30, column (c). Enter this amount on Schedule CA (540 or 540NR), line 21e, column B; Form 100, line 21;
Form 100W, line 21; Form 100S, line 19; or Form 109, line 6
5b______________________
c Enter the EZ NOL carryover to future years from Worksheet V, Section C, line 30, column (e)
5c______________________
ELECTION: For those taxpayers eligible for an NOL carryover under R&TC Sections 17276.2, 17276.4, 17276.5, 17276.6, 24416.2, 24416.4, 24416.5, or 24416.6, the act of claiming an NOL carryover on this form constitutes the irrevocable election to apply the loss under R&TC Sections 17276.2 or 24416.2, for taxpayers operating a trade or business within the EZ. If you elect to carry over an NOL under the EZ provisions, you cannot carry over any other type and amount of NOL from this year.
For Privacy Notice, get form FTB 1131.
7541123
FTB 3805Z 2012 Side 1
Schedule Z Computation of Credit Limitations – Enterprise Zones
Part I Computation of Credit Limitations. See instructions.
1Trade or business income. Individuals: Enter the amount from the Worksheet IV, Section C, line 14, column (c) on this line and on line 3 (skip line 2). See instructions. Corporations filing a combined report, enter the
taxpayer’s business income apportioned to California. See instructions for Part IV
1
Corporations: Enter the average apportionment percentage from Worksheet IV, Section A, line 4. See instructions
.
Multiply line 1 by line 2
4
Enter the EZ NOL deduction from Worksheet V, Section C, line 30, column (c)
5
EZ taxable income. Subtract line 4 from line 3
6a Compute the amount of tax due using the amount on line 5.
See instructions
▐ 6a
b Enter the amount of tax from Form 540, line 35; Long Form 540NR, line 42;
Form 541, line 21; Form 100, line 24; Form 100W, line 24; Form 100S, line 22;
or Form 109, line10. Corporations and S corporations, see instructions
6b
7Enter the smaller of line 6a or line 6b. This is the limitation based on the EZ business income.
Go to Part II, Part III, or Part IV. See instructions
▐ 7
Part II Limitation of Credits for Corporations, Individuals, Estates, and Trusts. See instructions.
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
Credit
Total
Total credit
Limitation
Credit used on
name
amount
prior year
assigned from
sum of col. (b)
based on
Sch. P
carryover
form FTB 3544
plus col. (c),
EZ business
Can never be
col. (e) minus
col. (g)
minus col. (d)
income
greater than col. (e)
col. (f)
or col. (f)
8
Hiring credit
A
▌
B
9
Sales or use
tax credit
Part III Limitation of Credits for S corporations Only. See instructions.
S corporation
Credit used
Carryover
credit col. (b)
col. (c)
this year by
multiplied by 1/3
plus col. (d)
10
Hiring
credit
11
Part IV Limitation of Credits for Corporations and S Corporations Subject to Paying Only the Minimum Franchise Tax. See instructions.
Total prior
Total credit assigned
Total credit carryover
year carryover
from form FTB 3544
sum of col. (b) plus
col. (c), minus col. (d)
12 Hiring credit
13Sales or use
Refer to page 4 for information on how to claim deductions and credits.
Side 2 FTB 3805Z 2012
7542123
Earthquake Insurance Discounts - Includes a portion for the insurance producer's details, including name and address.
What Is 540 Tax Form - Through this form, corporations communicate their current tax filing status, ensuring they are in the clear or have made arrangements to settle dues.