| Line | | What to enter |
Page 1
Lines 1 to 8
| | Enter the ordinary income (loss) that you reported in IRS 1120
on line 1. Make make any deductions for differences between state and federal taxes on lines 2 to 8. Usually, these
include differences in depreciation methods and eliminating the state corporate tax from your deductible taxes.
If you have depreciable equipment or start-up costs (which should be amortized), you
will need to attach
Schedule FTB 3885. |
Page 1
Lines 10 to 16
| | Enter any credits for differences between state and federal taxes. Usually this only occurs in future years
when you are depreciating items that couldn't be depreciated for state tax purposes during earlier years. |
| 24-31 | | Calculate the tax due. Beginning year 2,
this should be a minimum $800. |
| 40 (Use Tax) | |
If you do not file BT-401 Quarterly Sales Tax Returns,
you must report the use tax on all Internet and out-of-state purchases you made. The use tax is the same
rate as sales tax, but is charged on out-of-state items consumed in California. See
Use Tax for further information. |
| Sch. D: Capital gains | | List any capital gains or losses. |
| Sch. A: Itemized taxes | | Itemize any taxes that you
deducted (do not include state income tax or the minimum tax). |
| Sch. J: Tax credits | | These include jobs, enterprise zone, program
area hiring, employer child care, research, low income credits. |
| Sch. F: Net Income | | This should match your 1120 filing. The total should equal
line 1 on the front page of this form. |
| Sch. V: Cost of goods | | Your cost of goods must be reported in
more detail. |
| Sch. L | | Balance sheet at the beginning and the end of the year. Not required if your assets and total receipts were less than
$250,000. |
| Sch. M-1 and M-2 Reconciliations | | Reconciles accounting methods.
Not required if your assets and total receipts were less than
$250,000.
- Reconciles the differences between tax and book accounting (normally these are in the area of depreciation
and tax credits)
- Show how your retained earnings (profits) were distributed.
|
| |
| 24-38(front) | | Calculate the tax due. Beginning year 2,
this should be a minimum $800. |
| 40 (Use Tax) | |
If you do not file BT-401 Quarterly Sales Tax Returns,
you must report the use tax on all Internet and out-of-state purchases you made. The use tax is the same
rate as sales tax, but is charged on out-of-state items consumed in California. See
Collecting Sales Tax for further information.
|
