California Passive Activity Loss Limitations

Passive Activity Loss Limitations
2023 Form 3801 Passive Activity Loss Limitations
CALIFORNIA FORM

TAXABLE YEAR

2023

Passive Activity Loss Limitations

3801

Attach to Form 540, Form 540NR, Form 541, or Form 100S.
Name(s) as shown on tax return

Part I

SSN, ITIN, FEIN, or CA corporation no.

2023 Passive Activity Loss

See the instructions for Part IV and Part VI for federal Form 8582, Passive Activity Loss Limitations, before completing Part I.
Be sure to use California amounts.

Rental Real Estate Activities with Active Participation
1a Activities with net income from Part IV, column (a) . . . . . . . . . . . . . . . . . . .

1a

1b Activities with net loss from Part IV, column (b) . . . . . . . . . . . . . . . . . . . . .

1b

(

)

00

1c Prior year unallowed losses from Part IV, column (c). . . . . . . . . . . . . . . . . .

1c

(

)

00

00

1d Combine line 1a, line 1b, and line 1c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
All Other Passive Activities
2a Activities with net income from Part V, column (a) . . . . . . . . . . . . . . . . . . .

2a

2b Activities with net loss from Part V, column (b) . . . . . . . . . . . . . . . . . . . . . .

2b

(

) 00

2c Prior year unallowed losses from Part V, column (c). . . . . . . . . . . . . . . . . .

2c

(

) 00

00

2d

00

3

00

4

00

00

2d Combine line 2a, line 2b, and line 2c . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 Combine line 1d and line 2d. If the result is net income or zero, see the instructions for line 3. If line 3 and
line 1d are losses, go to line 4. Otherwise, enter -0- on line 9 and go to line 10. See instructions. . . . . . . . . . .

Part II

1d

Special Allowance for Rental Real Estate Activities with Active Participation
Enter all numbers in Part II as positive amounts. See instructions.

4

Enter the smaller of losses from line 1d or line 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

5 Enter $150,000. If married/RDP filing a separate tax return, see instructions.
6 Enter federal modified adjusted gross income, but not less than zero.
See instructions.
If line 6 is greater than or equal to line 5, skip line 7 and line 8, enter -0on line 9, and then go to line 10. Otherwise, go to line 7 . . . . . . . . . . . . . . .

5

00

6

00

7

Subtract line 6 from line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7

00

8

Multiply line 7 by 50% (.50). Do not enter more than $25,000 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

8

00

9

Enter the smaller of line 4 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9

00

Part III Total Losses Allowed
10

Add the income, if any, from line 1a and line 2a and enter the total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

10

00

11

Total losses allowed from all passive activities for 2023. Add line 9 and line 10 . . . . . . . . . . . . . . . . . . . . . .
See the instructions on Page 2 to find out how to report the losses on your tax return.

11

00

For Privacy Notice, get FTB 1131 EN-SP.

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FTB 3801 2023 Side 1

California Worksheets

Attach Side 2 to your California tax return.

California Passive Activity Worksheet (See General Instructions for Step 1.)
Use this worksheet to figure California income (loss) from passive activities before application of passive activity loss (PAL) rules.
(e)
(d)
(b)
(c)
(f)
(a)
California Adjustment
Federal Amount
Federal Schedule
California Schedule
California Amount
Passive Activity
Enter the name of
Enter your current year Enter any adjustment
Enter the name of
Combine column (d)
Enter a description of
resulting from
the California form or
federal net income
the federal form or
and column (e)
the activity
schedule on which you schedule, if any, used to (loss) before application differences in federal
and California law
calculate the California
of the PAL rules
reported the activity
adjustment

California Adjustment Worksheets (See General Instructions for Step 4.)
Use these worksheets to figure your California adjustments after application of the PAL rules.
(d)
(b)
(c)
(a)
Federal Amount
Passive or Nonpassive
California Amount
Activities
Enter the federal net
Enter the character of Enter the California net
Enter a description
the activity as passive income (loss) from the income (loss) from the
of the activity. Group
activity after application activity after application
or nonpassive for
activities by the federal
of the PAL rules
California purposes
of the PAL rules
schedules on which
they were reported
(a)
Schedule C Activities

(b)
Passive or Nonpassive

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
Schedule E Activities

(b)
Passive or Nonpassive

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(a)
Schedule F Activities

(b)
Passive or Nonpassive

(c)
California Amount

1(c)

(d)
Federal Amount

1(d)*

(c)
California Amount

2(c)

(d)
Federal Amount

2(d)**

(c)
California Amount

(d)
Federal Amount

(e)
California Adjustment
Subtract the Total amount of column (d) from
the Total amount of column (c) and enter the
difference in column (e) below. Individuals
should transfer this amount to
Schedule CA (540 or 540NR) as follows:
(e)
California Adjustment
If the amount below is positive, transfer the
amount to Sch. CA (540), Part I or Sch. CA
(540NR), Part II, Section B, line 3, column C.
If the amount below is negative, transfer the amount
to Sch. CA (540), Part I or Sch. CA (540NR), Part II,
Section B, (as a positive amount) line 3, column B.
1(e)
(e)
California Adjustment
If the amount below is positive, transfer the
amount to Sch. CA (540), Part I or Sch. CA
(540NR), Part II, Section B, line 5, column C.
If the amount below is negative, transfer the amount
to Sch. CA (540), Part I or Sch. CA (540NR), Part II,
Section B, (as a positive amount) line 5, column B.
2(e)
(e)
California Adjustment
If the amount below is positive, transfer the
amount to Sch. CA (540), Part I or Sch. CA
(540NR), Part II, Section B, line 6, column C.

If the amount below is negative, transfer the amount
to Sch. CA (540), Part I or Sch. CA (540NR), Part II,
Section B, (as a positive amount) line 6, column B.
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3(c)
3(d)***
3(e)
* This amount should be the same as the amount reported on Sch. CA (540), Part I or Sch. CA (540NR), Part II, Section B, line 3, column A.
** This amount should be the same as the amount reported on Sch. CA (540), Part I or Sch. CA (540NR), Part II, Section B, line 5, column A.
*** This amount should be the same as the amount reported on Sch. CA (540), Part I or Sch. CA (540NR), Part II, Section B, line 6, column A.

Side 2 FTB 3801 2023

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Part IV through Part IX are not required to be filed with your California tax return and may be detached before filing form FTB 3801. Keep a copy for your
records. Refer to the instructions for federal Form 8582 for specific instructions on how to complete Part IV through Part IX.

Part IV

Name of activity

Complete this part before Part I, line 1a, line 1b, and line 1c.
Current year
(b)
(a)
Net loss
Net income
(line 1a)
(line 1b)

Prior year
(c)
Unallowed loss
(line 1c)

Overall gain or loss
(d)
(e)
Gain
Loss

Prior year
(c)
Unallowed loss
(line 2c)

Overall gain or loss
(d)
(e)
Gain
Loss

(b)
Ratio

(c)
(d)
Special allowance Subtract column (c)
from column (a)

Total. Enter on Part I, line 1a,
line 1b, and line 1c . . . . . . . . . . . . . . . . . . ▶

Part V

Name of activity

Complete this part before Part I, line 2a, line 2b, and line 2c.
Current year
(a)
(b)
Net income
Net loss
(line 2a)
(line 2b)

Total. Enter on Part I, line 2a,
line 2b, and line 2c . . . . . . . . . . . . . . . . . . ▶

Part VI
Name of activity

Use this part if an amount is shown on Part II, line 9.
Form or schedule
(a)
to be reported on
Loss

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Part VII
Allocation of Unallowed Losses
Form or schedule
to be reported on
Name of activity

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
Part VIII
Allowed Losses
Form or schedule
to be reported on
Name of activity

1.00
(a)
Loss

(b)
Ratio

(c)
Unallowed loss

1.00
(a)
Loss

(b)
Unallowed loss

(c)
Allowed loss

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

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FTB 3801 2023 Side 3

Part IX
Name of activity

Activities With Losses Reported on Two or More Different Forms or Schedules
(a)
(b)
(c)
Ratio

(d)
Unallowed loss

(e)
Allowed loss

Form or schedule
to be reported on:
1a

Net loss plus prior year unallowed
loss from form or schedule. . . . . . . . . . . . . . . . .▶

b

Net income from
form or schedule. . . . . . . . . . . . . . . . . . . . . . . . .▶

c

Subtract line 1b
from line 1a. If zero
or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Form or schedule
to be reported on:
1a

Net loss plus prior year unallowed
loss from form or schedule. . . . . . . . . . . . . . . . .▶

b

Net income from
form or schedule. . . . . . . . . . . . . . . . . . . . . . . . .▶

c

Subtract line 1b
from line 1a. If zero
or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Form or schedule
to be reported on:
1a

Net loss plus prior year unallowed
loss from form or schedule. . . . . . . . . . . . . . . . .▶

b

Net income from
form or schedule. . . . . . . . . . . . . . . . . . . . . . . . .▶

c

Subtract line 1b
from line 1a. If zero
or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶

Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ▶
1.00
Part IV through Part IX are not required to be filed with your California tax return and may be detached before filing form FTB 3801. Keep a copy for your
records.

Side 4 FTB 3801 2023

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