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Screen CAEZ - California Enterprise Zone Credits (1040)

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Overview

Use this screen to enter data to calculate Form 3805Z, Enterprise Zone Deduction and Credit Summary. Form 3805Z is used to report Enterprise Zone carryover credits and Enterprise Zone net operation loss carryforward from prior years. Additional units of this screen may be added as needed to calculate forms for multiple Enterprise Zones.
The Enterprise Zone hiring credit and sales or use tax credit are limited to the income tax attributable to income generated inside the Enterprise Zone, as calculated on Form 3805Z worksheets. The worksheets (Not Required Statement) calculate the taxable income applicable to the Enterprise Zone. Thus, in order to calculate Form 3805Z credits, enter applicable data in the following fields to calculate the appropriate Form 3805Z worksheet:
  • Enterprise Zone activity
    : Enter a description at the top of the CAEZ Screen.
  • Activities located in Enterprise Zone
    : In the statement dialog on the CAEZ Screen, use the fieldview to enter Form or Schedule and the Unit Number of each federal activity located in the Enterprise Zone. The income for each non-pass-through activity listed in this statement dialog is automatically included on the Form 3805Z worksheets. Use the statements in the Enterprise Zone Income or Loss section of the CAEZ-2 Screen to force the amounts.
  • Pass-through income or loss:
     In the statement dialog on the CAEZ-2 Screen, use the fieldview to select the K-1 schedule and Unit Number of each federal activity located in the Enterprise Zone. Enter the distributive share of income or loss apportioned to the Enterprise Zone from Schedule K-1 to calculate the appropriate Form 3805Z worksheet.
California Franchise Tax Board may also require Federal EIN, Secretary of State file number, Name of Enterprise Zone business, address information, and name of Enterprise Zone in which business is located in order to process the return. Complete the applicable information in the General Information section of the CAEZ Screen.
note
Form 3805Z worksheets are available to review in the Not Required Statements by print previewing the return.
Enterprise Zone activity
Enter a description of the Enterprise Zone activity to calculate Form 3805Z.
Activities located in Enterprise Zone (Including Business Expense Recapture Percent)
In the statement, use the fieldview to enter the
Form or Schedule
 and the
Unit Number
 of each federal activity located in the Enterprise Zone. The income for each non-pass-through activity entered in this statement dialog is automatically included on the appropriate Form 3805Z worksheet used for calculating Enterprise Zone trade or business income on Form 3805Z, Schedule Z. Use the statements in the Enterprise Zone Income or Loss section of the CAEZ-2 Screen to force the amounts.
note
Pass-through income from inside the Enterprise Zone must be entered in the CAEZ-2 Screen.
For business expense deductions subject to recapture, enter the applicable percentage for the activity. Enter the total recapture amount in the
Business expense deduction recapture
 statement dialog. For each activity entered here, the recapture amount, multiplied by the corresponding Business Expense Recapture percentage, is reported as an adjustment on the California Schedule CA Reconciliation Report for Business, Rental, Farm, and Farm Rental Activities, located in forms view in the Rec Bus folder, or the California Schedule CA Reconciliation Report for Pass-through Activities, located in forms view in the Rec K1 folder. UltraTax CS defaults to 100 percent for any activity for which the percentage is not entered.
Secretary of State file number (Force)
The Secretary of State file number reported on Form 3805Z defaults to the SOS number entered on the federal main activity screen in the state use dialog corresponding to the first activity listed in the
Activities located in Enterprise Zone
 statement dialog in this screen. Use this field to enter a different number.
Name of enterprise zone business (Force)
The name of the Enterprise Zone business defaults to the description of the first activity listed in the
Activities located in Enterprise Zone
 statement dialog. Use this field to enter a different name.
Enterprise Zone in which business located
There are certain names that California Franchise Tax Board accepts as valid for Enterprise Zones. Choose the appropriate Enterprise Zone from the fieldview to report on Form 3805Z and to be included in the electronic record.
Principal Business Activity Code (Force)
The Principal Business activity code defaults to the first Schedule C activity listed in the
Activities located in Enterprise Zone
 statement dialog. Use this field to enter a different code.
Gross annual receipts
Enter the gross annual receipts of all activities located in the Enterprise Zone. This information is reported on Form 3805Z.
Total asset value
Enter the total asset value of all activities located in the Enterprise Zone. This information is reported on Form 3805Z.
Tax from Form 540, line 35 or Form 540NR, line 42 (Force)
UltraTax CS defaults to including the total regular tax on a single unit of the Form 3805Z. When multiple units are calculated, UltraTax CS applies the tax to each unit of the form in order, beginning with the first unit, limited to the amount on line 6a until the total tax is used. To change the amount used in each unit, force an amount here. If any unit of the form is forced, all units must be forced. The total forced for all units must equal the total tax on the return.
Hiring credit carryover
Hiring Credit carryover amounts, if calculated on the prior-year version of Form 3805Z, proforma to this field.
Sales or Use Tax credit carryover
Sales or Use Tax Credit carryover amounts, if calculated on the prior-year version of Form 3805Z, proforma to this field.

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