100-WE: Water's-Edge Election (2024)
California · FTB · Used for tax years 2024
California Form 100-WE records a corporation’s election to file on a water’s-edge basis. It identifies the electing corporation, the election’s beginning date, and any corporations covered by a common parent’s election. The signed form is attached to Form 100W or Form 100S.
Who files this form
Form 100-WE is for a corporation electing to file on a water’s-edge basis under California Revenue and Taxation Code Sections 25110 and 25113.
A common parent may elect for all controlled-group members includable in the water’s-edge combined report. If there is no common parent election, each electing member should file its own election, even if the group files a single combined return.
An election made on a group return of a self-assessed combined reporting group counts as an election by each taxpayer member included in that return.
What you'll need
Have Form 100W or Form 100S available so you can enter the corporation’s identifying information and address as shown on that return.
To complete Form 100-WE, you will need:
- The electing corporation’s name and California corporation number.
- The federal employer identification number (FEIN), if applicable.
- The key California corporation’s name and number.
- Common parent information, if applicable.
- The names and California corporation numbers of corporations covered by the election. Attach additional sheets if necessary.
- The election’s beginning date.
- The signing officer’s name, title, signature, and date.
For the definition of a key corporation, the form refers to FTB Pub. 1061, Guidelines for Corporations Filing a Combined Report.
How to file
- Enter the corporation’s identifying information and address as listed on Form 100W or Form 100S.
- Enter the name of the corporation making the election.
- If the common parent is electing for the group, check the common parent box and list all taxpayers covered by its election. Attach additional sheets if needed.
- Enter the beginning date of the election.
- Have an officer of the electing corporation sign and date Form 100-WE, and print or type the officer’s name and title.
- Attach the signed Form 100-WE to the back of Form 100W or Form 100S. Keep a copy for the corporation’s records.
The form does not provide a mailing address or e-filing directions.
Common mistakes
- Forgetting to check the common parent box when the parent is electing for members included in the water’s-edge combined report.
- Leaving taxpayers off the list of corporations covered by the common parent’s election.
- Assuming a single combined return removes the need for separate elections when there is no common parent election. The instructions say each electing member should file its own election in that situation.
- Missing the officer’s signature or date.
- Forgetting to attach the election to the back of Form 100W or Form 100S or to keep a copy for the corporation’s records.
Questions people ask
When does the election begin?
Generally, it begins on the same date as the taxable year shown on Form 100W or Form 100S for the first year of the election.
What if group members have different fiscal-year ends?
The election begins on the beginning date of the taxable year of the last group member to file its return and make the election.
How long does the election last?
The form states that the election continues for 84 calendar months from its beginning date, except as otherwise provided by statute or the form. It remains in effect until terminated. Termination must follow the rules in California Revenue and Taxation Code Section 25113.
Who must sign Form 100-WE?
An officer of the electing corporation must sign and date the election. The form also asks for the officer’s printed or typed name and title.