100-WE: Water's-Edge Election (2025)
California · FTB · Used for tax years 2025
California Form 100-WE is used by a corporation to elect to file on a water’s-edge basis. It records the election’s beginning date, the corporations covered, and the electing corporation officer’s signature. 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 that are includable in the water’s-edge combined report.
- Without a 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 constitutes 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 information as it appears on that return.
You will need:
- The corporation’s name, California corporation number, address, and federal employer identification number (FEIN), if applicable.
- The name of the corporation making the election.
- The election’s beginning date.
- The key California corporation’s name and number, and common parent information, as applicable.
- The names and California corporation numbers of corporations covered by the election. Attach additional sheets if needed.
- The signing officer’s signature, signing date, printed or typed name, and title.
How to file
- Enter the corporation’s information as listed on Form 100W or Form 100S.
- Enter the electing corporation’s name and the election’s beginning date.
- If a common parent is electing for the group, check the common parent box and list all taxpayers covered by its election.
- Have an officer of the electing corporation sign and date Form 100-WE.
- Attach the signed form to the back of Form 100W or Form 100S. Keep a copy for the corporation’s records.
Common mistakes
- Forgetting to check the box when a common parent elects on behalf of the controlled-group members included in the water’s-edge combined report.
- Leaving taxpayers off the list of corporations covered by the common parent’s election.
- Assuming one combined return eliminates separate elections when there is no common parent election. Each electing member should file its own election in that situation.
- Forgetting the officer’s signature or date.
- Failing to attach Form 100-WE to the back of Form 100W or Form 100S, or failing to keep a copy.
Questions people ask
How long does the election last?
The election provides 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 Revenue and Taxation Code Section 25113.
What beginning date should I enter?
Generally, use the beginning date shown on Form 100W or Form 100S for the first taxable year of the election. If members of a water’s-edge combined group have different fiscal-year ends, use the beginning date of the taxable year of the last member to file its return and make the election.
Who must sign the election?
An officer of the electing corporation must sign and date it. The form also asks for the officer’s printed or typed name and title.
Where can I find the definition of a key corporation?
The form refers to FTB Publication 1061, Guidelines for Corporations Filing a Combined Report.