109: Exempt Organization Business Income Tax Return (2025)
California · FTB · Used for tax years 2025
California Form 109 is the 2025 Exempt Organization Business Income Tax Return. It reports unrelated business income and deductions and calculates tax, payments, and any refund or amount due.
What you'll need
Have your organization's California corporation number, FEIN, address, accounting method, and unrelated business activity code ready, along with income, expense, and payment information requested on the form.
Depending on your organization's activities, the form calls for these documents:
- Hospitals: Attach federal Schedule H (Form 990).
- Income or loss from partnerships, LLCs, or S corporations: Attach Schedule K-1 (565, 568, or 100S), or a similar schedule.
- Trust capital gains: Attach Schedule D (541), as directed on the capital gain line.
- Depreciation: Corporations and associations use Schedule J. Trusts use form FTB 3885F.
- Supporting schedules: Attach schedules for other income, interest deductions, taxes, contributions, depletion, and other deductions reported on the applicable lines.
- Withholding: The withholding line refers to Forms 592-B and/or 593.
- Estimated tax penalty using Exception B or C: Attach form FTB 5806.
Common mistakes
- Claiming unrelated deductions: Except for contributions, deductions in Part II must be directly connected with unrelated business income.
- Including other activity in apportionment: Schedule R says to use only unrelated trade or business amounts. Complete only the part for the formula the corporation uses.
- Counting first-year depreciation twice: Schedule J says not to include the additional first-year depreciation reported on line 1 in the items below it.
- Using the wrong depreciation schedule for a trust: Schedule J is only for corporations and associations. Trusts use form FTB 3885F.
Questions people ask
Can a refund be directly deposited?
Yes. On Side 2, line 27, provide the routing number and account number, and select checking or savings.
Can an overpayment go toward next year's estimated tax?
Yes. Line 26 of the 2025 form lets you enter the amount of your overpayment to apply to 2026 estimated tax.
Does a hospital need an extra attachment?
Yes. If you answer “Yes” to the hospital question, the form directs you to attach federal Schedule H (Form 990).
Can I identify the return as amended or final?
Yes. Question E asks whether this is an amended return. Question D identifies a final return, with options for dissolved, surrendered (withdrawn), or merged/reorganized, and a field for the date.