3551: Sale of Credit Attributable to an Independent Film (2024)
California · FTB · Used for tax years 2024
California Form 3551 reports the sale of a tax credit attributable to an independent film. It collects seller and buyer information, answers to questions about whether the credit can be sold, and details about the credit amount and consideration received.
Who files this form
Form 3551 is for sellers reporting a sale of credit attributable to an independent film. It asks for seller and buyer information and details about the credit and sale.
The form says the credit cannot be sold if:
- It is not attributable to an independent film.
- The seller purchased it from another taxpayer.
- It is being sold to more than one taxpayer.
- The buyer is a related party.
What you'll need
Have the following information ready:
- The CFC Tax Credit Certificate, including the name on the certificate, certificate number, seller’s permit number, and final tax credit amount.
- Seller and buyer names, addresses, and applicable tax identification or business identification numbers.
- Partner, member, or shareholder information, if different from the seller information above it.
- The seller’s distributive share of the credit, if the seller is a partner, member, or shareholder.
- The amount of credit being sold, the consideration received, and the credit the seller applied or will apply to CDTFA qualified sales and use taxes.
If the credit passed through more than one entity, the form requires an additional schedule. The supplied form refers to instructions for that schedule, but those instructions are not available here.
Common mistakes
- Do not complete the rest of the form if the credit is not attributable to an independent film.
- Stop if you answer “Yes” to any question in Part II, question 2. The form says the credit cannot be sold if you purchased it from another taxpayer, are selling it to more than one taxpayer, or the buyer is a related party.
- Do not omit the additional schedule if the credit passed through more than one entity.
- Leave the partner, member, or shareholder name blank if it is the same as the name entered above it.
- Check the SMLLC box if the seller is a single member limited liability company. If the seller is an LLC, choose the appropriate box for its election to be treated as a partnership or corporation.
Questions people ask
Can I sell a credit that I bought from another taxpayer?
No. Part II says to stop and not complete the rest of the form if you purchased the credit from another taxpayer.
Can I sell the credit to a related party?
No. The form says the credit cannot be sold if the buyer is a related party.
What if the credit passed through more than one entity?
You must attach an additional schedule, then go to Part III. The form refers to the Part II instructions for schedule details, but those instructions are not available here.
Which certificate information does Part III ask for?
It asks for the tax credit certificate number, seller’s permit number, and final tax credit amount shown on the CFC Tax Credit Certificate.
Who signs the form?
The signature area asks for the seller’s or officer’s signature, title, date, and telephone number. There is also a separate paid preparer section.