3725: Assets Transferred from Corporation to Insurance Company (2025)
California · FTB · Used for tax years 2025
California Form 3725 reports property and stock transferred from a corporation to an insurance company, including deferred capital gains. It also reports subsequent ownership changes, stock transactions, property dispositions, and related short-term and long-term capital gains or
Who files this form
Form 3725 is for a corporation, called the transferor, reporting assets transferred to an insurance company. The 2025 form covers transferred property, stock information, and capital gains and losses.
The form directs the corporation to attach it to Form 100 or Form 100W.
What you'll need
Have the information needed for the applicable parts of the form:
- The transferor corporation’s name, California corporation number, and FEIN.
- The insurance company’s name and identifying numbers if appreciated property was transferred.
- For deferred gains: the taxable year, property description and location, transfer date, fair market value at transfer, and adjusted basis at transfer.
- For stock questions: transfers or disposals, cumulative percentages measured by relative fair market value, and shares outstanding before and after any issuance or cancellation.
- For taxable gains or losses: the property description, location, percentage, date, amount realized or fair market value, and adjusted basis.
The form provides for additional sheets when needed for the property and capital gain tables.
How to file
Attach Form 3725 to Form 100 or Form 100W.
Complete the applicable parts, following the Yes/No directions that tell you which lines to complete or skip. The form includes signature spaces for a transferor corporation officer and the insurer, with titles, dates, and telephone numbers.
Report the Part IV totals as directed:
- Short-term gains or losses, line 16: Form 100 or Form 100W, Side 6, Schedule D, Part I, line 1, column (f), or Schedule D (100S), Section A or B, Part I, line 1, column (f).
- Long-term gains or losses, line 18: Form 100 or Form 100W, Side 6, Schedule D, Part II, line 5, column (f), or Schedule D (100S), Section A or B, Part II, line 4, column (f).
The supplied form does not give a mailing address or e-filing directions.
Questions people ask
What if no appreciated property was transferred to an insurance company?
Answer “No” on Part I, line 1, skip lines 2 and 3, and continue with Part II.
How is the deferred gain calculated in Part I?
Line 3, column (g), is the fair market value at the transfer date in column (e), minus the adjusted basis at that date in column (f).
What if the insurer issued or canceled shares during the taxable year?
Answer “Yes” on line 6 and enter the shares outstanding before the issuance or cancellation on line 6a and after it on line 6b.
How does the form separate short-term and long-term gains and losses?
Part IV, Section A is for assets held one year or less. Section B is for assets held more than one year.