3726: Deferred Intercompany Stock Account (DISA) and Capital Gains Information (2025)
California · FTB · Used for tax years 2025
California Form 3726 reports prior-year and current-year Deferred Intercompany Stock Account (DISA) balances and DISA capital gains recognized during the taxable year. A separate form is completed for each corporation that received a distribution and attached to Form 100 or Form
Who files this form
Form FTB 3726 reports prior-year and current-year Deferred Intercompany Stock Account (DISA) information and DISA capital gains recognized during the taxable year.
Complete a separate form for each corporation that received the distribution. Attach it to Form 100 or Form 100W.
What you'll need
Have the information needed for the applicable parts ready:
- Corporation details: The distribution recipient's name and California corporation number.
- Prior-year DISA information: Distributor names, years of deferral, ownership percentages at distribution and currently, beginning DISA balances, and current-year capital contributions.
- Current-year distributions: Distributor names, ownership percentages, distribution amounts, amounts paid from current and accumulated earnings and profits (E&P), and amounts reducing the basis of the distributor's stock.
- Gains recognized this year: Distributor names, years of deferral, triggering event types, DISA balances, recognition ratios, and whether each gain is short-term or involves a partial stock sale.
Attach additional sheets if necessary.
How to file
Attach Form FTB 3726 to Form 100 or Form 100W. Use a separate Form FTB 3726 for each corporation that received the distribution.
- Part I: Complete all fields to satisfy the annual disclosure requirements. Calculate the ending DISA balance by subtracting current-year capital contributions from the beginning balance.
- Part II: Calculate the current-year DISA balance by subtracting the total of columns (d), (e), and (f) from the distribution amount in column (c).
- Part III: Calculate recognized capital gain by multiplying the DISA balance in column (d) by the recognition ratio in column (e).
- Transfer short-term DISA capital gains from Part III, line 2, to Form 100 or 100W, Side 6, Schedule D, Part I, line 1, column (f).
- Transfer long-term DISA capital gains from Part III, line 3, to Form 100 or 100W, Side 6, Schedule D, Part II, line 5, column (f).
Attach additional sheets if necessary.
Common mistakes
- Combining distribution recipients on one form: The form requires a separate Form FTB 3726 for each corporation that received the distribution.
- Leaving Part I incomplete: The form says to fill out Part I completely to satisfy annual disclosure requirements.
- Missing the Part III checkboxes: Check column (g), Box A, for a short-term capital gain. Check Box B for a partial sale of stock.
- Mixing short-term and long-term totals: Include amounts with Box A checked on Part III, line 2. Include amounts without Box A checked on line 3.
- Omitting additional sheets when needed: Each part directs you to attach additional sheets if necessary.
Questions people ask
What does DISA stand for?
DISA stands for Deferred Intercompany Stock Account.
Can I use one form for several corporations that received distributions?
No. Complete a separate Form FTB 3726 for each corporation that received the distribution.
How do I calculate the current-year DISA balance in Part II?
Subtract the sum of columns (d), (e), and (f) from column (c). These subtractions are the amounts paid from current-year E&P, paid from accumulated E&P, and reducing the basis of the distributor's stock.
What do the checkboxes in Part III mean?
Box A identifies a short-term capital gain. Box B identifies a partial sale of stock.
Where do I attach this form?
Attach it to Form 100 or Form 100W.