3801: Passive Activity Loss Limitations (2024)
California · FTB · Used for tax years 2024
California Form 3801 figures the passive activity losses allowed for 2024 using California amounts. It reports income, current-year losses, and prior-year unallowed losses from rental real estate and other passive activities, and includes worksheets for California adjustments.
What you'll need
Have these details available to complete Form FTB 3801 and its worksheets:
- Your name as shown on your tax return and your SSN, ITIN, FEIN, or California corporation number.
- Current-year income or loss for each passive activity, plus prior-year unallowed losses.
- The federal forms or schedules reporting each activity and any California forms or schedules used to calculate adjustments.
- Federal income or loss amounts and adjustments resulting from differences between federal and California law.
- Federal modified adjusted gross income for Part II.
The form also directs you to the federal Form 8582 instructions for help completing Parts IV through IX.
How to file
Attach Form FTB 3801 to Form 540, Form 540NR, Form 541, or Form 100S. Attach Side 2, the California worksheets, to your California tax return.
Parts IV through IX do not need to be filed with your California return. You may detach them before filing, but keep a copy for your records.
The supplied form does not give a mailing address or e-filing instructions.
Common mistakes
- Using the wrong amounts: The form reminds you to use California amounts when completing Part I.
- Entering negative numbers in Part II: Enter all numbers in Part II as positive amounts.
- Exceeding the printed line 8 limit: Do not enter more than $25,000 on line 8.
- Missing the preparation order: Complete Part IV before Part I, lines 1a through 1c, and Part V before Part I, lines 2a through 2c.
- Leaving out Side 2: The form says to attach the California worksheets to your California tax return.
- Discarding detached parts: Keep a copy of Parts IV through IX for your records.
Questions people ask
What does Form FTB 3801 calculate?
It calculates passive activity loss limitations. Line 11 shows the total losses allowed from all passive activities for 2024.
Which activities are listed separately in Part I?
Part I separates rental real estate activities with active participation from all other passive activities.
What is the California Passive Activity Worksheet for?
It figures California income or loss from passive activities before applying the passive activity loss rules. The California Adjustment Worksheets figure adjustments after those rules are applied.
Do I need to submit Parts IV through IX?
No. The form says these parts are not required to be filed with your California tax return. You may detach them, but keep a copy for your records.