3802: Corporate Passive Activity Loss and Credit Limitations (2025)
California · FTB · Used for tax years 2025
California Form 3802 calculates allowed and unallowed passive activity deductions, losses, and credits for personal service corporations and closely held C corporations. It attaches to Form 100 or Form 100W and includes an election to increase the basis of credit property after d
Who files this form
California Form 3802 is for personal service corporations and closely held C corporations only. It covers passive activity loss and credit limitations.
Attach it to Form 100 or Form 100W.
What you'll need
Have these worksheets and details ready:
- The corporation’s name and California corporation number.
- Federal Worksheets 1 and 2 from the instructions for federal Form 8810, completed using California amounts, for Part I.
- Federal Worksheet 5 from the instructions for federal Form 8810, completed using California amounts, for Part II.
- Current-year income, deductions, losses, and passive activity credits, plus prior-year unallowed losses and credits.
- If making the Part III election: the name of the activity disposed of, a description of the credit property, and the unallowed credit amount that reduced the property’s basis for California purposes.
How to file
Attach Form 3802 to Form 100 or Form 100W. The supplied form does not give a mailing address or e-filing directions.
Common mistakes
- Do not skip the preliminary worksheets. Complete federal Worksheets 1 and 2 before Part I, and federal Worksheet 5 before Part II, using California amounts.
- On line 2, personal service corporations must enter 0. Closely held C corporations enter net active income.
- If line 1d or line 3 results in net income or zero, follow the form’s direction to see the instructions rather than simply continuing the loss calculation.
- If line 6 minus line 7 is zero or less, enter 0 on line 8.
Questions people ask
Should the federal worksheets use federal or California amounts?
Use California amounts when completing the federal Form 8810 worksheets required for Parts I and II.
Where do prior-year unallowed losses and credits go?
Enter prior-year unallowed losses from federal Worksheet 2, column (c), on line 1c. Enter prior-year unallowed credits from federal Worksheet 5, column (b), on line 5b.
How is the allowed passive activity credit calculated?
Subtract line 8, the unallowed passive activity credit, from line 6. Enter the result on line 9.
What is the election in Part III?
If the corporation disposed of its entire interest in a passive activity or former passive activity in a fully taxable transaction, it may elect to increase the basis of credit property used in that activity by the unallowed credit that reduced the property’s basis. Check line 10 and provide the activity name, property description, and California unallowed credit amount on lines 11 through 13.