3804: Pass-Through Entity Elective Tax Calculations (2024)
California · FTB · Used for tax years 2024
California Form 3804 calculates a qualified pass-through entity’s elective tax using a 9.3% rate on total qualified net income. It also lists qualified taxpayers, their income included in the calculation, and their elective tax credit amounts.
Who files this form
Form 3804 is for an electing qualified pass-through entity (PTE). It calculates the entity’s elective tax and lists its qualified taxpayers and their elective tax credit amounts.
The form must be attached to Form 100S, Form 565, or Form 568. The supplied form text does not explain who qualifies to make the election.
What you'll need
Have the following information ready:
- The entity’s business name as shown on its tax return and its applicable identification numbers: FEIN, California corporation number, or California Secretary of State file number.
- Each qualified taxpayer’s name and applicable SSN, ITIN, or FEIN.
- Each qualified taxpayer’s pro-rata or distributive share and guaranteed payments included in qualified net income.
- The entity’s Form 100S, Form 565, or Form 568, to which Form 3804 must be attached.
How to file
Attach Form 3804 to the entity’s Form 100S, Form 565, or Form 568.
Enter the total elective tax from Form 3804, Part I, line 3, on the applicable return:
- Form 100S, line 29.
- Form 565, line 25.
- Form 568, line 4.
The supplied text does not give a mailing address or e-filing directions.
Common mistakes
- Do not attach Side 2 of the Schedule of Qualified Taxpayers if it is blank.
- Print clearly when completing Side 2.
- For SMLLCs, estates, and trusts, the form directs you to the instructions. Those instructions are not included in the supplied text.
Questions people ask
How is the entity’s elective tax calculated?
Add all box a amounts from the Schedule of Qualified Taxpayers, including Side 2 and any additional pages. Enter the total on Part I, line 1, and multiply it by 9.3% to calculate the tax on line 3.
How is each qualified taxpayer’s elective tax credit calculated?
Multiply that taxpayer’s box a amount by 9.3% and enter the result in box b. Box a contains the sum of the taxpayer’s pro-rata or distributive share and guaranteed payments included in qualified net income.
What if there are more than seven qualified taxpayers?
Continue the Schedule of Qualified Taxpayers on Side 2. Do not attach Side 2 if it is blank.
Where can I find the privacy notice?
The form directs you to FTB 1131 EN-SP for the privacy notice.