Form 565 Schedule D – Fill Out and Use This PDF

TAXABLE YEAR

CALIFORNIA SCHEDULE

2011

Capital Gain or Loss

D (565)

(A)

(B)

(C)

(D)

(E)

(F)

Description of property,

Date acquired

Date sold

Sales price

Cost or other basis

Gain or loss

Example, 100 shares 7% preferred of ‘’Z’’ Co.

(mo., day, yr.)

(mo.,day, yr.)

See instructions.

See instructions.

(d) minus (e)

1

Enter line 1, column (f) totals here

1

________________

2

Short-term capital gain from installment sales, from form FTB 3805E, line 26 or line 37

2

________________

and S corporations

3

________________

4 Net short-term capital gain (loss). Add line 1, line 2, and line 3. Enter total here and on Schedule K, line 8 or line 11

4

________________

(A)

(B)

(C)

(D)

(E)

(F)

Description of property,

Date acquired

Date sold

Sales price

Cost or other basis

Gain or loss

Example, 100 shares 7% preferred of ‘’Z’’ Co.

(mo., day, yr.)

(mo.,day, yr.)

See instructions.

See instructions.

(d) minus (e)

5

Enter line 5, column (f) totals here

5

________________

6

Long–term capital gain from installment sales, from form FTB 3805E, line 26 or line 37

6

________________

and S corporations

7

________________

8

Capital gain distributions

8

________________

9

Net long-term capital gain (loss). Add line 5, line 6, line 7, and line 8. Enter total here and on Schedule K, line 9 or line 11

9

________________

General Information

Qualified Small Business Stock

California law does not conform to federal law changes regarding the

In general, for taxable years beginning on or after January 1, 2010,

increase in the percentage of the gain exclusion for the sales of qualified

California law conforms to the Internal Revenue Code (IRC) as of

small business stock acquired after February 17, 2009. California law

January 1, 2009. However, there are continuing differences between

allows an exclusion of 50% of any gain from the sale or exchange of

California and federal law. When California conforms to federal tax law

qualified small business stock held for more than 5 years. For California

changes, we do not always adopt all of the changes made at the federal

purposes, 80% of the issuing corporation’s payroll must be attributable

level. For more information, go to ftb.ca.gov and search for conformity.

to employment located within California (at time of issuance). Also,

Additional information can be found in FTB Pub. 1001, Supplemental

at least 80% of the value of the corporation’s assets must be used by

Guidelines to California Adjustments, the instructions for California

the corporation to actively conduct one or more qualified trades or

Schedule CA (540 or 540NR), and the Business Entity tax booklets.

businesses.

The instructions provided with California tax forms are a summary of

R&TC Section 18038.5 also provides for the deferral of gain from the

California tax law and are only intended to aid taxpayers in preparing

sale of small business stock that has been held for six months or more,

their state income tax returns. We include information that is most useful

if qualified replacement stock is purchased within 60 days after the sale

to the greatest number of taxpayers in the limited space available. It is

giving rise to the gain. Report gain deferred from the sale of qualified

not possible to include all requirements of the California Revenue and

small business stock in accordance with the instructions contained in

Taxation Code (R&TC) in the tax booklets. Taxpayers should not consider

Revenue Procedure 98-48.

the tax booklets as authoritative law.

For more information, go to ftb.ca.gov and search for qsbs.

Internet Access

You can download, view, and print California tax forms and publications

at ftb.ca.gov.

Access other state agencies’ websites at ca.gov.

Purpose

Use Schedule D (565), Capital Gain or Loss, to report the sale or

exchange of capital assets, by the partnership, except capital gains

(losses) that are specially allocated to any partners. Do not use this form

to report the sale of business property. For sales of business properties,

use California Schedule D-1, Sale of Business Property.

Enter specially allocated short-term capital gains (losses) received

from limited liability companies (LLCs) classified as partnerships,

partnerships, S corporations, and fiduciaries on Schedule D (565),

line 3. Enter specially allocated long-term capital gains (losses) received

from LLCs classified as partnerships, partnerships, S corporations, and

fiduciaries on Schedule D (565), line 7. Enter short-term and long-term

capital gains (losses) that are specially allocated to partners on

Schedule K-1 (565), Partner’s Share of Income, Deductions, Credits, etc.

Do not include these amounts on Schedule D (565). See the instructions

for Schedule K (565), Partners’ Share of Income, Deductions, Credits,

etc., and Schedule K-1 (565) for more information. Also, refer to the

instructions for federal Schedule D (1065), Capital Gains and Losses.

Nonresident and Part-Year Resident Partners, get FTB Pub. 1100,

Taxation of Nonresidents and Individuals Who Change Residency.

With the enactment of AB 1115 (Stats. 2001, Ch 920) capital loss

carryover and capital loss limitations for nonresident partners and

part-year resident partners, for the portion of the year they were

nonresidents, are determined based upon California source income

and loss items only for the computation of their California taxable

income. Moreover, the character of their gains and losses on the sale or

exchange of property used in trade or business or certain involuntary

conversions (IRC Section 1231) are determined for purposes of

calculating their California taxable income by netting California sources

Section 1231 gains and losses only.

California law conforms to federal law for the recognition of gain

on a constructive sale of property in which the partnership held an

appreciated interest.