3551 Form Fillable Sale of Credit Attributable to an Independent Film
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1 Is the credit being sold attributable to an independent film? See instructions B Definitions 2 To determine if the credit can be sold answer the following questions: 3 Did this credit pass through more than one entity? m Yes m No Amount of consideration the seller will receive Amount of credit that will be sold Amount of credit the seller has applied or will California Film Commission Tax Credit Certificate Consideration received means the dollar amount Did you purchase the credit from another taxpayer? m Yes m No Face amount of credit means the amount shown Fax: 916 855 5666 FRANCHISE TAX BOARD If you answer Yes you are required to attach an additional schedule (see instructions for Part II) then go to Part III If No go to Part III Important: This portion of the credit may not be Independent film means a motion picture with a Is the buyer a related party? m Yes m No Is the credit being sold to more than one taxpayer? m Yes m No m No Stop The credit cannot be sold Only a credit attributable to an independent film can be sold Do not complete the rest of the form m Yes Go to question 2 Name address and tax identification number of Note: If the film company is a pass through entity Partner member or shareholder s distributive PO BOX 1779 Qualified taxpayer means a taxpayer who has paid Resold assigned or used against BOE qualified Sacramento CA 95827 Sold to more than one taxpayer tax (corporations) for a percentage of the qualified Tax Credit Certificate number shown on CFC Total Tax Credit Allocation Amount shown on CFC ($10 000 000) that is produced by a company that is (CFC Form M) means the actual tax credit certificate 2011 California Revenue and Taxation Code (R&TC) 4 From CFC Form M enter: 5 Tax Credit Allocation amount shown 6 If seller is a partner member or shareholder see instructions 7 Total amount of credit being sold 8 Total amount of consideration 8291143 9 Total amount of credit seller applied or will apply to BOE A copy of Form M is needed to complete this box A credit cannot be: A Purpose A qualified taxpayer may make an irrevocable Address (suite room PO Box or PMB no ) Address (suite room PO Box or PMB no ) after the sale of the credit The requirement to notify amount of the credit that can be sold and 23685 that is attributable to an independent film and a maximum budget of ten million dollars and address and the buyer and use taxes Credit not sold may also be assigned any credit allowed under R&TC Sections 17053 85 Any portion of the credit that is not sold can be used any portion of their distributive share of the credit any tax credit to the extent the tax credit allowed is applicable Schedule K 1 (565 568 or 100S) applied or will apply against BOE qualified sales and apply against BOE qualified sales and use taxes appropriate box If the LLC is electing to be treated as a partnership then the LLC must fill out Part III as consideration received attributable to an independent film may sell the credit attributable to an independent film the qualified B Definitions be sold If any of the requirements are not met the BOE qualified sales and use taxes BOE qualified sales and use taxes If you made or will Box 4 Tax Credit Certificate # and Seller s Box 5 Tax Credit Allocation amount shown Box 6 Distributive share of credit from box 6 Since the LLC is a pass through entity each Box 9 Total amount of credit applied to box from CFC Form M Buyer Buyer name buyer s information by the qualified taxpayer to offset income tax liability C Rules CALIFORNIA FORM Check if self claimed on any tax return of the qualified taxpayer consideration received credit allocation or copyright reg number credit and how to go about notifying FTB of the sale credit cannot be sold Credit Certificate Credit Certificate to the qualified taxpayer showing credit is allowed to the pass through entity The credit is passed through to the partners members credit Stock securities or other property also count credit The form may be sent by mail or by fax to the D Gain on Sale of Credit Deductions Credits etc determination of whether a taxpayer is a qualified determine if the credit meets the requirements to distributive share of the credit After the sale of Do not enter more than box 5 minus box 7 E Filing Form FTB 3551 each member s distributive share must be disclosed election leave blank election to apply the credit or a portion of it against employed Enter the amount shown in the Tax Credit Allocation Enter the distributive share of credit from the Enter the tax credit certificate number and the seller s entity box by providing the qualified taxpayer s entity taxed as a partnership or S corporation expenditures for the production of a qualified motion Film Commission (CFC) This document may be Firm s name (or yours following PO Box address or fax number: For Privacy Notice get FTB 1131 ENG/SP For taxable years beginning on or after January 1 form FTB 3551 Sale of Credit Attributable to an Form M Franchise Tax Board (FTB) no later than 30 days from the buyer FTB 3551 C1 2013 Side 1 FTB 3551 Instructions 2013 Page 1 FTB of the sale also applies to a partner member General Information if self employed) If the answer to question 3 is Yes attach a If the credit does not meet the requirements to be If the seller is an SMLLC or LLC select the If you answer No to all of the questions (in question 2) go to question 3 If you answer Yes to any of the questions STOP The credit cannot be sold Do not complete the rest of the form If you are an LLC please choose the appropriate box selecting your election to be treated as a m partnership m corporation Important Information Important: If box 6 was completed do not enter Important: You may not apply any of the credit being In no event may a qualified taxpayer assign or sell In the case of any pass through entity the In the event the taxpayer that earned the credit and in the seller entity box in Part I for each entity which in the Tax Credit Allocation box on CFC Form M Tax income tax liability but may not sell it assign it or Independent Film Independent Film no later than 30 days after the sale information related to the sale to the FTB no later information which is found on the CFC Form M Instructions Instructions for Form FTB 3551 is required to report gain from the sale Basis in issued a credit certificate by the CFC m CA Secretary of State file number m CA Secretary of State file number m Check the box if the seller is a Single Member Limited Liability Company (SMLLC) m SSN or ITIN m CA Corporation no m FEIN m SSN or ITIN m CA Corporation no m FEIN make this election enter the amount of credit you May the FTB discuss this form with the preparer shown above? m Yes m No member is considered the responsible party and minimum budget of one million dollars ($1 000 000) more than box 6 minus box 7 must enter the distributive share of credit from Name on Tax Credit Certificate (CFC Form M) All sellers complete not have a basis in the credit not own directly or indirectly more than twenty five not publicly traded and publicly traded companies do of any money received plus the fair market value of credit that can be sold is the amount shown on of Equalization This certificate details the maximum of the credit of the credit to notify FTB of the following: of the property (other than money) received Since Officer s on certificate Only qualified taxpayers who receive credits or incurred qualified expenditures and has been or shareholder who will sell any portion of their or shareholders Pass through entity means any or State Board of Equalization (BOE) qualified sales Part I Seller and Buyer Information Part I Seller and Buyer Information See instructions Part II Independent Film Part II Independent Film Questionnaire See instructions Part III Credit Information Part III Credit Information See instructions Partner member or shareholder name Leave blank if same name as above percent of the producing company Permit No permit number from CFC Form M Do not enter the picture in California A qualified taxpayer may sell portion of it may be sold Preparer s property is generally the cost of the property Since qualified sales and use taxes Questionnaire received requested by the Franchise Tax Board or the Board restrictions of R&TC Sections 17053 85 and 23685 Sale of Credit Attributable to an Sale of Credit Attributable to an Independent Film sales and use taxes by the unrelated purchaser Schedule K 1 Schedule K 1 (565 568 or 100S) Share of Income schedule listing the same information as requested Sections 17053 85 and 23685 allow a qualified See Section C for rules that apply to the selling of the Seller seller is a partner member or shareholder selling Seller or Seller s Permit No : Sellers of this credit must complete the Seller Sellers who are partners members or shareholders share of the credit shareholder signature sold against BOE qualified sales and use taxes sold see Important Information section State State Tax Credit Certificate No : tax return the FTB may disallow the credit of either TAXABLE YEAR taxpayer taxpayer a credit against the net tax (individuals) or taxpayer is made at the entity level No amount of taxpayer selling the credit is required to report the Telephone than 30 days after the sale of the credit that is issued by the Director of the California the amount of the credit and issues Form M Tax the amount of the credit The maximum amount the buyer both claim the same credit amount on their The California Film Commission (CFC) determines the credit certificate The full amount of credit or a the credit is subject to the requirements and the credit passed through Begin with the entity the credit the unrelated party that has acquired the film company listed on CFC Form M the seller The gain from the sale of the credit is the excess of the qualified seller is the partner member or The qualified taxpayer selling the credit is required The qualified taxpayer selling the credit must submit The requirement to notify FTB of the sale also applies The sale of the credit is a sale of property The seller The seller answers questions 1 and 2 in Part II to The seller completes the second entity box only if the The seller completes the third entity box with the the seller did not pay for the credit the seller does The seller is required to send the notification form the seller receives from the buyer for the sale of the the seller s basis in the credit is $0 (zero) the seller the total consideration received over the basis The The unrelated purchaser may use the credit against their distributive share of pass through credits Title to a partner member or shareholder who will sell to an affiliate to an unrelated party to report information related to the sale to the to the FTB no later than 30 days after the sale of the total amount of consideration received is the sum Use form FTB 3551 to report the sale of a credit use it against BOE qualified sales and use taxes Use Only use taxes If you did not make or will not make the which generated the credit and end with the entity of which the seller is a partner member or shareholder will recognize and report gain on the full amount of ZIP Code ZIP Code