California Tax Form 3726 | Fill in and Calculate California State Tax Online

Deferred Intercompany Stock Account (DISA) and Capital Gains Information

Use the California Tax Form Calculator California Tax Form 3726 as a stand alone tax form calculator to quickly calculate specific amounts for your 2026 California state tax return. Alternatively, you can use one of our Combined Federal and State Tax Estimators to quickly calculate your salary, tax, and take-home pay.

Deferred Intercompany Stock Account (DISA) and Capital Gains Information

Complete a separate form FTB 3726 for each corporation that received the distribution.

Part I Prior Years DISA Information (Cal. Code Regs., tit. 18 section 25106.5-1(b)(8)). Attach additional sheets if necessary. Fill out Part l completely to satisfy the annual disclosure requirements.

(a)
Name of distributor

(b)
Year of deferral (yyyy)

(d)
Current ownership percentage

(e)
DISA balance at beginning of taxable year

(f)
Current year capital contributions

(g)
DISA balance at end of taxable year (column (e) less column (f))

Part II Current Year DISA Information. Attach additional sheets if necessary. Complete this part to calculate the current taxable year DISA balances that are required to be disclosed.

(a)
Name of distributor

(b)
Percentage of ownership of dividend distributor

(d)
Amount from column (c) paid out of current year E&P

(e)
Amount from column (c) paid out of accumulated E&P

(f)
Amount from column (c) reducing basis of the distributors stock

(g)
Deferred capital gains (current year DISA balance) (column (c) less the sum of columns (d), (e), & (f))

Part III DISA Capital Gains Recognized This Taxable Year (Cal. Code Regs., tit. 18 section 25106.5-1(f)(1)(B)). Attach additional sheets if necessary.
Check column (g), Box A if the gain is a short-term capital gain.
Check column (g), Box B if partial sale of stock.

(a)
Name of distributor

(b)
Year of deferral (yyyy)

(d)
DISA balance

(e)
Recognition ratio

(f)
Amount of capital gain recognized (column (d) x (e))

(g)

Box A

Box B

Short-term DISA capital gains. Add the amounts in Line 1, column (f) where column (g), Box A is checked. Enter here and on Form 100 or 100W, Side 6, Schedule D, Part I, line 1, column (f). See instructions

Long-term DISA capital gains. Add the amounts in Line 1, column (f) where column (g), Box A is not checked. Enter here and on Form 100 or 100W, Side 6, Schedule D, Part II, line 5, column (f). See instructions

Last reviewed: : If you believe this form requires an update, please contact us.

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Frequently Asked Questions

Are stock options/supplemental wages handled specially?

Employers may use supplemental withholding methods; totals still flow into CA taxable income.

Are Social Security benefits taxed by California?

No—California does not tax Social Security benefits.

Can I add extra CA withholding to smooth refunds?

Yes—enter additional withholding and rerun to see impact on take-home and refund.

How are RSUs/ESPP handled for CA tax?

Equity compensation is generally taxed as wage income when included in W-2; CA sources based on work.

Does California allow Section 125 (cafeteria plan) pre-tax?

Many Section 125 items reduce taxable wages; details depend on CA conformity and plan design.

Important Notes

All calculations are estimates for guidance only. Always review your return and consider professional advice when submitting official filings.