Corporate Passive Activity Loss and Credit Limitations

Use the California Tax Form Calculator California Tax Form 3802 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.

Corporate Passive Activity Loss and Credit Limitations
Part I Passive Activity Loss Before completing Part I, complete federal Worksheet 1 and Worksheet 2 in the instructions for federal Form 8810 using California amounts
1a	Current year income from federal Worksheet 2, column (a)	1a
b	Current year deductions and losses from federal Worksheet 2, column (b)	1b
c	Prior year unallowed losses from federal Worksheet 2, column (c)	1c
d	Combine line 1a, line 1b, and line 1c. If the result is net income or zero, see instructions		1d
2	Closely held C corporations, enter net active income. See instructions. Personal service corporations, enter -0-		2
3	Unallowed passive activity deductions and losses. Combine line 1d and line 2. If the result is net income or zero, see the instructions for line 1d and line 3. Otherwise, go to line 4		3
4	Total deductions and losses allowed. Add the income, if any, on line 1a and line 2. See instructions		4
Part II Passive Activity Credits Before completing Part II, complete federal Worksheet 5 in the instructions for federal Form 8810 using California amounts.
5a	Current year passive activity credits from federal Worksheet 5, column (a)	5a
b	Prior year unallowed credits from federal Worksheet 5, column (b)	5b
6	Combine line 5a and line 5b		6
7	Enter the tax attributable to net active income and net passive income. See instructions		7
8	Unallowed passive activity credit. Subtract line 7 from line 6. If zero or less, enter -0-. See instructions		8
9	Allowed passive activity credit. Subtract line 8 from line 6. See instructions		9
Part III Election to Increase Basis of Credit Property
10	If the corporation disposed of its entire interest in a passive activity or former passive activity in a fully taxable transaction, and it elects to increase the basis of credit property used in that activity by the unallowed credit that reduced the property’s basis, check here ▸
11	Name of passive activity disposed of ▸
12	Description of the credit property for which the election is being made ▸
13	Amount of unallowed credit that reduced the property’s basis for California purposes ▸

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

Quick Access Tools

Frequently Asked Questions

How does community property affect my CA return?

Married/RDP filers may have community property allocation rules; see CA guidance.

Are employer retirement contributions taxed by CA?

Pre-tax 401(k)/403(b) contributions reduce federal and generally CA taxable wages.

Is there a separate Medicare surtax in CA?

Additional Medicare is federal; California PIT is separate and applies via its own brackets/credits.

Does CA tax out-of-state remote work?

CA generally taxes income earned while working in CA; non-CA work may be non-CA source—track days/location.

Can I deduct mortgage interest in CA?

Often yes, subject to CA limits/adjustments; compare standard vs itemized for CA.

Important Notes

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