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    "localId": "1674141",
    "label": "Reagan Candidacy (1)",
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    "citationUrl": "https://catalog.archives.gov/id/1674141"
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    "id": "1674141",
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    "contentType": "document",
    "title": "Reagan Candidacy (1)",
    "citationUrl": "https://catalog.archives.gov/id/1674141",
    "collections": [
        "President Ford Committee Records",
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        "Presidential campaign, 1976"
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    "coverageEndDate": {
        "logicalDate": "1976-11-30",
        "month": 11,
        "year": 1976
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    "coverageStartDate": {
        "logicalDate": "1975-07-01",
        "month": 7,
        "year": 1975
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    "type": "document",
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    "ocrText": "The original documents are located in Box D13, folder \"Reagan Candidacy (1)\" of the\nPresident Ford Committee Campaign Records at the Gerald R. Ford Presidential Library.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nSome items in this folder were not digitized because it contains copyrighted\nmaterials. Please contact the Gerald R. Ford Presidential Library for access to\nthese materials.\n\\\n40,585 87,511\n$ 128,096\nFORD & LIBRARY GERALD\nI\nE-hedger have index\ndreen they 1.\nfiled\nnot that Bob\nas\nd. file\nARIZONA CITIZENS FOR REAGAN\nThe Grand Canyon State\nCHAIRMAN\nNONAVIE DYER\nCO-CHAIRMAN\nJACK SMITHBAKER\nCO-CHAIRMAN\nHOWARD BALDWIN\nLIBRARY GERALD R. FORD\nDear State Committeeman:\nThe Arizona campaign for Ronald Reagan for President is\nbeginning. We need your help.\nRonald Reagan is a proven leader who has firm, positive\nsolutions to our welfare mess, rising crime, runaway taxes,\ncrippling inflation, and bureaucratic controls.\nJanuary 1st will begin the steady drive to carry Ronald\nReagan to victory in Kansas City and to the Presidency.\nWe are asking you to join our march to the White House!\nIn behalf of Mr. Reagan, we would appreciate your help in\nobtaining the following two items:\n#1 A list of your friends and acquaintances who\nsupport Ronald Reagan and are willing to work\nin his behalf.\n#2 Begin to acquire endorsements to be used in the\ncampaign (endorsement forms enclosed), and return\nthem to Arizona Citizens for Reagan, P.O. Box 25083,\nPhoenix, Arizona 85002.\nWith Best Wishes for the New Year,\nNonavie\nNonavie Dyer (Mrs. Lee)\nArizona Chairman\nEnclosures -\nA copy of our report is filed with the Federal Election Commission and is available for purchase from the Federal Election Commission, Washington D.C.\nTwin -\nSlim, FYI- -\nE-Rile\nto: \"CITIZENS\nFOR\nREAGAN\"\nFORD & LIBRARY GERALD\n12 North 20th Street\nBirmingham,\nAlabama 35203\n324-9112\nI would like to help return sani-\nty to our government. Put me\ndown as a volunteer worker in\nthe ELECTION OF GOV. RON-\nALD REAGAN to the PRESI-\nDENCY.\nEnclosed is my contribution\n(Make check to: \"Citizens for\nReagan.\") (Tax deductible to\n$200, joint return)\nCALL - 324-9112\nName\nOccupation.\nAddress\nCity\nState\nZip.\nPd. Pol. ADV. by\n\"CITIZENS for REAGAN,\"\nJudge Guy Hunt,\nSTATE CHM.\nSACRAMENTO\nU.S. POSTAGE\nfor P.Kage\nJAN 19 76\nE24E\n-\nEMETER\nCALIF\n5110523\nms. Jim Ryan\nSuite 250\n1828 h st NW\nWashington, D.C.\n(BERTY\nTHROUGHOUT\nPlease remove the preaddressed label and attach it to the return\n20036\nfiled. If the return is prepared by someone other than the taxpayer,\nplease be sure that the preaddressed label is used.\nPROCLAIM\nLAND.\nCALIFORNIA.\nEUREKA OF THE STATE\nTHE\nOF\nSTATE OF CALIFORNIA\nFORD LIBRARY & GERALD\nCALIFORNIA\nINDIVIDUAL\n540\nINCOME TAX\nHOLD\n40 PAGE BOOKLET\nContains Schedules A, B, C, D, E, F, R & DE 1964\nFULL-YEAR RESIDENTS\nThis booklet reflects changes in the Personal Income Tax Law applicable to\n1975. Read these instructions carefully before preparing your return.\nIMPORTANT CHANGES INCLUDE:\nOptional tax tables increased to $15,000. See page 8.\nChild care expenses. See instructions to Schedule A.\nExcess contribution carryover. See instructions to Schedule A.\nForfeited interest penalty. See instructions page 5.\nTax Preference Income. See instructions page 5.\nSEE PAGE 10 FOR IMPORTANT REMINDERS AND FRANCHISE TAX BOARD OFFICES\nDUE DATE APRIL 15, 1976\nIf you have a REFUND, mail your return to:\nIf you have a BALANCE DUE, mail your return\nand your remittance to:\nFRANCHISE TAX BOARD\nP.O. Box 13-540\nFRANCHISE TAX BOARD\nSacramento, CA 95813\nSacramento, CA 95867\nPage 2 540 INSTRUCTIONS\nPage\n3\n540\nINSTRUCTIONS\nFILING REQUIREMENTS\nSPECIFIC INSTRUCTIONS\nA. Residents of California\nSpecial Low Income Tax Credit\nName, Address and Social Security Number\ncost of food. It does not include an individual's personal expenses,\nResidents of California for the entire taxable year are required to file\nPlease use your preaddressed label if possible. Correct the name,\nor any amount which represents value of services rendered by a\nFor calendar year 1975 and fiscal years beginning in 1975, a special low\na return on Form 540 within 3½ months after the end of the taxable\nincome tax credit of 100 percent is provided. If you qualify for this credit,\naddress and social security number(s) if necessary. If label is not used,\nmember of the household or the taxpayer.\nyear if the following income requirements are met:\nyour net tax liability (line 23, Form 540) may be zero.\ntype or print your name, address and social security number(s) in the\nEnter the name of the individual who qualified you as head of house-\nspaces provided. If filing a joint return, enter first names and middle\nhold on line 4 of Form 540.\n1. Single-If adjusted gross income (line 16, Form 540) exceeds $3,250,\nTo qualify for this credit your adjusted gross income must be $8,000 or\ninitials of both spouses (for example: John F. and Mary L. Doe). If married\nor if total income (line 14, Form 540) exceeds $7,000, exclusive of\nless if married filing jointly, head of household or widow(er) with de-\nand filing a separate return, enter your spouse's full name on line 3\nLINE 5-Widow(er) With Dependent Child-If your spouse died in 1973 or\nbusiness expenses and losses.\npendent child, or $4,000 or less if single or married filing separately and\nof Form 540.\n1974, you can compute your tax using the joint return rates if you\n2. Married-If the combined adjusted gross income (line 16, Form 540)\nyou were a California resident at the end of your taxable year.\nmeet the following tests:\n(a) You did not remarry prior to January 1, 1976.\nexceeds $6,500, or if the combined total income (line 14, Form 540)\nYou may claim the special low income tax credit by completing the\nFiling Status\nexceeds $7,000, exclusive of business expenses and losses.\napplicable lines 1 thru 16 and entering zero on line 23.\n(b) You could have filed a joint return with your spouse for the\nEnter an \"X\" in the box which designates your filing status. Your filing\nyear your spouse died.\n3. Head of Household-If adjusted gross income (line 16, Form 540)\nAlthough you may qualify for this credit, you may still be subject to the\nstatus is determined as of the last day of your taxable year. If your spouse\nexceeds $3,250, or if total income (line 14, Form 540) exceeds $7,000,\ntax on preference income. See page 5 of instructions.\ndied during the taxable year, you are considered married for the entire\n(c) You have a child or stepchild you can claim as a dependent\nfor 1975.\nexclusive of business expenses and losses.\nyear.\n(d) Your home was the main home of that child during 1975, except\nIf you had California income tax withheld and you do not otherwise\nB. Part Year Residents and Nonresidents of California\nLINE 1-Single-An individual who is unmarried, divorced (final decree or\nfor temporary absences for vacation, school, etc.\nmeet the filing requirements, it is necessary to file a return to get a refund.\nIf you were a part year resident or a nonresident of California, you\njudgment of dissolution), or legally separated. If you were a \"Married\nCheck the box on line 5 \"Widow(er) with Dependent Child\" and enter\nIf you and your spouse are married and living apart, you may file as\nare required to file a return on Form 540NR. A part year resident is tax-\nperson living apart from your spouse\" as described below, consider\nyear of spouse's death in space provided.\nable on all income, regardless of source, which accrued during the period\nyourself single.\nsingle or as head of household. See the requirements on page 3 for your\nIf your spouse died in 1975 and you did not remarry during the year,\ncorrect filing status.\nof residency. A nonresident is taxable on any income derived from Cali-\nfornia sources. If there is a tax liability after apportioning your allowable\nLINE 2-Married Filing Joint Return-A husband and wife may file a\nyou are considered married for the entire year. You may file either as\njoint return by combining their income, deductions and exemptions.\nmarried filing a joint return or married filing a separate return.\nstandard deduction and exemption credits, a return must be filed on Form\nFiling a Return for the Renter's Credit Only\nThis may be done even where one spouse had no income. However,\nIf the surviving spouse did remarry before the end of the year a return\n540NR.\na joint return cannot be filed if one spouse was a resident for\nmust be filed by the executor or administrator of the deceased spouse's\nIf you are not required to file a return because you do not meet the\nthe entire year and the other spouse was a nonresident for all or\nestate. The filing status for the deceased would be a separate return of a\nfiling requirements and you are filing a return only for the purpose of\nC. Deceased Taxpayer\nany portion of the taxable year. This exception does not apply if the\nmarried person.\nreceiving the renter's credit, please complete the following:\nIf an individual died before filing a return for 1975, the executor,\nnonresident or spouse was an active member of the armed forces or\n1. Use the preaddressed label for the name and social security number\nadministrator or the surviving spouse must file a return for the decedent.\nany auxiliary branch thereof (other than Public Health Service) during\nExemption Credits\ninformation. If the label is not available, please print or type this\nA joint return for you and your deceased spouse may be filed by you and\nthe taxable year.\nLINE 6-Enter Your Allowable Personal Exemption\ninformation in the appropriate section.\nthe executor or administrator, provided you did not remarry before the\nLINE 3-Separate Return of a Married Person-Separate returns may be\nSingle, or married filing a separate return\n$25.00\n2. Complete applicable filing status, lines 1 through 5, Form 540.\nend of the year in which your spouse died. If an executor or adminis-\nfiled by each spouse, each reporting his or her separate income and\nMarried couple filing a joint return\n$50.00\ntrator has not been appointed, you may file a joint return and indicate\n3. Enter your adjusted gross income for the taxable year on line 16,\ndeductions plus one-half of their community income and deductions.\nHead of household\n$50.00\nin the signature area that you are filing as the surviving spouse.\nForm 540.\nIf one spouse claims itemized deductions, the other spouse may not\nWidow(er) with dependent child\n$50.00\nIf the taxpayer (or your spouse) died during the year, please indicate\ntake the standard deduction or use the Tax Table, unless you were\n4. Enter your allowable Renter's Credit on lines 27 and 33 and com-\nthe date of death in the name and address area. This should be done by\nliving apart from your spouse (see instructions below). Enter spouse's\nThe full exemption credit is allowable to a married couple even if one\nplete Part I on page 2 of Form 540. See instructions below for the\nfull name in space provided.\nlisting the deceased individual's name and then \"deceased\" and the date.\nspouse died during the year, provided the surviving spouse did not remarry\nallowable Renter's Credit.\n-Married and Living Apart from Your Spouse-Some married people\nbefore the end of the year. If the surviving spouse did remarry before\nIf a refund is due, attach Form FTB 3545, Statement of Claimant to Refund\n5. Sign your return. Both spouses must sign if filing a joint return.\nDue-Deceased Taxpayer.\ncan file as Single or as Head of Household and ignore the rules for\nthe end of the year, the return for the deceased spouse should claim a $25\nmarried people filing separate returns. This means that if your spouse\nexemption credit as married filing a separate return.\n6. Mail your return to Franchise Tax Board, P.O. Box 13-540, Sacramento,\nitemizes deductions, you do not have to. You can use the standard\nIf you qualified for head of household status as of the last day of your\nCalifornia 95813.\nD. Military Personnel\ndeduction if you want. Both you and your spouse can file this way\ntaxable year, the following special conditions should be noted:\nCalifornia military personnel are considered nonresidents for State\nif both meet the tests.\nFor additional information regarding Renter's Credit, please refer to page\n(a) No dependent credit is allowed for the dependent qualifying you\n5 line 27 of these instructions.\nincome tax purposes when serving at out-of-state posts of duty under\nYou can file as a single person and check the block on line 1\nas head of household.\npermanent military orders. If the spouse remains a California resident and\nfor Single, if you meet all of the following tests:\n(b) If the individual who qualified you as head of household died dur-\nthe serviceperson retains California domicile, the spouse is taxable on\nAllowable Credit:\n(a) You file a separate return.\ning the year, you are still entitled to head of household status,\none-half of the community income. Out-of-state military personnel serving\nprovided you meet the other requirements.\nIf your adjusted gross income\nThe allowable\nat posts of duty in California are not subject to California tax on their\n(b) You paid more than half the cost to keep up your home for\n(line 16, Form 540) is:\n1975.\n(c) A taxpayer who died during the taxable year will still be qualified\ncredit is:\nmilitary pay unless California domicile is adopted. Any income from other\nfor the head of household exemption.\n$ -0-$4,999\n$25\nthan military sources earned in California is taxable. If California domicile\n(c) Your spouse did not live in your home at any time during 1975.\n5,000- 5,999\n30\nis adopted, California will tax the entire income received during the period\n(d) For over six months of 1975, your home was the main home\nLINE 7-Dependent and Student Exemption Credits\n6,000- 6,999\n35\nof residence. Declarations filed with military service branches that show\nof your child or stepchild whom you can claim as a dependent.\nYou may claim a dependent credit of $8 for each individual (other than\n7,000- 7,999\n40\nCalifornia as the state of legal residence will be treated as presumptive\nYou can check the block on line 4 for head of household if your\nhusband or wife) who (1) was a member of your household for your entire\n8,000 and over\n45\nevidence of California residence.\nhome in test (d), above, was the child's main home for all of 1975.\ntaxable year; or (2) was related to you in one of the following ways:\nChild*\nGrandparent\nBrother-in-law\nNOTE: All questions in Part I on page 2 of Form 540 must be answered\nPart or all military service pay may be exempt from tax. See instructions\nLINE 4-Head of Household-To qualify you must, on the last day of\nStepchild\nStepbrother\nSister-in-law\nfor credit to be allowed.\nfor Military Exclusion on page 5.\nyour taxable year, have been single or legally separated from your\nGrandchild\nStepsister\nIf related by blood\nBrother\nSon-in-law\nUncle\nspouse under a decree of separate maintenance, and you must have\nSister\nDaughter-in-law\nAunt\nfurnished over half the cost of maintaining a household which was\nParent\nFather-in-law\nNephew\nFEDERAL PRIVACY ACT INFORMATION\noccupied throughout the entire year, except for temporary absences,\nStepparent\nMother-in-law\nNiece\nby:\nthe enforcement of liability of absent parents, and the prosecution of any\n(a) yourself and your qualified dependent (other than a dependent\nIncludes a child who is a member of your household if placed with you by an\nSocial security numbers must be included. Such numbers are used\nauthorized placement agency for legal adoption, or a foster child who is a\nprimarily to administer and enforce the Personal Income Tax and Bank\nperson who has fraudulently obtained aid for a child (Welfare and Institu-\nqualifying under a multiple support agreement or a dependent\nmember of your household for the entire year.\nand Corporation Tax Laws; to exchange income tax information with the\ntions Code Section 11478); and (3) to offset against refunds amounts due\nnot related to you); or\nNOTE: No dependent credit is allowed for an individual required to qualify you as\nU.S. Internal Revenue Service, other states, other tax officials of this\n\"head of household.'\nstate, and the Multi-state Tax Commission (Revenue and Taxation Code\nto a state agency by a person or entity (Government Code Sections 12419.4\n(b) yourself and your unmarried child, grandchild, foster child or\nSection 19286). In addition, statutorily provided nontax uses are: (1) To\nand 12419.5). Information furnished to other agencies or persons shall\nstepchild, even though such child is not your dependent; or\nTo qualify as a dependent, the following tests must be met:\nprovide information to the Department of Benefit Payments with respect\nbe used solely for the purpose of administering tax laws or the\n(c) your father or mother who is your qualified dependent.\n1. The dependent must have received less than $750. (If your child was\nto applicants or recipients of assistance under Division 9 of the Welfare\nspecific laws administered by the person having the statutory right to ob-\nunder 19 or was a student, this limitation does not apply.)\nand Institutions Code (Revenue and Taxation Code Section 19286.5); (2) to\ntain it as indicated above. (For the Franchise Tax Board's authority to pre-\nCost of maintaining the home includes such items as rent, property\n2. Received more than one-half his/her support from you.\nassist county welfare departments, district attorneys and probation officers\nscribe forms and to require furnishing of social security numbers, see Title\nfor use in locating any parent who has abandoned or deserted children,\ninsurance, property taxes, mortgage interest, repairs, utilities and\n18, California Adm. Code, Ch. 3, Subchapter 2.5, Reg. 18431-18433(d).)\n3. Did not file a joint return with his/her spouse.\nPage\n5\n540\nINSTRUCTIONS\nPage 4 540 Instructions\nIf you were paid in whole or in part in merchandise, services, stock, or\nLINE 13-Other Income (Continued)\nIf you choose to itemize your deductions, complete and attach Schedule\nLINE 7-Dependent and Student Exemption Credits (Continued)\nother things of value, determine the fair market value of such items and\nA (Form 540), and enter the total of each deduction on page 2. lines 56\nA copy of the completed appropriate schedule must be attached to your\nthrough 61, and the total of these lines on line 62, and on page 1, line 17.\nA student is one who was enrolled in full-time study at a recognized\ninclude it in your wages.\nreturn. Substitute schedules may be used if all information required by the\neducational institution, or who attended a full-time course of institutional\nofficial schedule is shown.\nNOTE: If one spouse claims itemized deductions, the other spouse may\non-farm training under an accredited agent of an educational institution or\nGenerally, if you received compensation in the form of property, such the as\nnot take the standard deduction or use the Tax Table unless\nstock that is subject to restriction, you must report as compensation\nMiscellaneous Income-If you had any other income, not specifically\nmarried living apart from your spouse. See page 3 of instructions.\nof a state or its political subdivision for part of 5 calendar months. The if\nunrestricted value of the property at the time of its receipt unless your\nprovided for elsewhere on your return or other schedules, identify the\ninterest is subject to a substantial risk of forfeiture and is nontransferable.\nsource and enter the amount received on line 47.\nTo determine your taxable income subtract line 17, deductions, from\ncalendar months need not be consecutive. A person is not a student\nline 16, adjusted gross income.\nhe is employed full time during the day and attends school at night.\nThis is the same as the Federal rule.\nThe following sources of income are included under this heading:\nYour taxable income is used to compute your tax using the Tax Rate\nYou can claim the full $8 credit for a dependent who was born or who\nIf as a matter of choice, received meals and lodging from your\nemployer, you, whether or not designated as wages, you must include their\n1. Fully taxable pension and annuity payments.\nSchedule on page 8. Refer to the Schedule that conforms to your filing\ndied during the year if the above qualifications are met for that part\n2. Alimony.\nstatus (single, married filing separate returns, head of household, married\nof the year during which the dependent was alive.\nfair market value in income.\n3. Contest prizes and awards.\nfiling joint returns or widow(er) with dependent child). Then find the line\nIf two or more persons contributed toward the support of an individual\nHowever, if your meals were furnished at your place of employment as\n4. Recovery of a bad debt previously deducted.\ncovering your taxable income. Enter on page 1, line 19, Form 540 the tax\nand no one person contributed more than 50 percent, the support\nconvenience to your employer, or you were required to accept lodging\n5. Reimbursed medical expenses.\ncomputed for this taxable income and check the Tax Rate Schedule box.\nrequirement may be satisfied if a multiple support agreement (Form 540M)\na at your place of employment as a condition of your employment, do not\n6. Amount of personal indebtedness which was forgiven.\nIncome Averaging-If your taxable income for the current year exceeds\nreport the value of the meals or lodging.\n7. Other items that reduced your tax liability in an earlier year.\nyour average income of the previous four years by one-third and you were a\nis completed and attached to your return.\nIf the parents are divorced or separated a determination must be made\nAny amount received directly or indirectly from your employer as a\nCalifornia resident for all of the current year and the four preceding base\npayment for or reimbursement for moving from one residence to another\nLINE 15-Adjustments to Income\nperiod years, you may qualify for the benefits of the income averaging\nas to which parent is entitled to the dependent credit.\nis includible as compensation. See instructions for line 15, adjustments\nAdjustments for sick pay, moving expenses, employee business expense,\nprovisions. Refer to Schedule G (Form 540) to calculate your tax under\nthis section. Check the Schedule G box on page 1, line 19, Form 540.\nThese rules apply only if the divorced or separated parents together\nto income, to determine the allowable moving expense deduction.\nmilitary exclusion, payments as a self-employed person to a retirement\nfurnish more than one-half the child's support for the calendar year and if\nplan and forfeited interest penalty are to be summarized on page 2, lines\nReport the full amount of compensation received for military service.\n49 through 54, and the total entered on line 55 and on page 1, line 15.\nSpecial Averaging Methods-There are two special averaging methods\nthe child is in his parents custody for more than half the calendar year.\nSee instructions for Military Exclusion on page 5 for deducting the\nThe qualifications for these items are substantially the same for Cali-\nthat may apply to your lump-sum distributions from a qualified employees'\nplan. The \"5-year special averaging method\" applies to distributions\nGenerally, the parent who has custody of the child for the greater part\nmilitary compensation that is nontaxable.\nfornia as for federal income tax purposes, with the exception of the\nself-employed person's retirement plan, moving expenses and the military\nreceived by self-employed individuals, or those who own a share of either\nof the year is entitled to the dependent credit. However, the noncustodial\nbonds, and educational benefits received under Federal and State law\nMilitary mustering-out pay, terminal leave and unused leave pay and\nexclusion.\nthe capital interest or the profits interest in a partnership. The \"7-year\nparent is entitled to the dependent credit if:\nspecial averaging method\" applies to distributions received by employees\n1. The noncustodial parent contributed at least $600 toward the child's\nare not taxable and need not be reported.\nNOTE: California has not adopted the 1974 Federal Law regarding the\nwho perform services for an employer. If you qualify, complete and attach\nEmployees Retirement Income Security Act changes. Amounts con-\nsupport during the calendar year and the decree of divorce or\nseparate maintenance or a written agreement between the parties\nMilitary allowances for quarters, subsistence or uniforms, and disability\ntributed to individual retirement accounts are not deductible. All\nSchedule G-1 (Form 540), obtainable from any office of the Franchise Tax\npension, annuity or similar allowances for personal injuries, or sickness\nearnings credited to these accounts are taxable to the individual\nBoard, to your return. Enter the computed tax on page 1, line 19 of\nForm 540 and check the Schedule G-1 box.\nspecifies this parent as being entitled to the credit; or\nresulting from active service in the armed forces of any country are not\nin the year the earnings are credited to the account.\n2. The noncustodial parent provided $1200 or more for the child's (or\ntaxable and need not be reported.\nFor California purposes, the deductions for contributions to self-\nNOTE: California has not adopted the new federal 10-year averaging\nchildren's) support during the calendar year and the parent having\nemployed plans (commonly known as Keogh or HR-10 plans) are\nprovision.\ncustody does not clearly establish providing more for support.\nlimited to the lesser of 10% of earned income or $2,500.\nLINE 11-Dividends\nDistributions from self-employed retirement plans and distributions of\nYou can claim an $8 credit if you supported an elementary or high\nDividends, other than liquidating dividends or dividends paid out of\nYou must include on page 1, line 10, amounts received as payment\nbenefits from employee benefit plans attributable to post-1969 contribu-\ncapital, are taxable in full as ordinary dividends. California does not\nfor or reimbursement for moving from one residence to another that is\ntions and allocations do not qualify as long-term capital gains under\nschool student (not a dependent or relative) in your home for at least 6\nmonths under a written agreement with a charitable organization. No\nallow any dividend exclusion or capital gain treatment of \"capital gain\nattributable to employment or self-employment.\nState law.\ndividends\" received from \"regulated investment companies.\"\nFor an employee, these amounts should appear on the Form W-2 your\nreimbursement for expenses can be received and you cannot deduct the\nemployer gives you. For a self-employed individual, these amounts should\nLINE 22-Other Credits\nexpenses as a charitable deduction.\nEnter the total amount of taxable dividends on line 11. If the amount\nbe reflected in the statement of income and expenses.\n(a) Credit for Net Income Tax Paid to Another State\nA subject or a citizen of a foreign country may not be claimed as a\nexceeds $400, complete and attach Schedule B (Form 540).\nIf you moved into or out of California, the deduction for moving\ndependent, unless he was a resident of the United States, Canada, Mexico,\nexpenses is limited to the lesser of:\nIf you derived income from sources within any of the following states\n1. The actual expenses incurred, or\nand paid a NET INCOME tax to that state on income which you report to\nRepublic of Panama or the Canal Zone at some time during the calendar\nLINE 12-Interest\nReport all taxable interest you received or which was credited to your\nCalifornia, you may claim a credit, subject to limitations explained below,\n2. The amount of reimbursement.\nyear 1975.\naccount. Interest on bonds, debentures, notes, loans, tax refunds and all\nagainst your California tax at line 63, page 2, Form 540.\nLINE 8-Blind Exemption Credit\ntypes of savings accounts including banks, credit unions and postal\nMilitary Exclusion\nAlabama, Alaska, Arkansas, Colorado, Delaware, Georgia, Hawaii, Idaho, IIII-\nnois, lowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan,\nAn additional credit may be claimed if you and/or your spouse (if filing\nsavings, is taxable.\n\"Extended active duty-noncombat service over 90 days\"-First $1,000\nMinnesota (except personal service income), Mississippi, Missouri, Montana,\nNebraska, New Mexico, New York, North Carolina, North Dakota, Ohio, Okla-\na joint return) were blind at the end of the taxable year. If totally blind,\nattach a statement to that effect to your return. If partially blind, attach\nInterest which is not taxable is:\nof military pay is excluded.\nhoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont and\n(a) Interest on bonds of the United States, the District of Columbia,\n\"Combat service and hospitalization resulting from combat\"-\nWisconsin.\na statement from a qualified physician or a registered optometrist that\nEnlisted personnel and commissioned warrant officers-All military\nYou are not allowed a credit against your California tax for amounts\n(a) central visual acuity did not exceed 20/200 in the better eye with\nand territories of the United States.\npay is excluded.\npaid to the following states or territories:\ncorrecting lenses, or (b) that the widest diameter of the visual field sub-\n(b) Interest on bonds of the State of California and its political\nCommissioned officer-first $500 per month plus $1,000 of remainder.\nArizona, District of Columbia, Guam, Indiana, Maryland, Minnesota (on personal\ntends an angle no greater than 20°. If this statement was filed with a\nsubdivisions.\n(Maximum exclusion $7000.)\nservice income), Virginia and West Virginia.\nprior year return, it need not be filed again as long as your condition\nEnter the total amount of taxable interest on line 12. If your interest\n\"Prisoner of War-Missing in Action\"-All military pay, including spouse's\nNo credit may be allowed for income taxes paid to any city, the federal\nincome exceeds $400, complete and attach Schedule B (Form 540).\ncommunity interest in such pay is excluded.\ngovernment, or a foreign country.\nremains unchanged.\n\"Reserve pay, military pensions and retirement pay\"-Reserve pay in-\nIf you were a member of a partnership or if you were a beneficiary of\nLINE 13-Other Income\ncludes pay received for required drill periods, summer encampment,\nan estate or trust which paid a net income tax to another state on income\nYour Income\nAll income received, unless specifically exempted, must be reported on\nPensions and annuities, rents and royalties, income from partnerships,\nattendance at service school, or any formation for which Federal pay\nis authorized.\nwhich you must report to California, you may obtain a credit against\nthe return even though it may be offset by adjustments and deductions.\nestates and trusts, net profit (or loss) from profession, business, and/ or\nyour California income tax in the same manner as though you had paid\nfarming, gains (or losses) from sale or exchange of capital assets, gains\nFirst $1,000 of such pay is excluded. However, this exclusion must be\nResidents who leave California for a temporary or transitory stay are con-\nthe tax yourself.\nsidered to be residents during their absence and are taxable on all of their\n(or losses) from sale or exchange of property other than capital assets,\nreduced by 50 cents for each dollar of adjusted gross income (before\nand income from all other sources are to be summarized on page 2, lines\nexclusion) in excess of $15,000. If married, the combined adjusted\nSee instructions for Schedule S (Form 540) obtainable from any office of\nincome.\ngross income of both spouses must be considered. Where both\nthe Franchise Tax Board. If eligible, complete and attach that schedule\nNOTE: All amounts may be rounded off to the nearest dollar.\n39 through 47, and the total entered on line 48 and on page 1, line 13.\nspouses are qualified to claim this exclusion, one-half of the com-\nto your return and enter your credit on page 2, line 63 of Form 540.\nSchedules C, D, D-1, E and F (Form 540) are used to report the details\nbined adjusted gross income is attributable to each spouse.\nYou need not report disability retirement and other benefits paid by the\nof the above items. These schedules may be obtained from any Franchise\n(b) Retirement Income Credit\nVeterans Administration; dividends on Veterans' insurance (but interest on\nIf separate returns are filed and each spouse reports one-half of the\nsuch dividends is taxable); life insurance proceeds, upon death; workers'\nTax Board office.\nmilitary income, the military exclusion must be divided equally on each\nSee instructions for Schedule R (Form 540). If you qualify complete and\ncompensation, insurance, damages, etc., for injury or sickness; insurance\nThe requirements are generally the same under the State and Federal\nreturn.\nattach that schedule to your return and enter your credit on page 2,\nreimbursements for excess of actual living expenses over normal living\nlaws; however, the following exceptions should be noted:\nEnter your allowable military exclusion on page 2, line 52.\nline 64 of Form 540.\nexpenses resulting from damage to your principal residence by fire or other\n(a) Pensions and annuities with a starting date prior to January 1,\nTax Computation\nLINE 24-Tax on Preference Income\ncasualty; federal social security benefits; gifts, inheritances, bequests (but\n1968 are treated differently. See Schedule E (Form 540).\nIf your adjusted gross income on line 16 Form 540 is less than $15,000\nSchedule P (Form 540), Tax on Preference Income, must be filed if you\nincome from such property is taxable); or interest on Federal and California\n(b) No deduction is allowed for a net operating loss carryover or carry-\nand you do not itemize deductions, use the Tax Table on page 8 to de-\nhad items of tax preference (accelerated depreciation, stock options,\nstate and municipal bonds.\ntermine your tax. The Tax Table provides for the standard deduction. Enter\ndepletion or capital gains) in excess of $8,000 ($4,000 if single or married\nback.\nthe tax from the Tax Table on page 1, line 19, Form 540 and check the\nfiling separately) even though there is no tax due. See instructions on\nLINE 10-Wages, Salaries, Tips, Etc.\nReport the full amount of wages, salaries, fees, commissions, tips,\n(c) No deduction is allowable from gross income which is directly\nTax Table box.\nSchedule P (Form 540).\nbonuses and other payments for personal services, including services\nderived from illegal activities, such as gambling and bookmaking,\nIf your adjusted gross income on line 16 is $15,000 or more, or you\nor from activities which directly tend to promote or are directly\nclaim itemized deductions, enter on line 17 the total of your itemized\nLINE 27-Renter's Credit\nperformed outside California, that you received from your employer, even\nassociated with such illegal activities.\ndeductions or the allowable standard deduction indicated below:\nFor 1975, California allows a refundable credit to qualified renters,\nthough taxes and other amounts have been withheld. Also include wages\n$1,000-Single, or married filing a separate return.\nranging from $25 to $45, depending on the individual's adjusted gross\nfor which you did not receive a Form W-2.\n(d) The amount of gain (or loss) to be taken into account from the\nincome. The credit is refundable; i.e., if the renter has no income tax\nsale or exchange of property other than capital assets is different\n$2,000-Head of Household, widow(er) with dependent child, or\nliability, a refund will be made in the amount of the credit. Refer to the\nTips reported to your employer are included as wages on Form W-2. In-\nfrom the federal. See Schedules D and D-1 (Form 540).\nmarried couple filing a joint return. See page 3 of instructions.\ntable on page 2 for the allowable Renter's Credit.\nclude with other amounts on line 10 tips not reported to your employer.\nPage 6 540 INSTRUCTIONS\nPage 7\n540 INSTRUCTIONS\nTo Qualify for the Renter's Credit:\n2. If both spouses were nonresidents for part of the taxable year, the\nCALIFORNIA STATE GASOLINE TAX GUIDE\n1. You must have been a resident of California on March 1, 1975; and\ncredit shall be divided equally between them and each spouse will\nbe allowed one-twelfth of his or her half of the credit for each full\n(7¢ a gallon)\n2. You must have, on March 1, 1975, rented and occupied a house or\nmonth of residence in California.\ndwelling in California which was your principal place of residence.\nYou may figure the deduction for State tax on gasoline used in your car by using the following table. If all or part of your mileage was\nOwning and occupying a mobilehome situated on rented land satisfies\nLINE 28-California Estimated Tax Payments\ndriven in a four-cylinder (or less) car, the deduction for that mileage should be one-half of the table amount. If you can establish\nthis requirement.\nIf you and your spouse filed a joint declaration of estimated tax for\n1975 but do not file a joint income tax return for the year, the total\nthat you paid a larger amount you are entitled to deduct that amount. Enter deduction on line 15 of Schedule A (Form 540).\nYou Do NOT Qualify for the Renter's Credit if:\nestimated tax paid may be claimed on the separate return of either\nspouse, or divided between you in agreed amounts.\n1. The rented property was exempt from property taxes, unless you\nMileage\nTax\nMileage\nTax\nMileage\nTax\nIf you and your spouse filed separate estimated tax declarations for\nwere required to pay property taxes on your possessory interest in\n1975 and you elect to file a joint income tax return for the year, enter\nUnder 3,000\n$12\n7,000 to 7,499\n$42\n13,000 to 13,999\n$78\nsuch residence; or\non this line the total of the amounts paid on the separate declarations.\n3,000 to 3,499\n19\n7,500 to 7,999\n45\n14,000 to 14,999\n84\n2. You lived with another person who claimed you as a dependent for\nFollow the above instructions even if one spouse has died.\n3,500 to 3,999\n22\n8,000 to 8,499\n48\n15,000 to 15,999\n90\nincome tax purposes; or\nIf you expect your California income tax for 1976 to exceed the\n4,000 to 4,499\n25\n8,500 to 8,999\n51\n16,000 to 16,999\n95\n3. You or your spouse were granted the homeowner's property tax\nCalifornia income tax withheld by $100 ($50 or more if married and filing\n4,500 to 4,999\n28\n9,000 to 9,499\n53\n17,000 to 17,999\n101\nexemption, unless the spouse granted the homeowners' property tax\nseparately), you will be required to file a declaration of estimated tax.\n5,000 to 5,499\n30\n9,500 to 9,999\n56\n18,000 to 18,999\n107\nexemption maintained a residence separate from yours for the entire\nThis does not apply if 80 percent or more of the estimated tax is to be\n5,500 to 5,999\n33\n10,000 to 10,999\n61\n19,000 to 19,999\n113\ntaxable year; or\npaid through withholding.\n6,000 to 6,499\n36\n11,000 to 11,999\n67\n20,000 miles\n116\nThe filing dates for the declaration and installment payments of esti-\n6,500 to 6,999\n4. You or your spouse received for the entire year welfare payments\n39\n12,000 to 12,999\n72\nwhich included housing or shelter needs. However, one-twelfth of\nmated tax are April 15, June 15, September 15, 1976, and January 17,\nthe allowable credit will be allowed for each full month of the\n1977-the same as for the federal program.\n* For over 20,000 miles, use table amounts for total mileage driven. Example: for 25,000 miles add the deduction for 5,000\ntaxable year you did not receive these payments.\nForms and instructions will be supplied by the Franchise Tax Board in\nto the deduction for 20,000 miles.\nOther Residence Rules:\ntime for you to meet this requirement. However, failure to receive these\nforms by mail will not excuse you from this obligation. For further details,\nAn unmarried person who was not a California resident for the entire\ncontact any Franchise Tax Board office.\nCALIFORNIA SALES AND USE TAX DEDUCTION GUIDE\ntaxable year shall receive one-twelfth of the allowable credit for each\nfull month of residence in California.\nLINE 29-California State Disability Insurance (SDI)\nThe amounts specified below are average payments and will be allowed as deductions on State income tax returns without requiring\nIf a husband and wife lived apart for the entire taxable year, they may\nIf you worked for two or more employers in 1975, and had California\nsubstantiation. Any additional amounts attributable to major purchases, e.g., an automobile, should be added to the table amount.\nclaim two credits, providing they qualify for the credit. The two credits\nState disability insurance (SDI) in excess of $90 deducted from your\nLarger amounts claimed may require substantiation by the taxpayer. Local sales tax at 11/4 percent is included. If the 1/2-cent local\ncan be taken if either joint or separate returns are filed. If a joint\nearnings, you should claim the excess deduction as a credit against your\nreturn is filed, a schedule reflecting the adjusted gross income of\nincome tax. If a joint return, separate computations must be made for\nrapid transit sales tax was paid all year, increase the table amount by 9 percent. Enter deduction on line 16 of Schedule A (Form 540).\neach spouse and a statement that they maintained separate residences for\neach spouse. Complete and attach Form DE 1964, Claim for Credit or\nthe entire year should be attached. To determine the correct amount of\nRefund of Excess State Disability Insurance Overpayment, to the face\nof Form 540.\nTotal of Adjusted Gross Income\nSize of Family\ncredit to be claimed, the adjusted gross income for each spouse must be\ndetermined.\nLINE 30-Total Prepayment Credits\nand Nontaxable Receipts\n1-2\n3-4\n5\nOver 5\nIf a husband and wife do not live apart for the entire year, they are\nPlease be sure that:\nentitled to only one credit. The credit may be taken by either spouse or\nUnder $3,000\n$51\n$61\n$68\n$68\ndivided equally between them, except in the following situations:\n1. The tax withheld is entered on line 26.\n$3,000- 3,999\n66\n78\n87\n87\n1. If one spouse was a resident for the entire taxable year and the\n2. The renter's credit is entered on line 27.\n4,000- 4,999\n80\n93\n104\n104\nother spouse was a nonresident for all or part of the year, the\n3. The estimated tax payments are entered on line 28.\n5,000- 5,999\n93\n107\n120\n120\nresident spouse will be allowed the full credit.\n4. The excess SDI payments are entered on line 29.\n6,000- 6,999\n106\n121\n135\n136\n7,000- 7,999\n118\n134\n149\n152\n8,000- 8,999\n130\n147\n163\n167\nGENERAL INSTRUCTIONS\n9,000- 9,999\n141\n159\n176\n181\n10,000-10,999\n152\n171\n189\n195\nA. Interest and Penalties\nAttach Form FTB 5805, Underpayment of Estimated Tax by Individuals,\n11,000-11,999\n163\n183\n202\n209\nInterest must be added to any tax due when it is not paid by the due\n(if applicable) to the face of your return.\n12,000-12,999\n174\n194\n214\n222\ndate, even though an extension of time to file the return has been filed.\n13,000-13,999\n184\n205\n226\n235\nThe rate of interest should be computed at 6% for the first year of\nD. Form W-2 Missing or Incorrect\n14,000-14,999\n194\n216\n238\n248\ndelinquency and 12% thereafter.\nOnly your employer can issue or correct a Form W-2. If you have not\n15,000-15,999\n204\n227\n249\n260\nPenalties may also be imposed for failure to file a return and/or under-\nreceived a Form W-2 by January 31, or if Form W-2 is incorrect, contact\nyour employer as soon as possible.\n16,000-16,999\n214\n238\n260\n272\npayment of the tax by the original or extended due date.\nIf you are unable to obtain a Form W-2 from an employer, complete\n17,000-17,999\n224\n248\n271\n284\nB. Attachments to the Return\nFederal Form 4852, Employee's Substitute Wage and Tax Statement, and\n18,000-18,999\n233\n258\n282\n296\nAttachments may be used in support of or in place of the official\nattach to the face of your return.\n19,000-19,999\n242\n268\n293\n308\nschedules. They must be appropriately identified. Follow the format of the\nofficial schedules and include all required information. If an attachment\nE. Where to Get Advice\nIf your income was $20,000 or more, compute your deduction by adding the following:\nis substituted for an official schedule, the schedule need not be filed.\nConsult any of the Franchise Tax Board permanent offices. If you do\n(a) amount shown on last line of table for your family size, plus\nnot live in the vicinity of one of these offices, you may obtain assistance\n(b) 2% of (a) for each $1,000 (or fraction thereof) of income $20,000 to $49,999, plus\nC. How to Assemble Your Return\nat one of the temporary offices located throughout the State. Advance\n(c) 1% of (a) for each $1,000 (or fraction thereof) of income $50,000 to $99,999.\nAttach copy 2 of Form(s) W-2 and W-2P to face of Form 540. Failure\nnotice of the dates and locations of these temporary offices is given\nthrough local newspapers, radio and television stations in your area.\nIf your income was $100,000 or more your deduction is 210% of amount in (a).\nto attach the Form W-2 to your return will delay any refund. If retired and\nreceiving pension or retirement pay, attach Form W-2P only if California\nincome tax was withheld or to substantiate exclusion of sick pay. Attach\nF. Changes to Your Federal and State Returns\nCALIFORNIA MOTOR VEHICLE LICENSE FEE GUIDE\nClaim for Credit or Refund of Excess State Disability Insurance Overpay-\nIf your Federal return is changed by the Internal Revenue Service you\nment (Form DE 1964) to face of Form 540. Attach required schedules with\nare required to report the change to the Franchise Tax Board within 90\nYou can deduct California Motor Vehicle license fees, exclusive of the annual registration and weight fees. Subtract from the total\nsupporting statements (if any) in alphabetical order followed by forms in\ndays of the Federal change.\nlicense fee the appropriate amount listed below. The balance is deductible on line 17 of Schedule A (Form 540).\nnumerical order to back of return. Be sure the totals on each schedule are\nIf you have an adjustment to make on your California return, an amended\nentered on the appropriate lines of Form 540.\nreturn should be filed on Form 540X.\nPassenger car\n$11.00\nMotorcycle\n$11.00\nStation wagon\n$11.00\nTrailer\n$11.00\nTrucks:\nTrucks:\nUnladen Weight\nWeight Fee\nRegistration\nTotal\nUnladen Weight\nWeight Fee\nRegistration\nTotal\n-0- 2,999 lbs.\n$ 5.00\n$11.00\n$16.00\n9,001-10,000 lbs.\n$146.00\n$11.00\n$157.00\n3,000- 4,000 lbs.\n15.00\n11.00\n26.00\n10,001-11,000 lbs\n165.00\n11.00\n176.00\n4,001- 5,000 lbs.\n32.00\n11.00\n43.00\n11,001-12,000 lbs.\n186.00\n11.00\n197.00\n5,001- 6,000 lbs.\n62.00\n11.00\n73.00\n12,001-13,000 lbs.\n207.00\n11.00\n218.00\n6,001- 7,000 lbs.\n83.00\n11.00\n94.00\n13,001-14,000 lbs.\n228.00\n11.00\n239.00\n7,001- 8,000 lbs.\n104.00\n11.00\n115.00\n14,001 and over\n247.00\n11.00\n258.00\n8,001- 9,000 lbs.\n124.00\n11.00\n135.00\n* Total to be subtracted from license fee, balance deductible.\nPage 8\n(C)\nJoint\n$112\n540 INSTRUCTIONS\nreturn of\nmarried\ncouple or\nwidow(er)\ndependent\nRESIDENT\nINDIVIDUAL\nwith\nchild\nTAXABLE YEAR\n115\n118\n121\n124\n127\n130\n133\n136\n139\n142\n145\n148\n151\n154\n157\n160\n163\n166\n169\n172\n175\n178\n181\n184\n187\n190\n194\n198\n202\n206\n210\n214\n218\n222\n226\n230\n234\n238\n242\n246\n250\n254\n258\n262\n266\n270\n274\n278\n282\n286\n290\n294\n298\n302\n306\n309\n540\nCALIFORNIA\n1975\nINCOME TAX\nTHE TAX SHALL BE\n(B)\nHead of\nhousehold\n$122\n125\n129\n133\n137\n141\n145\n149\n153\n157\n161\n165\n169\n173\n177\n181\n185\n190\n195\n200\n205\n210\n215\n220\n225\n230\n235\n240\n245\n250\n255\n260\n266\n272\n278\n284\n290\n296\n302\n308\n314\n320\n326\n332\n338\n344\n350\n357\n364\n371\n378\n385\n392\n399\n406\n413\n418\nPLACE PREADDRESSED LABEL HERE, if available. (Correct name and address, if necessary)\nCheck\nCalendar Year\nEnter social security number(s) only if incorrect or not shown on label.\nOne:\nFiscal Year Ending\n1976\nNAME (If joint return, give first names and initials of both)\nFOR FEDERAL PRIVACY ACT NOTIFICATION\nLAST NAME\nSEE PAGE 2 OF INSTRUCTIONS\nYour Social Security Number\n(A)\nSingle person\n(not head of\nhousehold) or\nseparate return\nof married\nperson\nPRESENT HOME ADDRESS (Number and street, including apartment number, or rural route)\n$254\n260\n266\n272\n278\n284\n290\n296\n302\n308\n314\n320\n327\n334\n341\n348\n355\n362\n369\n376\n383\n390\n397\n404\n411\n418\n425\n433\n441\n449\n457\n465\n473\n481\n489\n497\n505\n513\n521\n529\n537\n545\n554\n563\n572\n581\n590\n599\n608\n617\n626\n635\n644\n653\n662\n671\n677\nSpouse's\nSocial\nSecurity\nNumber\nCITY, TOWN OR POST OFFICE, STATE AND ZIP CODE\nOCCU-\nYours\nPATION\nSpouse's\nThe Tax Table can be used only if you were a resident for the entire year, your adjusted gross income on line 16, Form 540 is less than $15,000 and\nyou do NOT itemize deductions (the Tax Table provides for the allowable standard deduction). In all other cases you must use the Tax Rate Schedules.\nTAX TABLE (Provides for $1,000 and $2,000 standard deduction. Do not use Table if itemized deductions are claimed.)\nBut\nless\nthan\n$9,450\n9,550\n9,650\n9,750\n9,850\n9,950\n10,050\n10,150\n10,250\n10,350\n10,450\n10,550\n10,650\n10,750\n10,850\n10,950\n11,050\n11,150\n11,250\n11,350\n11,450\n11,550\n11,650\n11,750\n11,850\n11,950\n12,050\n12,150\n12,250\n12,350\n12,450\n12,550\n12,650\n12,750\n12,850\n12,950\n13,050\nGROSS INCOME\n13,150\n13,250\n13,350\n13,450\n13,550\n13,650\n13,750\n13,850\n13,950\n14,050\n14,150\n14,250\n14,350\n14,450\n14,550\n14,650\n14,750\n14,850\n14,950\n15,000\nFILING STATUS-Check Only One:\nEXEMPTION CREDITS\nIf line 1 or 3 checked, enter $25\n1\nSingle\n6 Personal\nIF ADJUSTED\nIf line 2, 4 or 5 checked, enter $50\n6\n00\nAT LINE 16,\nPAGE 1, IS:\n2\nMarried filing joint return (even if only one had income)\n7 Dependents - Do not list yourself, your spouse or the person who qualifies you\nas head of household. Enter name and relationship.\n3\nAt\nleast\nSeparate return of married person-Enter spouse's\n$9,350\n9,450\n9,550\n9,650\n9,750\n9,850\n9,950\n10,050\n10,150\n10,250\n10,350\n10,450\n10,550\n10,650\n10,750\n10,850\n10,950\n11,050\n11,150\n11,250\n11,350\n11,450\n11,550\n11,650\n11,750\n11,850\n11,950\n12,050\n12,150\n12,250\n12,350\n12,450\n12,550\n12,650\n12,750\n12,850\n12,950\n13,050\n13,150\n13,250\n13,350\n13,450\n13,550\n13,650\n13,750\n13,850\n13,950\n14,050\n14,150\n14,250\n14,350\n14,450\n14,550\n14,650\n14,750\n14,850\n14,950\nsocial security number and full name here\n4\nHead of Household-Enter name of qualifying\nTotal Number\n$8\n7\n00\nindividual\n8 Blind (refer to instructions) Number of blind exemptions\nX $8\n8\n00\n5\nWidow(er) with dependent child (Year spouse died 197\n)\n9 Total exemption credits (add lines 6, 7 and 8) Enter here and on line 20\n9\n00\n(C)\nTAX TABLE AND TAX RATE SCHEDULES\nJoint\nreturn of\nmarried\ncouple or\nwidow(er)\nwith\ndependent\nchild\n$80\n82\n84\n86\n88\n90\n92\n94\n96\n98\n100\n103\n106\n109\n10 Wages, salaries, tips and other employee compensation\nAttach copy 2 of Form(s) W-2 to face of this\nreturn. If unavailable, see instructions, Page 6\n10\n11 Dividends-before federal exclusion. Enter total (if over $400, complete and attach Schedule B(540) )\n11\n12 Interest. Enter total (if over $400, complete and attach Schedule B(540) )\n12\nTHE TAX SHALL BE\n(B)\nHead of\nhousehold\n13 Income other than wages, dividends and interest (from line 48)\n13\n$80\n83\n86\n89\n92\n95\n98\n101\n104\n107\n110\n113\n116\n119\n14 Total (add lines 10, 11, 12 and 13)\n14\nATTACH COPY 2 OF FORM W-2 HERE\n15 Adjustments to income (from line 55)\n15\n16 Adjusted gross income (subtract line 15 from line 14)\nSingle person\n(not head of\nhousehold) or\nseparate return\nof married\nIf line 1 or 3 is checked and line 16 is $4,000 or less, enter zero tax on line 23.\nDo not complete\n(A)\nperson\n$0\n40\n42\n44\n46\n48\n53\n56\n59\n62\n65\n68\n71\n74\n77\n80\n83\n86\n68\n92\n95\n99\n103\n107\n115\n123\n127\n135\n139\n143\n147\n151\n155\n230\nIf line 2, 4, or 5 is checked and line 16 is $8,000 or less, enter zero tax on line 23.\nlines 17 thru 22\n50\n160\n165\n170\n175\n178\n185\n190\n195\n200\n205\n210\n215\n220\n225\n242\n248\n16\n111\n119\n131\n181\n236\nIf you do NOT itemize deductions AND line 16 is under $15,000, find tax in Tax Table and enter on line 19.\nIf you itemize deductions OR line 16 is $15,000 or more, complete lines 17 and 18.\n17 Deductions: Itemized (from line 62) OR STANDARD ($1,000 if line 1 or 3 checked-$2,000 if line 2, 4 or 5 checked)\n17\nBut\nless\nthan\n$4,001\n4,050\n4,150\n4,250\n4,350\n4,450\n4,550\n4,650\n4,750\n4,850\n4,950\n5,050\n5,150\n5,250\n5,350\n5,450\n5,550\n5,650\n5,750\n5,850\n5,950\n6,050\n6,150\n6,250\n6,350\n6,450\n6,550\n6,650\n6,750\n6,850\n6,950\n7,050\n7,150\n7,250\n7,350\n7,450\n7,550\n7,650\n7,750\n7,850\n7,950\n8,001\n8,050\n8,150\n8,250\n8,350\n8,450\n8,550\n8,650\n8,750\n8,850\n8,950\n9,050\n9,150\n9,250\n9,350\n18 Taxable income (subtract line 17 from line 16) Compute tax from Tax Rate Schedule-Enter tax on line 19\n18\nIF ADJUSTED\nGROSS INCOME\nAT LINE 16,\nPAGE 1, IS:\n19 Tax from (check one) Tax Table\nTax Rate Schedule\nIncome Averaging Schedule (G or G-1)\n.\n19\n20 Total exemption credits (from line 9, above)\n20\nAt\nleast\nUnder\n$4,001\n4,050\n4,150\n4,250\n4,350\n4,450\n4,550\n4,650\n4,750\n4,850\n4,950\n5,050\n5,150\n5,250\n5,350\n5,450\n5,550\n5,650\n5,750\n5,850\n5,950\n6,050\n6,150\n6,250\n6,350\n6,450\n6,550\n6,650\n6,750\n6,850\n6,950\n7,050\n7,150\n7,250\n7,350\n7,450\n7,550\n7,650\n7,750\n7,850\n7,950\n8,001\n8,050\n8,150\n8,250\n8,350\n8,450\n8,550\n8,650\n8,750\n8,850\n8,950\n9,050\n9,150\n9,250\n21 Tax liability (subtract line 20 from line 19-if line 20 is greater than line 19, enter zero)\n21\n22 Other credits (from line 65)\n22\n23 Net tax liability (subtract line 22 from line 21-if line 22 is greater than line 21, enter zero)\n23\n24 Tax on preference income (see instructions-attach Schedule P(540) )\n24\n25 Total tax liability (add lines 23 and 24)\n25\n26 Total California income tax withheld (attach W-2 or W-2P to face of this return)\n26\nSeparate Return of a Married Person\n$20 plus 2% of amount over $2,000\n50 plus 3% of amount over 3,500\n95 plus 4% of amount over 5,000\n155 plus 5% of amount over 6,500\n230 plus 6% of amount over 8,000\n320 plus 7% of amount over 9,500\n425 plus 8% of amount over 11,000\n545 plus 9% of amount over 12,500\n680 plus 10% of amount over 14,000\n830 plus 11% of amount over 15,500\n$40 plus 2% of amount over $4,000\n100 plus 3% of amount over 7,000\n190 plus 4% of amount over 10,000\n310 plus 5% of amount over 13,000\n460 plus 6% of amount over 16,000\n640 plus 7% of amount over 19,000\n850 plus 8% of amount over 22,000\n1,090 plus 9% of amount over 25,000\n1,360 plus 10% of amount over 28,000\n1,660 plus 11% of amount over 31,000\n$40 plus 2% of amount over $4,000\n80 plus 3% of amount over 6,000\n125 plus 4% of amount over 7,500\n185 plus 5% of amount over 9,000\n260 plus 6% of amount over 10,500\n350 plus 7% of amount over 12,000\n455 plus 8% of amount over 13,500\n575 plus 9% of amount over 15,000\n710 plus 10% of amount over 16,500\n860 plus 11% of amount over 18,000\n27 Renter's credit-if you lived in rented property on March 1, 1975, complete Part 1 on page 2\n27\nTAX RATES\nTAX RATES\nTAX RATES\n28 1975 California estimated tax payments\n28\n29 Excess California SDI tax withheld (attach Form DE 1964 to face of this return)\n29\n30 Total prepayment credits (add lines 26 thru 29)\n30\nTAX RATE SCHEDULES\n1%\n1%\n1%\n31 If line 25 is larger than line 30, enter BALANCE DUE. If it is equal to line 30, enter zero.\nJoint Return of Married Couple\n(Provides for split-income benefits)\nWidow(er) with Dependent Child\nATTACH FORM DE 1964 HERE\nWrite social security number on check or money order. ATTACH HERE\nPay in full and mail with return to: FRANCHISE TAX BOARD\nPAY IN FULL\n31\nSACRAMENTO, CA 95867\nDo not write in these spaces\n32 If line 25 is smaller than line 30, enter amount OVERPAID\n.\n32\nP\n33 Amount of line 32 to be REFUNDED TO YOU. Allow at least six weeks.\nMail return to:\nFRANCHISE TAX BOARD\n33\nE\nHead of Household\nP.O. BOX 13-540\nM\nSACRAMENTO, CA 95813\nA\nSingle Person\nTAXABLE INCOME\nTAXABLE INCOME\nTAXABLE INCOME\n34 Amount of line 32 to be credited on your 1976 ESTIMATED TAX\n34\nESTIMATED TAX\nR\nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and\nbelief it is true, correct and complete. If prepared by a person other than taxpayer, his declaration is based on all information of which he has any knowledge.\n$0 to $2,000\n2,000 to 3,500\n3,500 to 5,000\n5,000 to 6,500\n6,500 to 8,000\n8,000 to 9,500\n9,500 to 11,000\n11,000 to 12,500\n12,500 to 14,000\n14,000 to 15,500\n15,500 and over\n$0 to $4,000\n4,000 to 7,000\n7,000 to 10,000\n10,000 to 13,000\n13,000 to 16,000\n16,000 to 19,000\n19,000 to 22,000\n22,000 to 25,000\n25,000 to 28,000\n28,000 to 31,000\n31,000 and over\n$0 to $4,000\n4,000 to 6,000\n6,000 to 7,500\n7,500 to 9,000\n9,000 to 10,500\n10,500 to 12,000\n12,000 to 13,500\n13,500 to 15,000\n15,000 to 16,500\n16,500 to 18,000\n18,000 and over\nSIGN\nYour signature\nDate\nPreparer's signature (other than taxpayer)\nDate\nHERE\nSpouse's signature-if filing a joint return\nDate\nAddress (and Zip code)\nPage 2 Form 540 (1975)\nRESIDENT\nINDIVIDUAL\nTAXABLE YEAR\nPART I- Renter's Credit — All questions must be answered\n540\nCALIFORNIA\n1975\n35 Did you, on March 1, 1975, live in rented property which was your principal residence?\nYes\nNo If no, you may not claim this credit\nINCOME TAX\n36 Was the property you rented exempt from property tax?\nYes\nNo If yes, you may not claim this credit\n37 Did you live with any other person who claimed you as a dependent for income tax purposes?\nYes\nNo If yes, you may not claim this credit\nPLACE PREADDRESSED LABEL HERE, if available. (Correct name and address, if necessary)\nCheck\nCalendar Year\n38 Did you or your spouse claim the homeowners' property tax exemption or receive public assistance?\nYes\nNo If yes, see page 6 of instructions\nEnter social security number(s) only if incorrect or not shown on label.\nOne:\nFiscal Year Ending\n1976\nFOR FEDERAL PRIVACY ACT NOTIFICATION\nNAME (If joint return, give first names and initials of both)\nLAST NAME\nSEE PAGE 2 OF INSTRUCTIONS\nPART II - Other Income\nYour Social Security Number\n39 Business income (or loss) (attach Schedule C(540) )\n39\nPRESENT HOME ADDRESS (Number and street, including apartment number, or rural route)\nSpouse's\nSocial\nSecurity\nNumber\n40 Net gain (or loss) from sale or exchange of capital assets (attach Schedule D(540))\n40\n41 Net gain (or loss) from supplemental schedule of gains and losses (attach Schedule D-1(540) )\n41\nCITY, TOWN OR POST OFFICE, STATE AND ZIP CODE\nOCCU-\nYours\n42 Pensions and annuities\n42\nPATION\nSpouse's\n43 Rents and royalties\n}\nATTACH\n43\nSCHEDULE E\nFILING STATUS-Check Only One:\nEXEMPTION CREDITS\nIf line 1 or 3 checked, enter $25\n44 Partnerships\nFORM (540)\n44\n1\nSingle\n6 Personal\nIf line 2, 4 or 5 checked, enter $50\n6\n00\n45 Estates and trusts\n45\n2\nMarried filing joint return (even if only one had income)\n7 Dependents - Do not list yourself, your spouse or the person who qualifies you\n46 Farm income (or loss) (attach Schedule F(540) )\n46\nas head of household. Enter name and relationship.\n3\nSeparate return of married person-Enter spouse's\n47 Miscellaneous income\nsocial security number and full name here\n(a) Fully taxable pensions and annuities (not reported on Schedule E(540) )\n47a\n(b) Alimony\n47b\n4\nHead of Household-Enter name of qualifying\nTotal Number\nX\n$8\n7\n00\n(c) Other (state nature and source)\n47c\nindividual.\n8 Blind (refer to instructions) Number of blind exemptions\n$8\n8\n00\nEnter total of lines 47(a), 47(b), and 47(c)\n47\n5\nWidow(er) with dependent child (Year spouse died 197\n9 Total exemption credits (add lines 6, 7 and 8) Enter here and on line 20\n9\n00\n48 Total (add lines 39 thru 47). Enter here and on line 13\n48\n10 Wages, salaries, tips and other employee compensation\nAttach copy 2 of Form(s) W-2 to face of this\nreturn. If unavailable, see instructions, Page 6\n10\nPART III - Adjustments to Income\n11 Dividends-before federal exclusion. Enter total (if over $400, complete and attach Schedule B(540) )\n11\n49 \"Sick pay,\" if included in line 10 (see instructions — attach statement)\n49\n12 Interest. Enter total (if over $400, complete and attach Schedule B(540) )\n12\n50 Moving expenses (see instructions - attach statement)\n50\n13 Income other than wages, dividends and interest (from line 48)\n13\n51 Employee business expenses (see instructions — attach statement)\n51\n14 Total (add lines 10, 11, 12 and 13)\n14\n52 Military exclusion (see instructions)\n52\n53 Payment as a self-employed person to a retirement plan, etc. (see instructions)\n53\nATTACH COPY 2 OF FORM W-2 HERE\n15 Adjustments to income (from line 55)\n15\n16 Adjusted gross income (subtract line 15 from line 14)\n54 Forfeited interest penalty (see instructions)\n54\nIf line 1 or 3 is checked and line 16 is $4,000 or less, enter zero tax on line 23.\nDo not complete\n55 Total adjustments (add lines 49 thru 54). Enter here and on line 15\n55\nIf line 2, 4, or 5 is checked and line 16 is $8,000 or less, enter zero tax on line 23.\nlines 17 thru 22\n16\nIf you do NOT itemize deductions AND line 16 is under $15,000, find tax in Tax Table and enter on line 19.\nPART IV - Itemized Deductions —\nIf you itemize deductions OR line 16 is $15,000 or more, complete lines 17 and 18.\n17 Deductions: Itemized (from line 62) OR STANDARD ($1,000 if line 1 or 3 checked-$2,000 if line 2, 4 or 5 checked)\n17\nAttach Schedule A(540) and enter sub-totals on lines 56 thru 61, below\n18 Taxable income (subtract line 17 from line 16) Compute tax from Tax Rate Schedule-Enter tax on line 19\n18\n56 Total deductible medical and dental expenses (from Schedule A(540), line 10)\n56\n57 Total child adoption expenses (from Schedule A(540), line 13)\n19 Tax from (check one) Tax Table\nTax Rate Schedule\n57\nIncome Averaging Schedule (G or G-1)\n19\n58 Total taxes (from Schedule A(540), line 20)\n58\n20 Total exemption credits (from line 9, above)\n20\n59 Total interest expense (from Schedule A(540), line 23)\n59\n21 Tax liability (subtract line 20 from line 19-if line 20 is greater than line 19, enter zero)\n21\n60 Total contributions (from Schedule A(540), line 28)\n60\n22 Other credits (from line 65)\n22\n61 Total miscellaneous deductions (from Schedule A(540), line 39)\n61\n23 Net tax liability (subtract line 22 from line 21-if line 22 is greater than line 21, enter zero)\n23\n62 Total itemized deductions (add lines 56 thru 61). Enter here and on line 17\n62\n24 Tax on preference income (see instructions-attach Schedule P(540) )\n24\n25 Total tax liability (add lines 23 and 24)\n25\nPART V — Other Credits — SEE INSTRUCTIONS FOR EACH CREDIT CLAIMED BELOW.\n26 Total California income tax withheld (attach W-2 or W-2P to face of this return)\n26\n63 \"Other State\" net income tax credit (attach copy of other state return and Schedule S(540) )\n63\n27 Renter's credit-if you lived in rented property on March 1, 1975, complete Part 1 on page 2\n27\n64 Retirement income credit (attach Schedule R(540) )\n64\n65 TOTAL (add lines 63 and 64). Enter here and on line 22\n65\nWrite social security number on check or money order. ATTACH HERE\n28 1975 California estimated tax payments\n28\n29 Excess California SDI tax withheld (attach Form DE 1964 to face of this return)\n29\n30 Total prepayment credits (add lines 26 thru 29)\n30\nPART VI - Reconciliation to Federal Return — If adjusted gross income on Federal Return is different from line 16, page 1, explain below.\n31 If line 25 is larger than line 30, enter BALANCE DUE. If it is equal to line 30, enter zero.\nATTACH FORM DE 1964 HERE\nPay in full and mail with return to: FRANCHISE TAX BOARD\nPAY IN FULL\n31\nSACRAMENTO, CA 95867\nDo not write in these spaces\n32 If line 25 is smaller than line 30, enter amount OVERPAID\n32\nP\n33 Amount of line 32 to be REFUNDED TO YOU. Allow at least six weeks.\nMail return to:\nFRANCHISE TAX BOARD\n33\nE\nP.O. BOX 13-540\nM\nSACRAMENTO, CA 95813\nA\n34 Amount of line 32 to be credited on your 1976 ESTIMATED TAX\n34\nESTIMATED TAX\nR\nUnder penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and\nbelief it is true, correct and complete. If prepared by a person other than taxpayer, his declaration is based on all information of which he has any knowledge.\nSIGN\nYour signature\nDate\nPreparer's signature (other than taxpayer)\nDate\nHERE\nSpouse's signature-if filing a joint return\nDate\n34515-400 6-75 8,500M 1 OSP\nAddress (and Zip code)\nPage 2 Form 540 (1975)\nSCHEDULE\nA\nCALIFORNIA\nTAXABLE\nPART I- Renter's Credit — All questions must be answered\n1975\n35 Did you, on March 1, 1975, live in rented property which was your principal residence?\nYes\nNo If no, you may not claim this credit\nITEMIZED DEDUCTIONS\nFORM 540\nYEAR\n36 Was the property you rented exempt from property tax?\nYes\nNo If yes, you may not claim this credit\nAttach to Form 540\n37 Did you live with any other person who claimed you as a dependent for income tax purposes?\nYes\nNo If yes, you may not claim this credit\nName as shown on Form 540\nSocial Security Number\n38 Did you or your spouse claim the homeowners' property tax exemption or receive public assistance?\nYes\nNo If yes, see page 6 of instructions\nPART II - Other Income\nIf your adjusted gross income is $8,000 or less and your filing status is \"Married, Filing Jointly,\" \"Head of Household,\" or \"Widow(er) With Dependent Child,\"\nA\nor $4,000 or less and your filing status is \"Single,\" or \"Married, Filing Separately,\" do not itemize, enter zero on Form 540, line 23, and check the tax\n39 Business income (or loss) (attach Schedule C(540) )\n39\ntable box.\n40 Net gain (or loss) from sale or exchange of capital assets (attach Schedule D(540))\n40\nUSE ONLY IF YOU DO NOT USE THE TAX TABLE OR TAKE THE STANDARD DEDUCTION\n41 Net gain (or loss) from supplemental schedule of gains and losses (attach Schedule D-1(540) )\n41\n42 Pensions and annuities\n42\nMedical and dental expenses (not compensated by insurance or otherwise) for\nInterest Expense\n}\nATTACH\nmedicine and drugs, doctors, dentists, nurses,\n43 Rents and royalties\n43\nSCHEDULE E\nhospital care, insurance premiums for medical\n21. Home mortgage\n44 Partnerships\nFORM (540)\n44\ncare, etc.\n22. Other (itemize)\n45 Estates and trusts\n45\n46 Farm income (or loss) (attach Schedule F(540) )\n46\n1. One half (but not more than $150) of insurance\n47 Miscellaneous income\npremiums for medical care\n(a) Fully taxable pensions and annuities (not reported on Schedule E(540) )\n47a\n2. Medicine and drugs\n(b) Alimony\n47b\n3. Enter 1% of line 16, Form 540\n23. Total-(Add lines 21 and 22. Enter here and on\n(c) Other (state nature and source)\n47c\n4. Subtract line 3 from line 2. Enter difference (if less\nForm 540, line 59)\nEnter total of lines 47(a), 47(b), and 47(c)\n47\nthan zero, enter zero)\n48 Total (add lines 39 thru 47). Enter here and on line 13\n48\n5. Enter balance of insurance premiums for medical care\nnot entered on line 1\nContributions\nPART III - Adjustments to Income\n6. Other medical and dental expenses:\n24. Cash contributions for which you have receipts,\n49 \"Sick pay,\" if included in line 10 (see instructions — attach statement)\n49\n(a) Doctors, dentists, nurses, etc.\ncanceled checks, etc.\n25. Other cash contributions. List donees and amounts\n50 Moving expenses (see instructions — attach statement)\n50\n(b) Hospitals\n51\n(c) Other (itemize)\n51 Employee business expenses (see instructions - attach statement)\n52 Military exclusion (see instructions)\n52\n53 Payment as a self-employed person to a retirement plan, etc. (see instructions)\n53\n54 Forfeited interest penalty (see instructions)\n54\n55 Total adjustments (add lines 49 thru 54). Enter here and on line 15\n55\n26. Other than cash.-See instructions for required state-\n7. Total-(Add lines 4, 5, 6a, b, and c)\nment\nPART IV - Itemized Deductions —\n8. Enter 3% of line 16, Form 540\n27. Carryover from 1974-See instructions\nAttach Schedule A(540) and enter sub-totals on lines 56 thru 61, below\n9. Subtract line 8 from line 7. Enter difference (if less\n28. Total-(Add lines 24, 25, 26, and 27. Maximum de-\n56 Total deductible medical and dental expenses (from Schedule A(540), line 10)\n56\nthan zero, enter zero)\nduction may not exceed 20% of adjusted gross\n57 Total child adoption expenses (from Schedule A(540), line 13)\n57\n10. Total-(Add lines 1 and 9. Enter here and on Form\nincome. Enter here and on Form 540, line 60)\n58 Total taxes (from Schedule A(540), line 20)\n58\n540, line 56)\nMiscellaneous Deductions\n59 Total interest expense (from Schedule A(540), line 23)\n59\n60 Total contributions (from Schedule A(540), line 28)\n60\nChild Adoption Expense\nCasualty or Theft Loss(es)-See instructions\n61 Total miscellaneous deductions (from Schedule A(540), line 39)\n61\n11. Total expenses paid or incurred-Attach itemized list\nNOTE: If you had more than one loss, omit lines 29\n62 Total itemized deductions (add lines 56 thru 61). Enter here and on line 17\n62\n12. Enter 3% of line 16, Form 540\nthrough 33 and follow instructions for guidance.\n13. Subtract line 12 from line 11-See instructions for\n29. Loss before insurance reimbursement\nPART V — Other Credits — SEE INSTRUCTIONS FOR EACH CREDIT CLAIMED BELOW.\nmaximum limitations. (Enter here and on Form 540,\n30. Insurance reimbursement\n63 \"Other State\" net income tax credit (attach copy of other state return and Schedule S(540) )\n63\nline 57)\n31. Subtract line 30 from line 29. Enter difference (if line\n64 Retirement income credit (attach Schedule R(540) )\n64\n30 is greater than line 29, enter zero)\n65 TOTAL (add lines 63 and 64). Enter here and on line 22\n65\nTaxes\n32. Enter $100 or amount on line 31, whichever is smaller\n14. Real estate\n33. Casualty or theft loss (line 31 less line 32)\nPART VI - Reconciliation to Federal Return — If adjusted gross income on Federal Return is different from line 16, page 1, explain below.\n15. State and local gasoline\n34. Alimony paid\n16. General Sales\n35. Child care-See instructions\n17. Auto license-Excess of registration and weight fees\n36. Union dues\n(see instructions)\n37. Employment education expense-See instructions\n18. Personal property (Boat and Aircraft)\n38. Other-(itemize)\n19. Other (itemize)\n20. Total taxes-(Add lines 14 thru 19. Enter here and\n39. Total-Add lines 33, 34, 35, 36, 37, and 38. (Enter\nhere and on Form 540, line 61)\non Form 540, line 58)\nSchedule B on reverse\n34515-400 6-75 8,500M 1 OSP\n(REV. 1975)\nSCHEDULE\nCALIFORNIA\nTAXABLE\nSCHEDULE\nTAXABLE\nB\n1975\nCALIFORNIA\nA\n1975\nDIVIDEND AND INTEREST INCOME\nITEMIZED DEDUCTIONS\nFORM 540\nYEAR\nFORM 540\nYEAR\nAttach to Form 540\nAttach to Form 540\nName as shown on Form 540\nSocial Security Number\nName as shown on Form 540\nSocial Security Number\nPART I-DIVIDEND INCOME\nB\nIf your adjusted gross income is $8,000 or less and your filing status is \"Married, Filing Jointly,\" \"Head of Household,\" or \"Widow(er) With Dependent Child,\"\nA\nor $4,000 or less and your filing status is \"Single,\" or \"Married, Filing Separately,\" do not itemize, enter zero on Form 540, line 23, and check the tax\nLine 1-Gross Dividends and Other Distributions on\ntions), less nontaxable portion, if any, on Form 540, page 1.\ntable box.\nUSE ONLY IF YOU DO NOT USE THE TAX TABLE OR TAKE THE STANDARD DEDUCTION\nStock-If gross dividends and other distributions (including capital\nDo NOT deduct the $100 federal exclusion.\ngain dividends) on stock were $400 or less, do not complete\n\"Capital gain dividends\" are treated as ordinary dividends for\nState income tax purposes and not as capital gains as permitted\nMedical and dental expenses (not compensated by insurance or otherwise) for\nInterest Expense\nthis part; but enter gross dividends (including capital gain distribu-\nunder the federal law.\nmedicine and drugs, doctors, dentists, nurses,\nhospital care, insurance premiums for medical\n21. Home mortgage\n1. Gross dividends and other distributions on stock-List payers and amounts-Write (H), (W), (J), for stock held by husband, wife, jointly.\ncare, etc.\n22. Other (itemize)\n1. One half (but not more than $150) of insurance\npremiums for medical care\n2. Medicine and drugs\n3. Enter 1% of line 16, Form 540\n23. Total-(Add lines 21 and 22. Enter here and on\n4. Subtract line 3 from line 2. Enter difference (if less\nForm 540, line 59)\nthan zero, enter zero)\n5. Enter balance of insurance premiums for medical care\nnot entered on line 1\nContributions\n6. Other medical and dental expenses:\n24. Cash contributions for which you have receipts,\n(a) Doctors, dentists, nurses, etc.\ncanceled checks, etc.\n(b) Hospitals\n25. Other cash contributions. List donees and amounts\n(c) Other (itemize)\n2. Total dividends\n3. Nontaxable distributions\n4. Taxable dividends-Subtract line 3 from line 2. Enter here and on line 11, form 540\n26. Other than cash-See instructions for required state-\n7. Total-(Add lines 4, 5, 6a, b, and c)\nment\nPART II-INTEREST INCOME\n8. Enter 3% of line 16, Form 540\n27. Carryover from 1974-See instructions\nInterest on bonds, debentures, loans, notes, tax refunds and all\n(b) Bonds (but not other obligations) of California and its polit-\n9. Subtract line 8 from line 7. Enter difference (if less\n28. Total-(Add lines 24, 25, 26, and 27. Maximum de-\ntypes of savings accounts including banks, credit unions and postal\nical subdivisions issued after November 4, 1902.\nthan zero, enter zero)\nduction may not exceed 20% of adjusted gross\nsavings is taxable.\n(c) Interest on bonds of Alaska and Hawaii issued prior to their\n10. Total-(Add lines 1 and 9. Enter here and on Form\nincome. Enter here and on Form 540, line 60)\nInterest on the following obligations is exempt from tax:\nachieving statehood.\n540, line 56)\n(a) Bonds and other obligations (other than tax refunds) of the\nMiscellaneous Deductions\nUnited States, the District of Columbia and territories of\nNote: If total taxable interest income was $400 or less, do\nChild Adoption Expense\nCasualty or Theft Loss(es)-See instructions\nthe United States. (Interest on Philippine Islands obligations\nnot complete this part; but enter the total amount of interest\n11. Total expenses paid or incurred-Attach itemized list\nNOTE: If you had more than one loss, omit lines 29\nissued on or after March 24, 1943 is not exempt.)\nreceived on Form 540, page 1.\n12. Enter 3% of line 16, Form 540\nthrough 33 and follow instructions for guidance.\n13. Subtract line 12 from line 11-See instructions for\n29. Loss before insurance reimbursement\n1. Interest income-List payers and amounts\nmaximum limitations. (Enter here and on Form 540,\n30. Insurance reimbursement\nline 57)\n31. Subtract line 30 from line 29. Enter difference (if line\n30 is greater than line 29, enter zero)\nTaxes\n32. Enter $100 or amount on line 31, whichever is smaller\n14. Real estate\n33. Casualty or theft loss (line 31 less line 32)\n15. State and local gasoline\n34. Alimony paid\n16. General Sales\n35. Child care-See instructions\n17. Auto license-Excess of registration and weight fees\n36. Union dues\n(see instructions)\n37. Employment education expense-See instructions\n18. Personal property (Boat and Aircraft)\n38. Other-(itemize)\n19. Other (itemize)\n39. Total-Add lines 33, 34, 35, 36, 37, and 38. (Enter\n20. Total taxes-(Add lines 14 thru 19. Enter here and\n2. Total interest income. Enter here and on line 12, Form 540\nhere and on Form 540, line 61)\non Form 540, line 58)\nSchedule A on reverse\nSchedule B on reverse\n(REV. 1975)\n34518-400 6-75 6,200M OA OSP\n(REV. 1975)\nSCHEDULE\nCALIFORNIA\nTAXABLE\nSTATE OF CALIFORNIA-FRANCHISE TAX BOARD\nB\n1975\nINSTRUCTIONS FOR SCHEDULE A (FORM 540)\nDIVIDEND AND INTEREST INCOME\nITEMIZED DEDUCTIONS-If you do not use Tax Table or claim the Standard Deduction\nFORM 540\nYEAR\nAttach to Form 540\nName as shown on Form 540\nMEDICAL AND DENTAL EXPENSES-If you made pay-\nDeduct any taxes paid in connection with a business or pro-\nSocial Security Number\nments for medical care insurance, medicines, doctors, hospitals,\nfession in Schedules C, E and F (Form 540).\netc., follow the step-by-step instructions in lines 1 through 10\nYou cannot deduct any state, federal or foreign income taxes,\nNo\nfederal excise taxes or social security taxes; state disability\nPART I-DIVIDEND INCOME\nB\non Schedule A. The medical expenses can be for yourself, your\nspouse or any dependent who received over one-half of his (her)\ninsurance payments; hunting or fishing licenses, dog licenses;\nLine 1-Gross Dividends and Other Distributions on\ntions), less nontaxable portion, if any, on Form 540, page 1.\nsupport from you even if the dependent had income of $750 or\nauto inspection fees, tags, drivers licenses; water taxes; taxes\npaid for another person; alcoholic beverage, cigarette, and\nStock-If gross dividends and other distributions (including capital\nDo NOT deduct the $100 federal exclusion.\ntobacco taxes; or selective sales or excise taxes (admissions,\n\"Capital gain dividends\" are treated as ordinary dividends for\nmore. Include all amounts you paid during the taxable year, but do\nroom occupancy, etc.) even if separately stated, unless imposed\nSt\ngain dividends) on stock were $400 or less, do not complete\nState income tax purposes and not as capital gains as permitted\nnot include amounts repaid to you, or paid to anyone else, by\nat the same rate as the general sales tax.\nthis part; but enter gross dividends (including capital gain distribu-\nunder the federal law.\ngc\nhospital, health or accident insurance. The monthly payments\nIn general, you cannot deduct taxes assessed for any im-\nfor supplementary medical insurance under \"Medicare\" are\nth\n1. Gross dividends and other distributions on stock-List payers and amounts-Write (H), (W), (J), for stock held by husband, wife, jointly.\ndeductible, but that part of social security tax you pay for basic\nprovements which increase the value of your property.\nMedicare is not deductible.\nINTEREST-Interest on such nonbusiness items as your per-\n1.\nYou can deduct, on line 1 of Schedule A, one-half (up to if\nsonal note to a bank, credit union, or an individual, a mortgage\n$150) of the amount paid for medical care insurance even\non your home, a life insurance loan (if interest is paid in cash),\nyou have no other medical expenses. The balance of these\nand delinquent taxes is deductible on Schedule A. Interest paid\ninsurance premiums is deductible on line 5.\non business debts should be reported in the separate schedule\nThe 1 percent and 3 percent limitations (lines 3 and 8) apply\nin which your business income is reported.\nin all cases, regardless of your age or the age of your spouse\nFinance charges on a bank credit card plan are deductible\nas interest if no part is for service charges, loan fees, credit\nor other dependents.\n--\nYou Can Deduct Payments To or For Physicians, den-\ninvestigation fees, etc.\nFinance charges on revolving charge accounts, if based on\ntists, nurses, and other professional practitioners; prescription\nyour unpaid balance and computed monthly, are deductible.\ndrugs, or vaccines; medicines; hospitals; transportation necessary\nto get medical care (instead of actual expenses for gas, oil, etc.,\nInterest paid on installment purchases of personal property\nyou can figure your deduction at the rate of 7 cents a mile);\n(automobiles, appliances, televisions, etc.) is deductible.\nambulance expense; eyeglasses, dentures, medical or surgical\nYou Cannot Deduct Interest On-Indebtedness of another\nappliances, etc.; physical examinations or treatment; insulin\nperson when you are not legally liable for payment of the\ntreatment; whirlpool baths for medical purposes; premiums on\ninterest; a gambling debt or other nonenforceable obligation;\n2. Total dividends\nhospital or medical insurance; and meals and lodging if part\na life insurance loan, if interest is added to the loan and you\n3. Nontaxable distributions\n2\nof cost of care in a hospital or similar institution. Where pay-\nreport on the cash basis.\n4. Taxable dividends-Subtract line 3 from line 2. Enter here and on line 11, form 540\nments were for both nursing care and housework, include only\n3\nDo not deduct interest paid on money borrowed to buy tax-\nthe nursing costs.\nexempt securities or single-premium life insurance. Do not include\nPART II-INTEREST INCOME\nYou Cannot Deduct Payments For-Funeral expenses or ceme-\ncarrying charges or insurance.\nInterest on bonds, debentures, loans, notes, tax refunds and all\n(b) Bonds (but not other obligations) of California and its polit-\ntery plot; illegal drugs; travel ordered or suggested by your\nCONTRIBUTIONS-Allowable contributions, not exceeding\ntypes of savings accounts including banks, credit unions and postal\nical subdivisions issued after November 4, 1902.\ndoctor for rest or change; premiums on life insurance; or\n20 percent of your adjusted gross income, include:\ncosmetics.\nsavings is taxable.\n(c) Interest on bonds of Alaska and Hawaii issued prior to their\nInterest on the following obligations is exempt from tax:\nachieving statehood.\nCHILD ADOPTION EXPENSES-You can deduct that por-\n(1) Gifts made to organizations approved by the Internal\nRevenue Service which are operated for religious chari-\n(a) Bonds and other obligations (other than tax refunds) of the\ntion of child adoption expenses which exceeds 3 percent of\ntable, educational, scientific or literary purposes, or to\nUnited States, the District of Columbia and territories of\nNote: If total taxable interest income was $400 or less, do\nyour adjusted gross income entered on page 1, Form 540. Such\nexpenses include any medical and hospital costs of the natural\nprevent cruelty to animals and children. Most organiza-\ntions will be able to tell you whether they qualify.\nthe United States. (Interest on Philippine Islands obligations\nnot complete this part; but enter the total amount of interest\nmother of the child and any welfare agency, legal and other\nissued on or after March 24, 1943 is not exempt.)\nreceived on Form 540, page 1.\nfees or costs relating to the adoption. This deduction cannot\n(2) Your out-of-pocket expenses (but not the value of your\nexceed $500 on each separate return of a husband and wife,\ntime or service) to do volunteer work for a charitable\nor $1,000 for all other taxpayers.\norganization. (Do not deduct any amounts that were\n1. Interest income-List payers and amounts\nrepaid to you.) If you use your automobile in this work,\nTAXES-You can deduct state, local and foreign taxes on\nyou may figure the operating expense at 7 cents a mile.\nreal property; state and local taxes on personal property; state\nand local general sales and motor fuel taxes (see charts in\nDO NOT deduct amounts paid to individuals, foreign organ-\nForm 540 Booklet, page 7 or in Federal Form 1040 Instructions);\nizations, propaganda organizations, social clubs, labor unions,\nand California motor vehicle license fees, exclusive of the annual\nchambers of commerce or for raffle tickets, bingo and other\nregistration and weight fees.\ngames of chance.\nSubtract from the total license fee the amounts listed below.\nA contribution may be made in cash (checks, money order,\nThe balance is deductible on line 17.\netc.) or property (not services). If in property, describe it, show\nPassenger car, station wagon, motorcycle, or trailer $11.00.\nthe date you gave it, and how you figured its value. Also, for\neach gift valued at more than $200, and each gift of capital\nTrucks:\nWeight Fee\nWeight Fee\ngain or ordinary income property, explain:\nUnladen Weight\nPlus Registration\nUnladen Weight\nPlus Registration\n(1) Any conditions attached to the gift.\n0- 2,999 lbs.\n16.00\n9,001-10,000 lbs.\n$157.00\n176.00\n(2) How you got the property.\n3,000- 4,000 lbs.\n26.00\n10,001-11,000 lbs.\n43.00\n11,001-12,000 lbs.\n197.00\n(3) Cost or other basis of the property, and\n4,001- 5,000 lbs.\n5,001- 6,000 lbs.\n73.00\n12,001-13,000 lbs.\n218.00\n(4) Attach a signed copy of any appraisal. If you elected to\n2. Total interest income. Enter here and on line 12, Form 540\n6,001- 7,000 lbs.\n94.00\n13,001-14,000 lbs.\n239.00\nreduce your deduction for contributions of capital gain\n7,001- 8,000 lbs.\n115.00\n14,001 and over\n258.00\nproperty, indicate this and show how you figured it.\nSchedule A on reverse\n8,001- 9,000 lbs.\n135.00\n(Instructions continued on reverse side)\n(REV. 1975)\n34518-400 6-75 6,200M 00 OSP\n(REV. 1975)\nINSTRUCTIONS (Continued from reverse side)\nSCHEDULE\nTAXABLE\nSpecial rules apply for determining the amount deductible\n(4) A nondependent child of the taxpayer who is under 13\nCALIFORNIA\nyears of age who has gross income of less than $750 in the\nC\n19\nin the case of gifts of appreciated property. See Section 17216.2\nof the Revenue and Taxation Code.\ncalendar year.\nFORM 540\nPROFIT (OR LOSS) FROM BUSINESS OR PROFESSION\nYEAR\nYou can deduct only those expenses directly related to the\nGenerally, you cannot claim a deduction for a transfer of a\n(Sole Proprietorships)\ncare of the qualifying person. Amounts paid to close relatives\nfuture interest in tangible personal property until the entire\ninterest has been transferred.\nor dependents do not qualify for the deduction.\nAttach this schedule to your income tax return, Form 540 or 540NR\nGenerally, the expense must be for services in your home,\nPartnerships, joint ventures, etc., must file on Form 565\nNOTE: Contributions made in 1974 in excess of 20 percent of your 1974\nwith one exception. You may deduct amounts paid for preschool,\nName as shown on Form 540 or 540NR\nSocial Security Number\nadjusted gross income may be carried forward and deducted on line\n27 for 1975. Any excess may be carried over for a maximum of five\nnursery school, or day care for a dependent child under 13, or\nyears.\na nondependent child under 13 who has gross income of less\nA. Name and Address of Business\nB. Federal Employer I.D. No.\nthan $750 in the calendar year. The amount you may deduct\nMISCELLANEOUS DEDUCTIONS\nis limited to:\n(1) Casualty or Theft Loss(es). If you had property\n(1) $150 a month for one such individual\nC. Principal business activity (i.e., retail-hardware; wholesale-tobacco; services-legal; etc.).\nthat was stolen or damaged by fire, storm, car accident, ship-\n(2) $225 a month for two such individuals\nD. Indicate method of accounting:\ncash;\naccrual;\nother\nwreck, etc., you may be able to deduct your loss or part of it.\n(3) $275 a month for three or more such individuals\nE. Were Forms 591, 592, 596 and 599, for the calendar year filed (if required)?\nYES\nNO\nF. Method of inventory valuation\nC\nIn general, Schedule A can be used to report a casualty or\nEducational expenses for kindergarten or above are not al-\ntheft loss. On property used only for personal purposes the\nlowable.\nWas there any substantial change in the manner of determining quantities, costs, or valuations between the opening and closing inventories?\namount of the loss is the difference between the value of the\nRequirements for married taxpayers:\nYES\nNO If \"Yes,\" attach explanation.\nproperty immediately before the casualty and its value imme-\ndiately thereafter, but not more than its adjusted cost or other\n(1) If you are married at the end of 1975, you and your\n1 Gross receipts, sales, or fees $\nLess returns and allowances $\nBalance\nadjusted basis. This loss must then be reduced by any insurance\nspouse MUST file a JOINT RETURN for the year to claim\n2 Inventory at beginning of year (if different from last year's closing inventory, attach explanation)\nor other reimbursements received plus $100. If a husband and\nthis deduction.\n3 Purchases $\nLess cost of items withdrawn for personal use $\nwife owned the property jointly but file separate returns, each\n(2) If you were married during the time you paid these ex-\n4 Cost of labor (do not include salary paid to yourself)\nmust reduce his or her share of the loss by $100.\npenses:\n5 Materials and supplies\nCasualty or theft losses of trade, business, rental, royalty or\n(a) Both you and your spouse must have either worked\n6 Other costs (explain in Schedule C-2 or attach Schedule)\nother income producing properties are not subject to the $100\nfull time or been looking for a job, or\n7 Total of lines 2 thru 6\nreduction. These should be reported on Schedule D-1 (Form 540),\n(b) Your spouse must have been unable to care for him-\nSupplemental Schedule of Gains and Losses. See that form for\nself because of mental or physical illness.\n8 Inventory at end of this year\nreporting instructions.\nIf your adjusted gross income exceeds $12,000, the deduc-\n9 Cost of goods sold (subtract line 8 from line 7)\nIf you had more than one casualty or theft loss, omit lines\ntion will be reduced $0.50 for each dollar of excess.\n10 Gross profit (subtract line 9 from line 1)\n29 through 33 of Schedule A (Form 540). On a separate sheet\nUse Form 3805X to figure your deduction and attach the\n11 Other income (attach schedule)\nof paper prepare a schedule using the information on lines 29\ncompleted form to your return. Enter your deduction on Schedule\n12 Total Income (add lines 10 and 11)\nthrough 33 for each loss. Total the net losses and enter this\nA, line 35.\nOTHER BUSINESS DEDUCTIONS\namount on line 33, Schedule A. Write in the margin to the\nright of line 33, \"Multiple losses, see attachment.\"\n13 Depreciation (explain in Schedule C-1 or attach Schedule)\n(4) Employment Education Expense. This expense can\n14 Taxes on business and business property (explain in Schedule C-2 or attach Schedule)\nYou Cannot Deduct Losses On-Personal injury to yourself or\nbe deducted if primarily for:\n15 Rent on business property\nanother person; accidental loss of cash or other personal prop-\n(a) Maintaining or improving skills required in your employ-\nerty; property lost in storage or in transit; damage by rust,\n16 Repairs (explain in Schedule C-2 or attach Schedule)\nment or other trade or business; or\ngradual erosion or deterioration; or animals or plants damaged\n(b) Meeting the express requirements of your employer, or the\n17 Salaries and wages not included on line 4 (exclude any paid to yourself)\nor destroyed by disease.\n18 Insurance\nrequirements of applicable law or regulations, imposed\nas a condition to the retention of your salary, status or\n19 Legal and professional fees\n(2) Alimony. Periodic payments of alimony or separate\nemployment.\n20 Commissions\nmaintenance made under a final decree of divorce, final judg-\n21 Amortization (attach statement)\nment of dissolution of marriage, or decree of legal separation\nExpenses incurred to meet minimum educational requirements\nto qualify for employment, a substantial advancement in position\n22 Retirement plans, etc. (other than your share, see instructions)\nare deductible. Periodic payments made under either (a) a\nor for personal purposes are not deductible. Attach a statement\n23 Interest on business indebtedness\nwritten separation agreement entered into after August 16,\nsetting forth all pertinent information.\n24 Bad debts arising from sales or services (Not applicable if reporting on cash basis)\n1954; or (b) a decree for support entered into after March 1,\n25 Depletion (attach schedule)\n1954, are also deductible. Such payments must be included in\n(5) Other. Under \"Miscellaneous Deductions\" you can\n26 Other business expenses (explain in Schedule C-2 or attach Schedule)\nthe wife's income. You cannot deduct any voluntary payments\ndeduct all ordinary and necessary expenses paid or incurred for\n27 Total of lines 13 thru 26.\nnot made under a court order or a written separation agree-\nthe production or collection of income, or for the management,\nment, lump-sum settlements or specific maintenance payments\nconservation or maintenance of property held for the production\n28 Net profit (or loss) (subtract line 27 from line 12), Enter here and on Page 2, Form 540 or 540NR\nfor support of minor children.\nof income. However, no deduction may be taken for expenses\nallocable to tax exempt income.\nDate\nCost or\nDepreciation\nMethod of\nGroup and guideline class\nLife or\nDepreciation\nor description of property\nAcquired\nother basis\nallowed (or allowable)\ncomputing\n(3) Child Care Expenses. If you paid someone to take\nRate\nYou can deduct gambling losses only to the extent of gam-\nin prior years\ndepreciation\nfor this year\ncare of a dependent so you (and your spouse if married) could\nbling winnings.\nwork or find work, you may be able to deduct up to $400 a\nYou can deduct political contributions up to $100 a year.\nmonth.\nA married couple filing a joint return can deduct up to $200\nSchedule C-1\nDepreciation\nClaimed on line 13.\nThe expense must be for the following persons who lived in\na year.\nyour home as members of your family:\nIf you work for wages or a salary, you can deduct your\nordinary and necessary employee business expenses which have\n(1) Your dependent under 13 years old who can be claimed\nnot been claimed on your return under \"Adjustments to Income.\"\nLINE\nEXPLANATION\nAMOUNT\nLINE\nas an exemption.\nNO.\nNO.\nEXPLANATION\nAMOUNT\n(2) A dependent who could not care for himself because of\nYou can deduct the cost of safety equipment, tools and\nsupplies used in your job; dues to unions, professional societies,\nmental or physical illness. This must be a person you could claim\nchambers of commerce; business entertainment; and fees paid\nas an exemption except for the fact that he received $750 or\nto employment agencies for securing employment.\nSchedule C-2\nmore of income.\nExplanation of Lines\n6, 14, 16, and 26.\nYou cannot deduct the cost of travel to and from work,\n(3) Your spouse who could not care for himself because of\nentertaining friends, bribes, illegal payments, or any expenses\nmental or physical illness.\nwhich are for your own convenience or benefit.\n(Rev. 1975)\nSCHEDULE F ON REVERSE\n34519-400 9-75 600M\n34520-400 6-75 2,160M 1 OSP\nSCHEDULE\nCALIFORNIA\nTAXABLE\nSCHEDULE\nTAXABLE\nF\n19\nCALIFORNIA\nFORM 540\nSCHEDULE OF FARM INCOME AND EXPENSES\nC\n19\nAttach to Form 540, 540NR or Form 565\nYEAR\nFORM 540\nPROFIT (OR LOSS) FROM BUSINESS OR PROFESSION\nYEAR\nName as shown on Form 540, 540NR, or 565\n(Sole Proprietorships)\nSocial Security Number\nBusiness Name and Address and Location of each Farm (Attach Schedule if necessary)\nAttach this schedule to your income tax return, Form 540 or 540NR\nPartnerships, joint ventures, etc., must file on Form 565\nFederal Employer I.D. No.\nName as shown on Form 540 or 540NR\nSocial Security Number\nF\nPart I FARM INCOME-CASH RECEIPTS AND DISBURSEMENTS METHODS\nDo not include sale of livestock held for draft, breeding, or dairy purposes: report such sales on\nPart II FARM DEDUCTIONS-FOR CASH AND ACCRUAL\nA. Name and Address of Business\nB. Federal Employer I.D. No.\nSchedule D-1 (Form 540)\nMETHOD TAXPAYERS\nSales of Purchased Livestock and Other Items Purchased for Resale\nDo not include personal or living expenses not attributable\nto production of farm income, such as taxes, insurance,\nrepairs, utilities, etc., on your dwelling.\nC. Principal business activity (i.e., retail-hardware; wholesale-tobacco; services-legal; etc.).\na. Description\nb. Amount received\nc. Cost or other basis\nItems\nAmount\nD. Indicate method of accounting:\ncash;\naccrual;\nother\n1 Livestock:\n$\n$\nE. Were Forms 591, 592, 596 and 599, for the calendar year filed (if required)?\nYES\nNO\n29 Labor hired\n$\nC\nF. Method of inventory valuation\n2 Other items:\n30 Repairs, maintenance\nWas there any substantial change in the manner of determining quantities, costs, or valuations between the opening and closing inventories?\n31 Interest\nYES\nNO If \"Yes,\" attach explanation.\n3 Totals\n32 Rent of farm, pasture\n$\n$\n4 Profit (or loss), subtract line 3, column C from line 3, column b\n33 Feed purchased\n1 Gross receipts, sales, or fees $\nLess returns and allowances $\nBalance\n$\nSales of Market Livestock and Produce Raised and Held Primarily for Sale and\n34 Seed, plants purchased\n2 Inventory at beginning of year (if different from last year's closing inventory, attach explanation)\nOther Farm Income\n35 Fertilizers, lime\n3 Purchases $\nLess cost of items withdrawn for personal use $\n36 Machine hire\n4 Cost of labor (do not include salary paid to yourself)\nKind\nQuantity\nAmount\n5 Cattle\n37 Supplies purchased\n5 Materials and supplies\n$\n6 Calves\n38 Breeding fees\n6 Other costs (explain in Schedule C-2 or attach Schedule)\n7 Total of lines 2 thru 6\n7 Sheep\n39 Veterinary, medicine\n8 Swine\n40 Gasoline, fuel, oil\n8 Inventory at end of this year\n9 Cost of goods sold (subtract line 8 from line 7)\n9 Poultry\n41 Storage, warehousing\n42 Taxes\n10 Gross profit (subtract line 9 from line 1)\n10 Dairy products\n11 Other income (attach schedule)\n11 Eggs\n43 Insurance\n12 Total Income (add lines 10 and 11)\n12 Wool\n44 Utilities\nOTHER BUSINESS DEDUCTIONS\n13 Cotton\n45 Freight, trucking\n13 Depreciation (explain in Schedule C-1 or attach Schedule)\n14 Tobacco\n46 Conservation expenses\n14 Taxes on business and business property (explain in Schedule C-2 or attach Schedule)\n15 Vegetables\n47 Pension and profit-sharing\n15 Rent on business property\n16 Grain\nplans (see instructions)\n16 Repairs (explain in Schedule C-2 or attach Schedule)\n17 Fruits and nuts\n48 Other employee benefit\n17 Salaries and wages not included on line 4 (exclude any paid to yourself)\n18 Other (specify)\nprograms (see instructions)\n18 Insurance\nOTHER FARM INCOME\n49 Other (specify)\n19 Legal and professional fees\n19 Machine work\n20 Commissions\n20 (a) Patronage dividends\n21 Amortization (attach statement)\n(b) Per-unit retains\n22 Retirement plans, etc. (other than your share, see instructions)\n21 Nonpatronage distributions from cooperatives\n23 Interest on business indebtedness\n22 Agricultural program payments: (1) Cash\n24 Bad debts arising from sales or services (Not applicable if reporting on cash basis)\n(2) Materials and services\n25 Depletion (attach schedule)\n23 Commodity Credit loans under election (or forfeited)\n26 Other business expenses (explain in Schedule C-2 or attach Schedule)\n24 Federal gasoline tax credit\n27 Total of lines 13 thru 26\n25 State gasoline tax refund\n28 Net profit (or loss) (subtract line 27 from line 12), Enter here and on Page 2, Form 540 or 540NR\n26 Other (specify):\n50 Add lines 29 thru 49\n$\nGroup and guideline class\nDate\nCost or\nDepreciation\nMethod of\nLife or\n27 Add lines 5 through 26\n51 Depreciation\nor description of property\nAcquired\nother basis\nallowed (or allowable)\ncomputing\nDepreciation\nRate\n$\n(attach schedule)\nin prior years\ndepreciation\nfor this year\n28 Gross profit (add lines 4 and 27)\n52 Total deductions. Add lines\n$\n50 and 51\n$\n53 Net farm profit (or loss) (subtract line 52 from line 28). Enter here and on page 2, Form 540 or 540NR, or on page 1, Form 565\n$\nSchedule C-1\nDepreciation\nClaimed on line 13.\nPart III FARM INCOME-ACCRUAL METHOD\n54 Inventory at end of year-livestock, crops, and products\n$\n55 Sales of livestock, crops, and products\n56 Other receipts (see instructions)\nLINE\n57 Total receipts (add lines 54 thru 56)\nNO.\nEXPLANATION\nAMOUNT\nLINE\nEXPLANATION\nAMOUNT\nNO.\n$\n58 Inventory at beginning of year-livestock, crops, and products\n$\n59 Cost of livestock, and products purchased\nSchedule C-2\n60 Gross profits (subtract the sum of lines 58 and 59 from line 57)\nExplanation of Lines\n6, 14, 16, and 26.\n61 Total deductions from line 52, Part II above\n$\n62 Net farm profit (or loss) (subtract line 61 from line 60), Enter here and on Page 2, Form 540 or 540NR, or on Page 1, Form 565\n$\n(Rev. 1975)\nSCHEDULE c ON REVERSE\n(Rev. 1975)\nSCHEDULE F ON REVERSE\n34520-400 6-75 2,160M 10 OSP\nSCHEDULE\nCALIFORNIA\nTAXABLE\nSTATE OF CALIFORNIA-FRANCHISE TAX BOARD\nF\n19\nINSTRUCTIONS FOR SCHEDULE C (FORM 540)\nSCHEDULE OF FARM INCOME AND EXPENSES\nFORM 540\nYEAR\nNET PROFIT (OR LOSS) FROM PROFESSION OR BUSINESS\nAttach to Form 540, 540NR or Form 565\nSocial Security Number\nReferences in these instructions are to the Personal Income Tax Law, codified as Part 10 of Division 2 of the Revenue and Taxation Code\nName as shown on Form 540, 540NR, or 565\nIf you owned a business, or practiced a profession, fill in Schedule C\nand enter the net profit (or loss) on page 2, Form 540 or 540NR. If you\nThe allowance is not allowed for stock in trade, inventories, land and\nBusiness Name and Address and Location of each Farm (Attach Schedule if necessary)\nFederal Employer I.D. No.\npersonal assets.\nF\nhad more than one business, or husband and wife had separate busi-\nnesses, a separate Schedule C must be completed for each business.\nThe allowable methods for computing depreciation, including addi-\nPart I FARM INCOME-CASH RECEIPTS AND DISBURSEMENTS METHODS\nPart II FARM DEDUCTIONS-FOR CASH AND ACCRUAL\nIf some of your expenses were part business and part personal, you\ntional first-year depreciation, are the same as for Federal income tax\nDo not include sale of livestock held for draft, breeding, or dairy purposes: report such sales on\nMETHOD TAXPAYERS\ncan deduct the business portion but not the personal portion. For in-\npurposes, with the following exceptions:\nSchedule D-1 (Form 540)\nDo not include personal or living expenses not attributable\nto production of farm income, such as taxes, insurance\nstance, a businessman who used his car half for business can deduct\n(1) Salvage value rule on depreciable personal property (other than\nSales of Purchased Livestock and Other Items Purchased for Resale\nrepairs, utilities, etc., on your dwelling.\nonly half the operating expenses.\nlivestock) with a useful life of three years or more, is applicable\na. Description\nb. Amount received\nc. Cost or other basis\nItems\nAmount\nAccounting Methods and Records - Income from your business or\nto such property acquired after December 31, 1962 (October 16,\n1962 for Federal).\n1 Livestock:\n$\n$\n29 Labor hired\n$\nprofession ordinarily must be computed by the method of accounting\n30 Repairs, maintenance\nwhich you regularly use. Two of the principal methods of accounting\n(2) Use of the 200 percent declining balance and sum of the years-\nwhich may be used are the \"cash method\" and the \"accrual method.'\ndigits methods are applicable to new property acquired after\n2 Other items:\n31 Interest\nOther methods are permissible; such as, completed contract, percentage\nDecember 31, 1958 (December 31, 1953 for Federal).\n32 Rent of farm, pasture\nof completion, etc. Any of these methods or a combination of methods\n3 Totals\n$\n$\nmay be used provided that the method or methods used properly reflects\nIf the asset guideline classes method (as specified in Federal Revenue\n33 Feed purchased\n4 Profit (or loss), subtract line 3, column C from line 3, column b\n$\n34 Seed, plants purchased\nour income. However, unless you keep books of account your return\nProcedure 72-10) is used for computing allowable depreciation for State\nmust be on the \"cash method.\" Enter accounting method used at Item\npurposes, do not use the Lower Limit or the Upper Limit (ADR) Ranges.\nSales of Market Livestock and Produce Raised and Held Primarily for Sale and\n35 Fertilizers, lime\nOther Farm Income\nof Schedule C (Form 540).\n36 Machine hire\nLine 16 Repairs - You may deduct the cost of incidental repairs,\nKind\nQuantity\nAmount\n37 Supplies purchased\nItem Principal business activity and product - Enter the one\nincluding labor (but not the value of your own labor), supplies and other\n5 Cattle\n$\nusiness activity that accounts for the largest percentage of gross\nitems, which do not add to the value or appreciably prolong the life of\n38 Breeding fees\nncome included on page 1, line 1, of Schedule C. State the broad field\nthe property. Expenditures for restoring or replacing property are not\n6 Calves\n39 Veterinary, medicine\nIf business activity as well as the product or service; for example,\ndeductible, since such expenditures are chargeable to capital accounts\n7 Sheep\n40 Gasoline, fuel, oil\nwholesale - jewelry,\" \"retail - apparel,\" etc.\nor to depreciation reserve depending on how depreciation is charged\n8 Swine\non your books.\n41 Storage, warehousing\n9 Poultry\nLine Gross receipts or gross sales - Enter gross receipts or\n42 Taxes\nales from your trade or business, including finance reserve income,\nLine 21 Amortization - For the election to amortize expenditures\n10 Dairy products\n43 Insurance\niscounts received, sale of scrap, bad debt recoveries, interest, etc.\nfor research or experimentation, pollution control facilities, and a trade-\n11 Eggs\n44 Utilities\neturns and allowances Enter such items as returned sales, rebates\nmark or trade name, see Sections 17223, 17226 and 17227, respectively.\n12 Wool\n45 Freight, trucking\nnd. allowances from the sale price or service charge.\nLine 22 Retirement plans, etc. (other than contributions made on\n13 Cotton\n46 Conservation expenses\nInstallment sales - If you use the installment method of reporting\nyour behalf). The amount contributed to a pension or profit-sharing\n14 Tobacco\nplan for the taxable year shall constitute the deduction to be claimed\n47 Pension and profit-sharing\nhcome from sales, you must attach to your return a schedule showing\n15 Vegetables\nplans (see instructions)\neparately for the taxable year and each of the three previous years the\non this line. If the plan includes you as a self-employed individual, enter\n16 Grain\nollowing: (a) gross sales, (b) cost of goods sold, (c) gross profits, (d)\ncontributions made as an employer on your behalf (but not voluntary\n48 Other employee benefit\n17 Fruits and nuts\nercentage of profits to gross sales, (e) amounts collected, and (f) gross\ncontributions you made as an employee) on page 2, Form 540 or 540NR,\nprograms (see instructions)\nrofits on amounts collected.\nAdjustments to Income. Substantiation thereof need be submitted only\n18 Other (specify)\n49 Other (specify)\nupon specific request of the Franchise Tax Board.\nOTHER FARM INCOME\nCOST OF GOODS SOLD\n19 Machine work\nLines 2-9 If you are engaged in a trade or a business in which the\nEmployee benefit programs - Enter the amount of your contributions\n20 (a) Patronage dividends\nroduction, purchase or sale of merchandise is an income-producing\nto employee benefit programs that are not an incidental part of a\nactor, you must take inventories of merchandise and materials on hand\npension or profit-sharing plan. Contributions that are to be reported on\n(b) Per-unit retains\nthe beginning and end of the taxable year in order to reflect the\nthis line include insurance, health and welfare programs.\n21 Nonpatronage distributions from cooperatives\nross profits correctly. This rule does not apply to dealers in securities,\nLine 24 Bad debts arising from sales or services Include debts,\n22 Agricultural program payments: (1) Cash\nor whom the use of inventories is optional. Dealers in real estate are\nor portions thereof, arising from sales or professional services that have\n(2) Materials and services\nrohibited from using inventories. The method properly adopted for the\nbeen included in income and definitely proven to be worthless; or such\n23 Commodity Credit loans under election (or forfeited)\nrst year in which inventory is taken must be continued unless per-\nreasonable amount as has been added within the taxable year to a\n:\nission to change is secured from the Franchise Tax Board. Permission\nreserve for bad debts. A debt which is deducted as bad and which re-\n:\n24 Federal gasoline tax credit\nchange the method of valuing inventories should be requested from\nduces your tax must, if subsequently collected, be reported as income\n25 State gasoline tax refund\ne Franchise Tax Board, Sacramento, California 95867, within 90 days\nfor the year in which collected.\n26 Other (specify):\n50 Add lines 29 thru 49\n$\n?\n51 Depreciation\nhange. ter the beginning of the taxable year in which it is desired to effect a\nLine Other business expenses — Include all ordinary and neces-\n27 Add lines 5 through 26\n$\n(attach schedule)\nBUSINESS DEDUCTIONS\nsary business expenses for which no space is provided in the schedule.\n2\n52 Total deductions. Add lines\n28 Gross profit (add lines 4 and 27)\n$\n50 and 51\n$\nNormal current costs paid or incurred by you in your trade, business\nDo not include cost of business equipment or furniture, expenditures\n53 Net farm profit (or loss) (subtract line 52 from line 28). Enter here and on page 2, Form 540 or 540NR, or on page 1, Form 565\n$\nprofession are considered business deductions. In order that you may\nfor replacements, or for permanent improvements to property, or per-\neduct these costs it must be shown that they are both ordinary and\nsonal living and family expenses.\nPart III FARM INCOME-ACCRUAL METHOD\n5\ncessary expenses directly connected with or related to your trade,\nAutomobile expenses — Actual expenses include gasoline, oil, repairs,\n5 54 Inventory at end of year-livestock, crops, and products\n$\nsiness or profession. No deductions are allowed, however, from gross\nlicense tags, insurance, depreciation, and interest and taxes paid in\n5\n55 Sales of livestock, crops, and products\ncome which is directly derived from illegal activities such as gambling\nconnection with the purchase of the automobile. Rather than deducting\n5: 56 Other receipts (see instructions)\nd bookmaking; or from activities which directly tend to promote or\nthe actual expenses, you may figure the cost of operation at a standard\n$\ne directly associated with illegal activities. No deductions are allowed\nrate of 15 cents a mile for the first 15,000 miles of business use, and\n58 57 Total receipts (add lines 54 thru 56)\nther for a \"net operating loss carryover\" or \"carryback\" as permitted\n10 cents a mile for such use in excess of 15,000 miles.\n59 58 Inventory at beginning of year-livestock, crops, and products\n$\nder federal law.\nUse of this method is optional, on a yearly basis. However, this\n6( 59 Cost of livestock, and products purchased\nLine 13- Depreciation and obsolescence — You may deduct a reason-\nsimplified method cannot be used if depreciation is claimed using a\n61 60 Gross profits (subtract the sum of lines 58 and 59 from line 57)\n$\nle allowance for exhaustion, wear and tear, and obsolescence of\nmethod other than straight line, or if additional first year depreciation\n62\n61 Total deductions from line 52, Part II above\noperty used in the trade or business.\nis claimed. If you use the optional method, you cannot deduct interest\n62 Net farm profit (or loss) (subtract line 61 from line 60), Enter here and on Page 2, Form 540 or 540NR, or on Page 1, Form 565\n$\nand taxes paid in connection with the purchase of the automobile.\n(R\nEV. 1975)\n(Rev. 1975)\nSCHEDULE C ON REVERSE\n(INSTRUCTIONS FOR SCHEDULE F ON REVERSE)\nSTATE OF CALIFORNIA-FRANCHISE TAX BOARD\nSCHEDULE\nINSTRUCTIONS FOR SCHEDULE F (FORM 540)\nCALIFORNIA\nTAXABLE\nFARM INCOME AND EXPENSES\nD\n1975\nCAPITAL GAINS AND LOSSES\nFORM 540\nYEAR\nReferences in these instructions are to the Personal Income Tax Law, codified as Part 10 of Division 2 of the Revenue and Taxation Code\nAttach to Form 540 or 540NR\n1. Method of Accounting. Farmers may compute their income on\namount of the inventory at the close of the year. The loss of a prospec-\nUse this schedule to report gains and losses on stocks, bonds and similar investments,\neither the cash receipts and disbursements basis or the accrual basis,\ntive crop by frost, storm, flood or fire is not deductible. When reporting\nand gains (but not losses) on personal assets such as a home or jewelry.\nbut the method adopted must be followed until the consent of the\non the cash basis, the value of animals raised by you and lost by death\nFranchise Tax Board is received to compute the income upon a new basis.\nis not deductible, while in the case of animals purchased and lost by\nName as shown on Form 540 or 540NR\nSocial Security Number\n2. Other Farm Income — Patronage dividends — Patronage dividends\ndeath, the cost less depreciation allowed or allowable is deductible, if\nreceived in money from cooperatives are includible in farm income in\nnot compensated by insurance or otherwise, on Schedule D-1 (Form 540).\nDo not deduct personal losses. No deduction may be taken for a net\nPART I-Assets Held One Year or Less\nD\nthe year received.\nPatronage dividends received in property other than written notices\noperating loss carryover or carryback.\ne. Cost or other basis as\nadjusted, cost of subse-\nof allocation are includible in farm income to the extent of fair market\nA. Planting and developing citrus or almond or other fruit or nut groves.\na. Kind of property and description\nb. Date acquired\nC. Date sold\nd. Gross sales\nquent improvements (if\nf. Gain loss\n(Example, 100 shares of \"Z\" Co.)\n(mo., day, yr.)\n(mo., day, yr.)\nprice\nnot purchased, attach\n(d. less e.)\nvalue.\nCharge to capital account expenses attributable to the planting, cultiva-\nexplanation) and ex-\nNoncash patronage dividends from cooperatives and mutual associ-\ntion, maintenance, or development of any citrus, almond or other fruit\npense of sale\nations (whether paid in capital stock, revolving fund certificates, letters\nor nut grove (or part thereof), incurred before the close of the fourth\n1.\nof advice, etc.) may be reported in either of the following ways: (1) in-\ntaxable year beginning with the taxable year in which trees were\nclude in gross income the face amount of the dividends in the year the\nplanted. Treat the portion of a citrus or almond grove planted in one\nnoncash patronage dividends are received; or (2) include in gross income\ntaxable year separately from the portion of the grove planted in another\nthe amount realized in the year noncash patronage dividends are re-\ntaxable year. Do not apply the rule for capitalization of such expenses\ndeemed. The election of method (1) or (2) must be adhered to in sub-\nto expenses attributable to a citrus, almond or other fruit or nut grove\nsequent years unless a change is approved by the Franchise Tax Board.\nwhich was (a) replanted after having been lost or damaged by reason of\nIf method (2) is elected, the face amount of noncash patronage dividends\nfreeze, disease, drought, pests or casualty; or (b) planted or replanted\nis required to be disclosed in the return for the taxable year in which\nprior to September 16, 1970 for citrus groves, December 8, 1971 for\n2. Enter gain (or loss), if applicable, from line 18 Schedule D-1 (540) (attach copy)\nsuch dividends are received.\nalmond groves, and September 24, 1975 for other fruit or nut groves.\n3. Enter your share of net gain or loss from partnerships and fiduciaries\nLosses incurred upon the redemption of noncash patronage dividends\nare deductible in the year of redemption provided you include such\nLine 51 Depreciation - You may deduct allowance for depreciation\n4. Net gain or loss, combine lines 1, 2 and 3\ndividends in income in the year originally received.\nof buildings, improvements, machinery, or other farm equipment of a\nLosses incurred upon the redemption of qualified written notices of\npermanent nature. Similar assets may be grouped together as one item\nPART II-Assets Held More Than One Year But Not More Than Five Years\nallocation are ordinary losses deductible in the year of redemption\nfor reporting purposes in the depreciation schedule in Schedule F. In\n5.\nprovided you acquired the qualified written notices of allocation in the\ncomputing depreciation do not include the value of land. Do not claim\nordinary course of your trade or business.\ndepreciation on livestock or any other property included in your inven-\nPatronage dividends received on purchase of capital assets or depreci-\ntory. You may claim depreciation on livestock not included in your\nable property used in farming are not includible in income, but the pur-\ninventory of livestock purchased or raised for sale if it was acquired for\nchase price of such items must be reduced accordingly. Patronage divi-\nwork, breeding, sporting, or dairy purposes.\ndends you received on non-business purchases are not includible in income.\n4. Farm Loss Recapture. If you have a farm net loss of more than\nLine Agriculture program payments — (1) Cash - Enter total\n$25,000, your nonfarm adjusted gross income is more than $50,000, and\namount of price support payments, diversion payments and cost share\nyou report your income on the cash method, part of the gain on the sale\n6. Enter gain (or loss), if applicable, from line 20 Schedule D-1 (540) (attach copy)\npayments received in cash (sight drafts). (2) Materials and services\nor other disposition of certain property used in farming will be treated\n7. Enter your share of net gain or loss from partnerships and fiduciaries\nEnter total amount of materials (fertilizer, lime, etc.) and services\nas ordinary income. (These amounts are $25,000 and $12,500, respec-\n8. Net gain or loss, combine lines 5, 6 and 7\n(grading, construction of dams, etc.) paid by the Department of Agricul-\ntively, for a married person filing separately whose spouse also has\nture to the vendor or contractor. (3) Commodity Credit Corporation loans\nfarm income and deductions.)\nPART III-Assets Held More Than Five Years\nbecome income when the pledged commodities are delivered or forfeited\nYou must establish and maintain an \"excess deductions account\"\n9.\nto the Corporation, unless an election is made to include these loans in\n(EDA) if you meet all three of the above conditions. Add to this ac-\nincome when received. If election is made, attach statement showing de-\ncount your farm net loss for the year, or subtract from the balance in\ntails of such loans.\nthis account your farm net income for the year, plus any amounts\nnecessary to adjust the account for deductions which did not result in\n3. Expenses and Other Deductions. A farmer is entitled to deduct\na reduction of your tax. There is no EDA addition if your nonfarm\nfrom gross income all necessary amounts actually expended in carrying\nadjusted gross income is $50,000 or less or your farm net loss is\non the business of farming, except those which represent capital in-\n$25,000 or less ($25,000 and $12,500, respectively, if married filing\nvestment.\nseparately and your spouse has nonfarm adjusted gross income). Non-\nLine 29 - Labor hired — Amounts paid for regular farm labor, piece\nfarm adjusted gross income is your adjusted gross income computed\n10. Enter gain (or loss), if applicable, from line 22 Schedule D-1 (540) (attach copy)\nwork, contract labor and other forms of hired labor are deductible. Do\nwithout farming income and deductions.\n11. Enter your share of net gain or loss from partnerships and fiduciaries\nnot deduct the value of your own labor or that of your wife or family.\nAfter making the above additions or subtractions, compare the balance\n12. Net gain or loss, combine lines 9, 10 and 11\nOnly that part of the board which is purchased for hired labor can be\nin the EDA account with your gains from sales and exchanges of farm\ndeducted. The value of products furnished by the farm and used in the\nrecapture property. If the EDA balance is higher, all of the gains are\nPART IV-Summary of Capital Gains and Losses\nboard of hired labor is not deductible. Rations purchased and furnished\ntaxed as ordinary income. If the gains are higher, they are treated as\n13. Enter amount from line 4\nto laborers or sharecroppers are deductible. Do not deduct amounts\nordinary income only to the extent of the EDA balance. The EDA balance\npaid to persons engaged in household work, except to the extent that\nis then further reduced by any recapture before carrying it over to the\n14. Enter 65% of the amount on line 8\nsuch services are used in boarding and otherwise caring for farm\nnext year.\n15. Enter 50% of the amount on line 12\nlaborers. Services of such employees engaged in caring for the farmer's\nown household are not deductible.\nFarm recapture property includes:\n16. Enter unused capital loss carryover from preceding taxable years see instruction (G)\n(1) Depreciable personal property;\n17. Combine the amounts shown on lines 13, 14, 15 and 16\nLine Farm expenses — Include advertising, stationery, stamps,\naccount books, other office supplies, travel, etc. Losses of farm build-\n(2) Cattle or horses held for two years or more and other livestock\n18. If line 17 shows a gain, enter here and on page 2, Part II of Form 540 or 540NR\nings, machinery and other farm property not included in your inventory,\nheld for one year or more for draft, breeding, dairy or sporting purposes;\n19. If line 17 shows a loss, enter here and on page 2, Part II of Form 540 or 540NR the smallest of:\n(a) amount on lines 17;\nresulting from fire, storm or other casualty and not compensated for by\n(3) Land held for more than one year; and\ninsurance or otherwise are deductible on Schedule D-1 (Form 540). Losses\n(4) Unharvested crops growing on land which has been held for more\n(b) the taxable income for the taxable year (computed without regard to gains or losses from sale or exchange\nof property included in your inventory are taken care of by the reduced\nthan one year.\nof capital assets); or\n(c) $1,000 ($500 in the case of a husband or wife filing a separate return)\n(REV. 1975)\n(INSTRUCTIONS FOR SCHEDULE c ON REVERSE)\n34521-400 9-75 280M 1 OSP\nINSTRUCTIONS FOR SCHEDULE D (FORM 540)\nSCHEDULE\nCALIFORNIA\nTAXABLE\n(References are to the California Personal Income Tax Law, Codified as\nPart 10 of Division 2 of the Revenue and Taxation Code)\nD\n1975\nA. Who May File. Use Schedule D (Form 540) to report the sale or\ndecedent's death, the property shall be treated as being held for more than\nCAPITAL GAINS AND LOSSES\nFORM 540\nYEAR\nexchange of a capital asset, as defined in Instruction B. Do not use Schedule\none year but not more than five years. In community property states, such\nD (Form 540), but use Schedule D-1 (Form 540), Supplemental Schedule of\nas California, the holding period of the surviving spouse's half of community\nAttach to Form 540 or 540NR\nGains and Losses, to report (1) the sale, exchange, or involuntary conversion\nproperty begins with the date the property was originally acquired, even\nof trade or business property, and depreciable or amortizable property; or\nthough its basis is computed at the date of death.\nUse this schedule to report gains and losses on stocks, bonds and similar investments,\n(2) the involuntary conversion (i.e., a casualty or theft) of a capital asset;\nIf property is involuntarily converted into money or other property and you\nand gains (but not losses) on personal assets such as a home or jewelry.\nand (3) the disposition of other noncapital assets not mentioned in (1).\nacquire replacement property, it is considered to have been acquired on the\nB. What is a Capital Asset. In general, all property you own and use for\nsame date as the property which was involuntarily converted, if its basis is\nName as shown on Form 540 or 540NR\nSocial Security Number\npersonal purposes, pleasure or investment is a capital asset. Examples include\ndetermined by reference to such property.\n(a) stocks or bonds held in your personal account; (b) a dwelling owned and\nA nonbusiness bad debt is usually treated as a loss from the sale or\noccupied by an individual and his family; (c) household furnishings used by\nexchange of a capital asset held for not more than one year. This does not\nan individual and his family; and (d) an automobile used for pleasure.\napply to (1) a debt evidenced by a corporate security with interest coupons\nPART I-Assets Held One Year or Less\nD\nA capital asset as defined by law is any piece of property held by the\nor in registered form or (2) a debt acquired in your trade or business.\ne. Cost or other basis as\nG. Capital Loss Carryover. Computation of the capital loss carryover should\nadjusted, cost of subse-\ntaxpayer, except:\na. Kind of property and description\nb. Date acquired\nc. Date sold\nd. Gross sales\nquent improvements (if\nf. Gain loss\n(1) stock in trade;\nbe attached to Schedule D. The computation should provide a summary of\n(Example, 100 shares of \"Z\" Co.)\n(mo., day, yr.)\n(mo., day, yr.)\nprice\nnot purchased, attach\n(d. less e.)\n(2) real or personal property includible in inventory;\nSchedule D for the previous years starting with the initial year of loss and\nexplanation) and ex-\nthe effect to each subsequent tax year.\npense of sale\n(3) real or personal property held for sale to customers;\n1.\n(4) accounts or notes receivable acquired in the ordinary course of a trade\nH. Capital Loss Limitation. If line 17 results in a capital loss, such loss\nis limited to the smallest of the following amounts:\nor business for services rendered, or from the sale of any of the prop-\nerties described above, or for services rendered as an employee;\n(1) The amount on line 17;\n(5) depreciable property used in your trade or business (even though fully\n(2) The taxable income for the taxable year (computed without regard to\ndepreciated);\ngains or losses from the sale or exchange of capital assets-use a\nside computation to determine this amount); or\n(6) real property used in your trade or business;\n(3) $1,000 ($500 in the case of a husband or wife filing a separate return).\n(7) a copyright, a literary, musical or artistic composition, a letter or\nUnused capital losses for the current year (if any) are carried forward to\nmemorandum, or similar property-(a) created by your personal efforts;\nSchedule D(540) for the subsequent year.\n(b) prepared or produced, in the case of a letter, memorandum, or\nI. Installment Sales. If you sold personal property for more than $1,000\nsimilar property, for you; or (c) acquired from a person described in\n2. Enter gain (or loss), if applicable, from line 18 Schedule D-1 (540) (attach copy)\nor real property for any amount, you may be eligible to report any gain\n(a) or (b) under circumstances entitling you to his basis (for example,\nrealized under the installment plan if:\n3. Enter your share of net gain or loss from partnerships and fiduciaries\nby gift).\n(1) there was no payment in the year of sale; or\n4. Net gain or loss, combine lines 1, 2 and 3\nC. Sale or Exchange of Certain Capital Assets at a Loss. Property held\n(2) the payments in the year of sale did not exceed 30 percent of the\nfor personal use is a capital asset. Gain from the sale or exchange of such\nselling price.\nPART II-Assets Held More Than One Year But Not More Than Five Years\nproperty is a capital gain and must be reported. However, losses from sales\nand exchanges (but not necessarily involuntary conversions-i.e., casualty or\nSuch sales must provide for two or more payments in two or more taxable\nyears. The election must be made in the year of sale even though no payment\n5.\ntheft) of personal assets are not deductible, and should not be reported on\nthis or any other schedule or form.\nwas received in that year. (See Sections 17577-80.5).\nPayments received in 1975 on installment sales made in prior years are\nD. Cost or Other Basis, as Adjusted. In general, this means cost (or other\nreportable at the recognized percentages in effect at the time such payments\nbasis as explained in the next paragraph), less, if applicable, depreciation\nare received.\n(allowed or allowable), amortization, depletion, etc. (see Section 18041).\nFor treatment of a portion of payments as \"unstated interest\" on deferred\nIf property was acquired by bequest, gift, tax-free exchange, involuntary\npayments sales, see Section 17617.\nconversion, or wash sale of stock, a basis, other than cost, might be appli-\ncable. Attach an explanation if the basis used is other than actual cash cost\nJ. Special Rules. The following items may require special treatment: (1)\nof the property.\ntransactions by a securities dealer (Section 18196); (2) wash sales of stock\nor securities (Sections 18141-42); (3) bonds and other evidence of indebted-\nIf a charitable contribution deduction is allowed by reason of a sale of\nness if original issue discount is a factor (Sections 18183-85); (4) certain\n6. Enter gain (or loss), if applicable, from line 20 Schedule D-1 (540) (attach copy)\nproperty to a charitable organization after December 31, 1970, the adjusted\nreal property subdivided for sale may be considered a capital asset (Sections\n7. Enter your share of net gain or loss from partnerships and fiduciaries\nbasis for determining gain from the sale is an amount which is in the same\nratio to the adjusted basis as the amount realized is to the fair market value\n18197-99); (5) distributions received attributable to an employee pension,\n8. Net gain or loss, combine lines 5, 6 and 7\nof the property.\nprofit-sharing, or bonus plan (Sections 17501-29); (6) gain on sale of depre-\nciable property between husband and wife or between shareholder and a\nE. Recognized Gain or Loss. The following percentages of the gain or loss\n\"controlled corporation\" treated as ordinary gain (Section 18201).\nPART III-Assets Held More Than Five Years\nrealized upon the sale or exchange of a capital asset shall be taken into\nK. Sale of Personal Residence. Tax on a portion or all of the gain from\n9.\naccount in computing taxable income:\nthe sale of your principal residence may be deferred, to the extent that the\n(1) One hundred percent if the capital asset was held for one year or less.\ncost of the new residence exceeds the adjusted sales price of the old\n(2) Sixty-five percent if the capital asset was held for more than one year\nresidence, if:\nbut not more than five years.\n(1) within 18 months after (or before) the date of sale, you purchase another\n(3) Fifty percent if the capital asset was held for more than five years.\nresidence and use it as your principal residence; or\nF. Holding Period. The holding period generally begins on the day after\n(2) within 18 months after (or before) the date of sale, you begin construc-\nyou acquired the property and ends on the day you disposed of the property.\ntion of a new residence and use it as your principal residence not later\nIn the case of a sale of stock or bond on a stock exchange by a cash\nthan 2 years after the date of sale.\nbasis taxpayer, the date of disposition is: (a) the \"trade date if sold at a\n(3) Military personnel may have different time periods. For details contact\nloss, or (b) the \"settlement date\" if sold at a gain. Other special rules follow:\nthe nearest office of the Franchise Tax Board.\n10. Enter gain (or loss), if applicable, from line 22 Schedule D-1 (540) (attach copy)\nNontaxable Exchanges-I you acquire an asset in an exchange for another\nThe basis (cost) of the new residence must be reduced by the deferred\n11. Enter your share of net gain or loss from partnerships and fiduciaries\nasset and your basis for the new asset is determined, in whole or part, by\ngain realized on the sale of the old residence. (See Sections 18091-100.)\nreference to your basis in the old property, then the first day of the holding\nIf you sold property for $30,000 or less on or after your 65th birthday\n12. Net gain or loss, combine lines 9, 10 and 11\nperiod of the new property is the day following the date you acquired the\nwhich was owned and used by you as your principal residence for at least\nold property.\nfive of the last eight years, any gain on the sale need not be included in\nPART IV-Summary of Capital Gains and Losses\nIf you receive a gift of property, and if your basis is determined by refer-\nincome. If the property was sold for more than $30,000, part of the gain\nence to the basis in the hands of the donor, the first day of your holding\nmay be taken into income. (See Section 17154.)\n13. Enter amount from line 4\nperiod is the same date the donor used in computing his holding period.\nL. Losses in Transactions Between Certain Persons. No deduction is allow-\n14. Enter 65% of the amount on line 8\nReal Property Purchased-To determine how long real property that is\nable for losses from sales or exchanges of property directly or indirectly\n15. Enter 50% of the amount on line 12\nunder unconditional contract of sale has been held, begin counting on the\nbetween (1) members of a family, (2) a corporation and an individual or a\nday following that on which title passes, or on the day following that on\nfiduciary owning more than 50 percent of the corporation's stock (liquidations\n16. Enter unused capital loss carryover from preceding taxable years see instruction (G)\nwhich delivery of possession is made and the burdens and privileges of\nexcepted), (3) a grantor and fiduciary of any trust, (4) a fiduciary and\na\n17. Combine the amounts shown on lines 13, 14, 15 and 16\nownership are assumed by the purchaser, whichever occurs first.\nbeneficiary of the same trust, (5) a fiduciary and a fiduciary or beneficiary of\nIf you acquired property from a decedent by inheritance or through a\nanother trust created by the same grantor, or (6) an individual and a tax-\n18. If line 17 shows a gain, enter here and on page 2, Part II of Form 540 or 540NR\nbequest or devise and the decedent died before January 1, 1971, the holding\nexempt organization controlled by the individual or his family. Partners and\nperiod begins with the date of the decedent's death. If the decedent died\npartnerships see Section 17865.\n19. If line 17 shows a loss, enter here and on page 2, Part II of Form 540 or 540NR the smallest of:\nafter December 31, 1970 and such property is sold or disposed of (in a\n(a) amount on lines 17;\nM. Capital Gains from Regulated Investment Companies. Report total amount\ntaxable year beginning in 1972 or thereafter) within five years after the\nreceived as ordinary dividend income on page 1 of Form 540 or 540NR.\n(b) the taxable income for the taxable year (computed without regard to gains or losses from sale or exchange\nof capital assets); or\n34522-400 6-75 2,200M 1 OSP\n(c) $1,000 ($500 in the case of a husband or wife filing a separate return)\nSCHEDULE\nCALIFORNIA\nTAXABLE\nINSTRUCTIONS FOR SCHEDULE D (FORM 540)\n(References are to the California Personal Income Tax Law, Codified as\nE\n19\nPart 10 of Division 2 of the Revenue and Taxation Code)\ndecedent's death, the property shall be treated as being held for more than\nFORM 540\nSUPPLEMENTAL INCOME\nYEAR\nA. Who May File. Use Schedule D (Form 540) to report the sale or\nexchange of a capital asset, as defined in Instruction B. Do not use Schedule\none year but not more than five years. In community property states, such\nAttach to Form 540 or 540NR\nD (Form 540), but use Schedule D-1 (Form 540), Supplemental Schedule of\nas California, the holding period of the surviving spouse's half of community\nproperty begins with the date the property was originally acquired, even\nName as shown on Form 540 or 540NR\nSocial Security Number\nGains and Losses, to report (1) the sale, exchange, or involuntary conversion\nof trade or business property, and depreciable or amortizable property; or\nthough its basis is computed at the date of death.\n(2) the involuntary conversion (i.e., a casualty or theft) of a capital asset;\nIf property is involuntarily converted into money or other property and you\nand (3) the disposition of other noncapital assets not mentioned in (1).\nacquire replacement property, it is considered to have been acquired on the\nPart I.-PENSION AND ANNUITY INCOME. If fully taxable, do not complete this part. Enter amount on page 2 of Form 540\nsame date as the property which was involuntarily converted, if its basis is\nor 540NR, under Miscellaneous Income. For each pension or annuity not fully taxable, attach a separate Part I and enter\nB. What is a Capital Asset. In general, all property you own and use for\ndetermined by reference to such property.\ncombined total of taxable portions on line 4. If first payment was received PRIOR to 1968, see Schedule E Instructions for\npersonal purposes, pleasure or investment is a capital asset. Examples include\nA nonbusiness bad debt is usually treated as a loss from the sale or\n(a) stocks or bonds held in your personal account; (b) a dwelling owned and\namount of taxable income to be reported.\noccupied by an individual and his family; (c) household furnishings used by\nexchange of a capital asset held for not more than one year. This does not\napply to (1) a debt evidenced by a corporate security with interest coupons\nName of payer:\nDate first payment received:\nan individual and his family; and (d) an automobile used for pleasure.\nor in registered form or (2) a debt acquired in your trade or business.\nA capital asset as defined by law is any piece of property held by the\nDid your employer contribute part of the cost?\nYES\nNO\nG. Capital Loss Carryover. Computation of the capital loss carryover should\nE\ntaxpayer, except:\nbe attached to Schedule D. The computation should provide a summary of\nIf \"YES,\" is your contribution recoverable within 3 years of the annuity starting date?\nYES\nNO\n(1) stock in trade;\nSchedule D for the previous years starting with the initial year of loss and\nIf \"YES,\" show: Your contribution $\nYour contribution recovered in prior years\n$\n(2) real or personal property includible in inventory;\nthe effect to each subsequent tax year.\n(3) real or personal property held for sale to customers;\nH. Capital Loss Limitation. If line 17 results in a capital loss, such loss\nAmount received this year\n(4) accounts or notes receivable acquired in the ordinary course of a trade\nis limited to the smallest of the following amounts:\nAmount excludable this year\nor business for services rendered, or from the sale of any of the prop-\n(1) The amount on line 17;\nTaxable portion (subtract line 3 from line 2). Enter on Form 540 or Form 540NR in space provided\nerties described above, or for services rendered as an employee;\n(2) The taxable income for the taxable year (computed without regard to\n(5) depreciable property used in your trade or business (even though fully\ngains or losses from the sale or exchange of capital assets-use a\ndepreciated);\nside computation to determine this amount); or\nart II.-RENT AND ROYALTY INCOME. If you need more space, you may use Federal Form 4831. Note: If you are reporting\n(6) real property used in your trade or business;\n(3) $1,000 ($500 in the case of a husband or wife filing a separate return).\nfarm rental income here that is based on crops or livestock produced by a tenant farmer but you did not materially participate\n(7) a copyright, a literary, musical or artistic composition, a letter or\nUnused capital losses for the current year (if any) are carried forward to\nin the operation of the farm, see Schedule E Instructions, to determine if you should also file Federal Form 4835.\nmemorandum, or similar property-(a) created by your personal efforts;\nSchedule D(540) for the subsequent year.\n(d). Depreciation\n(b). Total amount\n(c). Total amount\n(e). Other expenses\n(b) prepared or produced, in the case of a letter, memorandum, or\nI. Installment Sales. If you sold personal property for more than $1,000\n(a). Kind and location of property\n(explain in Part V)\nor real property for any amount, you may be eligible to report any gain\nof rents\nof royalties\nor depletion (attach\n(explain in\nsimilar property, for you; or (c) acquired from a person described in\ncomputation)\nPart IV)\n(a) or (b) under circumstances entitling you to his basis (for example,\nrealized under the installment plan if:\nby gift).\n(1) there was no payment in the year of sale; or\nC. Sale or Exchange of Certain Capital Assets at a Loss. Property held\n(2) the payments in the year of sale did not exceed 30 percent of the\nfor personal use is a capital asset. Gain from the sale or exchange of such\nselling price.\nproperty is a capital gain and must be reported. However, losses from sales\nSuch sales must provide for two or more payments in two or more taxable\nyears. The election must be made in the year of sale even though no payment\nTotals\nand exchanges (but not necessarily involuntary conversions-i.e., casualty or\ntheft) of personal assets are not deductible, and should not be reported on\nwas received in that year. (See Sections 17577-80.5).\nNet income (or loss) (col. (b) plus col. (c), less cols. (d) and (e)). Enter on Form 540 or 540NR in space provided\nthis or any other schedule or form.\nPayments received in 1975 on installment sales made in prior years are\nD. Cost or Other Basis, as Adjusted. In general, this means cost (or other\nreportable at the recognized percentages in effect at the time such payments\nare received.\nart III.-INCOME OR LOSSES FROM PARTNERSHIPS AND ESTATES OR TRUSTS. If any of the partnership, estate or trust\nbasis as explained in the next paragraph), less, if applicable, depreciation\n(allowed or allowable), amortization, depletion, etc. (see Section 18041).\nFor treatment of a portion of payments as \"unstated interest\" on deferred\nincome reported below is from farming, see Schedule E Instructions, to determine if you should also file Federal Form 4835.\nIf property was acquired by bequest, gift, tax-free exchange, involuntary\npayments sales, see Section 17617.\n(a). Name and address\n(b). Federal employer\n(c). Partnerships principal\n(d). Partnerships\n(e) Estates or trusts\nconversion, or wash sale of stock, a basis, other than cost, might be appli-\nJ. Special Rules. The following items may require special treatment: (1)\nnumber\nbusiness activity\nincome\ncable. Attach an explanation if the basis used is other than actual cash cost\ntransactions by a securities dealer (Section 18196); (2) wash sales of stock\nof the property.\nor securities (Sections 18141-42); (3) bonds and other evidence of indebted-\nIf a charitable contribution deduction is allowed by reason of a sale of\nness if original issue discount is a factor (Sections 18183-85); (4) certain\nproperty to a charitable organization after December 31, 1970, the adjusted\nreal property subdivided for sale may be considered a capital asset (Sections\nbasis for determining gain from the sale is an amount which is in the same\n18197-99); (5) distributions received attributable to an employee pension,\nratio to the adjusted basis as the amount realized is to the fair market value\nprofit-sharing, or bonus plan (Sections 17501-29); (6) gain on sale of depre-\nof the property.\nciable property between husband and wife or between shareholder and a\n\"controlled corporation\" treated as ordinary gain (Section 18201).\nE. Recognized Gain or Loss. The following percentages of the gain or loss\nrealized upon the sale or exchange of a capital asset shall be taken into\nK. Sale of Personal Residence. Tax on a portion or all of the gain from\naccount in computing taxable income:\nthe sale of your principal residence may be deferred, to the extent that the\notals-(Enter total of each column on Form 540 or 540NR in spaces provided)\n(1) One hundred percent if the capital asset was held for one year or less.\ncost of the new residence exceeds the adjusted sales price of the old\nresidence, if:\nart IV.-EXPLANATION OF COLUMN\nItem\nAmount\nItem\nAmount\n(2) Sixty-five percent if the capital asset was held for more than one year\n(1) within 18 months after (or before) the date of sale, you purchase another\n(e), PART II\nbut not more than five years.\n(3) Fifty percent if the capital asset was held for more than five years.\nresidence and use it as your principal residence; or\nItem\nAmount\n(2) within 18 months after (or before) the date of sale, you begin construc-\nF. Holding Period. The holding period generally begins on the day after\ntion of a new residence and use it as your principal residence not later\nyou acquired the property and ends on the day you disposed of the property.\nIn the case of a sale of stock or bond on a stock exchange by a cash\nthan 2 years after the date of sale.\nbasis taxpayer, the date of disposition is: (a) the \"trade date if sold at a\n(3) Military personnel may have different time periods. For details contact\nthe nearest office of the Franchise Tax Board.\nloss, or (b) the \"settlement date\" if sold at a gain. Other special rules follow:\nart V.-SCHEDULE FOR DEPRECIATION CLAIMED IN PART II ABOVE. Note: Depreciation may be computed by using\nThe basis (cost) of the new residence must be reduced by the deferred\nNontaxable Exchanges-If you acquire an asset in an exchange for another\nasset and your basis for the new asset is determined, in whole or part, by\ngain realized on the sale of the old residence. (See Sections 18091-100.)\nthe Asset Guideline Classes specified in Federal Revenue Procedure 72-10, regardless of when the assets\nreference to your basis in the old property, then the first day of the holding\nIf you sold property for $30,000 or less on or after your 65th birthday\nwere placed in service. If this method is used, do NOT use the Lower Limit or the Upper Limit (ADR) Ranges.\nperiod of the new property is the day following the date you acquired the\nwhich was owned and used by you as your principal residence for at least\nAttach detailed statement of depreciation computation.\nold property.\nfive of the last eight years, any gain on the sale need not be included in\n(a). Group and guideline class\n(b). Date\n(c). Cost or\n(d). Depreciation\n(e). Method of\ncomputing\n(f). Life or\nor description of property\nallowed or allowable\n(g). Depreciation\nIf you receive a gift of property, and if your basis is determined by refer-\nincome. If the property was sold for more than $30,000, part of the gain\nacquired\nother basis\nmay be taken into income. (See Section 17154.)\nin prior years\ndepreciation\nrate\nfor this year\nence to the basis in the hands of the donor, the first day of your holding\nperiod is the same date the donor used in computing his holding period.\nL. Losses in Transactions Between Certain Persons. No deduction is allow-\nTotal additional first-year depreciation (do not include in items below)\nReal Property Purchased-To determine how long real property that is\nable for losses from sales or exchanges of property directly or indirectly\nunder unconditional contract of sale has been held, begin counting on the\nbetween (1) members of a family, (2) a corporation and an individual or a\nAsset Guideline Class System (See note above)\nday following that on which title passes, or on the day following that on\nfiduciary owning more than 50 percent of the corporation's stock (liquidations\nOther depreciation\nwhich delivery of possession is made and the burdens and privileges of\nexcepted), (3) a grantor and fiduciary of any trust, (4) a fiduciary and a\nownership are assumed by the purchaser, whichever occurs first.\nbeneficiary of the same trust, (5) a fiduciary and a fiduciary or beneficiary of\nanother trust created by the same grantor, or (6) an individual and a tax-\nIf you acquired property from a decedent by inheritance or through a\nexempt organization controlled by the individual or his family. Partners and\nbequest or devise and the decedent died before January 1, 1971, the holding\npartnerships see Section 17865.\nperiod begins with the date of the decedent's death. If the decedent died\nafter December 31, 1970 and such property is sold or disposed of (in a\nM. Capital Gains from Regulated Investment Companies. Report total amount\ntaxable year beginning in 1972 or thereafter) within five years after the\nreceived as ordinary dividend income on page 1 of Form 540 or 540NR.\nTotals\n34522-400 6-75 2,200M 1 OSP\nev. 1974)\nSee instructions on reverse\nschedule\nCALIFORNIA\nTAXABLE\nSCHEDULE\nR\nCALIFORNIA\nTAXABLE\nE\n19\n19\nFORM 540\nSUPPLEMENTAL INCOME\nYEAR\nFORM 540\nRETIREMENT INCOME CREDIT\nYEAR\nAttach to Form 540 or 540NR\nAttach to Form 540\nName as shown on Form 540 or 540NR\nSocial Security Number\nName as shown on Form 540\nSocial Security Number\nPart I.-PENSION AND ANNUITY INCOME. If fully taxable, do not complete this part. Enter amount on page 2 of Form 540\nAllowable only if a California resident throughout the entire taxable year\nR\nor 540NR, under Miscellaneous Income. For each pension or annuity not fully taxable, attach a separate Part I and enter\nIf separate return, use column B only. If joint return, use column A for wife and\ncombined total of taxable portions on line 4. If first payment was received PRIOR to 1968, see Schedule E Instructions for\ncolumn B for husband.\nA\nB\nc\namount of taxable income to be reported.\nAll community income must be divided equally between husband and wife (see\nName of payer:\nDate first payment received:\ninstructions).\n1. Did your employer contribute part of the cost?\nYES\nNO\nE\nEnter your age as of last day of taxable year\nALTERNATIVE\nIf \"YES,\" is your contribution recoverable within 3 years of the annuity starting date?\nYES\nNO\nDid you receive earned income in excess of $600 in each of any 10 previous\nCOMPUTATION\nIf \"YES,\" show: Your contribution $\nYour contribution recovered in prior years $\ncalendar years? (Widows or widowers see instructions)\nYes\nNo\nYes\nNo\n(Combined informa-\n2. Amount received this year\ntion of husband and\nIf answer above is \"Yes\" in either column, furnish all information below in that\nwife if joint return\n3. Amount excludable this year\ncolumn. Also furnish the combined information called for in column C for both\nand both 65 or over)\n4. Taxable portion (subtract line 3 from line 2). Enter on Form 540 or Form 540NR in space provided\nhusband and wife if joint return, both 65 or over, even if only one answered\n\"Yes\" in column A or B.\nPart II.-RENT AND ROYALTY INCOME. If you need more space, you may use Federal Form 4831. Note: If you are reporting\nfarm rental income here that is based on crops or livestock produced by a tenant farmer but you did not materially participate\n1. Maximum amount of retirement income for credit computation\n1,524\n00\n1,524\n00\n2,286\n00\nin the operation of the farm, see Schedule E Instructions, to determine if you should also file Federal Form 4835.\n(d). Depreciation\n2. Deduct (Community income must be divided equally between spouses):\n(a). Kind and location of property\n(b). Total amount\n(c). Total amount\n(explain in Part V)\n(e). Other expenses\nof rents\nof royalties\nor depletion (attach\n(explain in\n(a) Amounts received as pensions or annuities under the Social Security\ncomputation)\nPart IV)\nAct, the Railroad Retirement Act (including supplemental annuities), and\ncertain other exclusions from gross income\n(b) Earned income received (does not apply to persons 72 years of age\nor over):\n1. Totals\n(1) If you are under 62 years of age, enter amount in excess of $900\n2. Net income (or loss) (col. (b) plus col. (c), less cols. (d) and (e)). Enter on Form 540 or 540NR in space provided\n(2) If you are 62 or over but under 72, enter amount determined as\nfollows:\nPart III.-INCOME OR LOSSES FROM PARTNERSHIPS AND ESTATES OR TRUSTS. If any of the partnership, estate or trust\nIf $1,200 or less, enter zero\nincome reported below is from farming, see Schedule E Instructions, to determine if you should also file Federal Form 4835.\nIf over $1,200 but not over $1,700, enter ½ of\namount over $1,200\n}\n(a). Name and address\n(b). Federal employer\n(c). Partnerships principal\n(d). Partnerships\nnumber\nbusiness activity\nincome\n(e) Estates or trusts\nIf over $1,700, enter excess over $1,450\n3. Total of lines 2(a) and 2(b)\n4. Balance (subtract line 3 from line 1. If line 3 is greater than line 1, enter zero)\nIf line 4, column A, B or C, is more than zero, complete this schedule.\nIf all of these columns are zero, do not file this schedule-you are\nnot entitled to any retirement income credit.\n5. Retirement income (Community income must be divided equally between\nTotals—(Enter total of each column on Form 540 or 540NR in spaces provided)\nspouses):\nPart IV.-EXPLANATION OF COLUMN\nItem\nAmount\nItem\nAmount\n(a) If you are under 65 years of age:\nEnter only income received from pensions and annuities under public\n(e), PART II\nretirement systems (e.g., federal, state, county, city governments, etc.)\nItem\nAmount\nincluded on Page 1, Form 540\n(b) If you are 65 years of age or older:\nEnter total of pensions, annuities, interest and dividends included on\npage 1, Form 540; gross rents included in Part II, column (b) of Schedule\nPart V.-SCHEDULE FOR DEPRECIATION CLAIMED IN PART II ABOVE. Note: Depreciation may be computed by using\nE (Form 540); and your share of gross rents from partnerships and your\nthe Asset Guideline Classes specified in Federal Revenue Procedure 72-10, regardless of when the assets\nproportionate share of taxable rents from estates and trusts\nwere placed in service. If this method is used, do NOT use the Lower Limit or the Upper Limit (ADR) Ranges.\nAttach detailed statement of depreciation computation.\n6. Line 4 or line 5, whichever is smaller\n(a). Group and guideline class\n(b). Date\n(c). Cost or\n(d). Depreciation\n(e). Method of\nor description of property\nother basis\nallowed or allowable\ncomputing\n(f). Life or\n(g). Depreciation\n7. (a) Total (add amounts on line 6, columns A and B)\nacquired\nin prior years\ndepreciation\nrate\nfor this year\nIf line 7(a) is less than $2,286 and this is a joint return and both husband and wife are\n1. Total additional first-year depreciation (do not include in items below)\nage 65 or over, the Alternative Computation in column c may result in a larger credit.\n2. Asset Guideline Class System (See note above)\n(b) Amount from line 6, column C, if applicable\n3. Other depreciation\n8. Tentative credit. Enter 1% of line 7(a) or 1% of line 7(b), whichever is greater\n9. Tax liability shown on page 1, Form 540 (Tax, less exemption credits)\n10. Less: Credit for net income taxes paid to other states (Page 2, Form 540)\n11. Subtract line 10 from line 9. (If line 10 is greater than line 9, enter zero)\n12. Retirement income credit. Enter here and on page 2, Form 540, the amount on line 8 or the amount on line\n4. Totals\n11, whichever is smaller\n(Rev. 1974)\nSee instructions on reverse\n(Rev. 1974)\nSee instructions on reverse\nINSTRUCTIONS FOR SCHEDULE E (FORM 540)\nSCHEDULE\nCALIFORNIA\nTAXABLE\nPART I-PENSIONS AND ANNUITIES\nthirds of your gross income was from farming, complete and\nR\n19\nattach Federal Form 4835, Farm Rental Income and Expenses,\nGeneral Rule for Annuities. The amount of an an-\nand enter the totals of income and expenses in Part II,\nFORM 540\nRETIREMENT INCOME CREDIT\nYEAR\nnuity, pension, endowment or similar payment includible in\ntaxable income depends on whether you contributed to its\nSchedule E. Report crop shares received only for the year in\nAttach to Form 540\ncost and the date you received your first payment. If you did\nwhich they are reduced to money or its equivalent.\nIn the case of buildings you can deduct depreciation. You\nName as shown on Form 540\nSocial Security Number\nnot contribute to the cost and were not subject to tax on your\ncan also deduct all ordinary and necessary expenditures on\nemployer's contributions, or you have recovered your entire\ncost before the beginning of the taxable year, report the\nthe property such as taxes, interest, repairs, insurance, agent's\nR\namount received on Form 540 or 540NR, page 2, as a fully\ncommissions, maintenance and similar items. However, you\nAllowable only if a California resident throughout the entire taxable year\ncannot deduct capital investments or improvements but must\nIf separate return, use column B only. If joint return, use column A for wife and\ntaxable pension or annuity, rather than on Schedule E.\nadd them to the basis of the property for the purpose of\nA\nB\nc\ncolumn B for husband.\nIf you paid part or all of the cost and your first payment\ndepreciation. For example, you can deduct the cost of minor\nwas received before 1968, you must report as income each\nrepairs but not the value of your own labor or the cost of\nAll community income must be divided equally between husband and wife (see\nyear 3 percent of the total amount you paid. (If you received\nmajor improvements such as a new roof or remodeling.\ninstructions).\nless than 3 percent of your cost, you report only the actual\nEnter your age as of last day of taxable year\nALTERNATIVE\namount received.) The difference between the amount received\nIf You Rent Part of Your House. If you rent out only\nCOMPUTATION\nand 3 percent of your cost is excluded from income until your\npart of your property, you can deduct only that portion of\nDid you receive earned income in excess of $600 in each of any 10 previous\nYes\nNo\nYes\nNo\n(Combined informa\nfull cost has been recovered, after which the entire amount\nyour expenses which relates to the rented portion. If you\ncalendar years? (Widows or widowers see instructions)\ntion of husband and\nreceived must be included in income.\ncannot determine these expenses exactly, you may figure\nIf answer above is \"Yes\" in either column, furnish all information below in that\nwife if joint return\nIf your first annuity, pension, etc., payment was received\nthem on a proportionate basis. For example, if you rent out\ncolumn. Also furnish the combined information called for in column C for both\nand both 65 or over)\nafter 1967, the federal rules for reporting such income are\nhalf of your home, and live in the other half, you can deduct\nhusband and wife if joint return, both 65 or over, even if only one answered\nto be followed. If both you and your employer contributed to\nonly half of the total depreciation and other expenses incurred.\n\"Yes\" in column A or B.\nthe cost and your contributions will be recovered within 3\nRoom rent and other space rentals should be reported as\n1. Maximum amount of retirement income for credit computation\n1,524\n00\n1,524\n00\n2,286\n00\nyears, then all payments received are to be excluded from in-\nbusiness income on separate Schedule C (Form 540) if services\ncome until your cost (the amount you contributed, plus the\nare rendered to the occupant; otherwise, report such income\ncontributions made by your employer on which you were\nin this part. If you are engaged in the business of selling real\n2. Deduct (Community income must be divided equally between spouses):\npreviously taxed) is recovered. Thereafter, all amounts you\nestate, you should report rentals received in separate Sched-\n(a) Amounts received as pensions or annuities under the Social Security\nreceive are fully taxable. This method of computing taxable\nule C (Form 540).\nAct, the Railroad Retirement Act (including supplemental annuities), and\nincome also applies to the employee's beneficiary if the em-\nRoyalties. Report royalties from oil, gas, mineral prop-\ncertain other exclusions from gross income\nployee died before receiving any annuity or pension payments.\nerties, copyrights and patents. However, if you hold an op-\n(b) Earned income received (does not apply to persons 72 years of age\nIf your cost will not be recovered within 3 years, the federal\nerating oil, gas or mineral interest, report gross income and\nor over):\nlife expectancy rule must be followed. The computation and\nexpenses in separate Schedule C (Form 540).\n(1) If you are under 62 years of age, enter amount in excess of $900\nlife expectancy multiple can be found in the Income Tax\n(2) If you are 62 or over but under 72, enter amount determined as\nRegulations covering annuities and pensions. Once you deter-\nPART III-PARTNERSHIPS, AND ESTATES OR TRUSTS\nfollows:\nmine the yearly excludable amount, it remains the same for\neach year thereafter. In making this computation, you can\nPartnerships. A partnership does not pay income tax.\nIf $1,200 or less, enter zero\nIt does, however, file an information return on Form 565.\n}\nget help from the Franchise Tax Board as well as the payer\nIf over $1,200 but not over $1,700, enter ½ of\nOnly one Form 565 need be filed for each partnership. Each\nof the annuity or pension.\namount over $1,200\nDeath Benefit Exclusion. If you receive pension or\npartner must report his share of the partnership's income.\nIf over $1,700, enter excess over $1,450\nInclude in this part your share of the ordinary income (whether\nannuity payments as a beneficiary of a deceased employee,\nactually received by you or not) or the net loss (loss allowable\n3. Total of lines 2(a) and 2(b)\nand the employee had received no retirement pension or\nonly to the extent of the adjusted basis of partner's interest\n4. Balance (subtract line 3 from line 1. If line 3 is greater than line 1, enter zero)\nannuity payments, you may be entitled to a death benefit\nin the partnership) for the taxable year which ends within or\nexclusion of up to $5,000. Contact the Franchise Tax Board\nwith the year covered by your return. Other items of income,\nIf line 4, column A, B or C, is more than zero, complete this schedule.\nfor more information.\ndeductions, etc., to be carried to the appropriate schedule of\nIf all of these columns are zero, do not file this schedule-you are\nnot entitled to any retirement income credit.\nForm W-2P. If you received a Form W-2P, report in\nyour individual return are shown in Schedule K of the partner-\nPart I, Schedule E, the gross amount of pension or annuity\nship return. Report your share of dividends, interest income,\n5. Retirement income (Community income must be divided equally between\npayments you received. If you are retired on disability and\ngains and losses from the sale or exchange of capital assets\nspouses):\nare under normal retirement age and your Form W-2P shows\nand other property, and tax preference income items on the\n(a) If you are under 65 years of age:\nan amount as \"Gross amount reportable as wages or salary,\"\nappropriate lines and schedules of your individual return.\nEnter only income received from pensions and annuities under public\nreport that amount on Form 540 or 540NR, page 2, as a fully\nIn Part III, Column (c), enter the principal business activity\nretirement systems (e.g., federal, state, county, city governments, etc.)\ntaxable pension or annuity. Also show on Form 540 or 540NR,\nof the partnership (i.e. farming, real estate, retail, etc.).\nincluded on Page 1, Form 540\npage 2, Adjustments to Income, the \"amount excludable as\nEstates and Trusts. If you are a beneficiary of an\n(b) If you are 65 years of age or older:\nsick pay.\"\nestate or trust, report your share of dividends, interest income,\nEnter total of pensions, annuities, interest and dividends included on\nIf you received retirement plan or profit sharing distribu-\ngains and losses from the sale or exchange of capital assets\npage 1, Form 540; gross rents included in Part II, column (b) of Schedule\ntions, report the taxable amount paid as: (1) capital gain\nand other property, and tax preference income items on the\nE (Form 540); and your share of gross rents from partnerships and your\n(amount from column b of Form W-2P) on Schedule D (Form\nappropriate lines and schedules of your individual return.\nproportionate share of taxable rents from estates and trusts\n540); and (2) ordinary income (amount from column C of\nAll other taxable income from estates and trusts should be\nForm W-2P) on Form 540 or 540NR, page 2, as a fully taxable\nincluded in Part III, Column (e). Any depreciation (on estate\n6. Line 4 or line 5, whichever is smaller\npension or annuity.\nor trust property) allocable to you may be subtracted from\n7. (a) Total (add amounts on line 6, columns A and B)\nestate or trust income so that only the net income received\nIf line 7(a) is less than $2,286 and this is a joint return and both husband and wife are\nPART II-RENTS AND ROYALTIES\nwill be included in your return. Information regarding these\nage 65 or over, the Alternative Computation in column C may result in a larger credit.\nRents. If you were not engaged in selling real estate\nitems may be obtained from the fiduciary.\n(b) Amount from line 6, column C, if applicable\nto customers, but received rent from property owned or con-\ntrolled by you, report the total amount received in this part.\nSmall Business Corporations. There are no provisions\n8. Tentative credit. Enter 1% of line 7(a) or 1% of line 7(b), whichever is greater\nIf property other than money was received as rent, its fair\nin the California law, similar to those enacted in the federal\n9. Tax liability shown on page 1, Form 540 (Tax, less exemption credits)\nlaw, whereby the shareholders of certain \"small business\nmarket value should be reported.\n10. Less: Credit for net income taxes paid to other states (Page 2, Form 540)\ncorporations\" may elect to report the current corporate in-\nIf you received rental income based upon farm production\ncome (or loss) as though they earned it individually. Report\n11. Subtract line 10 from line 9. (If line 10 is greater than line 9, enter zero)\nor if you received crop shares based on the renting of all or\nas dividends on page 1 of Form 540 or 540NR any income\n12. Retirement income credit. Enter here and on page 2, Form 540, the amount on line 8 or the amount on line\npart of your crop land on a crop share basis, but you did not\ndistributed to you from this type of corporation.\n11, whichever is smaller\nmaterially participate in the operation of the farm, and two-\n34525-400 6-75 1600M OA OSP\n(Rev. 1974)\nSee instructions on reverse\nINSTRUCTIONS FOR schedule R (FORM 540)\nINSTRUCTIONS FOR CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE DISABILITY\nINSURANCE OVERPAYMENT ON YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN\nIf you are retired or are 65 or older, you may be able to\nof your retirement income.\ntake a credit against your income tax of up to 1 percent\nRemember, all community income must be divided equally\nbetween husband and wife in determining the amount of\nCREDIT OR REFUND CAN BE CLAIMED IF:\nretirement income to be used in the credit computation. All\na. You worked for two or more employers.\nthree tests. Both husband and wife can take the credit if\nTo qualify for the credit you must meet the following\nseparate income must be reported by the spouse to whom\nb. Deductions for disability insurance were made from your wages, and\nboth meet these tests.\nthe separate income belongs.\nc. Such deductions TOTALED more than $90 for the Calendar Year 1975.\nIn determining the amount of prior earned income (Test 2)\nFiguring the Credit-A married couple filing jointly\nCREDIT OR REFUND CANNOT BE CLAIMED IF:\nand retirement income (Test 3), married taxpayers must di-\nshould use column A for wife and column B for husband. If\nvide community income equally; that is, one-half to each\na. More than $90 was deducted from your pay by only ONE employer. You must claim your refund directly from that employer.\nboth you and your spouse are 65 or older and are filing\nspouse. Separate income, however, is to be reported only by\njointly, add the line amounts for columns A and B and com-\nb. You worked for a business which had a change of ownership during the year. The combined deductions made by both owners\nthe spouse who received it.\npare the combined totals with the total of column c to see\nshould not total more than $90. If more than $90 was deducted from your pay by the two employers, claim your refund directly\nwhich method will give you the larger credit. All others\nfrom the last employer.\nTest 1. Residence-You must have been a California\nshould use column B.\nWHERE TO FILE CLAIM:\nresident throughout the entire taxable year.\nThe maximum amount of retirement income on which you\nClaim must be attached to the face of your California Individual Income Tax Return, Form 540 or 540NR. CLAIM WILL BE DISALLOWED\nTest 2. Prior Earned Income-You must have re-\ncan take the credit is $1,524 ($2,286 if you and your spouse\nIF THIS FORM IS NOT ATTACHED TO THE FACE OF YOUR RETURN. The Department of Benefit Payments will accept original claims\nceived over $600 of earned income during each of\nare both 65 or older and are filing jointly, or $3,048 if you\nonly if claimant certifies to exemption from California State Income Tax. (Check box below to complete such certification and attach\n10 calendar years-not necessarily consecutive-before any the\nare filing jointly and both husband and wife show $1,524\nstatement as to reason for exemption.)\nbeginning of your taxable year.\non line 6, columns A and B.) From this amount you may have\nto subtract a part of your earned income received in the\nWHEN TO FILE CLAIM:\nRemember, if you were married and lived in a community\ntaxable year, and must subtract certain exempt pensions and\nannuities (lines 2(a) and (b)).\nClaims must be filed on a California Income Tax Return for the year in which the wages were received, but not later than three\nproperty state, all community income earned by either you\nyears after the due date without regard to any extensions.\nor your spouse must be divided equally to determine whether\nThe maximum amounts allowed as a credit are shown\nIf not required to file a California Income Tax Return, claim Form DE 1964 must be filed with the Department of Benefit Payments\nyou meet this test. All separate income must be reported\nby the spouse to whom the separate income belongs.\nbelow, but the credit cannot be more than the amount of\nwithin three years after the end of the calendar year in which the wages were received.\nthe tax liability shown on your return reduced by the credit\nThe term \"earned income\" means wages, salaries, profes-\n(if any) for income tax paid to another state.\nAPPEALS:\nsional fees or other amounts you received as payments for\n$30.48 (1% of $3,048) on a joint return where both\nIf the Franchise Tax Board disallows your claim for overpayment of disability insurance, you may file a protest in writing with the\nincome. your work or services. An annuity or pension is not earned\nhusband and wife show $1,524 on line 6, columns\nDirector of the Department of Benefit Payments, P.O. Box 1685, Sacramento, CA 95808. This protest must be filed within 30 days\nA and B.\nof the date of mailing of the disallowance notice.\nIf you were in a trade or business in which both personal\n$22.86 (1% of $2,286) on a joint return where both\nservices and capital were major income-producing factors,\n(INSTRUCTIONS CONTINUED ON PAGE 2)\nhusband and wife are over 65 (even if one had no\nyou can consider a reasonable amount (but not over 30 per-\ncent of your net profits) as earned income.\nprior earned income to meet test 2, above).\nCUT HERE\n$15.24 (1% of $1,524) for all others.\nIf you are a surviving widow or widower and have not\nATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA\nremarried, you can use the earned income of your deceased\nFigure your credit as follows:\nINDIVIDUAL INCOME TAX RETURN\nspouse in figuring whether you meet this test, even if\nCLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE\nhad no earned income. You can also add his (her) earned you\nLine 2(a)-Show the following pensions and annuities\nincome to yours to figure whether you qualify.\nDISABILITY INSURANCE OVERPAYMENT ON YOUR\nreceived during the taxable year:\nCALIFORNIA INDIVIDUAL INCOME TAX RETURN\nTest 3. Retirement Income-You must have received\n(a) Pensions and annuities received under the Social Secur-\nretirement income during the taxable year.\nity Act or Railroad Retirement Acts. For social security\nFIRST NAME AND INITIAL\nLAST NAME\nSOCIAL SECURITY NUMBER\npensions show the gross amount before deduction of\nThe term \"retirement income\" means:\nany amount withheld to pay medicare insurance\nPLEASE\npremiums.\nPRESENT HOME ADDRESS (NUMBER AND STREET, INCLUDING APARTMENT NUMBER, OR RURAL ROUTE)\nTYPE\n(a) If you were under 65 on the last day of the taxable\nOR\nyear, retirement income includes only the amount re-\n(b) Any other pensions and annuities that are not taxed.\nPRINT\nCITY, TOWN OR POST OFFICE, STATE AND ZIP CODE\nceived during the taxable year from a pension or\nDo not include any amount treated as a return of your\nannuity under a public retirement system, which you\ncost, or amounts you received under accident or health\ninsurance plans or as compensation for injury or sick-\nDOLLARS\nCENTS\nreported as income on your return. A public retirement\nness.\nsystem is one established by the federal government,\n1. Total wages of above claimant (from line 6, page 2)\n1\nor a state, county, city, etc.\nLine 2(b)-Show earned income received during the tax-\n2. Total of deductions for California State Disability Insurance for above claimant (from line 7, page 2)\n2\nIf you are retired on disability and are under normal\nretirement age, no part of your disability annuity is\nable year on line (1) or (2), depending on your age. If you\n3. Required contributions on $9,000 taxable wages\n3\n90\n00\nretirement income for this purpose. Once you reach\nthis line.\nwere 72 or older on the last day of the taxable year, skip\nincome. normal retirement age, your annuity is then retirement\n4. Credit or refund claimed (subtract line 3 from line 2). Enter this amount on your California Individual\nLine 5-If you are under 65, enter your retirement income\nIncome Tax Return, Form 540, page 1, or Form 540NR, page 1. If husband and wife both qualify and\n(b) If you were 65 or older on the last day of the taxable\non line (a). See test 3, paragraph (a), above, for what income\nare filing a joint return, complete a Form DE 1964 for each spouse and enter the total of both claims\non your income tax return\n4\nyear, retirement income includes the amounts received\nto enter.\nduring the taxable year from pensions, annuities,\ninterest, rents and dividends which you reported as\nIf you are 65 or older, enter your retirement income on\nI Certify that / am exempt from California State Income Tax and therefore am filing this claim directly with the Department of\nincome on your return. It does not include royalties.\nline (b). See test 3, paragraph (b), above, for what income\nBenefit Payments. (See attached statement for basis of exemption.)\nFor this purpose, income from rents means the full\nto enter.\namount paid you before subtracting depreciation or\nany other expenses.\nLines 6 through 12-Complete these lines as instructed\nI Certify under penalties of perjury that the statement of wages paid to me and contributions deducted, as shown hereon, are\non the schedule.\ntrue and correct to the best of my knowledge and belief.\nSIGNATURE\nDATE\n34532-400 7-75 BOOM OSP\nDE 1964 (1975)\nINSTRUCTIONS FOR CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE DISABILITY\nPage 2\nINSURANCE OVERPAYMENT ON YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN\n(INSTRUCTIONS CONTINUED FROM PAGE 1)\nCREDIT OR REFUND CAN BE CLAIMED IF:\na. You worked for two or more employers.\nb. Deductions for disability insurance were made from your wages, and\nINFORMATION FOR COMPLETING WAGE SUMMARY SCHEDULE:\nC. Such deductions TOTALED more than $90 for the Calendar Year 1975.\na. Disability insurance deductions are shown on check stubs or deduction slips (not on your forms W-2).\nCREDIT OR REFUND CANNOT BE CLAIMED IF:\nb. Enter below only those wages from which California Disability Insurance deductions were actually made.\na. More than $90 was deducted from your pay by only ONE employer. You must claim your refund directly from that employer.\nc. Most Federal, State and local government agencies and religious organizations are not required to deduct California Disability\nb. You worked for a business which had a change of ownership during the year. The combined deductions made by both owners\nInsurance. Do not include these wages in your claim unless disability insurance deductions were actually made.\nshould not total more than $90. If more than $90 was deducted from your pay by the two employers, claim your refund directly\nfrom the last employer.\nd. Do NOT include in your claim:\n(1) Deductions made from wages paid to your spouse or dependents. A separate claim must be filed by each individual even though\nWHERE TO FILE CLAIM:\nyou may be filing a joint income tax return with your spouse.\nClaim must be attached to the face of your California Individual Income Tax Return, Form 540 or 540NR. CLAIM WILL BE DISALLOWED\nIF THIS FORM IS NOT ATTACHED TO THE FACE OF YOUR RETURN. The Department of Benefit Payments will accept original claims\n(2) Deductions made from your wages for Federal Old Age, Survivors and Disability Insurance (Social Security-Medicare Tax) or\nonly if claimant certifies to exemption from California State Income Tax. (Check box below to complete such certification and attach\nFederal and State income tax withheld from your wages.\nstatement as to reason for exemption.)\n(3) Deductions made from wages earned in states other than California unless such wages were reported to the State of California.\nWHEN TO FILE CLAIM:\n(4) Seamen's wages that come under the jurisdiction of states other than California.\nClaims must be filed on a California Income Tax Return for the year in which the wages were received, but not later than three\ne. Self-employed Persons-Enter in column (a) \"Covered under California Insurance Code Sections 708 or 708.5,\" and complete column\nyears after the due date without regard to any extensions.\n(b). Failure to enter this information will result in rejection of your claim on initial review.\nIf not required to file a California Income Tax Return, claim Form DE 1964 must be filed with the Department of Benefit Payments\nwithin three years after the end of the calendar year in which the wages were received.\nASSISTANCE:\nAPPEALS:\nIf you need assistance in completing this claim, contact the nearest office of the Department of Benefit Payments.\nIf the Franchise Tax Board disallows your claim for overpayment of disability insurance, you may file a protest in writing with the\nDirector of the Department of Benefit Payments, P.O. Box 1685, Sacramento, CA 95808. This protest must be filed within 30 days\nAMENDED CLAIMS:\nof the date of mailing of the disallowance notice.\nAmended claims must be so marked, (if not, they will be returned to claimant) and forwarded to the Department of Benefit Payments,\n(INSTRUCTIONS CONTINUED ON PAGE 2)\nP.O. Box 1685, Sacramento, CA 95808.\nCUT HERE\nCUT HERE\nATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA\nATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN\nPage 2\nINDIVIDUAL INCOME TAX RETURN\nWage Summary-Complete schedule below if over $90 was deducted for California State Disability Insurance during 1975 by two\nCLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE\nor more employers.\nDISABILITY INSURANCE OVERPAYMENT ON YOUR\nCALIFORNIA INDIVIDUAL INCOME TAX RETURN\nL\nWages paid to you\nActual deduction for\nEMPLOYER'S BUSINESS NAME AND CITY\nduring 1975\nDisability Insurance.\nLAST NAME\nSOCIAL SECURITY NUMBER\nI\nPeriod\nDo not show\nNot to exceed 1%\nFIRST NAME AND INITIAL\nAS SHOWN ON W-2 FORM\nemployed\nN\nmore than\nof wages shown in\nduring 1975\nList in Alphabetical Order\n$9,000 for\ncolumn (c). Do not\nPLEASE\nE\nPRESENT HOME ADDRESS (NUMBER AND STREET, INCLUDING APARTMENT NUMBER, OR RURAL ROUTE)\nany one employer\nlist FICA deductions\nTYPE\nOR\nColumn (a)\nColumn (b)\nColumn (c)\nColumn (d)\nPRINT\nCITY, TOWN OR POST OFFICE, STATE AND ZIP CODE\nNAME\nLOCATION\nFROM (MONTH)\nTO (MONTH)\nDOLLARS\nCENTS\nDOLLARS\nCENTS\n5.\nDOLLARS\nCENTS\n1. Total wages of above claimant (from line 6, page 2)\n1\n2. Total of deductions for California State Disability Insurance for above claimant (from line 7, page 2)\n2\n90\n00\n3. Required contributions on $9,000 taxable wages\n3\n4. Credit or refund claimed (subtract line 3 from line 2). Enter this amount on your California Individual\nIncome Tax Return, Form 540, page 1, or Form 540NR, page 1. If husband and wife both qualify and\nare filing a joint return, complete a Form DE 1964 for each spouse and enter the total of both claims\non your income tax return\n4\nI Certify that I am exempt from California State Income Tax and therefore am filing this claim directly with the Department of\nBenefit Payments. (See attached statement for basis of exemption.)\nI Certify under penalties of perjury that the statement of wages paid to me and contributions deducted, as shown hereon, are\n6.\nTotal (also enter this amount on page 1, line 1)\ntrue and correct to the best of my knowledge and belief.\n(also enter this amount on\n7.\nTotal of actual deductions for California State Disability Insurance page 1, line 2)\nSIGNATURE\nDATE\nDE 1964 (1975)\n34560-400 7-75 600M  5P\nPage 9 540 INSTRUCTIONS\nPage 2\n(INSTRUCTIONS CONTINUED FROM PAGE 1)\nTAX PREPARERS ACT\nINFORMATION FOR COMPLETING WAGE SUMMARY SCHEDULE:\nUnder a 1974 California law (Business and Professions Code Section 9891.1, et seq) all tax preparers (except\na. Disability insurance deductions are shown on check stubs or deduction slips (not on your forms W-2).\nCalifornia CPA's and PA's, members of the California Bar, bank and trust companies, or persons authorized\nb. Enter below only those wages from which California Disability Insurance deductions were actually made.\nto practice before the Internal Revenue Service) must be registered with the State Department of Consumer Af-\nC. Most Federal, State and local government agencies and religious organizations are not required to deduct California Disability\nfairs. This law requires all tax preparers, who prepare state or federal income tax returns or state bank and\nInsurance. Do not include these wages in your claim unless disability insurance deductions were actually made.\ncorporation franchise tax returns for a fee, to file an application form, pay registration fees, and post a $1,000 bond.\nd. Do NOT include in your claim:\nFor information, contact the California Department of Consumer Affairs, Tax Preparer Program, 1021 O Street,\n(1) Deductions made from wages paid to your spouse or dependents. A separate claim must be filed by each individual even though\nSacramento, California 95814, telephone (916) 322-3590.\nyou may be filing a joint income tax return with your spouse.\n(2) Deductions made from your wages for Federal Old Age, Survivors and Disability Insurance (Social Security-Medicare Tax) or\nFederal and State income tax withheld from your wages.\n(3) Deductions made from wages earned in states other than California unless such wages were reported to the State of California.\nTAX FORMS DESCRIPTION\n(4) Seamen's wages that come under the jurisdiction of states other than California.\ne. Self-employed Persons-Enter in column (a) \"Covered under California Insurance Code Sections 708 or 708.5,\" and complete column\nSchedule A(540)-If you itemize deductions.\nSchedule G(540)-If you claim the benefit of income aver-\n(b). Failure to enter this information will result in rejection of your claim on initial review.\nSchedule B(540)-If you had dividend income over $400, or\naging.\nASSISTANCE:\ninterest income over $400.\nSchedule G-1(5-40)-If you claim the benefit of either the\nIf you need assistance in completing this claim, contact the nearest office of the Department of Benefit Payments.\nSchedule CF(540)-If you had income or loss from a business\n\"5-year special averaging method\" or the\nor profession or income and expenses from\n\"7-year special averaging method.\"\nAMENDED CLAIMS:\na farm.\nSchedule P(540)-If you had items of tax preference in ex-\nAmended claims must be so marked, (if not, they will be returned to claimant) and forwarded to the Department of Benefit Payments,\nSchedule D(540)-If you had sales or exchanges of capital\ncess of $8,000 ($4,000 if single or married\nP.O. Box 1685, Sacramento, CA 95808.\nassets.\nfiling separately).\nCUT HERE\nSchedule D-1(540)-If you had sales or exchanges of other\nSchedule R(540)-If you claim the retirement income credit.\nATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN\nPage 2\nproperty; or an involuntary conversion of\nSchedule S(540)-If you claim credit for taxes paid to\nproperty.\nanother state.\nWage Summary-Complete schedule below if over $90 was deducted for California State Disability Insurance during 1975 by two\nor more employers.\nSchedule E(540)-If you had income from pensions, annu-\nForm DE 1964-If you worked for two or more employers\nities, rents, royalties, partnerships, estates,\nand had more than $90 State Disability\nL\nWages paid to you\nActual deduction for\nEMPLOYER'S BUSINESS NAME AND CITY\nduring 1975\nDisability Insurance.\nor trusts.\nInsurance deducted from your earnings.\nI\nPeriod\nDo not show\nNot to exceed 1%\nAS SHOWN ON W-2 FORM\nemployed\nN\nmore than\nof wages shown in\nList in Alphabetical Order\nduring 1975\n$9,000 for\ncolumn (c). Do not\nE\nany one employer\nlist FICA deductions\nColumn (a)\nColumn (b)\nColumn (c)\nColumn (d)\nNAME\nLOCATION\nFROM (MONTH)\nTO (MONTH)\nDOLLARS\nCENTS\nDOLLARS\nCENTS\n5.\nORDER BLANK FOR REQUESTING FORMS-Instructions will be included with each form listed below. Cut along\nthe dotted line and enclose this order blank with your name and address printed on the reverse side and mail\nto: The Franchise Tax Board, Tax Forms Request Unit, Sacramento, California 95867.\nCIRCLE DESIRED FORMS\nMultiple Support\nAnnuity Data\nSick Pay Exclusion\n540M\n3805h\n3805t\n540\nSchedule G\nAmended Return\nResidence Sale/Exchange\nMoving Expenses Adjustment\nwith instructions\nwith instructions\n540X\n3805j\n38050\nSchedule A & B\nSchedule G-1\n540NR\nBad Debts Data\nCare of Dependents\nwith instructions\nwith instructions\nwith instructions\n3805k\n3805x\nSchedule C/F\nSchedule P\nExtension Request\nAlimony Substantiation\nEducation Expenses\nwith instructions\nwith instructions\n3501\n3805m\n3805y\nSchedule D\nSchedule R\nRefund Due Dec'd Taxpayer\nEmployee Business Expen.\nwith instructions\nwith instructions\n3545\n3805n\n6.\nTotal (also enter this amount on page 1, line 1)\nSchedule D-1\n(also enter this amount on\nSchedule S\nProperty Sales\nRents & Royalties\nwith instructions\nwith instructions\n3805f\n3805Γ\n7.\nTotal of actual deductions for California State Disability Insurance page 1, line\n2)\nSchedule E\nSchedule DE1964\nSubdivided Property\nDepreciation Deduction\nwith instructions\nwith instructions\n3805g\n3805s\n34560-400 7-75 600M   osP\nPage\n10\n540\nINSTRUCTIONS\nIMPORTANT REMINDERS\nIf you have a REFUND, mail your return to:\nIf you have a BALANCE DUE, mail your return\nFRANCHISE TAX BOARD\nand remittance to:\nP.O. Box 13-540\nFRANCHISE TAX BOARD\nSacramento, CA 95813\nSacramento, CA 95867\nUSE NAME AND ADDRESS LABEL. Peel off label from booklet and place it on your return (correct any errors). If you do not use the\nlabel, clearly print your name, address and social security number(s) on your return.\nCheck proper Filing Status and correctly determine your exemption credits.\nType or clearly print all entries and be sure they are legible.\nIt is preferred that money amounts be shown in whole dollars.\nUse the appropriate Tax Rate Schedule on page 8 to compute your tax.\nSign and date the return. If a joint return is filed, both spouses must sign the return.\nAttach all required schedules and enter totals on appropriate lines of Form 540. Attach \"Underpayment of Estimate Tax\" (if appli-\ncable) to the face of the return.\nAttach Form(s) W-2, Form DE 1964 (if used) and your check or money order for the balance due (if any) to the FRONT of your return.\nEnter your social security number on the face of your payment. Do NOT mail cash.\nAdditional forms and schedules are obtainable from all Franchise Tax Board offices.\nFile your return as soon as you can after January 1, but not later than April 15, 1976.\nFRANCHISE TAX BOARD OFFICES\nAddress\nZip Code\nTelephone\nAddress\nZip Code\nTelephone\nBakersfield\n1031 Seventeenth Street\n93301\n(805) 322-0540\nSan Diego\n1350 Front Street\n92101\n(714) 236-7540\nTax Forms Request\n(805) 322-8655\nTax Forms Request\n(714) 236-7678\nEl Monte\n9660 Flair Drive\n91731\n(213) 575-6600\nSan Francisco\n345 Larkin Street\n94102\nTax Forms Request\n(213) 575-6660\n(415) 557-0540\nTax Forms Request\n(415) 557-2357\nFresno.\n2550 Mariposa Street\n93721\n(800) 852-7050\nTax Forms Request\n(800) 852-7100\nSan Jose\n555 N. First Street\n95112\n(800) 852-7050\nLong Beach\n3530 Atlantic Avenue\n90807\n(213)\n595-5406\nTax Forms Request\n(800) 852-7100\nTax Forms Request\n(213) 424-1619\nSanta Ana\n28 Civic Center Plaza\n92701\n(714) 558-4540\nLos Angeles\n3200 Wilshire Boulevard\n90010\n(213)\n620-5400\nTax Forms Request\n(714) 835-8411\nTax Forms Request\n(213) 620-5300\nOakland\n1916 Broadway\n94612\n(415)\n464-0540\nSanta Barbara\n41 Hitchcock Way\n93105\n(805) 682-2696\nTax Forms Request\n(415) 464-1053\nTax Forms Request\n(805) 687-1780\nSacramento\n920 Twenty-Third Street\n95816\n(916) 445-9540\nSanta Rosa\n447 College Avenue\n95403\n(800)\n852-7050\nTax Forms Request\n(916) 441-5990\nTax Forms Request\n(800) 852-7100\nOutside Sacramento Metropolitan Area, see white\npages of your local telephone directory.\nStockton\n31 E. Channel Street\n95202\n(800)\n852-7050\nSan Bernardino\nTax Forms Request\n(800) 852-7100\n303 W. Third Street\n92401\n(714) 383-4201\nRedlands-Riverside exchanges only\n(714) 825-4050\nVan Nuys\n8155 Van Nuys Boulevard\n91402\n(213)\n786-9540\nTax Forms Request\n(714) 383-4781\nTax Forms Request\n(213) 994-9431\nNAME\nEnter your name and\naddress on this label.\nNUMBER AND STREET\nIt will be used to\nspeed your order for\nforms to you.\nCITY OR TOWN, STATE AND ZIP CODE\n34517-400 10-75 6.500M\n1\nOSP\nFORD\nLIBRARY\n&\nGERALD\nFord-Reagan split threatens state candidates\nBy JAMES FLOYD\nDanforth (Attorney General John C.\npresent leaders were winning?\" Wolfsberger asked.\nGlobe-Democrat Staff Writer\nDanforth, candidate for the GOP\n\"Instead of learning from their wins and his losses, he\nSenate nomination) Tom Curtis is\nhas engaged in the most arrogant and harmful\ntrying to reverse progress and lead\ncampaign I have seen in years.\"\nWith Missouri Democrats already convinced they can\nthe Republican Party into darkness\nCurtis lost Senate races to Thomas F. Eagleton in\nhold the U.S. Senate seat being surrendered by Stuart\nand defeat with the most divisive\n1968 and 1974.\nSymington and even retake the governor's mansion\ncampaign since the Bull Moose break\nWolfsberger called Bond, Phelps and Danforth\nfrom Republican Christopher S.\nmore than half a century ago.\"\n\"dynamic new leaders of integrity and ability\nwho\nChairman\nREAGAN\nPAUL D. LAXALT,\nUnited States Senator\nExecutive Vice Chairman\nJOHN P. SEARS\nTreasurer\nHENRY M. BUCHANAN, C.P.A.\nfor President\nCommittee Members\nGEORGE B. COOK\nH.R. GROSS,\nFormer U.S. Congressman,\nCITIZENS FOR REAGAN\nState of lowa\nLOUIE B. NUNN,\n2021 L Street, N.W.\nSuite 340\nFormer Governor,\nWashington, D.C. 20036\nState of Kentucky\nGERALD FORD LIBRARY\nMrs. STANHOPE C. RING,\nFormer Republican National\nCommitteewoman,\nState of California\nDear Fellow American,\nThe Reagan for President campaign is under way!\nMillions of Americans have been anxiously waiting to hear this great\nnews. They know that Ronald Reagan is the one American statesman who can\nset the nation on the path to peace, prosperity, and freedom.\nHe has firm and definite solutions to our welfare mess, to rising crime,\nrunaway taxes, crippling inflation, and our out-of-control federal bureaucracy.\nRonald Reagan believes in the wisdom of our founding fathers limited\nconstitutional government, maximum freedom for the individual, and a healthy,\ngrowing, unfettered free enterprise system.\nHe wants to restore our weakened military posture, and he is determined\nto stand up to the threat of Communist imperialism.\nRonald Reagan is proud to be an American. You will be proud to have\nRonald Reagan as your President.\nNow is the time. Today. Join the march for America. Help put Ronald\nReagan in the White House!\nMake no mistake about it liberal candidates have already amassed huge\nwar chests for their 1976 Presidential drive. They plan to spend whatever is\nnecessary to continue the policies of big spending, high taxes and increasing\ngovernment control. Of course, they are aided in their efforts by liberal\nmembers of the news media.\nThis is our chance! Today send your absolute maximum contribution to\nthe Reagan campaign. Consider what your contribution will mean to the future\nof our nation. $10, $100, or $1,000--we need your check immediately!\nWe urgently need hundreds of thousands of dollars to pay for printing,\npostage, staff salaries, TV & radio, rent, etc.\nThe future of freedom in America rests in our hands. Don't lay this\nletter aside! Send your generous contribution today.\nTane Sincerely, Leart\nPaul Laxalt, U.S.S.\nP.S. With your help, we are going to win!\nBulk Rate\nREAGAN\nU.S. Postage\nPAID\nPermit #36\nManassas, Va.\nfor President\nCITIZENS FOR REAGAN\nSuite 340\n2021 L Street, N.W.\nWashington, D.C. 20036\nIf you receive more than one copy of this appeal ...\nPlease understand that we are using many mailing lists in\nthis important project and that occasional duplications\nwill occur. Won't you share any extra copies you receive\nwith a friend? Thanks for your understanding and con-\ntinued support.\nMake necessary corrections in address shown below\nMR R A MARMET\n1820 JEFFERSON PL\nR23\nWASHINGTON DC 20036\nFIRST CLASS\nPermit No.\n72124\nWashington, D.C.\nBUSINESS REPLY MAIL\nNo Postage Stamp Necessary if Mailed in the United States\nPOSTAGE WILL BE PAID BY:\nCITIZENS FOR REAGAN\nSuite 340\n2021 L Street, N.W.\nWashington, D.C. 20036\nPlease make necessary changes If label attached\nto reverse side is incorrect.\n\"THE\nSPIRIT\nOF '76!\"\nSEND YOUR CHECK TODAY.\nAre you interested in helping to form citizen committees in your community?\nIf so, please indicate and note your political position\nIndividual political contributions are tax-deductible up to a total of $25.00 per year.\nI want to help the \"Citizens for Reagan\" committee put Ronald Reagan in the\nWhite House.\nMy contribution is enclosed:\n$1,000\n$500\n$100\n$50\n$25\n$\nOther\nMake all checks payable to Citizens for Reagan and return in this pre-paid\nenvelope.\nIn accordance with federal legislation, we are not able to accept either (a) any corporate checks\nwhatever, or (b) any personal contributions over $1,000. A copy of our report will be filed with\nthe Federal Election Commission and will be available for purchase from that office in Wash-\nington, DC,\nThis federal statute requires us to request the following information from you:\nOCCUPATION\nBUSINESS ADDRESS\nCITY.\nSTATE\nZIP\nFrom the desk of\nDEAN BURCH\nBo Callaway\nFYI\nDB\nRONALD REAGAN\nSUITE 812\n10960 WILSHIRE BOULEVARD\nLOS ANGELES, CALIFORNIA 90024\n213/477-8231\nJuly 14, 1975\nThe Honorable Paul Laxalt\nMember, United States Senate\nSenate Office Building\nWashington, D. C. 20500\nDear Paul:\nI am writing this letter in response to your decision to\nchair the \"Citizens for Reagan\" committee. I deeply\nappreciate your action, but I want to inform you that I\nhave not made up my mind whether to become an active\nPresidential candidate. I expect to make this decision\nbefore the end of the year.\nMeanwhile, I recognize that due to the technical require-\nments of the law (including the requirement for the\ndesignation of a principal campaign committee), the\ncommittee must file with the Federal Elections Commission\nas working on my behalf. I trust this letter will suffice\nas my consent for purposes of allowing you to do so.\nSincerely,\nRan\nRONALD REAGAN\nFORD i GERALD LIBRARY\nE-per\nThe President Ford Committee\n1200 Eighteenth Street, N.W.\nSuite 916\nWashington, D. C. 20036\n(202) 833-8920\nJuly 21, 1975\nMEMORANDUM TO: BOB VISSER\nFROM: Bo CALLAWAY\nBob, I was talking to Dean Burch today and he suggested\nthat as soon as you come on board, you get a copy of all\nof the campaign filings with the Federal Election Commission.\nWe are of course most interested right now, in the one filed\non behalf of Reagan by Laxalt and his group. We are\nparticularly interested in whether or not, Governor Reagan has\ndesignated this committee as his principle committee.\nbc/mdt\nHHC\nd beliefe John John Duffy\nmay this have for info\non\nnya\nLIBRARY GERALD R. FORD\nFor President\nRNC an independent\nSen. Paul Laxalt\narganization\nChairman\nJohn P. Sears\nExec. Vice Ch.\nGeorge Cook\nOctober 14, 1975\nH.R. Gross\nLouie B. Nunn\nMrs. Stanhope C. Ring\nHenry Buchanan\nTreasurer\nFederal Election Commission\nOffice of the General Counsel\nAdvisory Opinion Comment\n1325 K Street, N.W.\nFORD & GERALD LIBRARY\nWashington, D.C. 20463\nDear Sirs:\nWe respectfully submit the following comments on AOR-1975-72.\nWe hope this will be helpful to the Commission.\nAOR 1975-72 raises the question of whether the Republican\nNational Committee (RNC) can legitimately provide funds, in light of\nthe recent federal election law amendments, for political travel by\nPresident Ford while he is a candidate for his party's presidential\nnomination. And further, whether these expenditures count against\ncandidate Ford's campaign expenditure limitations under 18 U.S.C.\nsection 608(c). It appears to our committee that several facts must\nbe considered before a conclusion on the RNC's request can be reached.\nFirst, President Ford is an announced and declared candidate\nfor his party's nomination. He has, as of this date, made campaign\ntrips and authorized a committee which has made campaign expenditures\non behalf of his campaign. He indicated on a nationally televised news\nconference (October 9, 1975) that he hoped his political trips made on\nbehalf of the RNC would help his election. He has made the decision\nto actively campaign at an earlier date than has been the customary\npolitical practice of past incumbent Presidents.\n2021 L St., N.W., Suite 340, Washington, D.C. 20036\nPhone: 202/223-8560\nFederal Election Commission\nOctober 14, 1975\nPage Two\nSecond, Gerald R. Ford was the first individual appointed to the\nVice Presidency under the provisions of the recently enacted 25th\nAmendment. Following the resignation of Richard M. Nixon as President,\nGerald R. Ford succeeded to that office. His Vice President, Nelson A.\nRockefeller, also became such by the operation of the 25th Amendment,\nafter having been rejected for the Republican presidential nomination\nby the Republican National Conventions of 1964 and 1968. These facts\nare quite important in providing some political perspective to the\nrelationship of the Presidency, its current occupant, and the Republican\nParty.\nThird, there is an active political committee in existence,\nauthorized by Governor Reagan, and registered with the Federal\nElection Commission, that has raised significant amounts of money\nfrom many thousands of persons in every state. This committee is\nactively promoting the candidacy of Governor Ronald Reagan for the\nRepublican Party's presidential nomination.\nFourth, one of the basic purposes of the 1974 amendments to the\nbody of federal election law is to insure that no candidate, regardless\nof his position or financial means, could \"buy\" the Presidency by means\nof excessive financial expenditures. To this end, the key provision of\nthe 1974 Act is 18 U.S.C. section 608. This section imposes strict\nexpenditure limitations on all candidates for federal office. The\npurpose of these limitations is, in part, to provide every candidate\nwith an equal opportunity to present his campaign to the electorate.\nFifth, a key criticism of the new election law is that it favors\nincumbents in that it protects them against challengers. This is so,\nmany feel, because a challenger can only overcome the multiple\nadvantages of incumbency by greater campaign spending than the\nincumbent. It is certainly true that an incumbent President enjoys\ngreat political advantages by virtue of his official position, advantages\nsuch as government-paid travel around the country to \"non-political\nevents\" and the national forum of the televised Presidential press\nconference (recently exempted from equal time by the Federal\nCommunications Commission). Does he also, in a primary campaign\nsituation, enjoy the official mantle of the party and use of its funds\nmerely by virtue of his title ?\nCommission\nOctober 14, 1975\nPage Three\nWith these basic factual referents in mind we submit the following\nanalysis of the RNC's request:\nTraditionally an incumbent President seeking reelection has been\nconsidered unchallengable within his own political party for his party's\nnomination. No incumbent President in this century has been denied\nrenomination by his party. In fact, so strong is the traditional role of\nthe incumbent President that only twice in this century has one been\ndefeated in a general election. In 1975 and 1976 the situation in this\ncountry is and will be unique politically. The incumbent President and\nVice President of the Republican Party have never faced the national\nelectorate or, in the case of President Ford, the Republican Party\nmembership as expressed through its national party convention.\nThus, President Ford is clearly not in the same position as former\nRepublican Party presidents were. In fact, it is clear that one of the\nimportant factors in the 1976 nomination contest is the current lack of\na nationally chosen or mandated Republican Party \"leader\" in the\ntraditional sense. The Republican Party's only elected national\nspokesman is its chairman, Mrs. Mary Louise Smith.\nThus, while Gerald R. Ford is legally and constitutionally the Chie,\nExecutive, with all the President's powers and privileges, and entitled\nto all the traditional support and respect due our Head of State, he does\nnot stand in the traditional role an incumbent President has had as the\ntitular leader of the Republican Party. Further, actions that tend not\nonly to place him in such a role but also to emphasize it directly\nbenefit his campaign for the party's nomination for President. In\nfact, a key selling point of the President's campaign has been his\nincumbency. To argue that his campaign for the nomination should not\nbe hindered because of his activities as \"party leader, \" is very\nlike the boy, who having killed his parents, says he should not be\npunished because he is an orphan.\nOnly the 1976 nominee of the Republican National Convention will\nbe the party's chosen leader.\nThe 1974 amendments to federal election law mandate strict\nexpenditure limitations for all federal candidacies. They do this\nseparately with respect to candidates for the nomination of parties and\nFederal Election\nommission\nOctober 14, 1975\nPage Four\nfor the candidates of parties in general elections. Further, the law\nembodies a very expansive and comprehensive definition of contributions\nand expenditures so as to close nearly every potential loophole left in\npast legislative attempts at regulation. This legislative plan clearly\nmanifests the intent of Congress, as ratified by President Ford in\nsigning the law, to establish a system of electoral regulation that would\ncontrol, limit and disclose all expenditures that promote and influence a\nfederal campaign. It cannot be seriously argued that political trips made\nby a declared candidate, as \"leader\" of a political party, directed at\nthose very individuals who will ultimately choose the party's nominee,\ndoes not directly benefit and influence and promote such candidate's\ncampaign. If President Ford's campaign is not charged with the\ncost of trips made as the \"leader\" of the Republican Party under these\ncircumstances then section 608 is not the comprehensive expenditure\nlimitation section it clearly was intended to be.\nIf the Commission's interpretation of this new law is not to favor\nincumbents over other candidates and if the traditional relationship\nof the Presidency to its own political party is not to become a vehicle\nfor allowing the new election law to be gravely distorted then the RNC's\nplanned actions must be modified. It would certainly be divisive within\nthe Republican Party if the RNC were to bestow a non-reportable and\nuncontrolled election benefit on only one candidate for the party's\nnomination. This would raise constitutional questions of whether 18\nU.S.C. section 608's effect, if not its purpose, is to stifle legitimate\npolitical challenges to incumbents from within their own parties.\nIf the party provided truly equal treatment to all candidates for\nits nomination then few serious objections could be raised. Then, the\nparty would not be promoting a campaign but would be providing its\nnational membership with a better opportunity for seeing all its candidates.\nIt would be performing a legitimate informational function by helping\nmembers to make more intelligent choices among the candidates.\nWhile a TV appearance by one candidate benefits his campaign, a program\npresenting all of the candidates equally benefits the electorate. Of\ncourse, a fair and equitable mechanism would have to be worked out\nto determine who the individuals are who are legitimately entitled to\nsuch consideration. But this should not be difficult. A simple criterion,\nlike qualification for federal matching funds, would provide an adequate\nmethod for discriminating between bona fide candidates and others.\nOctober 14, 1975\nPage Five\nIf the RNC chooses not to consider such an option it seems to our\ncommittee that its current proposal raises serious questions under both\nthe contribution limitations and the expenditure limitations of section 608.\nIf party \"leadership\" is to confer substantial financial electoral benefits\nit should be both formalized and brought within the guidelines of the\nelection law. Governor Reagan has over the past years raised millions\nof dollars for the Republican Party at numerous party events across the\nnation and by direct mail. He has done this as a member of the party\nwho deeply believes in its principles. Our committee feels that the party\ntreasury, built up in the interests of the whole party, should not become\na vehicle for any single candidate in contest for the party's nomination,\nregardless of any office he may hold.\nIn 1975 and 1976 a new federal election law prevails. Examples\nof past practice no longer suffice to justify present actions. We hope\nour comments will aid the Federal Election Commission in deciding\nthis question.\nVery truly yours,\nLoren\nLoren A. Smith\nGeneral Counsel\nLAS:jf\ncc: Hon. Thomas B. Curtis\nHon. Neil Staebler\nHon. Joan Aikens\nHon. Thomas E. Harris\nHon. Vernon W. Thomson\nHon. Robert O. Tiernan\nHon. Benton L. Becker\nHon. Mary Louise Smith\n19 oct.\nBob - They and This\nplaying hard/bell\nwhat options do is\nhas for contesting\nthe country, paid for\nReagans kips around\nby bus Radio - Column\nexcluded from\nCommittee and this his Strith\nlimitation\nBo\nFor President\nA0-1575-72\nSen. Paul Laxalt\nChairman\nJohn P. Sears\nExec. Vice Ch.\nGeorge Cook\nOctober 14, 1975\nH. R. Gross\nLouie B. Nunn\nMrs. Stanhope C. Ring\nHenry Buchanan\nTreasurer\nFederal Election Commission\nOffice of the General Counsel\nAdvisory Opinion Comment\n1325 K Street, N.W.\nWashington, D.C. 20463\nDear Sirs:\nWe respectfully submit the following comments on AOR-1975-72.\nWe hope this will be helpful to the Commission.\nAOR 1975-72 raises the question of whether the Republican\nNational Committee (RNC) can legitimately provide funds, in light of\nthe recent federal election law amendments, for political travel by\nPresident Ford while he is a candidate for his party's presidential\nnomination. And further, whether these expenditures count against\ncandidate Ford's campaign expenditure limitations under 18 U.S.C.\nsection 608(c). It appears to our committee that several facts must\nbe considered before a conclusion on the RNC's request can be reached.\nFirst, President Ford is an announced and declared candidate\nfor his party's nomination. He has, as of this date, made campaign\ntrips and authorized a committee which has made campaign expenditures\non behalf of his campaign. He indicated on a nationally televised news\nconference (October 9, 1975) that he hoped his political trips made on\nbehalf of the RNC would help his election. He has made the decision\nto actively campaign at an earlier date than has been the customary\npolitical practice of past incumbent Presidents.\nFORD LIBRARY\n2021 L St., N.W., Suite 340, Washington, D.C. 20036\nPhone: 202/223-8560\nFederal Election Commission\nOctober 14, 1975\nPage Two\nSecond, Gerald R. Ford was the first individual appointed to the\nVice Presidency under the provisions of the recently enacted 25th\nAmendment. Following the resignation of Richard M. Nixon as President,\nGerald R. Ford succeeded to that office. His Vice President, Nelson A.\nRockefeller, also became such by the operation of the 25th Amendment,\nafter having been rejected for the Republican presidential nomination\nby the Republican National Conventions of 1964 and 1968. These facts\nare quite important in providing some political perspective to the\nrelationship of the Presidency, its current occupant, and the Republican\nParty.\nThird, there is an active political committee in existence,\nauthorized by Governor Reagan, and registered with the Federal\nElection Commission, that has raised significant amounts of money\nfrom many thousands of persons in every state. This committee is\nactively promoting the candidacy of Governor Ronald Reagan for the\nRepublican Party's presidential nomination.\nFourth, one of the basic purposes of the 1974 amendments to the\nbody of federal election law is to insure that no candidate, regardless\nof his position or financial means, could \"buy\" the Presidency by means\nof excessive financial expenditures. To this end, the key provision of\nthe 1974 Act is 18 U.S.C. section 608. This section imposes strict\nexpenditure limitations on all candidates for federal office. The\npurpose of these limitations is, in part, to provide every candidate\nwith an equal opportunity to present his campaign to the electorate.\nFifth, a key criticism of the new election law is that it favors\nincumbents in that it protects them against challengers. This is so,\nmany feel, because a challenger can only overcome the multiple\nadvantages of incumbency by greater campaign spending than the\nincumbent. It is certainly true that an incumbent President enjoys\ngreat political advantages by virtue of his official position, advantages\nsuch as government-paid travel around the country to \"non-political\nevents\" and the national forum of the televised Presidential press\nconference (recently exempted from equal time by the Federal\nCommunications Commission). Does he also, in a primary campaign\nsituation, enjoy the official mantle of the party and use of its funds\nmerely by virtue of his title ?\nCommission\nOctober 14, 1975\nPage Three\nWith these basic factual referents in mind we submit the following\nanalysis of the RNC's request:\nTraditionally an incumbent President seeking reelection has been\nconsidered unchallengable within his own political party for his party's\nnomination. No incumbent President in this century has been denied\nrenomination by his party. In fact, so strong is the traditional role of\nthe incumbent President that only twice in this century has one been\ndefeated in a general election. In 1975 and 1976 the situation in this\ncountry is and will be unique politically. The incumbent President and\nVice President of the Republican Party have never faced the national\nelectorate or, in the case of President Ford, the Republican Party\nmembership as expressed through its national party convention.\nThus, President Ford is clearly not in the same position as former\nRepublican Party presidents were. In fact, it is clear that one of the\nimportant factors in the 1976 nomination contest is the current lack of\na nationally chosen or mandated Republican Party \"leader\" in the\ntraditional sense. The Republican Party's only elected national\nspokesman is its chairman, Mrs. Mary Louise Smith.\nThus, while Gerald R. Ford is legally and constitutionally the Chie,\nExecutive, with all the President's powers and privileges, and entitled\nto all the traditional support and respect due our Head of State, he does\nnot stand in the traditional role an incumbent President has had as the\ntitular leader of the Republican Party. Further, actions that tend not\nonly to place him in such a role but also to emphasize it directly\nbenefit his campaign for the party's nomination for President. In\nfact, a key selling point of the President's campaign has been his\nincumbency. To argue that his campaign for the nomination should not\nbe hindered because of his activities as \"party leader, \" is very\nlike the boy, who having killed his parents, says he should not be\npunished because he is an orphan.\nOnly the 1976 nominee of the Republican National Convention will\nbe the party's chosen leader.\nThe 1974 amendments to federal election law mandate strict\nexpenditure limitations for all federal candidacies. They do this\nseparately with respect to candidates for the nomination of parties and\nFederal Election ommission\nOctober 14, 1975\nPage Four\nfor the candidates of parties in general elections. Further, the law\nembodies a very expansive and comprehensive definition of contributions\nand expenditures so as to close nearly every potential loophole left in\npast legislative attempts at regulation. This legislative plan clearly\nmanifests the intent of Congress, as ratified by President Ford in\nsigning the law, to establish a system of electoral regulation that would\ncontrol, limit and disclose all expenditures that promote and influence a\nfederal campaign. It cannot be seriously argued that political trips made\nby a declared candidate, as \"leader\" of a political party, directed at\nthose very individuals who will ultimately choose the party's nominee,\ndoes not directly benefit and influence and promote such candidate's\ncampaign. If President Ford's campaign is not charged with the\ncost of trips made as the \"leader\" of the Republican Party under these\ncircumstances then section 608 is not the comprehensive expenditure\nlimitation section it clearly was intended to be.\nIf the Commission's interpretation of this new law is not to favor\nincumbents over other candidates and if the traditional relationship\nof the Presidency to its own political party is not to become a vehicle\nfor allowing the new election law to be gravely distorted then the RNC's\nplanned actions must be modified. It would certainly be divisive within\nthe Republican Party if the RNC were to bestow a non-reportable and\nuncontrolled election benefit on only one candidate for the party's\nnomination. This would raise constitutional questions of whether 18\nU.S.C. section 608's effect, if not its purpose, is to stifle legitimate\npolitical challenges to incumbents from within their own parties.\nIf the party provided truly equal treatment to all candidates for\nits nomination then few serious objections could be raised. Then, the\nparty would not be promoting a campaign but would be providing its\nnational membership with a better opportunity for seeing all its candidates.\nIt would be performing a legitimate informational function by helping\nmembers to make more intelligent choices among the candidates.\nWhile a TV appearance by one candidate benefits his campaign, a program\npresenting all of the candidates equally benefits the electorate. Of\ncourse, a fair and equitable mechanism would have to be worked out\nto determine who the individuals are who are legitimately entitled to\nsuch consideration. But this should not be difficult. A simple criterion,\nlike qualification for federal matching funds, would provide an adequate\nmethod for discriminating between bona fide candidates and others.\nFederal Commission\nOctober 14, 1975\nPage Five\nIf the RNC chooses not to consider such an option it seems to our\ncommittee that its current proposal raises serious questions under both\nthe contribution limitations and the expenditure limitations of section 608.\nIf party \"leadership\" is to confer substantial financial electoral benefits\nit should be both formalized and brought within the guidelines of the\nelection law. Governor Reagan has over the past years raised millions\nof dollars for the Republican Party at numerous party events across the\nnation and by direct mail. He has done this as a member of the party\nwho deeply believes in its principles. Our committee feels that the party\ntreasury, built up in the interests of the whole party, should not become\na vehicle for any single candidate in contest for the party's nomination,\nregardless of any office he may hold.\nIn 1975 and 1976 a new federal election law prevails. Examples\nof past practice no longer suffice to justify present actions. We hope\nour comments will aid the Federal Election Commission in deciding\nthis question.\nVery truly yours,\nLocan a Smith\nLoren A. Smith\nGeneral Counsel\nLAS:jf\ncc: Hon. Thomas B. Curtis\nHon. Neil Staebler\nHon. Joan Aikens\nHon. Thomas E. Harris\nHon. Vernon W. Thomson\nHon. Robert O. Tiernan\nHon. Benton L. Becker\nHon. Mary Louise Smith\nOCT.\nFORCES WORK AT ZINCT LEVEL\nReagan in Race Would Turn the\nBy ANDREW GLASS\nJournal-Constitution Washington Bureaus\nWASHINGTON - On Nov.\nit's every American's right to\n20 or thereabouts, former\nbe stupid,\" he told the under-\nCalifornia Gov. Ronald Rea-\ngraduates.\nHeat on Ford\ngan is expected to make it\nYet, in New Haven or else-\nofficial that he'll run for the\nwhere, Reagan rarely ducks a\nRepublican nomination for\nIt is precisely that kind of\nwelfare rolls when he left of-\nquestion on the issues, al-\nattack from conservatives on\npresident.\nthough he usually digs a\nfice in January 1975 than\nAnd when he does, he is\nCongress and elsewhere that\nchannel in which he can re-\nwhen he took over, \"although\nconvinced the Ford adminis-\nsure to turn up the heat on\ntreat if pressed too hard. The\ngrants to the truly needy were\ntration the canal treaty is too\nPresident Ford.\nonly question he avoids nowa-\nup by 43 per cent.\"\nto\nCitizens for Reagan\nFor President\nOctober 21, 1975\nSen. Paul Laxalt\nChairman\nJohn P. Sears\nExec. Vice Ch.\nGeorge Cook\nSummary of Testimony of Loren A. Smith\nH. R. Gross\nGeneral Counsel, Citizens for Reagan.\nLouie B. Nunn\n(Before the Federal Election Commission\nMrs. Stanhope C. Ring\non Hearings into Proposed Disclosure\nHenry Buchanan\nRegulation Published September 29, 1975\nTreasurer\nin the Federal Register.)\nGeneral Comments:\nOur committee believes that when deciding upon the proper\nregulations for Title 2 of the United States Code sections of the act,\nthree points must be firmly kept in mind.\n1. Political practices are far less institutionalized and far less\norganized than business practices. The majority of individuals performing\nelection functions are volunteers. Therefore, regulations should not be\ngeared just to the on-going professional organization, but rather to\ncitizen participation. While the regulated corporation, engaged over years\nin a business, can be expected to deal with and have the expertise to deal\nwith comprehensive and technical regulations it will only create a class of\ncampaign bureaucrats if the election law regulations become too technical.\nIt is fundamentally unfair to require a volunteer \"industry\" to respond to\ncomplex regulatory practice. Further, while commercial business can\nwrite-off the costs of complying with government regulation as both a tax\ndeduction and cost of doing business, the FEC recently (AO 27) ruled a\nfederal campaign cannot do likewise.\n2. Regulations should be simple and as clear as possible.\nEnforceability is not nearly as important a criteria as comprehensibility.\nFORD & GERALD LIBRARY\n2021 L St., N.W., Suite 340, Washington, D.C. 20036\nPhone: 202/223-8560\nTestimony of Loren A. Smith\nPage 2\nFor a thousand years the basic presumption of the Anglo-Saxon common\nlaw has been that people obey the law. Our tax codes, our criminal codes\nand virtually all our law are based on this notion. Individuals should never\nbe required to do things simply because they might violate a law. It is\nmore important to let individuals know what the rule is than to create\nan elaborate and ambiguous regulation merely to reduce the possibility\nof successful violation. Laws and regulations should not be created with\nthe \"master criminal, \" in mind who might think up an ingenious evasion.\nRather, the focus should be on the average citizen who will obey the law,\nif only it is understandable and not grossly burdensome.\n3. The object of a free society is to encourage citizen volunteer\nparticipation in politics and government. Anything that discourages open\nparticipation in the political process must be looked at very closely,\nand suspiciously.\nSpecific Comments: (Page cites to Federal Register)\nReg. 100.2 (p. 44698) - Candidate\nThis regulation overly broadens the statute by imposing a \"reason\nto know\" requirement on the candidate. It also imposes an unreasonable\naffirmative obligation on an individual requiring a brief time to repudiate\nor affirm efforts on the individual's behalf. This is unfair. The language\nafter the first sentence of 100.2(b) should be stricken.\nReg. 100. 4 (P. 44698) - Contribution\nThere is no such office as a \"vice-presidential elector\" though\n2 U.S.C. section 431(f) uses the term.\nCost, not fair market value, should be the only measure of an\nobject's value. Further, an individual or a corporation, is not required\nto make a profit. As long as an object is furnished at above cost\nTestimony of Loren A. Smith\nPage 3\nan individual should not be deemed by the regulations to have made a\ncontribution to a federal candidacy. Many campaign objects have no\nclearly ascertainable fair market value. Under 100.4(a)(1)(ii) the language.\nand test \"absent evidence to the contrary\" should not be used.\nOnly items that directly benefit a candidate should be treated as\ncontributions. The language in 100.4(a)(1)(ii) seems to confuse indirect\nsource which directly benefits a candidate with indirect benefits. Further,\nthe language \"before the commencement of political activities\" in this\nsection should be eliminated. Only a candidate can be benefited by a\ncampaign contribution. Any relation back theory is both unfair and\nillogical.\nReg. 100.4(b)(2)(ii) (p. 44699) - Contribution\nThis section should be stricken. Its enforcement (even in theory)\ninvades privacy. Further, partial use of the vast majority of residential\npremises for political purposes has no fair market rental value.\nReg. 100. 5 (p. 44699) - Earmark\nThis regulation casts verbiage rather than light upon the statute.\nIt explains a simple term with a complex one. It fails to address the real\nissue: namely what indicia or actions constitute earmarking. Further,\nall earmarking is direct in the sense that to be earmarking it needs a\ncertain degree of direction! Since political committee's have no expenditure\nlimitations \"political committee\" in the last line of this regulation is\nmeaningless.\nReg. 100.7 (p. 44699) - Expenditure\nIn 100. 7(a)(1)(i)(A)(1) it is unfair to treat a loan repayment as an\nexpenditure. If this is done then by borrowing a $1,000 and using it to\nbuy something and then repaying the loan a campaign has expended $2,000!\nTestimony of Loren A. Smith\nPage 4\nThis is double limitation. Further, a loan should only be a contribution\nto the extent it is not paid back. When paid it is no longer a loan. This\nis made explicit when a loan guarantee is discussed under the statute.\nCertainly, refundable deposits should not be treated as expenditures\nat all. Only when not refunded do they become such.\nReg. 100.7 (pp. 44699-700) - Expenditure\nIn-kind contributions should only be treated as expenditures to\nthe extent they are made under the candidate's control and direction.\nThe burden should not be placed on the candidate to prove control did\nnot exist. When an in-kind contribution is sold then only the difference\nbetween the initial value (at the contributor's cost) and the sale price\nobtained should be treated as an expenditure, if any part is to be so treated.\nReg. 100.7 (p. 44700) - Expenditure\nSection 100. 7(a)(2) should be modified to prevent the double\nreporting of expenditures, once when contracted and once when actually\npaid. A campaign should have the option of being a cash or an accrual\naccounting basis.\nReg. 100.7 (p. 44700) - Expenditure\nSection 100. 7(a)(3), as presently written, would bar national\ncampaigns from giving funds to their local subdivisions. The funds should\nbe treated as expenditures only when ultimately spent or the expenditure\nshould be washed out from the amount toward state limits at some point.\nReg. 100.7 (p. 44700) - Expenditure\nDoes 100. 7(b)(1)(i) eliminate the cost of a candidate making\nhimself available for a bona fide news show ? Such costs would be flying\nto an interview on \"Meet the Press\" in another city.\nTestimony of Loren A. Smith\nPage 5\nReg. 100.7 (p. 44700) - Expenditure\nSection 100. 7(b) makes no sense.\nReg. 100.10 (p. 44700) - Identification\nThe requirement of NMI for an individual without a middle initial\nwould be very burdensome for a direct mail fundraising system via\ncomputer. The law itself makes such a fundraising system almost\nmandatory, however.\nReg. 100. 11 and 100.1 2 (p. 44700) - Occupation and Principal\nPlace of Business\nThese regulations should spell out the affirmative duty, if any, on\nthe part of a candidate or political committee to obtain missing data that\nhas been requested but not supplied.\nReg. 100.14 (pp. 44700-701) - Political Committee\nSection 100.14(a)(3) is not a very useful definition since most\nindividuals (in the media) have used it synonymously with a committee\nable to contribute $5,000. The committee described herein may or may\nnot be able to do this. Under section 100.14(b) a committee \"constructively\"\nauthorized by a candidate, but not in writing, would be both authorized\nand unauthorized at the same time.\nSection 100.14(c) is very confusing. The language \"subordinate\"\nshould be substituted for \"affiliated. \"\nSection 100.14(d) should be defined in greater detail. It seems to\ndeal with the 434(e) and 608(e) areas, but its perameter is not clear.\nReg. 102.2 (p. 44702) Forms and Filing\nSection 102. 2(a)(5) should be clarified. Who is a \"principal\nofficer ?\" Who is a member of a \"finance committee ?\" What constitutes\na \"finance committee ?\"\nTestimony of Loren A. Smith\nPage 6\nSection 102. 2(a)(11) should specify \"by regulation properly made. 11\nReg. 103.3 (pp. 44702-703) - Account of Contributions and Expenditures\nThe Commission should allow candidates to treat \"sales\" of\ncampaign material with no intrinsic value (buttons, bumper strips, car\ntops, etc.) as a pure donation. This is a more realistic view of what\nthe real nature of the transaction is. The Commission intimated it might\nallow this during its discussion of Governor Wallace's Advisory Opinion\nrequest on the watches. As presently written 103. 3(d) would be very\nburdensome to the sale of small low cost items.\nReg. 103. 4 (p. 44703) - Photocopies of Checks\nThis regulation is very burdensome and serves no real purpose.\nThe Commission is already requiring photocopying of all checks for\nmatching funds. These must be turned over to the Commission so that\nthis regulation would require another set of copies. When hundreds of\nchecks a week or even a day may be involved this requirement is an\nunfair burden.\nReg. 105.2 (p. 44704) Form and Contents of Reports\nSection 104. 2(b)(7) should make it clear that refunds either\ndeducted from expenditures or refundable deposits are not expenditures.\nMEMORANDUM\nNovember 3, 1975\nTO:\nHarry Bandouveris\nPeter Raye\nFROM:\nBob Visser\nRE:\nRonald Reagan\nAttached hereto is a news article regarding Mr.\nReagan which may be of some interest.\nLIBRARY GERALD R. FORD\nReage\nMEMORANDUM\nNovember 3, 1975\nTO:\nHarry Bandouveris\nPeter Maye\nFROM: Bob Visser\nRE:\nRonald Reagan\nAttached hereto is a news article regarding Mr.\nReagan which may be of some interest.\nFORD i GERALD LIBRARY\nPRIONCT LEVEL\nin Race Would Turn\nBy ANDREW GLASS\nJournal-C onstitution Washington Bureaus\nWASHINGTON - On Nov.\nit's every American's right to\n20 or thereabouts, former\nbe stupid,\" he told the under-\nCalifornia Gov. Ronald Rea-\ngraduates.\nHeat Ford F\ngan is expected to make it\nYet, in New Haven or else-\nofficial that he'll run for the\nwhere, Reagan rarely ducks a\nRepublican nomination for\nIt is precisely that kind of\nwelfare rolls when he infl of\nquestion on the issues, al-\nattack from conservatives OR\npresident.\nfice in January 1975 than\nthough he usually digs a\nCongress and elsewhere that\nAnd when he does, he is\nwhen he took over, \"although\nchannel in which he can re-\nconvinced the Ford adminis-\nsure to turn up the heat on\ngrants to the truly needy were\ntreat if pressed too hard. The\ntration the canal treaty is too\nPresident Ford.\nup by 43 per cent.\"\nonly question he avoids nowa-\nvolatile an issue to deal with\nWhile Reagan still main-\ndays are those that deal with\nReagan also makes much of\nin an election year. A high\ntains that he hasn't decided\nhis plans to run against Ford\nthe fact that Ford had named\nMEMORANDUM\nTO:\nFILE\nRE:\nIOWA REGAN ACTIVITY\nOn 11/10/75, I discussed with Tom Stoner, the\nRepublican Party Chairman for the State of Iowa, the\nactivity of local Conservative Coalition Activists and\nthe local YR'S.\nMr. Stoner indicated that certain individuals,\nspecifically, Wendall Harms, State Chairman of YR'S and\nLeroy Corey, may be working for the Regan Campaign in\nthat State under the guise of the Conservative Coalition\nand the YR'S. Mr. Stoner will contact me in the near\nfuture regarding such activity.\nFORD & GERALD LIBRARY\nr\nMEMORANDUM\nTO:\nFILE\nN\nRE:\nIOWA REGAN ACTIVITY\nOn 11/10/75, I discussed with Tom Stoner, the\nRepublican Party Chairman for the State of Iowa, the\nactivity of local Conservative Coalition Activists and\nthe local YR'S.\nMr. Stoner indicated that certain individuals,\nspecifically, Wendall Harms, State Chairman of YR'S and\nLeroy Corey, may be working for the Regan Campaign in\nthat State under the guise of the Conservative Coalition\nand the YR'S. Mr. Stoner will contact me in the near\nfuture regarding such activity.\nFORD & LIBRARY GERALD\nMEMORANDUM\nNovember 16, 1975\nTO: FROM: Bob Visser REV\nPeter Kaye\nRE:\nRonald Reagan Candidacy\nSections 431 (b), Title 2, United States Code and 591 (b),\nTitle 18, United States Code, both define \"candidate\" as\nfollows:\n\" (b) 'candidate' means an individual who seeks\nnomination for election, or election, to Federal\noffice, whether or not such individual is elected,\nand, for purposes of this paragraph, an individual\nshall be deemed to seek nomination for election, or\nelection, if he has --\n(1) taken the action necessary under\nthe law of a State to qualify himself for\nnomination for election, or election, to\nFederal office; or\n(2) received contributions or made\nexpenditures, or has given his consent for\nany other person to receive contributions\nFORD i GERALD LIBRARY\nor make expenditures, with a view to bringing\nabout his nomination for election, or\nelection, to such office;\nIn an Opinion of Counsel (OC 1975-28) which was noted\nby the Federal Election Commission without objection on\nThursday, November 13, John G. Murphy, Jr., the FEC's General\nCounsel, concluded:\n\"Under 2 U.S.C. §431 (b) and 18 U.S.C. $591(b),\na \"candidate\" is an individual who seeks nomina-\ntion for election or election to Federal office,\nwhether or not a public declaration of candidacy\nis made. One may become a candidate by (1) taking\n- 2 -\nthe necessary action under State law to qualify\nfor nomination or election; or (2) by receiving\ncontributions or making expenditures or consenting\nto others receiving contributions or making expendi-\ntures with a view toward bringing about one's\nnomination or election to Federal office. If\nany of the activities outlined above give rise\nto any expenditure for the purpose of influencing\nyour nomination or election, then you would be\nregarded as a candidate and required to take\nthose steps prescribed by the Act, 2 U.S.C. §431\net seq. You would also at that point be subject\nto the relevant provisions of Title 18, United\nStates Code, including 18 U.S.C. §608. (emphasis\nadded)\nIn a letter, dated July 14, 1975, Governor Reagan\nauthorized the \"Citizens for Reagan\" committee to work on\nhis behalf and consented to the filing of reports by that\ncommittee with the Federal Election Commission (see attached).\nAlthough, Governor Reagan attempted to distinguish between\nhis becoming an \"active Presidential candidate\" from being\na technical candidate under the Act, it is now apparent that\nhe has authorized a committee to collect and expend funds\non his behalf in connection with his seeking the nomination\nfor the Presidency and is a \"candidate\" for purposes of the\nAct.\nAs a candidate, pursuant to Section 434, Title 2,\nUnited States Code, he is required to file Reports of\nReceipts and Expenditures with the Commission. This\nprovision sets out various reporting dates, including the\nrequirement of filing a quarterly report following the close\nof any calendar quarter in which the candidate or political\ncommittee concerned received contributions or made expendi-\ntures in excess of $1,000. Any person who knowingly violates\nany provision of this chapter shall be fined not more than\n$1,000 or imprisoned not more than 1 year, or both. 2 U.S.C.\n$431(a). It is also interesting to note that subparagraph\n(b) of this section provides that in case of any conviction\nunder this chapter \"where the punishment inflicted does not\ninclude imprisonment\" such conviction shall be deemed a\nmisdemeanor conviction only.\nIn view of the above, I believe it would be appro-\npriate to raise the following questions with regard to\nMr. Reagan's \"candidacy\":\n- 3 -\n(1) Are you a \"registered\" candidate under the\nnew Federal Election Campaign Laws?\n(2) Have you authorized a committee to expend\nor collect funds on your behalf in connection with\nyour seeking the nomination for the Presidency of\nthe United States?\n(3) Have you met all of the filing and disclo-\nsure requirements of the Federal Election Campaign\nLaws? In particular have you filed a candidate's\nReport pursuant to Section 431(b)? If not, why not?\n(4) Are you aware that the statute provides\ncriminal penalties for any knowing violation of its\nprovisions?\nIf the response indicates that a different construction\nis placed upon the statutory language, the following questions\nshould be asked:\n(a) How can you maintain that the statute\nrequires a \"public announcement\" of your candidacy\nwhen the FEC has issued an Opinion of Counsel that\npublic announcements do not matter and that the\nstrict terms of the act define a \"candidate\".\n(b) If you now intend to file a report on\nyour behalf, for what period will it relate back\nin terms of your activities for seeking the nomin-\nation?\n(c) Have you been advised by counsel with\nregard to any of these matters?\n(d) Would you care to discuss the alleged\ncomplaint that has been filed against you with\nregard to your radio and TV programs? As we\nunderstand it, the complaint is that you are\nactively collecting and expending monies without\nreporting such activities to the FEC in violation\nof the Federal Election Campaign Laws.\n(e) Are you aware that a request for an\nAdvisory Opinion has been filed inquiring as to\nyour status as a candidate? As you know, corporate\ncontributions to Federal candidates are illegal\npursuant to Section 610, Title 18, United States\nCode.\n- 4 -\n(f) Do your activities and your refusal to\nfile a candidate's Report of Contributions and\nExpenditures place any corporately funded group\nsponsoring you in jeopardy of being in violation\nof the Federal Election Campaign Laws?\nThe above questions are merely illustrative of the\ntype of inquiry that may appropriately be raised in this\nmatter. Please let me know if you have any further questions\nregarding this matter.\nCC:\nBo Callaway\nBob Moot\nStu Spencer\nRONALD REAGAN\nSUITE 812\n10960 WILSHIRE BOULEVARD\nLOS ANGELES, CALIFORNIA 90024\n213/477-8231\nJuly 14, 1975\nThe Honorable Paul Laxalt\nMember, United States Senate\nSenate Office Building\nWashington, D. C. 20500\nDear Paul:\nI am writing this letter in response to your decision to\nchair the \"Citizens for Reagan\" committee. I deeply\nappreciate your action, but I want to inform you that I\nhave not made up my mind whether to become an active\nPresidential candidate. I expect to make this decision\nbefore the end of the year.\nMeanwhile, I recognize that due to the technical require-\nments of the law (including the requirement for the\ndesignation of a principal campaign committee), the\ncommittee must file with the Federal Elections Commission\nas working on my behalf. I trust this letter will suffice\nas my consent for purposes of allowing you to do SO.\nSincerely,\nRan\nRONALD REAGAN\nMEMORANDUM\nNovember 16, 1975\nTO:\nPeter Kaye\nFROM: Bob Visser\nRE:\nRonald Reggan Candidacy\nSections 431(b), Title 2, United States Code and 591 (b),\nTitle 18, United States Code, both define \"candidate\" as\nfollows:\n\"lb) 'candidate' means an individual who seeks\nnomination for election, or election, to Federal\noffice, whether or not such individual is elected,\nand, for purposes of this paragraph, an individual\nwhell be deemed to seek nomination for election, or\nelection, if he has --\n(1) Taken the action necessary under\nthe law of a State to qualify himself for\nnomination for election, or election, to\nFederal office; or\n(2) received contributions or made\ne\nappenditures, or has given his consent for\nany other person to receive contributions\nor make expenditures, with a view to bringing\nFORD & 07V889 LIBRARY\nabout his nomination for election, or\nelection, to such office;\nIn an Opinion of Kounsel (OC 1975-28) which wastnoted\nby the Federal Election Commission without objection on\nThursday, November 13, John G. Murphy, Jr., the FEC's General\nCounsel, concluded:\n\"Under 2 U.S.C. $431 (b) and 18 U.S.C. $591(b),\na \"candidate\" is an individual who seeks nomina-\ntion for election or election to Federal office,\nwhether or not a public declaration of candidacy\nis made. One may become a candidate by (1) taking\n- 2 -\nthe necessary action under State law to qualify\nfor nomination or election; or (2) by receiving\ncontributions or making expenditures or consenting\nto others receiving contributions or making expendi-\ntures with a view toward bringing about one's\nnomination or election to Federal office. If\nany of the activities outlined above give rise\nto any expenditure for the purpose of influencing\nyour nomination or election, then you would be\nregarded as a candidate and required to take\nthose steps prescribed by the Act, 2 U.S.C. $431\net seq. You would also at that point be subject\nto the relevant provisions of Title 18, United\nStates Code, including 18 U.S.C. $608.\" (emphasis\nadded)\nIn a letter, dated July 14, 1975, Governor Reagan\nauthorized the \"Citizens for Reagan\" committee to work on\nhis behalf and consented to the filing of reports by that\ncommittee with the Federal Election Commission (see attached).\nAlthough, Governor Reggan attempted to distinguish between\nhis becoming an \"active Presidential candidate\" from being\na technical candidate under the Act, it is now apparent that\nhe has authorized a committee to collect and expend funds\non his behalf in connection with his seeking the nomination\nfortthe Presidency and is a \"candidate\" for purposes of the\nAct.\nAs a candidate, pursuant to Section 434, Title 2,\nUnited States Code, he is required to file Reports of\nReceipts and Expenditures with the Commission. This\nprovision sets out various reporting dates, including the\nrequirement of filing a quarterly report following the close\nof any calendar quarter in which the candidate or political\ncommittee concerned received contributions or made expendi-\ntures in excess of $1,000. Any person who knowingly vioasees\nanypprovision of this chapter shall be fined not more than\n$1,000 or imprisoned not more than11 year, or both. 2 U.S.C.\n$431(a). It is also interesting to note that subparagraph\n(b) of this section provides that in case of any conviction\nunder this chapter \"where the punishment inflicted does not\ninclude imprisonment\" such conviction shall be deemed a\nmisdemeanor conviction only.\nIn view of the above, I believe it would be appro-\npriate to-raise the following questions with regard to\nMr. Reagan's \"candidacy\":\n- 3 -\n(1) Are you a \"registered\" candidate under the\nnew Federal Election Campaign Laws?\n(2) Have you authorized a committee to expend\nor collect funds on your behalf in connection with\nyour seeking the nomination for the Presidency of\nthe United States?\n(3) Have you met all of the filing and disclo-\nsure requirements of the Federal Election Campaign\nLaws? In particular have you filed a candidate's\nReport pfirsuant to Section 431 (b) If not, why not?\n(5) Are you aware that the statute provides\ncriminal penalties for any knowing violation of its\nprovisions?\nIf the response indicates that a different construction\nis placed upon the statutory language, the following questions\nshould be asked:\n(a) How can you maintain that the statute\nrequires a \"public announcement\" of your candidacy\nwhen the FEC has issued an Opinion of Counsel that\npublic announcmentss do not matter and that the\nstrict terms of the act define a \"candidate\".\n(b) If you now intend to file a report on\nyour behalf, for what period will it emlatedback\nin terms of your activities for seeking the nomin-\nation?\n(6) Have you been advised by counsel with\nregard to any of these matters?\n(d) Would you care to discuss the alleged\ncomplaint that has bean filed against you with\nregard to your radio and TV programs? As we\nunderstand it, the complaint is that you are\nactively collecting and expending monies without\nreporting such activities to the FEC in violation\nof the Federal Election Campaign Laws.\n(e) Are you aware that a request for an\nAdvisory Opinion has been filed inquiring as to\nyour status as a candidate? As you know, corporate\ncontributions to Federal candidates are illegal\npursuant to Section 610, Title 18, United States\nCode.\n- 4 -\n(f) Do your activities and your refusal to\nfile a candidate's Report of Contributions and\nExpenditures place any corporately funded group\nsponsoring you in jeopardy of being in violation\nof the Federal Election Campaign Laws?\nThe above questions are merely illustrative of the\ntype of inquiry that may appropriately be raised in this\nmatter. Please let me know if you have any further questions\nregarding this matter.\nCC:\nBo Callaway\nBob Moot\nStu Spencer\nNovember 19, 1975\nMEMORANDUM\nTO:\nALL STAFF PK\nFROM: PETER KAYE\nTo date, these are television appearances we have arranged in\nconnection with the Reagan announcement.\nCBS MORNING NEWS\nFriday, November 21, 7:40 a.m.\nMel Laird\nNBC TODAY SHOW\nMonday, November 24, 7:30 a.m.\nBo Callaway\nPBS MARTIN AGRONSKY\nMonday, November 24, 7:30 p.m.\nBo Callaway\nPANORAMA\nTuesday, November 25, 12:30 p.m.\nBo Callaway\nFORD & GERALD LIBRARY\nTHE PRESIDENT FOR COMMITTEE'S REACTION TO R REAGAN ANNOUNCEMENT\nNovember 20, 1975 E-ple\nDespite how well Ronald Reagan does or does not do in the\nearly primaries, the simple political fact is that he cannot\ndefeat any candidate the Democrats put up. Relagan's constituency\nis much too narrow, even within the Republican Party.\nNow that he has finally ended his indecision and declared\nhis candidacy, it does nothing to change our plans to run an\naggressive, grassroots campaign for President Ford.\nAlthough former Governor Reagan's announcement was not\nunexpected, it is disappointing to many Republicans. While not\nunmindful of his ability, he does not have the critical\nnational and international experience that President Ford has\ngained through 25 years of public service, first in the House\nof Representatives, then as Vice-President and as President.\nWe have an incumbent president who is doing an effective\njob in dealing with the tough problems confronting our nation.\nI am confident that Republicans throughout the entire\nnation recognize this fact and overwhelmingly support the\nPresident.\nThe President Ford Committee is a broad-based group\nworking for President Ford's nomination. We want a united\nparty going into the General Election. Any motion against\nunity is counter-productive and damaging to our prospects\nnext November.\nFORD i GERALD LIBRARY\nMEMORANDUM\nNovember 24, 1975\nTO:\nBo Callaway\nStu Spencer\nFROM:\nBob Visser\nRE:\nReagan Candidacy\nNow that Ronald Reagan has formally announced his\ncandidacy for the Presidency, we will check with the FEC\nand obtain a copy of any and all reports he files with\nthe Commission. I anticipate that he will not list any\nexpenditures prior to the date of his announcement and\nwould appreciate any information we may have collected\nwith regard to expenditures in connection with his radio-\nTV program and newspaper column. As soon as the report\nhas been filed and this information is available, we will\nprepare a memorandum outlining possible legal approaches\nto this situation.\nFORD & GERALD LIBRARY\nMEMORANDUM\nNovember 24, 1975\nTO:\nBo Callaway\nStu Spencer\nFROM:\nBob Visser\nRE:\nReagan Candidacy\nNow that Ronald Reagan has formally announced his\ncandidacy for the Presidency, we will check with the FEC\nand obtain a copy of any and all reports he files with\nthe Commission. I anticipate that he will not list any\nexpenditures prior to the date of his announcement and\nwould appreciate any information we may have collected\nwith regard to expenditures in connection with his radio-\nTV program and newspaper column. As soon as the report\nhas been filed and this information is available, we will\nprepare a memorandum outlining possible legal approaches\nto this situation.\nFORD & GERALD LIBRARY\nMEMORANDUM\nNovember 24, 1975\nTO:\nBo Callaway\nStu Spencer\nFROM: Bob Visser\nRev\nRE:\nReagan Candidacy\nNow that Ronald Reagan has formally announced his\ncandidacy for the Presidency, we will check with the FEC\nand obtain a copy of any and all reports he files with.\nthe Commission. I anticipate that he will not list any\nexpenditures prior to the date of his announcement and\nwould appreciate any information we may have collected\nwith regard to expenditures in connection with his radio-\nTV program and newspaper column. As soon as the report\nhas been filed and this information is available, we will\nprepare a memorandum outlining possible legal approaches\nto this situation.\nFORD & GERALD LIBRARY\nReagn\nMEMORANDUM\nDecember 16, 1975\nTO:\nBo Callaway\nStu Spencer\nPeter Kaye\nFROM: Bob Visser\nRE:\nReagan Candidacy\nAttached hereto is a copy of the Wall Street Journal\neditorial of this date which may be of interest to you.\nFORD i LIBRARY GERALD\nREVIEW & OUTLOOK\nMr. Reagan's Success\nDespite Ronald Reagan's star- latest and largest of a series of ca-\ntling success in the Gallup Poll, it\npricious decisions by a President\nremains to be seen how he will ac-\nunsure of his own directions and in-\nquit himself in a full-fledged presi-\nterests.\ndential campaign. But we are to-\nThis damage to the President's\ntally unimpressed by the arguments\ncause can only be compounded by\nbeing used against him by, among\nthe attitude his camp is taking to-\nothers, President Ford's campaign\nward Mr. Reagan. At the Southern\nmanager.\nRepublican Conference over the\nDespite eight years as governor\nweekend, both Ford campaign man-\nof\nthe\nHoward\nU\nCallex\nand\nVice\nThe Harris Survey REAGAN'S BIG MISTAKE\nFORD & LIBRARY CERALD\nAPR 30 1976\nFor Release: April 19, 1976\nBy Louis Harris\nThere is mounting evidence that former California Gov. Ronald Reagan made a wrong political move\nwhen he drew the line between himself and President Ford over the issue of U.S. cooperation with the Soviet Union.\nIn the latest Harris Survey, conducted among a cross section of 1,512 adults nationwide, public\nbacking for detente continues to be high at a 59-23 per cent level only slichtly down from the 62-15% majority who\nve.\nCopyright 1976 by the Chicago Tribune.\nWorld Rights Reserved.\n76: 33\nDRAFT\nTTR:jr\n12/22/75\nTO:\nBo Callaway\nStu Spencer\nSkip Watts\nJack Stiles\nFROM: Tim Ryan\nRE:\nRegan Activity - Delegate Selection\nIt has recently come to our attention that the Regan\nlawyers continue to seek proportional delegate representation\nin States where we have our greatest strength. It is our\nopinion that all field coordinators and local political\nchairmen should be notified of this attempt by the Regan\npeople. Moreover, any attempt to switch State delegate\nselection procedures from \"winner-take-all\" to proportional\nshould be immediately reported to this office. In this manner,\nwe can best challenge any such attempt.\nFORD & GERALD LIBRARY\nwow\nyourou ONE\n200\nOUX\ngoecial\nwe\nVisa /\nSee :\n#47 ship\n& Oberapour\n1001 9 page and\n(C)\nEujoicemeur\nthe A\nOHICE of\nent to\nWEEKLY REPORT\nDave Liggett\nDecember 15, 1975\nCalifornia\n1.\nRonald Reagan report.\nWe still have not picked up any overt movement to organize the\nstate. The phoning that has been done that we have heard about is on\na very limited basis. I have a report that they have tried to hire a\na Republican Central Committee staffer, Don Willett, for a position\nin the campaign to organize I.D. and voter turn-out for the primary.\nDon turned it down and is remaining with the State Committee. That is\nthe only intelligence I have as to how they are moving organizationally.\n2. Regarding Bo Callaway's remarks in Houston over the weekend. Com-\nments have been generally negative from our people. I am forwarding\nto you under separate cover some newspaper clippings conveying those\nevents.\n3. Budget has been sent to you under separate cover to you today. The\nbudget was approved December 10th at the Steering Committee meeting.\nYou will see the figures representing essentially a voter I. D. and\nturn-out program with additional emphasis on press and the use of the\ntelephone for volunteer recruiting and traditional conversion and re-\nenforcement campaign approach.\n4\nDelegation\nAt the request of the Steering Coomittee, I am requesting that\nthey be dully authorized to begin a delegate selection program here in\nCalifornia. It is my understanding that technically they need authori-\nzation from the campaign or the President to begin such activities. The\nSteering Committee would like to send a letter to Republican Legislators\nand Republican Executive Committee and all Republican County Chairmen in-\nforming them of the being of the program to elect a delegation and in-\nquiring of their interest. If the Steering Committee needs an authori-\nzation to begin such efforts please forward same or let me know.\n5. In a separate communication, I am sending Peter Kaye a proposed\npress release regarding the 11th commandant. Attached to that release\nare some comments by Jim Halley he made when he was State Chairman. The\nspokesman for the release has not been filled in, and I want to coordin-\nate with Peter Kaye and get his imput.\n2.\n6. No organizational report. I have little to add in addition to\nreport of last week. Certainly, I feel that our organization momentum\nhas been considerable slowed down due to recent events and to the off-\nset of the Christmas seaseon. However, I am using this time to try\nto get a few things going in some of our counties where we are essen-\ntially weak. Mailings are presently being planned for Orange County,\nRiverside, San Bernadino and San Diego County. I would anticipate\nthat those mailings would be going into the mail primarily in January\nwith the exception of San Diego, we may get into the mail prior to\nChrismas.\n7\nRegarding equal time provisions.\nI have been contacted by KHJ TV here in California, who ran a\nRonald Reagan movie over the weekend providing the Ford Committee\nwith an appropriate amount of equal time. They have requested that\nI send them a letter formalizing the request. I will certainly do so,\nhowever, I wish to inquire to Bob Visser and the legal council there\nas to whether in the future I should be initiating such letters\nrequests or they prefer to do it there in Washington.\n8. I repeat my earlier request for information on any special Commit-\ntee that you might be organizing at the national level. Such input\nwould be valuable since we are beginning organization of some special\ncommittee here in California.\n9. Fund Raising in California.\nNita attended the California Finance Committee's initial meeting\nfor the March Fund Raising luncheon for the President. Her comments\nregarding that meeting were that she felt the finance people certainly\nwere naive to the political situation and were approaching it rather\ncalmly. Apparently, they decided on a $500 a plate luncheon in San\nFrancisco. My only comment is that that certainly will not be adequate\nto get the job done here.\nFORD & GERALD LIBRARY\nnat 12/16/75\nMEMORANDUM\nDecember 22, 1975\nTO:\nBo Callaway\nStu Spencer\nSkip Watts\nJack Stiles\nFROM: Tim Ryan\nRE:\nReagan Activity - Delegate Selection\nIt has recently come to our attention that Reagan's\nlawyer continues to seek proportional delegate representa-\ntion in States where we have our greatest strength. It is\nour opinion that all field coordinators and local Political\nChairmen should be notified of this attempt by the Reagan\npeople. Moreover, any attempt to switch State delegate\nselection procedures from \"winner-take-all\" to proportional\nshould be immediately reported to this office. In this\nmanner, we can best challenge any such attempt by Reagan\nto undermine our support.\nFORD i LIBRARY GERALD\nHHC\nMEMORANDUM\nDecember 22, 1975\nTO:\nBo Callaway\nStu Spencer\nSkip Watts\nFROM: Jack Tim Ryan Stiles KR\nRE:\nReagan Activity - Delegate Selection\nIt has recently come to our attention that Reagan's\nlawyer continues to seek proportional delegate representa-\ntion in States where we have our greatest strength. It is\nour opinion that all field coordinators and local Political\nChairmen should be notified of this attempt by the Reagan\npeople. Moreover, any attempt to switch State delegate\nselection procedures from \"winner-take-all\" to proportional\nshould be immediately reported to this office. In this\nmanner, we can best challenge any such attempt by Reagan\nto undermine our support.\nFORD & GERALD LIBRARY\nMEMORANDUM\nDecember 22, 1975\nTO:\nBo Callaway\nStu Spencer\nSkip Wattx\nJack Stiles\nFROM: Tim Ryan\nRE:\nReagan Activity - Delegate Selection\nIt has recently come to our attention that Reagan's\nlawyer continues to seek proportional delegate representa-\ntion in States where we have our greatest strength. It is\nour opinion that all field coordinators and local Political\nChairmen should be notified of this attempt by the Reagan\npeople. Moreover, any attempt to switch State delegate\nselection procedures from \"winner-take-all\" to proportional\nshould be immediately reported to this office. In this\nmanner, we can best challenge any such attempt by Reagan\nto undermine our support.\nFORD & GERALD LIBRARY\nThe President Ford Committee\nDecember 23, 1975\nEarl Adams\nClifford B. Anderson\nAssemblyman\nDixon Arnett\nMrs. Nita Ashcraft\nCharles Bakaly\nDr. William S. Banowsky\nMEMORANDUM\nRobert S. Barnes\nRobert F. Beaver\nDr. Arnold Beckman\nMrs. Marsha Bents\nTO:\nStu Spencer\nMrs. Margaret Brock\nMrs. Elsie Buchenau\nBob Visser\nAsa Call\nSkip Watts\nRoy Crocker\nStuart Davis\nJohn V. Diepenbrock\nFROM: Dave Liggett\nKim Fletcher\nJohn P. Guerin, Jr.\nPaul Haerle\nJames Halley\nJim Horwitz, who you know Stu, contacted me regarding\nBruce Hazard\na complaint to the FEC. Attached is the correspondence\nDavid B. Holland\nJohn H. Holoman\nregarding this complaint.\nNorman Houston\nDavid James\nWithout making any commitment to Jim I said I would\nLouis Johnson\nRobert C. Kirkwood\nnose around. I will wait for your recommendation for\nC. Douglas Kranwinkle\naction.\nAssemblyman\nJerry Lewis\nPutnam Livermore\ncp\nMrs. Katie Martinez\nRobert Mayer\nEnclosures\nPeter McAndrews\nArch Monson. Jr.\nAssemblyman\nFrank Murphy\nDavid Packard\nLeon Parma\nCharles Reed\nHenry Salvatori\nTaft Schreiber\nWaller Taylor\nCharles Thomas\nCongressman\nBob Wilson\nAttorney General\nEvelle Younger\nFORD i RALD LIBRARY\n4201 Long Beach Boulevard, Suite 415, Long Beach, California 90807 213 - 595-1676\nBETWEEN\nValley Publication, Inc.\nTHE\nLINES\n4616 W. MAGNOLIA BLVD.\nBURBANK, CALIFORNIA, 91505\nDedicated to\n\"INDEPENDENT INQUIRY\nAND\n(213) 877-5643\nINVESTIGATIVE REPORTING\"\nJuly 28, 1975\nCommission Chairman Thomas B. Curtis\nFederal Election Commission\n1325 \"K\" Street, N.W.\nWashington D.C., 20005\nDear Mr. Curtis:\nAs a Los Angeles County Election Commissioner and a private citizen, I have studied\nthe Federal Election Campaign Act in relation to Ronald Reagan, his radio commentary\non 320 stations, and the sponsors of his commentary. In that regard, I file the follow-\ning complaints:\nHe is in violation of not filing his \"Off Year\" contributions received and ex-\npenditures, due April 10th and July 10, 1975. He has legally qualified July\n24, 1975 by his committee registering with your commission; but according\nto Title 2, Chapter 14, Section 431 (b) (2), \"Candidate means an individual\nwho seeks nomination for election\nif he has\nmade expenditures,\nor has given his consent for any other person to\nmake expenditures,\nwith a view to bringing about his nomination for election, to such office.\"\nHis daily radio commentary has been used as such a tool since the first of\nthis year. (Chapter 14, Section 431 (f) (1) (A), regarding 'expenditure',\nwould also apply)\nThe banks, labor organizations or corporations that are sponsoring his pro-\ngram, such as Joseph Coors, are in violation of Title 18, Chapter 29, Sec-\ntion 610. \"It is unlawful for any national bank, or any corporation\nto make a contribution or expenditure in connection with any election\n11\n\"Every Corporation\nwhich makes any contribution or an expendi-\nture in violation of this section shall be fined not more than $25.000\n\"\nIf you rule that Reagan has been a candidate since Jan. 1, 1975, the cor-\nporations and banks have been in violations since then. If you don't agree,\nthen they have been breaking the law since July 24th.\nAny non-corporation business or individual that spends more than $1,000\nthis year as a sponsor of his program is in violation of Title 18, Chapter\n29, Section 608 (b) (1).\nEvery sponsor of Reagan's Commentary and/or every radio station that car-\nries it, that hasn't filed reports is in violation, per Title 2, Chapter 14,\nSection 437a, \"Any person who expends any funds\nfor the purpose\nof influencing the outcome of an election, or who publishes or broadcasts to\nthe public any material\nsetting forth the candidates position on\nCommission Chairman Thomas B. Curtis\nFederal Election Commission\nJuly 28, 1975\nPage 2\nany public issue\nshall file reports with . the Commission as if\nsuch person were a political committee\nIf\nFurthermore, I request that you rule that the total amount expended by. spon-\nsors for his commentary be accumulated against his allowable $10 million,\nnationwide, if he enters any primaries. (Title 18, Chapter 29, Section 608\n(c) (1) (A)) Under the same section, the amount expended in each state for\nhis program should be accumulated against the amount allowed in each state.\nIn most political campaigns, candidates or their agents buy advertising time directly\nfrom radio stations. In this case, the stations have been buying the commentary from\nConnor Creative Services, Los Angeles; then the stations sell it to sponsors. It might\nvery well call for the FCC to examine this rather unusual action with each station in-\nvolved.\nMr. Curtis, in the first year of existance for most of these campaign reform laws, it\nwould be a travesty if you don't concur that Ronald Reagan is breaking part of the let-\nter of the law, and is totally breaking the spirit of the law. No one will ever adher to\ncampaign laws if your commission doesn't start right off with tough enforcement.\nYours truly,\nJames Wountz\nJames Horwitz\nPresident\ncc: FCC\nKABC\nL.A. Registrar-Recorder\nCalif. Sec. of State\nRonald Reagan\nJoseph Coors Co.\nHJH/et\nFEDERAL ELECTION COMMISSION\nWASHINGTON, DC 20463\nSeptember 3, 1975\nCertified Mail\nReturn Receipt Requested\nMr. James Horwitz, President\nValley Publication, Inc.\n4616 West Magnolia Boulevard\nBurbank, California 91505\nDear Mr. Horwitz:\nThis will acknowledge receipt of your complaint filed under\nthe Federal Election Campaign Act, as amended, alleging violations\nof the Act by the Citizens for Reagan Committee, and Sections\n608 (b) (1) and 610 of Title 18, United States Code by sponsors of\nMr. Reagan's radio commentaries.\nA copy of your complaint has been forwarded to Mr. Reagan\nand Mr. Henry Buchanan, Treasurer of the Citizens for Reagan\nCommittee. They have been requested to respond to the matters\nraised in your complaint within ten days after the receipt of\ntheir copy of your complaint. You will be supplied with copies\nof any responses they may make, and invited to make further\ncomments if you desire.\nIn keeping with the provisions of Title 2, United States\nCode, Section 437g(a) (3) of the Act and our interim complaint\nprocedure guideline, the complaint will not be made available for\npublic inspection and no announcements will be made by this\nOffice concerning the status of any inquiry or investigation which\nmight ensue without the written consent of the person with respect\nto whom such inquiry or investigation is made.\nSingerely,\nGAM:vlf\nCC: Ronald Reagan\nHenry Buchanan\nBETWEEN\nValley Publication, Inc.\nTHE\nLINES\n4616 W. MAGNOLIA BLVD.\nBURBANK, CALIFORNIA, 91505\nDedicated to\n\"INDEPENDENT INQUIRY\nAND\n(213) 761-5440\nINVESTIGATIVE REPORTING\nOctober 10, 1975\n::\nGordon Andrew McKay\nAssistant Staff Director\nFor Disclosure and Compliance\nFederal Election Commission\nWashington, DC 20463\nDear Mr. McKay:\nin regard to your response (copy enclosed) to my complaint. you\nstated Mr. Reagan and Mr. Buchanan had ten days to answer. 000\nthey received their copy of the complaint. It is now over 40 car\nCould you please respond.\nThanks,\njäme\nJames Horwitz. President\nValley Publications, inc.\nHJH/ge"
}