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1674141
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Reagan Candidacy (1)
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1674141
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Reagan Candidacy (1)
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collections
President Ford Committee Records
Robert Visser's Political Files
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Presidential campaign, 1976
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1976-11-30
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The original documents are located in Box D13, folder "Reagan Candidacy (1)" of the
President Ford Committee Campaign Records at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald R. Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
\
40,585 87,511
$ 128,096
FORD & LIBRARY GERALD
I
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dreen they 1.
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d. file
ARIZONA CITIZENS FOR REAGAN
The Grand Canyon State
CHAIRMAN
NONAVIE DYER
CO-CHAIRMAN
JACK SMITHBAKER
CO-CHAIRMAN
HOWARD BALDWIN
LIBRARY GERALD R. FORD
Dear State Committeeman:
The Arizona campaign for Ronald Reagan for President is
beginning. We need your help.
Ronald Reagan is a proven leader who has firm, positive
solutions to our welfare mess, rising crime, runaway taxes,
crippling inflation, and bureaucratic controls.
January 1st will begin the steady drive to carry Ronald
Reagan to victory in Kansas City and to the Presidency.
We are asking you to join our march to the White House!
In behalf of Mr. Reagan, we would appreciate your help in
obtaining the following two items:
#1 A list of your friends and acquaintances who
support Ronald Reagan and are willing to work
in his behalf.
#2 Begin to acquire endorsements to be used in the
campaign (endorsement forms enclosed), and return
them to Arizona Citizens for Reagan, P.O. Box 25083,
Phoenix, Arizona 85002.
With Best Wishes for the New Year,
Nonavie
Nonavie Dyer (Mrs. Lee)
Arizona Chairman
Enclosures -
A copy of our report is filed with the Federal Election Commission and is available for purchase from the Federal Election Commission, Washington D.C.
Twin -
Slim, FYI- -
E-Rile
to: "CITIZENS
FOR
REAGAN"
FORD & LIBRARY GERALD
12 North 20th Street
Birmingham,
Alabama 35203
324-9112
I would like to help return sani-
ty to our government. Put me
down as a volunteer worker in
the ELECTION OF GOV. RON-
ALD REAGAN to the PRESI-
DENCY.
Enclosed is my contribution
(Make check to: "Citizens for
Reagan.") (Tax deductible to
$200, joint return)
CALL - 324-9112
Name
Occupation.
Address
City
State
Zip.
Pd. Pol. ADV. by
"CITIZENS for REAGAN,"
Judge Guy Hunt,
STATE CHM.
SACRAMENTO
U.S. POSTAGE
for P.Kage
JAN 19 76
E24E
-
EMETER
CALIF
5110523
ms. Jim Ryan
Suite 250
1828 h st NW
Washington, D.C.
(BERTY
THROUGHOUT
Please remove the preaddressed label and attach it to the return
20036
filed. If the return is prepared by someone other than the taxpayer,
please be sure that the preaddressed label is used.
PROCLAIM
LAND.
CALIFORNIA.
EUREKA OF THE STATE
THE
OF
STATE OF CALIFORNIA
FORD LIBRARY & GERALD
CALIFORNIA
INDIVIDUAL
540
INCOME TAX
HOLD
40 PAGE BOOKLET
Contains Schedules A, B, C, D, E, F, R & DE 1964
FULL-YEAR RESIDENTS
This booklet reflects changes in the Personal Income Tax Law applicable to
1975. Read these instructions carefully before preparing your return.
IMPORTANT CHANGES INCLUDE:
Optional tax tables increased to $15,000. See page 8.
Child care expenses. See instructions to Schedule A.
Excess contribution carryover. See instructions to Schedule A.
Forfeited interest penalty. See instructions page 5.
Tax Preference Income. See instructions page 5.
SEE PAGE 10 FOR IMPORTANT REMINDERS AND FRANCHISE TAX BOARD OFFICES
DUE DATE APRIL 15, 1976
If you have a REFUND, mail your return to:
If you have a BALANCE DUE, mail your return
and your remittance to:
FRANCHISE TAX BOARD
P.O. Box 13-540
FRANCHISE TAX BOARD
Sacramento, CA 95813
Sacramento, CA 95867
Page 2 540 INSTRUCTIONS
Page
3
540
INSTRUCTIONS
FILING REQUIREMENTS
SPECIFIC INSTRUCTIONS
A. Residents of California
Special Low Income Tax Credit
Name, Address and Social Security Number
cost of food. It does not include an individual's personal expenses,
Residents of California for the entire taxable year are required to file
Please use your preaddressed label if possible. Correct the name,
or any amount which represents value of services rendered by a
For calendar year 1975 and fiscal years beginning in 1975, a special low
a return on Form 540 within 3½ months after the end of the taxable
income tax credit of 100 percent is provided. If you qualify for this credit,
address and social security number(s) if necessary. If label is not used,
member of the household or the taxpayer.
year if the following income requirements are met:
your net tax liability (line 23, Form 540) may be zero.
type or print your name, address and social security number(s) in the
Enter the name of the individual who qualified you as head of house-
spaces provided. If filing a joint return, enter first names and middle
hold on line 4 of Form 540.
1. Single-If adjusted gross income (line 16, Form 540) exceeds $3,250,
To qualify for this credit your adjusted gross income must be $8,000 or
initials of both spouses (for example: John F. and Mary L. Doe). If married
or if total income (line 14, Form 540) exceeds $7,000, exclusive of
less if married filing jointly, head of household or widow(er) with de-
and filing a separate return, enter your spouse's full name on line 3
LINE 5-Widow(er) With Dependent Child-If your spouse died in 1973 or
business expenses and losses.
pendent child, or $4,000 or less if single or married filing separately and
of Form 540.
1974, you can compute your tax using the joint return rates if you
2. Married-If the combined adjusted gross income (line 16, Form 540)
you were a California resident at the end of your taxable year.
meet the following tests:
(a) You did not remarry prior to January 1, 1976.
exceeds $6,500, or if the combined total income (line 14, Form 540)
You may claim the special low income tax credit by completing the
Filing Status
exceeds $7,000, exclusive of business expenses and losses.
applicable lines 1 thru 16 and entering zero on line 23.
(b) You could have filed a joint return with your spouse for the
Enter an "X" in the box which designates your filing status. Your filing
year your spouse died.
3. Head of Household-If adjusted gross income (line 16, Form 540)
Although you may qualify for this credit, you may still be subject to the
status is determined as of the last day of your taxable year. If your spouse
exceeds $3,250, or if total income (line 14, Form 540) exceeds $7,000,
tax on preference income. See page 5 of instructions.
died during the taxable year, you are considered married for the entire
(c) You have a child or stepchild you can claim as a dependent
for 1975.
exclusive of business expenses and losses.
year.
(d) Your home was the main home of that child during 1975, except
If you had California income tax withheld and you do not otherwise
B. Part Year Residents and Nonresidents of California
LINE 1-Single-An individual who is unmarried, divorced (final decree or
for temporary absences for vacation, school, etc.
meet the filing requirements, it is necessary to file a return to get a refund.
If you were a part year resident or a nonresident of California, you
judgment of dissolution), or legally separated. If you were a "Married
Check the box on line 5 "Widow(er) with Dependent Child" and enter
If you and your spouse are married and living apart, you may file as
are required to file a return on Form 540NR. A part year resident is tax-
person living apart from your spouse" as described below, consider
year of spouse's death in space provided.
able on all income, regardless of source, which accrued during the period
yourself single.
single or as head of household. See the requirements on page 3 for your
If your spouse died in 1975 and you did not remarry during the year,
correct filing status.
of residency. A nonresident is taxable on any income derived from Cali-
fornia sources. If there is a tax liability after apportioning your allowable
LINE 2-Married Filing Joint Return-A husband and wife may file a
you are considered married for the entire year. You may file either as
joint return by combining their income, deductions and exemptions.
married filing a joint return or married filing a separate return.
standard deduction and exemption credits, a return must be filed on Form
Filing a Return for the Renter's Credit Only
This may be done even where one spouse had no income. However,
If the surviving spouse did remarry before the end of the year a return
540NR.
a joint return cannot be filed if one spouse was a resident for
must be filed by the executor or administrator of the deceased spouse's
If you are not required to file a return because you do not meet the
the entire year and the other spouse was a nonresident for all or
estate. The filing status for the deceased would be a separate return of a
filing requirements and you are filing a return only for the purpose of
C. Deceased Taxpayer
any portion of the taxable year. This exception does not apply if the
married person.
receiving the renter's credit, please complete the following:
If an individual died before filing a return for 1975, the executor,
nonresident or spouse was an active member of the armed forces or
1. Use the preaddressed label for the name and social security number
administrator or the surviving spouse must file a return for the decedent.
any auxiliary branch thereof (other than Public Health Service) during
Exemption Credits
information. If the label is not available, please print or type this
A joint return for you and your deceased spouse may be filed by you and
the taxable year.
LINE 6-Enter Your Allowable Personal Exemption
information in the appropriate section.
the executor or administrator, provided you did not remarry before the
LINE 3-Separate Return of a Married Person-Separate returns may be
Single, or married filing a separate return
$25.00
2. Complete applicable filing status, lines 1 through 5, Form 540.
end of the year in which your spouse died. If an executor or adminis-
filed by each spouse, each reporting his or her separate income and
Married couple filing a joint return
$50.00
trator has not been appointed, you may file a joint return and indicate
3. Enter your adjusted gross income for the taxable year on line 16,
deductions plus one-half of their community income and deductions.
Head of household
$50.00
in the signature area that you are filing as the surviving spouse.
Form 540.
If one spouse claims itemized deductions, the other spouse may not
Widow(er) with dependent child
$50.00
If the taxpayer (or your spouse) died during the year, please indicate
take the standard deduction or use the Tax Table, unless you were
4. Enter your allowable Renter's Credit on lines 27 and 33 and com-
the date of death in the name and address area. This should be done by
living apart from your spouse (see instructions below). Enter spouse's
The full exemption credit is allowable to a married couple even if one
plete Part I on page 2 of Form 540. See instructions below for the
full name in space provided.
listing the deceased individual's name and then "deceased" and the date.
spouse died during the year, provided the surviving spouse did not remarry
allowable Renter's Credit.
-Married and Living Apart from Your Spouse-Some married people
before the end of the year. If the surviving spouse did remarry before
If a refund is due, attach Form FTB 3545, Statement of Claimant to Refund
5. Sign your return. Both spouses must sign if filing a joint return.
Due-Deceased Taxpayer.
can file as Single or as Head of Household and ignore the rules for
the end of the year, the return for the deceased spouse should claim a $25
married people filing separate returns. This means that if your spouse
exemption credit as married filing a separate return.
6. Mail your return to Franchise Tax Board, P.O. Box 13-540, Sacramento,
itemizes deductions, you do not have to. You can use the standard
If you qualified for head of household status as of the last day of your
California 95813.
D. Military Personnel
deduction if you want. Both you and your spouse can file this way
taxable year, the following special conditions should be noted:
California military personnel are considered nonresidents for State
if both meet the tests.
For additional information regarding Renter's Credit, please refer to page
(a) No dependent credit is allowed for the dependent qualifying you
5 line 27 of these instructions.
income tax purposes when serving at out-of-state posts of duty under
You can file as a single person and check the block on line 1
as head of household.
permanent military orders. If the spouse remains a California resident and
for Single, if you meet all of the following tests:
(b) If the individual who qualified you as head of household died dur-
the serviceperson retains California domicile, the spouse is taxable on
Allowable Credit:
(a) You file a separate return.
ing the year, you are still entitled to head of household status,
one-half of the community income. Out-of-state military personnel serving
provided you meet the other requirements.
If your adjusted gross income
The allowable
at posts of duty in California are not subject to California tax on their
(b) You paid more than half the cost to keep up your home for
(line 16, Form 540) is:
1975.
(c) A taxpayer who died during the taxable year will still be qualified
credit is:
military pay unless California domicile is adopted. Any income from other
for the head of household exemption.
$ -0-$4,999
$25
than military sources earned in California is taxable. If California domicile
(c) Your spouse did not live in your home at any time during 1975.
5,000- 5,999
30
is adopted, California will tax the entire income received during the period
(d) For over six months of 1975, your home was the main home
LINE 7-Dependent and Student Exemption Credits
6,000- 6,999
35
of residence. Declarations filed with military service branches that show
of your child or stepchild whom you can claim as a dependent.
You may claim a dependent credit of $8 for each individual (other than
7,000- 7,999
40
California as the state of legal residence will be treated as presumptive
You can check the block on line 4 for head of household if your
husband or wife) who (1) was a member of your household for your entire
8,000 and over
45
evidence of California residence.
home in test (d), above, was the child's main home for all of 1975.
taxable year; or (2) was related to you in one of the following ways:
Child*
Grandparent
Brother-in-law
NOTE: All questions in Part I on page 2 of Form 540 must be answered
Part or all military service pay may be exempt from tax. See instructions
LINE 4-Head of Household-To qualify you must, on the last day of
Stepchild
Stepbrother
Sister-in-law
for credit to be allowed.
for Military Exclusion on page 5.
your taxable year, have been single or legally separated from your
Grandchild
Stepsister
If related by blood
Brother
Son-in-law
Uncle
spouse under a decree of separate maintenance, and you must have
Sister
Daughter-in-law
Aunt
furnished over half the cost of maintaining a household which was
Parent
Father-in-law
Nephew
FEDERAL PRIVACY ACT INFORMATION
occupied throughout the entire year, except for temporary absences,
Stepparent
Mother-in-law
Niece
by:
the enforcement of liability of absent parents, and the prosecution of any
(a) yourself and your qualified dependent (other than a dependent
Includes a child who is a member of your household if placed with you by an
Social security numbers must be included. Such numbers are used
authorized placement agency for legal adoption, or a foster child who is a
primarily to administer and enforce the Personal Income Tax and Bank
person who has fraudulently obtained aid for a child (Welfare and Institu-
qualifying under a multiple support agreement or a dependent
member of your household for the entire year.
and Corporation Tax Laws; to exchange income tax information with the
tions Code Section 11478); and (3) to offset against refunds amounts due
not related to you); or
NOTE: No dependent credit is allowed for an individual required to qualify you as
U.S. Internal Revenue Service, other states, other tax officials of this
"head of household.'
state, and the Multi-state Tax Commission (Revenue and Taxation Code
to a state agency by a person or entity (Government Code Sections 12419.4
(b) yourself and your unmarried child, grandchild, foster child or
Section 19286). In addition, statutorily provided nontax uses are: (1) To
and 12419.5). Information furnished to other agencies or persons shall
stepchild, even though such child is not your dependent; or
To qualify as a dependent, the following tests must be met:
provide information to the Department of Benefit Payments with respect
be used solely for the purpose of administering tax laws or the
(c) your father or mother who is your qualified dependent.
1. The dependent must have received less than $750. (If your child was
to applicants or recipients of assistance under Division 9 of the Welfare
specific laws administered by the person having the statutory right to ob-
under 19 or was a student, this limitation does not apply.)
and Institutions Code (Revenue and Taxation Code Section 19286.5); (2) to
tain it as indicated above. (For the Franchise Tax Board's authority to pre-
Cost of maintaining the home includes such items as rent, property
2. Received more than one-half his/her support from you.
assist county welfare departments, district attorneys and probation officers
scribe forms and to require furnishing of social security numbers, see Title
for use in locating any parent who has abandoned or deserted children,
insurance, property taxes, mortgage interest, repairs, utilities and
18, California Adm. Code, Ch. 3, Subchapter 2.5, Reg. 18431-18433(d).)
3. Did not file a joint return with his/her spouse.
Page
5
540
INSTRUCTIONS
Page 4 540 Instructions
If you were paid in whole or in part in merchandise, services, stock, or
LINE 13-Other Income (Continued)
If you choose to itemize your deductions, complete and attach Schedule
LINE 7-Dependent and Student Exemption Credits (Continued)
other things of value, determine the fair market value of such items and
A (Form 540), and enter the total of each deduction on page 2. lines 56
A copy of the completed appropriate schedule must be attached to your
through 61, and the total of these lines on line 62, and on page 1, line 17.
A student is one who was enrolled in full-time study at a recognized
include it in your wages.
return. Substitute schedules may be used if all information required by the
educational institution, or who attended a full-time course of institutional
official schedule is shown.
NOTE: If one spouse claims itemized deductions, the other spouse may
on-farm training under an accredited agent of an educational institution or
Generally, if you received compensation in the form of property, such the as
not take the standard deduction or use the Tax Table unless
stock that is subject to restriction, you must report as compensation
Miscellaneous Income-If you had any other income, not specifically
married living apart from your spouse. See page 3 of instructions.
of a state or its political subdivision for part of 5 calendar months. The if
unrestricted value of the property at the time of its receipt unless your
provided for elsewhere on your return or other schedules, identify the
interest is subject to a substantial risk of forfeiture and is nontransferable.
source and enter the amount received on line 47.
To determine your taxable income subtract line 17, deductions, from
calendar months need not be consecutive. A person is not a student
line 16, adjusted gross income.
he is employed full time during the day and attends school at night.
This is the same as the Federal rule.
The following sources of income are included under this heading:
Your taxable income is used to compute your tax using the Tax Rate
You can claim the full $8 credit for a dependent who was born or who
If as a matter of choice, received meals and lodging from your
employer, you, whether or not designated as wages, you must include their
1. Fully taxable pension and annuity payments.
Schedule on page 8. Refer to the Schedule that conforms to your filing
died during the year if the above qualifications are met for that part
2. Alimony.
status (single, married filing separate returns, head of household, married
of the year during which the dependent was alive.
fair market value in income.
3. Contest prizes and awards.
filing joint returns or widow(er) with dependent child). Then find the line
If two or more persons contributed toward the support of an individual
However, if your meals were furnished at your place of employment as
4. Recovery of a bad debt previously deducted.
covering your taxable income. Enter on page 1, line 19, Form 540 the tax
and no one person contributed more than 50 percent, the support
convenience to your employer, or you were required to accept lodging
5. Reimbursed medical expenses.
computed for this taxable income and check the Tax Rate Schedule box.
requirement may be satisfied if a multiple support agreement (Form 540M)
a at your place of employment as a condition of your employment, do not
6. Amount of personal indebtedness which was forgiven.
Income Averaging-If your taxable income for the current year exceeds
report the value of the meals or lodging.
7. Other items that reduced your tax liability in an earlier year.
your average income of the previous four years by one-third and you were a
is completed and attached to your return.
If the parents are divorced or separated a determination must be made
Any amount received directly or indirectly from your employer as a
California resident for all of the current year and the four preceding base
payment for or reimbursement for moving from one residence to another
LINE 15-Adjustments to Income
period years, you may qualify for the benefits of the income averaging
as to which parent is entitled to the dependent credit.
is includible as compensation. See instructions for line 15, adjustments
Adjustments for sick pay, moving expenses, employee business expense,
provisions. Refer to Schedule G (Form 540) to calculate your tax under
this section. Check the Schedule G box on page 1, line 19, Form 540.
These rules apply only if the divorced or separated parents together
to income, to determine the allowable moving expense deduction.
military exclusion, payments as a self-employed person to a retirement
furnish more than one-half the child's support for the calendar year and if
plan and forfeited interest penalty are to be summarized on page 2, lines
Report the full amount of compensation received for military service.
49 through 54, and the total entered on line 55 and on page 1, line 15.
Special Averaging Methods-There are two special averaging methods
the child is in his parents custody for more than half the calendar year.
See instructions for Military Exclusion on page 5 for deducting the
The qualifications for these items are substantially the same for Cali-
that may apply to your lump-sum distributions from a qualified employees'
plan. The "5-year special averaging method" applies to distributions
Generally, the parent who has custody of the child for the greater part
military compensation that is nontaxable.
fornia as for federal income tax purposes, with the exception of the
self-employed person's retirement plan, moving expenses and the military
received by self-employed individuals, or those who own a share of either
of the year is entitled to the dependent credit. However, the noncustodial
bonds, and educational benefits received under Federal and State law
Military mustering-out pay, terminal leave and unused leave pay and
exclusion.
the capital interest or the profits interest in a partnership. The "7-year
parent is entitled to the dependent credit if:
special averaging method" applies to distributions received by employees
1. The noncustodial parent contributed at least $600 toward the child's
are not taxable and need not be reported.
NOTE: California has not adopted the 1974 Federal Law regarding the
who perform services for an employer. If you qualify, complete and attach
Employees Retirement Income Security Act changes. Amounts con-
support during the calendar year and the decree of divorce or
separate maintenance or a written agreement between the parties
Military allowances for quarters, subsistence or uniforms, and disability
tributed to individual retirement accounts are not deductible. All
Schedule G-1 (Form 540), obtainable from any office of the Franchise Tax
pension, annuity or similar allowances for personal injuries, or sickness
earnings credited to these accounts are taxable to the individual
Board, to your return. Enter the computed tax on page 1, line 19 of
Form 540 and check the Schedule G-1 box.
specifies this parent as being entitled to the credit; or
resulting from active service in the armed forces of any country are not
in the year the earnings are credited to the account.
2. The noncustodial parent provided $1200 or more for the child's (or
taxable and need not be reported.
For California purposes, the deductions for contributions to self-
NOTE: California has not adopted the new federal 10-year averaging
children's) support during the calendar year and the parent having
employed plans (commonly known as Keogh or HR-10 plans) are
provision.
custody does not clearly establish providing more for support.
limited to the lesser of 10% of earned income or $2,500.
LINE 11-Dividends
Distributions from self-employed retirement plans and distributions of
You can claim an $8 credit if you supported an elementary or high
Dividends, other than liquidating dividends or dividends paid out of
You must include on page 1, line 10, amounts received as payment
benefits from employee benefit plans attributable to post-1969 contribu-
capital, are taxable in full as ordinary dividends. California does not
for or reimbursement for moving from one residence to another that is
tions and allocations do not qualify as long-term capital gains under
school student (not a dependent or relative) in your home for at least 6
months under a written agreement with a charitable organization. No
allow any dividend exclusion or capital gain treatment of "capital gain
attributable to employment or self-employment.
State law.
dividends" received from "regulated investment companies."
For an employee, these amounts should appear on the Form W-2 your
reimbursement for expenses can be received and you cannot deduct the
employer gives you. For a self-employed individual, these amounts should
LINE 22-Other Credits
expenses as a charitable deduction.
Enter the total amount of taxable dividends on line 11. If the amount
be reflected in the statement of income and expenses.
(a) Credit for Net Income Tax Paid to Another State
A subject or a citizen of a foreign country may not be claimed as a
exceeds $400, complete and attach Schedule B (Form 540).
If you moved into or out of California, the deduction for moving
dependent, unless he was a resident of the United States, Canada, Mexico,
expenses is limited to the lesser of:
If you derived income from sources within any of the following states
1. The actual expenses incurred, or
and paid a NET INCOME tax to that state on income which you report to
Republic of Panama or the Canal Zone at some time during the calendar
LINE 12-Interest
Report all taxable interest you received or which was credited to your
California, you may claim a credit, subject to limitations explained below,
2. The amount of reimbursement.
year 1975.
account. Interest on bonds, debentures, notes, loans, tax refunds and all
against your California tax at line 63, page 2, Form 540.
LINE 8-Blind Exemption Credit
types of savings accounts including banks, credit unions and postal
Military Exclusion
Alabama, Alaska, Arkansas, Colorado, Delaware, Georgia, Hawaii, Idaho, IIII-
nois, lowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan,
An additional credit may be claimed if you and/or your spouse (if filing
savings, is taxable.
"Extended active duty-noncombat service over 90 days"-First $1,000
Minnesota (except personal service income), Mississippi, Missouri, Montana,
Nebraska, New Mexico, New York, North Carolina, North Dakota, Ohio, Okla-
a joint return) were blind at the end of the taxable year. If totally blind,
attach a statement to that effect to your return. If partially blind, attach
Interest which is not taxable is:
of military pay is excluded.
homa, Oregon, Pennsylvania, Rhode Island, South Carolina, Utah, Vermont and
(a) Interest on bonds of the United States, the District of Columbia,
"Combat service and hospitalization resulting from combat"-
Wisconsin.
a statement from a qualified physician or a registered optometrist that
Enlisted personnel and commissioned warrant officers-All military
You are not allowed a credit against your California tax for amounts
(a) central visual acuity did not exceed 20/200 in the better eye with
and territories of the United States.
pay is excluded.
paid to the following states or territories:
correcting lenses, or (b) that the widest diameter of the visual field sub-
(b) Interest on bonds of the State of California and its political
Commissioned officer-first $500 per month plus $1,000 of remainder.
Arizona, District of Columbia, Guam, Indiana, Maryland, Minnesota (on personal
tends an angle no greater than 20°. If this statement was filed with a
subdivisions.
(Maximum exclusion $7000.)
service income), Virginia and West Virginia.
prior year return, it need not be filed again as long as your condition
Enter the total amount of taxable interest on line 12. If your interest
"Prisoner of War-Missing in Action"-All military pay, including spouse's
No credit may be allowed for income taxes paid to any city, the federal
income exceeds $400, complete and attach Schedule B (Form 540).
community interest in such pay is excluded.
government, or a foreign country.
remains unchanged.
"Reserve pay, military pensions and retirement pay"-Reserve pay in-
If you were a member of a partnership or if you were a beneficiary of
LINE 13-Other Income
cludes pay received for required drill periods, summer encampment,
an estate or trust which paid a net income tax to another state on income
Your Income
All income received, unless specifically exempted, must be reported on
Pensions and annuities, rents and royalties, income from partnerships,
attendance at service school, or any formation for which Federal pay
is authorized.
which you must report to California, you may obtain a credit against
the return even though it may be offset by adjustments and deductions.
estates and trusts, net profit (or loss) from profession, business, and/ or
your California income tax in the same manner as though you had paid
farming, gains (or losses) from sale or exchange of capital assets, gains
First $1,000 of such pay is excluded. However, this exclusion must be
Residents who leave California for a temporary or transitory stay are con-
the tax yourself.
sidered to be residents during their absence and are taxable on all of their
(or losses) from sale or exchange of property other than capital assets,
reduced by 50 cents for each dollar of adjusted gross income (before
and income from all other sources are to be summarized on page 2, lines
exclusion) in excess of $15,000. If married, the combined adjusted
See instructions for Schedule S (Form 540) obtainable from any office of
income.
gross income of both spouses must be considered. Where both
the Franchise Tax Board. If eligible, complete and attach that schedule
NOTE: All amounts may be rounded off to the nearest dollar.
39 through 47, and the total entered on line 48 and on page 1, line 13.
spouses are qualified to claim this exclusion, one-half of the com-
to your return and enter your credit on page 2, line 63 of Form 540.
Schedules C, D, D-1, E and F (Form 540) are used to report the details
bined adjusted gross income is attributable to each spouse.
You need not report disability retirement and other benefits paid by the
of the above items. These schedules may be obtained from any Franchise
(b) Retirement Income Credit
Veterans Administration; dividends on Veterans' insurance (but interest on
If separate returns are filed and each spouse reports one-half of the
such dividends is taxable); life insurance proceeds, upon death; workers'
Tax Board office.
military income, the military exclusion must be divided equally on each
See instructions for Schedule R (Form 540). If you qualify complete and
compensation, insurance, damages, etc., for injury or sickness; insurance
The requirements are generally the same under the State and Federal
return.
attach that schedule to your return and enter your credit on page 2,
reimbursements for excess of actual living expenses over normal living
laws; however, the following exceptions should be noted:
Enter your allowable military exclusion on page 2, line 52.
line 64 of Form 540.
expenses resulting from damage to your principal residence by fire or other
(a) Pensions and annuities with a starting date prior to January 1,
Tax Computation
LINE 24-Tax on Preference Income
casualty; federal social security benefits; gifts, inheritances, bequests (but
1968 are treated differently. See Schedule E (Form 540).
If your adjusted gross income on line 16 Form 540 is less than $15,000
Schedule P (Form 540), Tax on Preference Income, must be filed if you
income from such property is taxable); or interest on Federal and California
(b) No deduction is allowed for a net operating loss carryover or carry-
and you do not itemize deductions, use the Tax Table on page 8 to de-
had items of tax preference (accelerated depreciation, stock options,
state and municipal bonds.
termine your tax. The Tax Table provides for the standard deduction. Enter
depletion or capital gains) in excess of $8,000 ($4,000 if single or married
back.
the tax from the Tax Table on page 1, line 19, Form 540 and check the
filing separately) even though there is no tax due. See instructions on
LINE 10-Wages, Salaries, Tips, Etc.
Report the full amount of wages, salaries, fees, commissions, tips,
(c) No deduction is allowable from gross income which is directly
Tax Table box.
Schedule P (Form 540).
bonuses and other payments for personal services, including services
derived from illegal activities, such as gambling and bookmaking,
If your adjusted gross income on line 16 is $15,000 or more, or you
or from activities which directly tend to promote or are directly
claim itemized deductions, enter on line 17 the total of your itemized
LINE 27-Renter's Credit
performed outside California, that you received from your employer, even
associated with such illegal activities.
deductions or the allowable standard deduction indicated below:
For 1975, California allows a refundable credit to qualified renters,
though taxes and other amounts have been withheld. Also include wages
$1,000-Single, or married filing a separate return.
ranging from $25 to $45, depending on the individual's adjusted gross
for which you did not receive a Form W-2.
(d) The amount of gain (or loss) to be taken into account from the
income. The credit is refundable; i.e., if the renter has no income tax
sale or exchange of property other than capital assets is different
$2,000-Head of Household, widow(er) with dependent child, or
liability, a refund will be made in the amount of the credit. Refer to the
Tips reported to your employer are included as wages on Form W-2. In-
from the federal. See Schedules D and D-1 (Form 540).
married couple filing a joint return. See page 3 of instructions.
table on page 2 for the allowable Renter's Credit.
clude with other amounts on line 10 tips not reported to your employer.
Page 6 540 INSTRUCTIONS
Page 7
540 INSTRUCTIONS
To Qualify for the Renter's Credit:
2. If both spouses were nonresidents for part of the taxable year, the
CALIFORNIA STATE GASOLINE TAX GUIDE
1. You must have been a resident of California on March 1, 1975; and
credit shall be divided equally between them and each spouse will
be allowed one-twelfth of his or her half of the credit for each full
(7¢ a gallon)
2. You must have, on March 1, 1975, rented and occupied a house or
month of residence in California.
dwelling in California which was your principal place of residence.
You 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
Owning and occupying a mobilehome situated on rented land satisfies
LINE 28-California Estimated Tax Payments
driven in a four-cylinder (or less) car, the deduction for that mileage should be one-half of the table amount. If you can establish
this requirement.
If you and your spouse filed a joint declaration of estimated tax for
1975 but do not file a joint income tax return for the year, the total
that you paid a larger amount you are entitled to deduct that amount. Enter deduction on line 15 of Schedule A (Form 540).
You Do NOT Qualify for the Renter's Credit if:
estimated tax paid may be claimed on the separate return of either
spouse, or divided between you in agreed amounts.
1. The rented property was exempt from property taxes, unless you
Mileage
Tax
Mileage
Tax
Mileage
Tax
If you and your spouse filed separate estimated tax declarations for
were required to pay property taxes on your possessory interest in
1975 and you elect to file a joint income tax return for the year, enter
Under 3,000
$12
7,000 to 7,499
$42
13,000 to 13,999
$78
such residence; or
on this line the total of the amounts paid on the separate declarations.
3,000 to 3,499
19
7,500 to 7,999
45
14,000 to 14,999
84
2. You lived with another person who claimed you as a dependent for
Follow the above instructions even if one spouse has died.
3,500 to 3,999
22
8,000 to 8,499
48
15,000 to 15,999
90
income tax purposes; or
If you expect your California income tax for 1976 to exceed the
4,000 to 4,499
25
8,500 to 8,999
51
16,000 to 16,999
95
3. You or your spouse were granted the homeowner's property tax
California income tax withheld by $100 ($50 or more if married and filing
4,500 to 4,999
28
9,000 to 9,499
53
17,000 to 17,999
101
exemption, unless the spouse granted the homeowners' property tax
separately), you will be required to file a declaration of estimated tax.
5,000 to 5,499
30
9,500 to 9,999
56
18,000 to 18,999
107
exemption maintained a residence separate from yours for the entire
This does not apply if 80 percent or more of the estimated tax is to be
5,500 to 5,999
33
10,000 to 10,999
61
19,000 to 19,999
113
taxable year; or
paid through withholding.
6,000 to 6,499
36
11,000 to 11,999
67
20,000 miles
116
The filing dates for the declaration and installment payments of esti-
6,500 to 6,999
4. You or your spouse received for the entire year welfare payments
39
12,000 to 12,999
72
which included housing or shelter needs. However, one-twelfth of
mated tax are April 15, June 15, September 15, 1976, and January 17,
the allowable credit will be allowed for each full month of the
1977-the same as for the federal program.
* For over 20,000 miles, use table amounts for total mileage driven. Example: for 25,000 miles add the deduction for 5,000
taxable year you did not receive these payments.
Forms and instructions will be supplied by the Franchise Tax Board in
to the deduction for 20,000 miles.
Other Residence Rules:
time for you to meet this requirement. However, failure to receive these
forms by mail will not excuse you from this obligation. For further details,
An unmarried person who was not a California resident for the entire
contact any Franchise Tax Board office.
CALIFORNIA SALES AND USE TAX DEDUCTION GUIDE
taxable year shall receive one-twelfth of the allowable credit for each
full month of residence in California.
LINE 29-California State Disability Insurance (SDI)
The amounts specified below are average payments and will be allowed as deductions on State income tax returns without requiring
If a husband and wife lived apart for the entire taxable year, they may
If you worked for two or more employers in 1975, and had California
substantiation. Any additional amounts attributable to major purchases, e.g., an automobile, should be added to the table amount.
claim two credits, providing they qualify for the credit. The two credits
State disability insurance (SDI) in excess of $90 deducted from your
Larger amounts claimed may require substantiation by the taxpayer. Local sales tax at 11/4 percent is included. If the 1/2-cent local
can be taken if either joint or separate returns are filed. If a joint
earnings, you should claim the excess deduction as a credit against your
return is filed, a schedule reflecting the adjusted gross income of
income tax. If a joint return, separate computations must be made for
rapid transit sales tax was paid all year, increase the table amount by 9 percent. Enter deduction on line 16 of Schedule A (Form 540).
each spouse and a statement that they maintained separate residences for
each spouse. Complete and attach Form DE 1964, Claim for Credit or
the entire year should be attached. To determine the correct amount of
Refund of Excess State Disability Insurance Overpayment, to the face
of Form 540.
Total of Adjusted Gross Income
Size of Family
credit to be claimed, the adjusted gross income for each spouse must be
determined.
LINE 30-Total Prepayment Credits
and Nontaxable Receipts
1-2
3-4
5
Over 5
If a husband and wife do not live apart for the entire year, they are
Please be sure that:
entitled to only one credit. The credit may be taken by either spouse or
Under $3,000
$51
$61
$68
$68
divided equally between them, except in the following situations:
1. The tax withheld is entered on line 26.
$3,000- 3,999
66
78
87
87
1. If one spouse was a resident for the entire taxable year and the
2. The renter's credit is entered on line 27.
4,000- 4,999
80
93
104
104
other spouse was a nonresident for all or part of the year, the
3. The estimated tax payments are entered on line 28.
5,000- 5,999
93
107
120
120
resident spouse will be allowed the full credit.
4. The excess SDI payments are entered on line 29.
6,000- 6,999
106
121
135
136
7,000- 7,999
118
134
149
152
8,000- 8,999
130
147
163
167
GENERAL INSTRUCTIONS
9,000- 9,999
141
159
176
181
10,000-10,999
152
171
189
195
A. Interest and Penalties
Attach Form FTB 5805, Underpayment of Estimated Tax by Individuals,
11,000-11,999
163
183
202
209
Interest must be added to any tax due when it is not paid by the due
(if applicable) to the face of your return.
12,000-12,999
174
194
214
222
date, even though an extension of time to file the return has been filed.
13,000-13,999
184
205
226
235
The rate of interest should be computed at 6% for the first year of
D. Form W-2 Missing or Incorrect
14,000-14,999
194
216
238
248
delinquency and 12% thereafter.
Only your employer can issue or correct a Form W-2. If you have not
15,000-15,999
204
227
249
260
Penalties may also be imposed for failure to file a return and/or under-
received a Form W-2 by January 31, or if Form W-2 is incorrect, contact
your employer as soon as possible.
16,000-16,999
214
238
260
272
payment of the tax by the original or extended due date.
If you are unable to obtain a Form W-2 from an employer, complete
17,000-17,999
224
248
271
284
B. Attachments to the Return
Federal Form 4852, Employee's Substitute Wage and Tax Statement, and
18,000-18,999
233
258
282
296
Attachments may be used in support of or in place of the official
attach to the face of your return.
19,000-19,999
242
268
293
308
schedules. They must be appropriately identified. Follow the format of the
official schedules and include all required information. If an attachment
E. Where to Get Advice
If your income was $20,000 or more, compute your deduction by adding the following:
is substituted for an official schedule, the schedule need not be filed.
Consult any of the Franchise Tax Board permanent offices. If you do
(a) amount shown on last line of table for your family size, plus
not live in the vicinity of one of these offices, you may obtain assistance
(b) 2% of (a) for each $1,000 (or fraction thereof) of income $20,000 to $49,999, plus
C. How to Assemble Your Return
at one of the temporary offices located throughout the State. Advance
(c) 1% of (a) for each $1,000 (or fraction thereof) of income $50,000 to $99,999.
Attach copy 2 of Form(s) W-2 and W-2P to face of Form 540. Failure
notice of the dates and locations of these temporary offices is given
through local newspapers, radio and television stations in your area.
If your income was $100,000 or more your deduction is 210% of amount in (a).
to attach the Form W-2 to your return will delay any refund. If retired and
receiving pension or retirement pay, attach Form W-2P only if California
income tax was withheld or to substantiate exclusion of sick pay. Attach
F. Changes to Your Federal and State Returns
CALIFORNIA MOTOR VEHICLE LICENSE FEE GUIDE
Claim for Credit or Refund of Excess State Disability Insurance Overpay-
If your Federal return is changed by the Internal Revenue Service you
ment (Form DE 1964) to face of Form 540. Attach required schedules with
are required to report the change to the Franchise Tax Board within 90
You can deduct California Motor Vehicle license fees, exclusive of the annual registration and weight fees. Subtract from the total
supporting statements (if any) in alphabetical order followed by forms in
days of the Federal change.
license fee the appropriate amount listed below. The balance is deductible on line 17 of Schedule A (Form 540).
numerical order to back of return. Be sure the totals on each schedule are
If you have an adjustment to make on your California return, an amended
entered on the appropriate lines of Form 540.
return should be filed on Form 540X.
Passenger car
$11.00
Motorcycle
$11.00
Station wagon
$11.00
Trailer
$11.00
Trucks:
Trucks:
Unladen Weight
Weight Fee
Registration
Total
Unladen Weight
Weight Fee
Registration
Total
-0- 2,999 lbs.
$ 5.00
$11.00
$16.00
9,001-10,000 lbs.
$146.00
$11.00
$157.00
3,000- 4,000 lbs.
15.00
11.00
26.00
10,001-11,000 lbs
165.00
11.00
176.00
4,001- 5,000 lbs.
32.00
11.00
43.00
11,001-12,000 lbs.
186.00
11.00
197.00
5,001- 6,000 lbs.
62.00
11.00
73.00
12,001-13,000 lbs.
207.00
11.00
218.00
6,001- 7,000 lbs.
83.00
11.00
94.00
13,001-14,000 lbs.
228.00
11.00
239.00
7,001- 8,000 lbs.
104.00
11.00
115.00
14,001 and over
247.00
11.00
258.00
8,001- 9,000 lbs.
124.00
11.00
135.00
* Total to be subtracted from license fee, balance deductible.
Page 8
(C)
Joint
$112
540 INSTRUCTIONS
return of
married
couple or
widow(er)
dependent
RESIDENT
INDIVIDUAL
with
child
TAXABLE YEAR
115
118
121
124
127
130
133
136
139
142
145
148
151
154
157
160
163
166
169
172
175
178
181
184
187
190
194
198
202
206
210
214
218
222
226
230
234
238
242
246
250
254
258
262
266
270
274
278
282
286
290
294
298
302
306
309
540
CALIFORNIA
1975
INCOME TAX
THE TAX SHALL BE
(B)
Head of
household
$122
125
129
133
137
141
145
149
153
157
161
165
169
173
177
181
185
190
195
200
205
210
215
220
225
230
235
240
245
250
255
260
266
272
278
284
290
296
302
308
314
320
326
332
338
344
350
357
364
371
378
385
392
399
406
413
418
PLACE PREADDRESSED LABEL HERE, if available. (Correct name and address, if necessary)
Check
Calendar Year
Enter social security number(s) only if incorrect or not shown on label.
One:
Fiscal Year Ending
1976
NAME (If joint return, give first names and initials of both)
FOR FEDERAL PRIVACY ACT NOTIFICATION
LAST NAME
SEE PAGE 2 OF INSTRUCTIONS
Your Social Security Number
(A)
Single person
(not head of
household) or
separate return
of married
person
PRESENT HOME ADDRESS (Number and street, including apartment number, or rural route)
$254
260
266
272
278
284
290
296
302
308
314
320
327
334
341
348
355
362
369
376
383
390
397
404
411
418
425
433
441
449
457
465
473
481
489
497
505
513
521
529
537
545
554
563
572
581
590
599
608
617
626
635
644
653
662
671
677
Spouse's
Social
Security
Number
CITY, TOWN OR POST OFFICE, STATE AND ZIP CODE
OCCU-
Yours
PATION
Spouse's
The 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
you do NOT itemize deductions (the Tax Table provides for the allowable standard deduction). In all other cases you must use the Tax Rate Schedules.
TAX TABLE (Provides for $1,000 and $2,000 standard deduction. Do not use Table if itemized deductions are claimed.)
But
less
than
$9,450
9,550
9,650
9,750
9,850
9,950
10,050
10,150
10,250
10,350
10,450
10,550
10,650
10,750
10,850
10,950
11,050
11,150
11,250
11,350
11,450
11,550
11,650
11,750
11,850
11,950
12,050
12,150
12,250
12,350
12,450
12,550
12,650
12,750
12,850
12,950
13,050
GROSS INCOME
13,150
13,250
13,350
13,450
13,550
13,650
13,750
13,850
13,950
14,050
14,150
14,250
14,350
14,450
14,550
14,650
14,750
14,850
14,950
15,000
FILING STATUS-Check Only One:
EXEMPTION CREDITS
If line 1 or 3 checked, enter $25
1
Single
6 Personal
IF ADJUSTED
If line 2, 4 or 5 checked, enter $50
6
00
AT LINE 16,
PAGE 1, IS:
2
Married filing joint return (even if only one had income)
7 Dependents - Do not list yourself, your spouse or the person who qualifies you
as head of household. Enter name and relationship.
3
At
least
Separate return of married person-Enter spouse's
$9,350
9,450
9,550
9,650
9,750
9,850
9,950
10,050
10,150
10,250
10,350
10,450
10,550
10,650
10,750
10,850
10,950
11,050
11,150
11,250
11,350
11,450
11,550
11,650
11,750
11,850
11,950
12,050
12,150
12,250
12,350
12,450
12,550
12,650
12,750
12,850
12,950
13,050
13,150
13,250
13,350
13,450
13,550
13,650
13,750
13,850
13,950
14,050
14,150
14,250
14,350
14,450
14,550
14,650
14,750
14,850
14,950
social security number and full name here
4
Head of Household-Enter name of qualifying
Total Number
$8
7
00
individual
8 Blind (refer to instructions) Number of blind exemptions
X $8
8
00
5
Widow(er) with dependent child (Year spouse died 197
)
9 Total exemption credits (add lines 6, 7 and 8) Enter here and on line 20
9
00
(C)
TAX TABLE AND TAX RATE SCHEDULES
Joint
return of
married
couple or
widow(er)
with
dependent
child
$80
82
84
86
88
90
92
94
96
98
100
103
106
109
10 Wages, salaries, tips and other employee compensation
Attach copy 2 of Form(s) W-2 to face of this
return. If unavailable, see instructions, Page 6
10
11 Dividends-before federal exclusion. Enter total (if over $400, complete and attach Schedule B(540) )
11
12 Interest. Enter total (if over $400, complete and attach Schedule B(540) )
12
THE TAX SHALL BE
(B)
Head of
household
13 Income other than wages, dividends and interest (from line 48)
13
$80
83
86
89
92
95
98
101
104
107
110
113
116
119
14 Total (add lines 10, 11, 12 and 13)
14
ATTACH COPY 2 OF FORM W-2 HERE
15 Adjustments to income (from line 55)
15
16 Adjusted gross income (subtract line 15 from line 14)
Single person
(not head of
household) or
separate return
of married
If line 1 or 3 is checked and line 16 is $4,000 or less, enter zero tax on line 23.
Do not complete
(A)
person
$0
40
42
44
46
48
53
56
59
62
65
68
71
74
77
80
83
86
68
92
95
99
103
107
115
123
127
135
139
143
147
151
155
230
If line 2, 4, or 5 is checked and line 16 is $8,000 or less, enter zero tax on line 23.
lines 17 thru 22
50
160
165
170
175
178
185
190
195
200
205
210
215
220
225
242
248
16
111
119
131
181
236
If you do NOT itemize deductions AND line 16 is under $15,000, find tax in Tax Table and enter on line 19.
If you itemize deductions OR line 16 is $15,000 or more, complete lines 17 and 18.
17 Deductions: Itemized (from line 62) OR STANDARD ($1,000 if line 1 or 3 checked-$2,000 if line 2, 4 or 5 checked)
17
But
less
than
$4,001
4,050
4,150
4,250
4,350
4,450
4,550
4,650
4,750
4,850
4,950
5,050
5,150
5,250
5,350
5,450
5,550
5,650
5,750
5,850
5,950
6,050
6,150
6,250
6,350
6,450
6,550
6,650
6,750
6,850
6,950
7,050
7,150
7,250
7,350
7,450
7,550
7,650
7,750
7,850
7,950
8,001
8,050
8,150
8,250
8,350
8,450
8,550
8,650
8,750
8,850
8,950
9,050
9,150
9,250
9,350
18 Taxable income (subtract line 17 from line 16) Compute tax from Tax Rate Schedule-Enter tax on line 19
18
IF ADJUSTED
GROSS INCOME
AT LINE 16,
PAGE 1, IS:
19 Tax from (check one) Tax Table
Tax Rate Schedule
Income Averaging Schedule (G or G-1)
.
19
20 Total exemption credits (from line 9, above)
20
At
least
Under
$4,001
4,050
4,150
4,250
4,350
4,450
4,550
4,650
4,750
4,850
4,950
5,050
5,150
5,250
5,350
5,450
5,550
5,650
5,750
5,850
5,950
6,050
6,150
6,250
6,350
6,450
6,550
6,650
6,750
6,850
6,950
7,050
7,150
7,250
7,350
7,450
7,550
7,650
7,750
7,850
7,950
8,001
8,050
8,150
8,250
8,350
8,450
8,550
8,650
8,750
8,850
8,950
9,050
9,150
9,250
21 Tax liability (subtract line 20 from line 19-if line 20 is greater than line 19, enter zero)
21
22 Other credits (from line 65)
22
23 Net tax liability (subtract line 22 from line 21-if line 22 is greater than line 21, enter zero)
23
24 Tax on preference income (see instructions-attach Schedule P(540) )
24
25 Total tax liability (add lines 23 and 24)
25
26 Total California income tax withheld (attach W-2 or W-2P to face of this return)
26
Separate Return of a Married Person
$20 plus 2% of amount over $2,000
50 plus 3% of amount over 3,500
95 plus 4% of amount over 5,000
155 plus 5% of amount over 6,500
230 plus 6% of amount over 8,000
320 plus 7% of amount over 9,500
425 plus 8% of amount over 11,000
545 plus 9% of amount over 12,500
680 plus 10% of amount over 14,000
830 plus 11% of amount over 15,500
$40 plus 2% of amount over $4,000
100 plus 3% of amount over 7,000
190 plus 4% of amount over 10,000
310 plus 5% of amount over 13,000
460 plus 6% of amount over 16,000
640 plus 7% of amount over 19,000
850 plus 8% of amount over 22,000
1,090 plus 9% of amount over 25,000
1,360 plus 10% of amount over 28,000
1,660 plus 11% of amount over 31,000
$40 plus 2% of amount over $4,000
80 plus 3% of amount over 6,000
125 plus 4% of amount over 7,500
185 plus 5% of amount over 9,000
260 plus 6% of amount over 10,500
350 plus 7% of amount over 12,000
455 plus 8% of amount over 13,500
575 plus 9% of amount over 15,000
710 plus 10% of amount over 16,500
860 plus 11% of amount over 18,000
27 Renter's credit-if you lived in rented property on March 1, 1975, complete Part 1 on page 2
27
TAX RATES
TAX RATES
TAX RATES
28 1975 California estimated tax payments
28
29 Excess California SDI tax withheld (attach Form DE 1964 to face of this return)
29
30 Total prepayment credits (add lines 26 thru 29)
30
TAX RATE SCHEDULES
1%
1%
1%
31 If line 25 is larger than line 30, enter BALANCE DUE. If it is equal to line 30, enter zero.
Joint Return of Married Couple
(Provides for split-income benefits)
Widow(er) with Dependent Child
ATTACH FORM DE 1964 HERE
Write social security number on check or money order. ATTACH HERE
Pay in full and mail with return to: FRANCHISE TAX BOARD
PAY IN FULL
31
SACRAMENTO, CA 95867
Do not write in these spaces
32 If line 25 is smaller than line 30, enter amount OVERPAID
.
32
P
33 Amount of line 32 to be REFUNDED TO YOU. Allow at least six weeks.
Mail return to:
FRANCHISE TAX BOARD
33
E
Head of Household
P.O. BOX 13-540
M
SACRAMENTO, CA 95813
A
Single Person
TAXABLE INCOME
TAXABLE INCOME
TAXABLE INCOME
34 Amount of line 32 to be credited on your 1976 ESTIMATED TAX
34
ESTIMATED TAX
R
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
belief 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.
$0 to $2,000
2,000 to 3,500
3,500 to 5,000
5,000 to 6,500
6,500 to 8,000
8,000 to 9,500
9,500 to 11,000
11,000 to 12,500
12,500 to 14,000
14,000 to 15,500
15,500 and over
$0 to $4,000
4,000 to 7,000
7,000 to 10,000
10,000 to 13,000
13,000 to 16,000
16,000 to 19,000
19,000 to 22,000
22,000 to 25,000
25,000 to 28,000
28,000 to 31,000
31,000 and over
$0 to $4,000
4,000 to 6,000
6,000 to 7,500
7,500 to 9,000
9,000 to 10,500
10,500 to 12,000
12,000 to 13,500
13,500 to 15,000
15,000 to 16,500
16,500 to 18,000
18,000 and over
SIGN
Your signature
Date
Preparer's signature (other than taxpayer)
Date
HERE
Spouse's signature-if filing a joint return
Date
Address (and Zip code)
Page 2 Form 540 (1975)
RESIDENT
INDIVIDUAL
TAXABLE YEAR
PART I- Renter's Credit — All questions must be answered
540
CALIFORNIA
1975
35 Did you, on March 1, 1975, live in rented property which was your principal residence?
Yes
No If no, you may not claim this credit
INCOME TAX
36 Was the property you rented exempt from property tax?
Yes
No If yes, you may not claim this credit
37 Did you live with any other person who claimed you as a dependent for income tax purposes?
Yes
No If yes, you may not claim this credit
PLACE PREADDRESSED LABEL HERE, if available. (Correct name and address, if necessary)
Check
Calendar Year
38 Did you or your spouse claim the homeowners' property tax exemption or receive public assistance?
Yes
No If yes, see page 6 of instructions
Enter social security number(s) only if incorrect or not shown on label.
One:
Fiscal Year Ending
1976
FOR FEDERAL PRIVACY ACT NOTIFICATION
NAME (If joint return, give first names and initials of both)
LAST NAME
SEE PAGE 2 OF INSTRUCTIONS
PART II - Other Income
Your Social Security Number
39 Business income (or loss) (attach Schedule C(540) )
39
PRESENT HOME ADDRESS (Number and street, including apartment number, or rural route)
Spouse's
Social
Security
Number
40 Net gain (or loss) from sale or exchange of capital assets (attach Schedule D(540))
40
41 Net gain (or loss) from supplemental schedule of gains and losses (attach Schedule D-1(540) )
41
CITY, TOWN OR POST OFFICE, STATE AND ZIP CODE
OCCU-
Yours
42 Pensions and annuities
42
PATION
Spouse's
43 Rents and royalties
}
ATTACH
43
SCHEDULE E
FILING STATUS-Check Only One:
EXEMPTION CREDITS
If line 1 or 3 checked, enter $25
44 Partnerships
FORM (540)
44
1
Single
6 Personal
If line 2, 4 or 5 checked, enter $50
6
00
45 Estates and trusts
45
2
Married filing joint return (even if only one had income)
7 Dependents - Do not list yourself, your spouse or the person who qualifies you
46 Farm income (or loss) (attach Schedule F(540) )
46
as head of household. Enter name and relationship.
3
Separate return of married person-Enter spouse's
47 Miscellaneous income
social security number and full name here
(a) Fully taxable pensions and annuities (not reported on Schedule E(540) )
47a
(b) Alimony
47b
4
Head of Household-Enter name of qualifying
Total Number
X
$8
7
00
(c) Other (state nature and source)
47c
individual.
8 Blind (refer to instructions) Number of blind exemptions
$8
8
00
Enter total of lines 47(a), 47(b), and 47(c)
47
5
Widow(er) with dependent child (Year spouse died 197
9 Total exemption credits (add lines 6, 7 and 8) Enter here and on line 20
9
00
48 Total (add lines 39 thru 47). Enter here and on line 13
48
10 Wages, salaries, tips and other employee compensation
Attach copy 2 of Form(s) W-2 to face of this
return. If unavailable, see instructions, Page 6
10
PART III - Adjustments to Income
11 Dividends-before federal exclusion. Enter total (if over $400, complete and attach Schedule B(540) )
11
49 "Sick pay," if included in line 10 (see instructions — attach statement)
49
12 Interest. Enter total (if over $400, complete and attach Schedule B(540) )
12
50 Moving expenses (see instructions - attach statement)
50
13 Income other than wages, dividends and interest (from line 48)
13
51 Employee business expenses (see instructions — attach statement)
51
14 Total (add lines 10, 11, 12 and 13)
14
52 Military exclusion (see instructions)
52
53 Payment as a self-employed person to a retirement plan, etc. (see instructions)
53
ATTACH COPY 2 OF FORM W-2 HERE
15 Adjustments to income (from line 55)
15
16 Adjusted gross income (subtract line 15 from line 14)
54 Forfeited interest penalty (see instructions)
54
If line 1 or 3 is checked and line 16 is $4,000 or less, enter zero tax on line 23.
Do not complete
55 Total adjustments (add lines 49 thru 54). Enter here and on line 15
55
If line 2, 4, or 5 is checked and line 16 is $8,000 or less, enter zero tax on line 23.
lines 17 thru 22
16
If you do NOT itemize deductions AND line 16 is under $15,000, find tax in Tax Table and enter on line 19.
PART IV - Itemized Deductions —
If you itemize deductions OR line 16 is $15,000 or more, complete lines 17 and 18.
17 Deductions: Itemized (from line 62) OR STANDARD ($1,000 if line 1 or 3 checked-$2,000 if line 2, 4 or 5 checked)
17
Attach Schedule A(540) and enter sub-totals on lines 56 thru 61, below
18 Taxable income (subtract line 17 from line 16) Compute tax from Tax Rate Schedule-Enter tax on line 19
18
56 Total deductible medical and dental expenses (from Schedule A(540), line 10)
56
57 Total child adoption expenses (from Schedule A(540), line 13)
19 Tax from (check one) Tax Table
Tax Rate Schedule
57
Income Averaging Schedule (G or G-1)
19
58 Total taxes (from Schedule A(540), line 20)
58
20 Total exemption credits (from line 9, above)
20
59 Total interest expense (from Schedule A(540), line 23)
59
21 Tax liability (subtract line 20 from line 19-if line 20 is greater than line 19, enter zero)
21
60 Total contributions (from Schedule A(540), line 28)
60
22 Other credits (from line 65)
22
61 Total miscellaneous deductions (from Schedule A(540), line 39)
61
23 Net tax liability (subtract line 22 from line 21-if line 22 is greater than line 21, enter zero)
23
62 Total itemized deductions (add lines 56 thru 61). Enter here and on line 17
62
24 Tax on preference income (see instructions-attach Schedule P(540) )
24
25 Total tax liability (add lines 23 and 24)
25
PART V — Other Credits — SEE INSTRUCTIONS FOR EACH CREDIT CLAIMED BELOW.
26 Total California income tax withheld (attach W-2 or W-2P to face of this return)
26
63 "Other State" net income tax credit (attach copy of other state return and Schedule S(540) )
63
27 Renter's credit-if you lived in rented property on March 1, 1975, complete Part 1 on page 2
27
64 Retirement income credit (attach Schedule R(540) )
64
65 TOTAL (add lines 63 and 64). Enter here and on line 22
65
Write social security number on check or money order. ATTACH HERE
28 1975 California estimated tax payments
28
29 Excess California SDI tax withheld (attach Form DE 1964 to face of this return)
29
30 Total prepayment credits (add lines 26 thru 29)
30
PART VI - Reconciliation to Federal Return — If adjusted gross income on Federal Return is different from line 16, page 1, explain below.
31 If line 25 is larger than line 30, enter BALANCE DUE. If it is equal to line 30, enter zero.
ATTACH FORM DE 1964 HERE
Pay in full and mail with return to: FRANCHISE TAX BOARD
PAY IN FULL
31
SACRAMENTO, CA 95867
Do not write in these spaces
32 If line 25 is smaller than line 30, enter amount OVERPAID
32
P
33 Amount of line 32 to be REFUNDED TO YOU. Allow at least six weeks.
Mail return to:
FRANCHISE TAX BOARD
33
E
P.O. BOX 13-540
M
SACRAMENTO, CA 95813
A
34 Amount of line 32 to be credited on your 1976 ESTIMATED TAX
34
ESTIMATED TAX
R
Under penalties of perjury, I declare that I have examined this return, including accompanying schedules and statements, and to the best of my knowledge and
belief 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.
SIGN
Your signature
Date
Preparer's signature (other than taxpayer)
Date
HERE
Spouse's signature-if filing a joint return
Date
34515-400 6-75 8,500M 1 OSP
Address (and Zip code)
Page 2 Form 540 (1975)
SCHEDULE
A
CALIFORNIA
TAXABLE
PART I- Renter's Credit — All questions must be answered
1975
35 Did you, on March 1, 1975, live in rented property which was your principal residence?
Yes
No If no, you may not claim this credit
ITEMIZED DEDUCTIONS
FORM 540
YEAR
36 Was the property you rented exempt from property tax?
Yes
No If yes, you may not claim this credit
Attach to Form 540
37 Did you live with any other person who claimed you as a dependent for income tax purposes?
Yes
No If yes, you may not claim this credit
Name as shown on Form 540
Social Security Number
38 Did you or your spouse claim the homeowners' property tax exemption or receive public assistance?
Yes
No If yes, see page 6 of instructions
PART II - Other Income
If 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,"
A
or $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
39 Business income (or loss) (attach Schedule C(540) )
39
table box.
40 Net gain (or loss) from sale or exchange of capital assets (attach Schedule D(540))
40
USE ONLY IF YOU DO NOT USE THE TAX TABLE OR TAKE THE STANDARD DEDUCTION
41 Net gain (or loss) from supplemental schedule of gains and losses (attach Schedule D-1(540) )
41
42 Pensions and annuities
42
Medical and dental expenses (not compensated by insurance or otherwise) for
Interest Expense
}
ATTACH
medicine and drugs, doctors, dentists, nurses,
43 Rents and royalties
43
SCHEDULE E
hospital care, insurance premiums for medical
21. Home mortgage
44 Partnerships
FORM (540)
44
care, etc.
22. Other (itemize)
45 Estates and trusts
45
46 Farm income (or loss) (attach Schedule F(540) )
46
1. One half (but not more than $150) of insurance
47 Miscellaneous income
premiums for medical care
(a) Fully taxable pensions and annuities (not reported on Schedule E(540) )
47a
2. Medicine and drugs
(b) Alimony
47b
3. Enter 1% of line 16, Form 540
23. Total-(Add lines 21 and 22. Enter here and on
(c) Other (state nature and source)
47c
4. Subtract line 3 from line 2. Enter difference (if less
Form 540, line 59)
Enter total of lines 47(a), 47(b), and 47(c)
47
than zero, enter zero)
48 Total (add lines 39 thru 47). Enter here and on line 13
48
5. Enter balance of insurance premiums for medical care
not entered on line 1
Contributions
PART III - Adjustments to Income
6. Other medical and dental expenses:
24. Cash contributions for which you have receipts,
49 "Sick pay," if included in line 10 (see instructions — attach statement)
49
(a) Doctors, dentists, nurses, etc.
canceled checks, etc.
25. Other cash contributions. List donees and amounts
50 Moving expenses (see instructions — attach statement)
50
(b) Hospitals
51
(c) Other (itemize)
51 Employee business expenses (see instructions - attach statement)
52 Military exclusion (see instructions)
52
53 Payment as a self-employed person to a retirement plan, etc. (see instructions)
53
54 Forfeited interest penalty (see instructions)
54
55 Total adjustments (add lines 49 thru 54). Enter here and on line 15
55
26. Other than cash.-See instructions for required state-
7. Total-(Add lines 4, 5, 6a, b, and c)
ment
PART IV - Itemized Deductions —
8. Enter 3% of line 16, Form 540
27. Carryover from 1974-See instructions
Attach Schedule A(540) and enter sub-totals on lines 56 thru 61, below
9. Subtract line 8 from line 7. Enter difference (if less
28. Total-(Add lines 24, 25, 26, and 27. Maximum de-
56 Total deductible medical and dental expenses (from Schedule A(540), line 10)
56
than zero, enter zero)
duction may not exceed 20% of adjusted gross
57 Total child adoption expenses (from Schedule A(540), line 13)
57
10. Total-(Add lines 1 and 9. Enter here and on Form
income. Enter here and on Form 540, line 60)
58 Total taxes (from Schedule A(540), line 20)
58
540, line 56)
Miscellaneous Deductions
59 Total interest expense (from Schedule A(540), line 23)
59
60 Total contributions (from Schedule A(540), line 28)
60
Child Adoption Expense
Casualty or Theft Loss(es)-See instructions
61 Total miscellaneous deductions (from Schedule A(540), line 39)
61
11. Total expenses paid or incurred-Attach itemized list
NOTE: If you had more than one loss, omit lines 29
62 Total itemized deductions (add lines 56 thru 61). Enter here and on line 17
62
12. Enter 3% of line 16, Form 540
through 33 and follow instructions for guidance.
13. Subtract line 12 from line 11-See instructions for
29. Loss before insurance reimbursement
PART V — Other Credits — SEE INSTRUCTIONS FOR EACH CREDIT CLAIMED BELOW.
maximum limitations. (Enter here and on Form 540,
30. Insurance reimbursement
63 "Other State" net income tax credit (attach copy of other state return and Schedule S(540) )
63
line 57)
31. Subtract line 30 from line 29. Enter difference (if line
64 Retirement income credit (attach Schedule R(540) )
64
30 is greater than line 29, enter zero)
65 TOTAL (add lines 63 and 64). Enter here and on line 22
65
Taxes
32. Enter $100 or amount on line 31, whichever is smaller
14. Real estate
33. Casualty or theft loss (line 31 less line 32)
PART VI - Reconciliation to Federal Return — If adjusted gross income on Federal Return is different from line 16, page 1, explain below.
15. State and local gasoline
34. Alimony paid
16. General Sales
35. Child care-See instructions
17. Auto license-Excess of registration and weight fees
36. Union dues
(see instructions)
37. Employment education expense-See instructions
18. Personal property (Boat and Aircraft)
38. Other-(itemize)
19. Other (itemize)
20. Total taxes-(Add lines 14 thru 19. Enter here and
39. Total-Add lines 33, 34, 35, 36, 37, and 38. (Enter
here and on Form 540, line 61)
on Form 540, line 58)
Schedule B on reverse
34515-400 6-75 8,500M 1 OSP
(REV. 1975)
SCHEDULE
CALIFORNIA
TAXABLE
SCHEDULE
TAXABLE
B
1975
CALIFORNIA
A
1975
DIVIDEND AND INTEREST INCOME
ITEMIZED DEDUCTIONS
FORM 540
YEAR
FORM 540
YEAR
Attach to Form 540
Attach to Form 540
Name as shown on Form 540
Social Security Number
Name as shown on Form 540
Social Security Number
PART I-DIVIDEND INCOME
B
If 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,"
A
or $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
Line 1-Gross Dividends and Other Distributions on
tions), less nontaxable portion, if any, on Form 540, page 1.
table box.
USE ONLY IF YOU DO NOT USE THE TAX TABLE OR TAKE THE STANDARD DEDUCTION
Stock-If gross dividends and other distributions (including capital
Do NOT deduct the $100 federal exclusion.
gain dividends) on stock were $400 or less, do not complete
"Capital gain dividends" are treated as ordinary dividends for
State income tax purposes and not as capital gains as permitted
Medical and dental expenses (not compensated by insurance or otherwise) for
Interest Expense
this part; but enter gross dividends (including capital gain distribu-
under the federal law.
medicine and drugs, doctors, dentists, nurses,
hospital care, insurance premiums for medical
21. Home mortgage
1. Gross dividends and other distributions on stock-List payers and amounts-Write (H), (W), (J), for stock held by husband, wife, jointly.
care, etc.
22. Other (itemize)
1. One half (but not more than $150) of insurance
premiums for medical care
2. Medicine and drugs
3. Enter 1% of line 16, Form 540
23. Total-(Add lines 21 and 22. Enter here and on
4. Subtract line 3 from line 2. Enter difference (if less
Form 540, line 59)
than zero, enter zero)
5. Enter balance of insurance premiums for medical care
not entered on line 1
Contributions
6. Other medical and dental expenses:
24. Cash contributions for which you have receipts,
(a) Doctors, dentists, nurses, etc.
canceled checks, etc.
(b) Hospitals
25. Other cash contributions. List donees and amounts
(c) Other (itemize)
2. Total dividends
3. Nontaxable distributions
4. Taxable dividends-Subtract line 3 from line 2. Enter here and on line 11, form 540
26. Other than cash-See instructions for required state-
7. Total-(Add lines 4, 5, 6a, b, and c)
ment
PART II-INTEREST INCOME
8. Enter 3% of line 16, Form 540
27. Carryover from 1974-See instructions
Interest on bonds, debentures, loans, notes, tax refunds and all
(b) Bonds (but not other obligations) of California and its polit-
9. Subtract line 8 from line 7. Enter difference (if less
28. Total-(Add lines 24, 25, 26, and 27. Maximum de-
types of savings accounts including banks, credit unions and postal
ical subdivisions issued after November 4, 1902.
than zero, enter zero)
duction may not exceed 20% of adjusted gross
savings is taxable.
(c) Interest on bonds of Alaska and Hawaii issued prior to their
10. Total-(Add lines 1 and 9. Enter here and on Form
income. Enter here and on Form 540, line 60)
Interest on the following obligations is exempt from tax:
achieving statehood.
540, line 56)
(a) Bonds and other obligations (other than tax refunds) of the
Miscellaneous Deductions
United States, the District of Columbia and territories of
Note: If total taxable interest income was $400 or less, do
Child Adoption Expense
Casualty or Theft Loss(es)-See instructions
the United States. (Interest on Philippine Islands obligations
not complete this part; but enter the total amount of interest
11. Total expenses paid or incurred-Attach itemized list
NOTE: If you had more than one loss, omit lines 29
issued on or after March 24, 1943 is not exempt.)
received on Form 540, page 1.
12. Enter 3% of line 16, Form 540
through 33 and follow instructions for guidance.
13. Subtract line 12 from line 11-See instructions for
29. Loss before insurance reimbursement
1. Interest income-List payers and amounts
maximum limitations. (Enter here and on Form 540,
30. Insurance reimbursement
line 57)
31. Subtract line 30 from line 29. Enter difference (if line
30 is greater than line 29, enter zero)
Taxes
32. Enter $100 or amount on line 31, whichever is smaller
14. Real estate
33. Casualty or theft loss (line 31 less line 32)
15. State and local gasoline
34. Alimony paid
16. General Sales
35. Child care-See instructions
17. Auto license-Excess of registration and weight fees
36. Union dues
(see instructions)
37. Employment education expense-See instructions
18. Personal property (Boat and Aircraft)
38. Other-(itemize)
19. Other (itemize)
39. Total-Add lines 33, 34, 35, 36, 37, and 38. (Enter
20. Total taxes-(Add lines 14 thru 19. Enter here and
2. Total interest income. Enter here and on line 12, Form 540
here and on Form 540, line 61)
on Form 540, line 58)
Schedule A on reverse
Schedule B on reverse
(REV. 1975)
34518-400 6-75 6,200M OA OSP
(REV. 1975)
SCHEDULE
CALIFORNIA
TAXABLE
STATE OF CALIFORNIA-FRANCHISE TAX BOARD
B
1975
INSTRUCTIONS FOR SCHEDULE A (FORM 540)
DIVIDEND AND INTEREST INCOME
ITEMIZED DEDUCTIONS-If you do not use Tax Table or claim the Standard Deduction
FORM 540
YEAR
Attach to Form 540
Name as shown on Form 540
MEDICAL AND DENTAL EXPENSES-If you made pay-
Deduct any taxes paid in connection with a business or pro-
Social Security Number
ments for medical care insurance, medicines, doctors, hospitals,
fession in Schedules C, E and F (Form 540).
etc., follow the step-by-step instructions in lines 1 through 10
You cannot deduct any state, federal or foreign income taxes,
No
federal excise taxes or social security taxes; state disability
PART I-DIVIDEND INCOME
B
on Schedule A. The medical expenses can be for yourself, your
spouse or any dependent who received over one-half of his (her)
insurance payments; hunting or fishing licenses, dog licenses;
Line 1-Gross Dividends and Other Distributions on
tions), less nontaxable portion, if any, on Form 540, page 1.
support from you even if the dependent had income of $750 or
auto inspection fees, tags, drivers licenses; water taxes; taxes
paid for another person; alcoholic beverage, cigarette, and
Stock-If gross dividends and other distributions (including capital
Do NOT deduct the $100 federal exclusion.
tobacco taxes; or selective sales or excise taxes (admissions,
"Capital gain dividends" are treated as ordinary dividends for
more. Include all amounts you paid during the taxable year, but do
room occupancy, etc.) even if separately stated, unless imposed
St
gain dividends) on stock were $400 or less, do not complete
State income tax purposes and not as capital gains as permitted
not include amounts repaid to you, or paid to anyone else, by
at the same rate as the general sales tax.
this part; but enter gross dividends (including capital gain distribu-
under the federal law.
gc
hospital, health or accident insurance. The monthly payments
In general, you cannot deduct taxes assessed for any im-
for supplementary medical insurance under "Medicare" are
th
1. Gross dividends and other distributions on stock-List payers and amounts-Write (H), (W), (J), for stock held by husband, wife, jointly.
deductible, but that part of social security tax you pay for basic
provements which increase the value of your property.
Medicare is not deductible.
INTEREST-Interest on such nonbusiness items as your per-
1.
You can deduct, on line 1 of Schedule A, one-half (up to if
sonal note to a bank, credit union, or an individual, a mortgage
$150) of the amount paid for medical care insurance even
on your home, a life insurance loan (if interest is paid in cash),
you have no other medical expenses. The balance of these
and delinquent taxes is deductible on Schedule A. Interest paid
insurance premiums is deductible on line 5.
on business debts should be reported in the separate schedule
The 1 percent and 3 percent limitations (lines 3 and 8) apply
in which your business income is reported.
in all cases, regardless of your age or the age of your spouse
Finance charges on a bank credit card plan are deductible
as interest if no part is for service charges, loan fees, credit
or other dependents.
--
You Can Deduct Payments To or For Physicians, den-
investigation fees, etc.
Finance charges on revolving charge accounts, if based on
tists, nurses, and other professional practitioners; prescription
your unpaid balance and computed monthly, are deductible.
drugs, or vaccines; medicines; hospitals; transportation necessary
to get medical care (instead of actual expenses for gas, oil, etc.,
Interest paid on installment purchases of personal property
you can figure your deduction at the rate of 7 cents a mile);
(automobiles, appliances, televisions, etc.) is deductible.
ambulance expense; eyeglasses, dentures, medical or surgical
You Cannot Deduct Interest On-Indebtedness of another
appliances, etc.; physical examinations or treatment; insulin
person when you are not legally liable for payment of the
treatment; whirlpool baths for medical purposes; premiums on
interest; a gambling debt or other nonenforceable obligation;
2. Total dividends
hospital or medical insurance; and meals and lodging if part
a life insurance loan, if interest is added to the loan and you
3. Nontaxable distributions
2
of cost of care in a hospital or similar institution. Where pay-
report on the cash basis.
4. Taxable dividends-Subtract line 3 from line 2. Enter here and on line 11, form 540
ments were for both nursing care and housework, include only
3
Do not deduct interest paid on money borrowed to buy tax-
the nursing costs.
exempt securities or single-premium life insurance. Do not include
PART II-INTEREST INCOME
You Cannot Deduct Payments For-Funeral expenses or ceme-
carrying charges or insurance.
Interest on bonds, debentures, loans, notes, tax refunds and all
(b) Bonds (but not other obligations) of California and its polit-
tery plot; illegal drugs; travel ordered or suggested by your
CONTRIBUTIONS-Allowable contributions, not exceeding
types of savings accounts including banks, credit unions and postal
ical subdivisions issued after November 4, 1902.
doctor for rest or change; premiums on life insurance; or
20 percent of your adjusted gross income, include:
cosmetics.
savings is taxable.
(c) Interest on bonds of Alaska and Hawaii issued prior to their
Interest on the following obligations is exempt from tax:
achieving statehood.
CHILD ADOPTION EXPENSES-You can deduct that por-
(1) Gifts made to organizations approved by the Internal
Revenue Service which are operated for religious chari-
(a) Bonds and other obligations (other than tax refunds) of the
tion of child adoption expenses which exceeds 3 percent of
table, educational, scientific or literary purposes, or to
United States, the District of Columbia and territories of
Note: If total taxable interest income was $400 or less, do
your adjusted gross income entered on page 1, Form 540. Such
expenses include any medical and hospital costs of the natural
prevent cruelty to animals and children. Most organiza-
tions will be able to tell you whether they qualify.
the United States. (Interest on Philippine Islands obligations
not complete this part; but enter the total amount of interest
mother of the child and any welfare agency, legal and other
issued on or after March 24, 1943 is not exempt.)
received on Form 540, page 1.
fees or costs relating to the adoption. This deduction cannot
(2) Your out-of-pocket expenses (but not the value of your
exceed $500 on each separate return of a husband and wife,
time or service) to do volunteer work for a charitable
or $1,000 for all other taxpayers.
organization. (Do not deduct any amounts that were
1. Interest income-List payers and amounts
repaid to you.) If you use your automobile in this work,
TAXES-You can deduct state, local and foreign taxes on
you may figure the operating expense at 7 cents a mile.
real property; state and local taxes on personal property; state
and local general sales and motor fuel taxes (see charts in
DO NOT deduct amounts paid to individuals, foreign organ-
Form 540 Booklet, page 7 or in Federal Form 1040 Instructions);
izations, propaganda organizations, social clubs, labor unions,
and California motor vehicle license fees, exclusive of the annual
chambers of commerce or for raffle tickets, bingo and other
registration and weight fees.
games of chance.
Subtract from the total license fee the amounts listed below.
A contribution may be made in cash (checks, money order,
The balance is deductible on line 17.
etc.) or property (not services). If in property, describe it, show
Passenger car, station wagon, motorcycle, or trailer $11.00.
the date you gave it, and how you figured its value. Also, for
each gift valued at more than $200, and each gift of capital
Trucks:
Weight Fee
Weight Fee
gain or ordinary income property, explain:
Unladen Weight
Plus Registration
Unladen Weight
Plus Registration
(1) Any conditions attached to the gift.
0- 2,999 lbs.
16.00
9,001-10,000 lbs.
$157.00
176.00
(2) How you got the property.
3,000- 4,000 lbs.
26.00
10,001-11,000 lbs.
43.00
11,001-12,000 lbs.
197.00
(3) Cost or other basis of the property, and
4,001- 5,000 lbs.
5,001- 6,000 lbs.
73.00
12,001-13,000 lbs.
218.00
(4) Attach a signed copy of any appraisal. If you elected to
2. Total interest income. Enter here and on line 12, Form 540
6,001- 7,000 lbs.
94.00
13,001-14,000 lbs.
239.00
reduce your deduction for contributions of capital gain
7,001- 8,000 lbs.
115.00
14,001 and over
258.00
property, indicate this and show how you figured it.
Schedule A on reverse
8,001- 9,000 lbs.
135.00
(Instructions continued on reverse side)
(REV. 1975)
34518-400 6-75 6,200M 00 OSP
(REV. 1975)
INSTRUCTIONS (Continued from reverse side)
SCHEDULE
TAXABLE
Special rules apply for determining the amount deductible
(4) A nondependent child of the taxpayer who is under 13
CALIFORNIA
years of age who has gross income of less than $750 in the
C
19
in the case of gifts of appreciated property. See Section 17216.2
of the Revenue and Taxation Code.
calendar year.
FORM 540
PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION
YEAR
You can deduct only those expenses directly related to the
Generally, you cannot claim a deduction for a transfer of a
(Sole Proprietorships)
care of the qualifying person. Amounts paid to close relatives
future interest in tangible personal property until the entire
interest has been transferred.
or dependents do not qualify for the deduction.
Attach this schedule to your income tax return, Form 540 or 540NR
Generally, the expense must be for services in your home,
Partnerships, joint ventures, etc., must file on Form 565
NOTE: Contributions made in 1974 in excess of 20 percent of your 1974
with one exception. You may deduct amounts paid for preschool,
Name as shown on Form 540 or 540NR
Social Security Number
adjusted gross income may be carried forward and deducted on line
27 for 1975. Any excess may be carried over for a maximum of five
nursery school, or day care for a dependent child under 13, or
years.
a nondependent child under 13 who has gross income of less
A. Name and Address of Business
B. Federal Employer I.D. No.
than $750 in the calendar year. The amount you may deduct
MISCELLANEOUS DEDUCTIONS
is limited to:
(1) Casualty or Theft Loss(es). If you had property
(1) $150 a month for one such individual
C. Principal business activity (i.e., retail-hardware; wholesale-tobacco; services-legal; etc.).
that was stolen or damaged by fire, storm, car accident, ship-
(2) $225 a month for two such individuals
D. Indicate method of accounting:
cash;
accrual;
other
wreck, etc., you may be able to deduct your loss or part of it.
(3) $275 a month for three or more such individuals
E. Were Forms 591, 592, 596 and 599, for the calendar year filed (if required)?
YES
NO
F. Method of inventory valuation
C
In general, Schedule A can be used to report a casualty or
Educational expenses for kindergarten or above are not al-
theft loss. On property used only for personal purposes the
lowable.
Was there any substantial change in the manner of determining quantities, costs, or valuations between the opening and closing inventories?
amount of the loss is the difference between the value of the
Requirements for married taxpayers:
YES
NO If "Yes," attach explanation.
property immediately before the casualty and its value imme-
diately thereafter, but not more than its adjusted cost or other
(1) If you are married at the end of 1975, you and your
1 Gross receipts, sales, or fees $
Less returns and allowances $
Balance
adjusted basis. This loss must then be reduced by any insurance
spouse MUST file a JOINT RETURN for the year to claim
2 Inventory at beginning of year (if different from last year's closing inventory, attach explanation)
or other reimbursements received plus $100. If a husband and
this deduction.
3 Purchases $
Less cost of items withdrawn for personal use $
wife owned the property jointly but file separate returns, each
(2) If you were married during the time you paid these ex-
4 Cost of labor (do not include salary paid to yourself)
must reduce his or her share of the loss by $100.
penses:
5 Materials and supplies
Casualty or theft losses of trade, business, rental, royalty or
(a) Both you and your spouse must have either worked
6 Other costs (explain in Schedule C-2 or attach Schedule)
other income producing properties are not subject to the $100
full time or been looking for a job, or
7 Total of lines 2 thru 6
reduction. These should be reported on Schedule D-1 (Form 540),
(b) Your spouse must have been unable to care for him-
Supplemental Schedule of Gains and Losses. See that form for
self because of mental or physical illness.
8 Inventory at end of this year
reporting instructions.
If your adjusted gross income exceeds $12,000, the deduc-
9 Cost of goods sold (subtract line 8 from line 7)
If you had more than one casualty or theft loss, omit lines
tion will be reduced $0.50 for each dollar of excess.
10 Gross profit (subtract line 9 from line 1)
29 through 33 of Schedule A (Form 540). On a separate sheet
Use Form 3805X to figure your deduction and attach the
11 Other income (attach schedule)
of paper prepare a schedule using the information on lines 29
completed form to your return. Enter your deduction on Schedule
12 Total Income (add lines 10 and 11)
through 33 for each loss. Total the net losses and enter this
A, line 35.
OTHER BUSINESS DEDUCTIONS
amount on line 33, Schedule A. Write in the margin to the
right of line 33, "Multiple losses, see attachment."
13 Depreciation (explain in Schedule C-1 or attach Schedule)
(4) Employment Education Expense. This expense can
14 Taxes on business and business property (explain in Schedule C-2 or attach Schedule)
You Cannot Deduct Losses On-Personal injury to yourself or
be deducted if primarily for:
15 Rent on business property
another person; accidental loss of cash or other personal prop-
(a) Maintaining or improving skills required in your employ-
erty; property lost in storage or in transit; damage by rust,
16 Repairs (explain in Schedule C-2 or attach Schedule)
ment or other trade or business; or
gradual erosion or deterioration; or animals or plants damaged
(b) Meeting the express requirements of your employer, or the
17 Salaries and wages not included on line 4 (exclude any paid to yourself)
or destroyed by disease.
18 Insurance
requirements of applicable law or regulations, imposed
as a condition to the retention of your salary, status or
19 Legal and professional fees
(2) Alimony. Periodic payments of alimony or separate
employment.
20 Commissions
maintenance made under a final decree of divorce, final judg-
21 Amortization (attach statement)
ment of dissolution of marriage, or decree of legal separation
Expenses incurred to meet minimum educational requirements
to qualify for employment, a substantial advancement in position
22 Retirement plans, etc. (other than your share, see instructions)
are deductible. Periodic payments made under either (a) a
or for personal purposes are not deductible. Attach a statement
23 Interest on business indebtedness
written separation agreement entered into after August 16,
setting forth all pertinent information.
24 Bad debts arising from sales or services (Not applicable if reporting on cash basis)
1954; or (b) a decree for support entered into after March 1,
25 Depletion (attach schedule)
1954, are also deductible. Such payments must be included in
(5) Other. Under "Miscellaneous Deductions" you can
26 Other business expenses (explain in Schedule C-2 or attach Schedule)
the wife's income. You cannot deduct any voluntary payments
deduct all ordinary and necessary expenses paid or incurred for
27 Total of lines 13 thru 26.
not made under a court order or a written separation agree-
the production or collection of income, or for the management,
ment, lump-sum settlements or specific maintenance payments
conservation or maintenance of property held for the production
28 Net profit (or loss) (subtract line 27 from line 12), Enter here and on Page 2, Form 540 or 540NR
for support of minor children.
of income. However, no deduction may be taken for expenses
allocable to tax exempt income.
Date
Cost or
Depreciation
Method of
Group and guideline class
Life or
Depreciation
or description of property
Acquired
other basis
allowed (or allowable)
computing
(3) Child Care Expenses. If you paid someone to take
Rate
You can deduct gambling losses only to the extent of gam-
in prior years
depreciation
for this year
care of a dependent so you (and your spouse if married) could
bling winnings.
work or find work, you may be able to deduct up to $400 a
You can deduct political contributions up to $100 a year.
month.
A married couple filing a joint return can deduct up to $200
Schedule C-1
Depreciation
Claimed on line 13.
The expense must be for the following persons who lived in
a year.
your home as members of your family:
If you work for wages or a salary, you can deduct your
ordinary and necessary employee business expenses which have
(1) Your dependent under 13 years old who can be claimed
not been claimed on your return under "Adjustments to Income."
LINE
EXPLANATION
AMOUNT
LINE
as an exemption.
NO.
NO.
EXPLANATION
AMOUNT
(2) A dependent who could not care for himself because of
You can deduct the cost of safety equipment, tools and
supplies used in your job; dues to unions, professional societies,
mental or physical illness. This must be a person you could claim
chambers of commerce; business entertainment; and fees paid
as an exemption except for the fact that he received $750 or
to employment agencies for securing employment.
Schedule C-2
more of income.
Explanation of Lines
6, 14, 16, and 26.
You cannot deduct the cost of travel to and from work,
(3) Your spouse who could not care for himself because of
entertaining friends, bribes, illegal payments, or any expenses
mental or physical illness.
which are for your own convenience or benefit.
(Rev. 1975)
SCHEDULE F ON REVERSE
34519-400 9-75 600M
34520-400 6-75 2,160M 1 OSP
SCHEDULE
CALIFORNIA
TAXABLE
SCHEDULE
TAXABLE
F
19
CALIFORNIA
FORM 540
SCHEDULE OF FARM INCOME AND EXPENSES
C
19
Attach to Form 540, 540NR or Form 565
YEAR
FORM 540
PROFIT (OR LOSS) FROM BUSINESS OR PROFESSION
YEAR
Name as shown on Form 540, 540NR, or 565
(Sole Proprietorships)
Social Security Number
Business Name and Address and Location of each Farm (Attach Schedule if necessary)
Attach this schedule to your income tax return, Form 540 or 540NR
Partnerships, joint ventures, etc., must file on Form 565
Federal Employer I.D. No.
Name as shown on Form 540 or 540NR
Social Security Number
F
Part I FARM INCOME-CASH RECEIPTS AND DISBURSEMENTS METHODS
Do not include sale of livestock held for draft, breeding, or dairy purposes: report such sales on
Part II FARM DEDUCTIONS-FOR CASH AND ACCRUAL
A. Name and Address of Business
B. Federal Employer I.D. No.
Schedule D-1 (Form 540)
METHOD TAXPAYERS
Sales of Purchased Livestock and Other Items Purchased for Resale
Do not include personal or living expenses not attributable
to production of farm income, such as taxes, insurance,
repairs, utilities, etc., on your dwelling.
C. Principal business activity (i.e., retail-hardware; wholesale-tobacco; services-legal; etc.).
a. Description
b. Amount received
c. Cost or other basis
Items
Amount
D. Indicate method of accounting:
cash;
accrual;
other
1 Livestock:
$
$
E. Were Forms 591, 592, 596 and 599, for the calendar year filed (if required)?
YES
NO
29 Labor hired
$
C
F. Method of inventory valuation
2 Other items:
30 Repairs, maintenance
Was there any substantial change in the manner of determining quantities, costs, or valuations between the opening and closing inventories?
31 Interest
YES
NO If "Yes," attach explanation.
3 Totals
32 Rent of farm, pasture
$
$
4 Profit (or loss), subtract line 3, column C from line 3, column b
33 Feed purchased
1 Gross receipts, sales, or fees $
Less returns and allowances $
Balance
$
Sales of Market Livestock and Produce Raised and Held Primarily for Sale and
34 Seed, plants purchased
2 Inventory at beginning of year (if different from last year's closing inventory, attach explanation)
Other Farm Income
35 Fertilizers, lime
3 Purchases $
Less cost of items withdrawn for personal use $
36 Machine hire
4 Cost of labor (do not include salary paid to yourself)
Kind
Quantity
Amount
5 Cattle
37 Supplies purchased
5 Materials and supplies
$
6 Calves
38 Breeding fees
6 Other costs (explain in Schedule C-2 or attach Schedule)
7 Total of lines 2 thru 6
7 Sheep
39 Veterinary, medicine
8 Swine
40 Gasoline, fuel, oil
8 Inventory at end of this year
9 Cost of goods sold (subtract line 8 from line 7)
9 Poultry
41 Storage, warehousing
42 Taxes
10 Gross profit (subtract line 9 from line 1)
10 Dairy products
11 Other income (attach schedule)
11 Eggs
43 Insurance
12 Total Income (add lines 10 and 11)
12 Wool
44 Utilities
OTHER BUSINESS DEDUCTIONS
13 Cotton
45 Freight, trucking
13 Depreciation (explain in Schedule C-1 or attach Schedule)
14 Tobacco
46 Conservation expenses
14 Taxes on business and business property (explain in Schedule C-2 or attach Schedule)
15 Vegetables
47 Pension and profit-sharing
15 Rent on business property
16 Grain
plans (see instructions)
16 Repairs (explain in Schedule C-2 or attach Schedule)
17 Fruits and nuts
48 Other employee benefit
17 Salaries and wages not included on line 4 (exclude any paid to yourself)
18 Other (specify)
programs (see instructions)
18 Insurance
OTHER FARM INCOME
49 Other (specify)
19 Legal and professional fees
19 Machine work
20 Commissions
20 (a) Patronage dividends
21 Amortization (attach statement)
(b) Per-unit retains
22 Retirement plans, etc. (other than your share, see instructions)
21 Nonpatronage distributions from cooperatives
23 Interest on business indebtedness
22 Agricultural program payments: (1) Cash
24 Bad debts arising from sales or services (Not applicable if reporting on cash basis)
(2) Materials and services
25 Depletion (attach schedule)
23 Commodity Credit loans under election (or forfeited)
26 Other business expenses (explain in Schedule C-2 or attach Schedule)
24 Federal gasoline tax credit
27 Total of lines 13 thru 26
25 State gasoline tax refund
28 Net profit (or loss) (subtract line 27 from line 12), Enter here and on Page 2, Form 540 or 540NR
26 Other (specify):
50 Add lines 29 thru 49
$
Group and guideline class
Date
Cost or
Depreciation
Method of
Life or
27 Add lines 5 through 26
51 Depreciation
or description of property
Acquired
other basis
allowed (or allowable)
computing
Depreciation
Rate
$
(attach schedule)
in prior years
depreciation
for this year
28 Gross profit (add lines 4 and 27)
52 Total deductions. Add lines
$
50 and 51
$
53 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
$
Schedule C-1
Depreciation
Claimed on line 13.
Part III FARM INCOME-ACCRUAL METHOD
54 Inventory at end of year-livestock, crops, and products
$
55 Sales of livestock, crops, and products
56 Other receipts (see instructions)
LINE
57 Total receipts (add lines 54 thru 56)
NO.
EXPLANATION
AMOUNT
LINE
EXPLANATION
AMOUNT
NO.
$
58 Inventory at beginning of year-livestock, crops, and products
$
59 Cost of livestock, and products purchased
Schedule C-2
60 Gross profits (subtract the sum of lines 58 and 59 from line 57)
Explanation of Lines
6, 14, 16, and 26.
61 Total deductions from line 52, Part II above
$
62 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
$
(Rev. 1975)
SCHEDULE c ON REVERSE
(Rev. 1975)
SCHEDULE F ON REVERSE
34520-400 6-75 2,160M 10 OSP
SCHEDULE
CALIFORNIA
TAXABLE
STATE OF CALIFORNIA-FRANCHISE TAX BOARD
F
19
INSTRUCTIONS FOR SCHEDULE C (FORM 540)
SCHEDULE OF FARM INCOME AND EXPENSES
FORM 540
YEAR
NET PROFIT (OR LOSS) FROM PROFESSION OR BUSINESS
Attach to Form 540, 540NR or Form 565
Social Security Number
References in these instructions are to the Personal Income Tax Law, codified as Part 10 of Division 2 of the Revenue and Taxation Code
Name as shown on Form 540, 540NR, or 565
If you owned a business, or practiced a profession, fill in Schedule C
and enter the net profit (or loss) on page 2, Form 540 or 540NR. If you
The allowance is not allowed for stock in trade, inventories, land and
Business Name and Address and Location of each Farm (Attach Schedule if necessary)
Federal Employer I.D. No.
personal assets.
F
had more than one business, or husband and wife had separate busi-
nesses, a separate Schedule C must be completed for each business.
The allowable methods for computing depreciation, including addi-
Part I FARM INCOME-CASH RECEIPTS AND DISBURSEMENTS METHODS
Part II FARM DEDUCTIONS-FOR CASH AND ACCRUAL
If some of your expenses were part business and part personal, you
tional first-year depreciation, are the same as for Federal income tax
Do not include sale of livestock held for draft, breeding, or dairy purposes: report such sales on
METHOD TAXPAYERS
can deduct the business portion but not the personal portion. For in-
purposes, with the following exceptions:
Schedule D-1 (Form 540)
Do not include personal or living expenses not attributable
to production of farm income, such as taxes, insurance
stance, a businessman who used his car half for business can deduct
(1) Salvage value rule on depreciable personal property (other than
Sales of Purchased Livestock and Other Items Purchased for Resale
repairs, utilities, etc., on your dwelling.
only half the operating expenses.
livestock) with a useful life of three years or more, is applicable
a. Description
b. Amount received
c. Cost or other basis
Items
Amount
Accounting Methods and Records - Income from your business or
to such property acquired after December 31, 1962 (October 16,
1962 for Federal).
1 Livestock:
$
$
29 Labor hired
$
profession ordinarily must be computed by the method of accounting
30 Repairs, maintenance
which you regularly use. Two of the principal methods of accounting
(2) Use of the 200 percent declining balance and sum of the years-
which may be used are the "cash method" and the "accrual method.'
digits methods are applicable to new property acquired after
2 Other items:
31 Interest
Other methods are permissible; such as, completed contract, percentage
December 31, 1958 (December 31, 1953 for Federal).
32 Rent of farm, pasture
of completion, etc. Any of these methods or a combination of methods
3 Totals
$
$
may be used provided that the method or methods used properly reflects
If the asset guideline classes method (as specified in Federal Revenue
33 Feed purchased
4 Profit (or loss), subtract line 3, column C from line 3, column b
$
34 Seed, plants purchased
our income. However, unless you keep books of account your return
Procedure 72-10) is used for computing allowable depreciation for State
must be on the "cash method." Enter accounting method used at Item
purposes, do not use the Lower Limit or the Upper Limit (ADR) Ranges.
Sales of Market Livestock and Produce Raised and Held Primarily for Sale and
35 Fertilizers, lime
Other Farm Income
of Schedule C (Form 540).
36 Machine hire
Line 16 Repairs - You may deduct the cost of incidental repairs,
Kind
Quantity
Amount
37 Supplies purchased
Item Principal business activity and product - Enter the one
including labor (but not the value of your own labor), supplies and other
5 Cattle
$
usiness activity that accounts for the largest percentage of gross
items, which do not add to the value or appreciably prolong the life of
38 Breeding fees
ncome included on page 1, line 1, of Schedule C. State the broad field
the property. Expenditures for restoring or replacing property are not
6 Calves
39 Veterinary, medicine
If business activity as well as the product or service; for example,
deductible, since such expenditures are chargeable to capital accounts
7 Sheep
40 Gasoline, fuel, oil
wholesale - jewelry," "retail - apparel," etc.
or to depreciation reserve depending on how depreciation is charged
8 Swine
on your books.
41 Storage, warehousing
9 Poultry
Line Gross receipts or gross sales - Enter gross receipts or
42 Taxes
ales from your trade or business, including finance reserve income,
Line 21 Amortization - For the election to amortize expenditures
10 Dairy products
43 Insurance
iscounts received, sale of scrap, bad debt recoveries, interest, etc.
for research or experimentation, pollution control facilities, and a trade-
11 Eggs
44 Utilities
eturns and allowances Enter such items as returned sales, rebates
mark or trade name, see Sections 17223, 17226 and 17227, respectively.
12 Wool
45 Freight, trucking
nd. allowances from the sale price or service charge.
Line 22 Retirement plans, etc. (other than contributions made on
13 Cotton
46 Conservation expenses
Installment sales - If you use the installment method of reporting
your behalf). The amount contributed to a pension or profit-sharing
14 Tobacco
plan for the taxable year shall constitute the deduction to be claimed
47 Pension and profit-sharing
hcome from sales, you must attach to your return a schedule showing
15 Vegetables
plans (see instructions)
eparately for the taxable year and each of the three previous years the
on this line. If the plan includes you as a self-employed individual, enter
16 Grain
ollowing: (a) gross sales, (b) cost of goods sold, (c) gross profits, (d)
contributions made as an employer on your behalf (but not voluntary
48 Other employee benefit
17 Fruits and nuts
ercentage of profits to gross sales, (e) amounts collected, and (f) gross
contributions you made as an employee) on page 2, Form 540 or 540NR,
programs (see instructions)
rofits on amounts collected.
Adjustments to Income. Substantiation thereof need be submitted only
18 Other (specify)
49 Other (specify)
upon specific request of the Franchise Tax Board.
OTHER FARM INCOME
COST OF GOODS SOLD
19 Machine work
Lines 2-9 If you are engaged in a trade or a business in which the
Employee benefit programs - Enter the amount of your contributions
20 (a) Patronage dividends
roduction, purchase or sale of merchandise is an income-producing
to employee benefit programs that are not an incidental part of a
actor, you must take inventories of merchandise and materials on hand
pension or profit-sharing plan. Contributions that are to be reported on
(b) Per-unit retains
the beginning and end of the taxable year in order to reflect the
this line include insurance, health and welfare programs.
21 Nonpatronage distributions from cooperatives
ross profits correctly. This rule does not apply to dealers in securities,
Line 24 Bad debts arising from sales or services Include debts,
22 Agricultural program payments: (1) Cash
or whom the use of inventories is optional. Dealers in real estate are
or portions thereof, arising from sales or professional services that have
(2) Materials and services
rohibited from using inventories. The method properly adopted for the
been included in income and definitely proven to be worthless; or such
23 Commodity Credit loans under election (or forfeited)
rst year in which inventory is taken must be continued unless per-
reasonable amount as has been added within the taxable year to a
:
ission to change is secured from the Franchise Tax Board. Permission
reserve for bad debts. A debt which is deducted as bad and which re-
:
24 Federal gasoline tax credit
change the method of valuing inventories should be requested from
duces your tax must, if subsequently collected, be reported as income
25 State gasoline tax refund
e Franchise Tax Board, Sacramento, California 95867, within 90 days
for the year in which collected.
26 Other (specify):
50 Add lines 29 thru 49
$
?
51 Depreciation
hange. ter the beginning of the taxable year in which it is desired to effect a
Line Other business expenses — Include all ordinary and neces-
27 Add lines 5 through 26
$
(attach schedule)
BUSINESS DEDUCTIONS
sary business expenses for which no space is provided in the schedule.
2
52 Total deductions. Add lines
28 Gross profit (add lines 4 and 27)
$
50 and 51
$
Normal current costs paid or incurred by you in your trade, business
Do not include cost of business equipment or furniture, expenditures
53 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
$
profession are considered business deductions. In order that you may
for replacements, or for permanent improvements to property, or per-
educt these costs it must be shown that they are both ordinary and
sonal living and family expenses.
Part III FARM INCOME-ACCRUAL METHOD
5
cessary expenses directly connected with or related to your trade,
Automobile expenses — Actual expenses include gasoline, oil, repairs,
5 54 Inventory at end of year-livestock, crops, and products
$
siness or profession. No deductions are allowed, however, from gross
license tags, insurance, depreciation, and interest and taxes paid in
5
55 Sales of livestock, crops, and products
come which is directly derived from illegal activities such as gambling
connection with the purchase of the automobile. Rather than deducting
5: 56 Other receipts (see instructions)
d bookmaking; or from activities which directly tend to promote or
the actual expenses, you may figure the cost of operation at a standard
$
e directly associated with illegal activities. No deductions are allowed
rate of 15 cents a mile for the first 15,000 miles of business use, and
58 57 Total receipts (add lines 54 thru 56)
ther for a "net operating loss carryover" or "carryback" as permitted
10 cents a mile for such use in excess of 15,000 miles.
59 58 Inventory at beginning of year-livestock, crops, and products
$
der federal law.
Use of this method is optional, on a yearly basis. However, this
6( 59 Cost of livestock, and products purchased
Line 13- Depreciation and obsolescence — You may deduct a reason-
simplified method cannot be used if depreciation is claimed using a
61 60 Gross profits (subtract the sum of lines 58 and 59 from line 57)
$
le allowance for exhaustion, wear and tear, and obsolescence of
method other than straight line, or if additional first year depreciation
62
61 Total deductions from line 52, Part II above
operty used in the trade or business.
is claimed. If you use the optional method, you cannot deduct interest
62 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
$
and taxes paid in connection with the purchase of the automobile.
(R
EV. 1975)
(Rev. 1975)
SCHEDULE C ON REVERSE
(INSTRUCTIONS FOR SCHEDULE F ON REVERSE)
STATE OF CALIFORNIA-FRANCHISE TAX BOARD
SCHEDULE
INSTRUCTIONS FOR SCHEDULE F (FORM 540)
CALIFORNIA
TAXABLE
FARM INCOME AND EXPENSES
D
1975
CAPITAL GAINS AND LOSSES
FORM 540
YEAR
References in these instructions are to the Personal Income Tax Law, codified as Part 10 of Division 2 of the Revenue and Taxation Code
Attach to Form 540 or 540NR
1. Method of Accounting. Farmers may compute their income on
amount of the inventory at the close of the year. The loss of a prospec-
Use this schedule to report gains and losses on stocks, bonds and similar investments,
either the cash receipts and disbursements basis or the accrual basis,
tive crop by frost, storm, flood or fire is not deductible. When reporting
and gains (but not losses) on personal assets such as a home or jewelry.
but the method adopted must be followed until the consent of the
on the cash basis, the value of animals raised by you and lost by death
Franchise Tax Board is received to compute the income upon a new basis.
is not deductible, while in the case of animals purchased and lost by
Name as shown on Form 540 or 540NR
Social Security Number
2. Other Farm Income — Patronage dividends — Patronage dividends
death, the cost less depreciation allowed or allowable is deductible, if
received in money from cooperatives are includible in farm income in
not compensated by insurance or otherwise, on Schedule D-1 (Form 540).
Do not deduct personal losses. No deduction may be taken for a net
PART I-Assets Held One Year or Less
D
the year received.
Patronage dividends received in property other than written notices
operating loss carryover or carryback.
e. Cost or other basis as
adjusted, cost of subse-
of allocation are includible in farm income to the extent of fair market
A. Planting and developing citrus or almond or other fruit or nut groves.
a. Kind of property and description
b. Date acquired
C. Date sold
d. Gross sales
quent improvements (if
f. Gain loss
(Example, 100 shares of "Z" Co.)
(mo., day, yr.)
(mo., day, yr.)
price
not purchased, attach
(d. less e.)
value.
Charge to capital account expenses attributable to the planting, cultiva-
explanation) and ex-
Noncash patronage dividends from cooperatives and mutual associ-
tion, maintenance, or development of any citrus, almond or other fruit
pense of sale
ations (whether paid in capital stock, revolving fund certificates, letters
or nut grove (or part thereof), incurred before the close of the fourth
1.
of advice, etc.) may be reported in either of the following ways: (1) in-
taxable year beginning with the taxable year in which trees were
clude in gross income the face amount of the dividends in the year the
planted. Treat the portion of a citrus or almond grove planted in one
noncash patronage dividends are received; or (2) include in gross income
taxable year separately from the portion of the grove planted in another
the amount realized in the year noncash patronage dividends are re-
taxable year. Do not apply the rule for capitalization of such expenses
deemed. The election of method (1) or (2) must be adhered to in sub-
to expenses attributable to a citrus, almond or other fruit or nut grove
sequent years unless a change is approved by the Franchise Tax Board.
which was (a) replanted after having been lost or damaged by reason of
If method (2) is elected, the face amount of noncash patronage dividends
freeze, disease, drought, pests or casualty; or (b) planted or replanted
is required to be disclosed in the return for the taxable year in which
prior to September 16, 1970 for citrus groves, December 8, 1971 for
2. Enter gain (or loss), if applicable, from line 18 Schedule D-1 (540) (attach copy)
such dividends are received.
almond groves, and September 24, 1975 for other fruit or nut groves.
3. Enter your share of net gain or loss from partnerships and fiduciaries
Losses incurred upon the redemption of noncash patronage dividends
are deductible in the year of redemption provided you include such
Line 51 Depreciation - You may deduct allowance for depreciation
4. Net gain or loss, combine lines 1, 2 and 3
dividends in income in the year originally received.
of buildings, improvements, machinery, or other farm equipment of a
Losses incurred upon the redemption of qualified written notices of
permanent nature. Similar assets may be grouped together as one item
PART II-Assets Held More Than One Year But Not More Than Five Years
allocation are ordinary losses deductible in the year of redemption
for reporting purposes in the depreciation schedule in Schedule F. In
5.
provided you acquired the qualified written notices of allocation in the
computing depreciation do not include the value of land. Do not claim
ordinary course of your trade or business.
depreciation on livestock or any other property included in your inven-
Patronage dividends received on purchase of capital assets or depreci-
tory. You may claim depreciation on livestock not included in your
able property used in farming are not includible in income, but the pur-
inventory of livestock purchased or raised for sale if it was acquired for
chase price of such items must be reduced accordingly. Patronage divi-
work, breeding, sporting, or dairy purposes.
dends you received on non-business purchases are not includible in income.
4. Farm Loss Recapture. If you have a farm net loss of more than
Line Agriculture program payments — (1) Cash - Enter total
$25,000, your nonfarm adjusted gross income is more than $50,000, and
amount of price support payments, diversion payments and cost share
you report your income on the cash method, part of the gain on the sale
6. Enter gain (or loss), if applicable, from line 20 Schedule D-1 (540) (attach copy)
payments received in cash (sight drafts). (2) Materials and services
or other disposition of certain property used in farming will be treated
7. Enter your share of net gain or loss from partnerships and fiduciaries
Enter total amount of materials (fertilizer, lime, etc.) and services
as ordinary income. (These amounts are $25,000 and $12,500, respec-
8. Net gain or loss, combine lines 5, 6 and 7
(grading, construction of dams, etc.) paid by the Department of Agricul-
tively, for a married person filing separately whose spouse also has
ture to the vendor or contractor. (3) Commodity Credit Corporation loans
farm income and deductions.)
PART III-Assets Held More Than Five Years
become income when the pledged commodities are delivered or forfeited
You must establish and maintain an "excess deductions account"
9.
to the Corporation, unless an election is made to include these loans in
(EDA) if you meet all three of the above conditions. Add to this ac-
income when received. If election is made, attach statement showing de-
count your farm net loss for the year, or subtract from the balance in
tails of such loans.
this account your farm net income for the year, plus any amounts
necessary to adjust the account for deductions which did not result in
3. Expenses and Other Deductions. A farmer is entitled to deduct
a reduction of your tax. There is no EDA addition if your nonfarm
from gross income all necessary amounts actually expended in carrying
adjusted gross income is $50,000 or less or your farm net loss is
on the business of farming, except those which represent capital in-
$25,000 or less ($25,000 and $12,500, respectively, if married filing
vestment.
separately and your spouse has nonfarm adjusted gross income). Non-
Line 29 - Labor hired — Amounts paid for regular farm labor, piece
farm adjusted gross income is your adjusted gross income computed
10. Enter gain (or loss), if applicable, from line 22 Schedule D-1 (540) (attach copy)
work, contract labor and other forms of hired labor are deductible. Do
without farming income and deductions.
11. Enter your share of net gain or loss from partnerships and fiduciaries
not deduct the value of your own labor or that of your wife or family.
After making the above additions or subtractions, compare the balance
12. Net gain or loss, combine lines 9, 10 and 11
Only that part of the board which is purchased for hired labor can be
in the EDA account with your gains from sales and exchanges of farm
deducted. The value of products furnished by the farm and used in the
recapture property. If the EDA balance is higher, all of the gains are
PART IV-Summary of Capital Gains and Losses
board of hired labor is not deductible. Rations purchased and furnished
taxed as ordinary income. If the gains are higher, they are treated as
13. Enter amount from line 4
to laborers or sharecroppers are deductible. Do not deduct amounts
ordinary income only to the extent of the EDA balance. The EDA balance
paid to persons engaged in household work, except to the extent that
is then further reduced by any recapture before carrying it over to the
14. Enter 65% of the amount on line 8
such services are used in boarding and otherwise caring for farm
next year.
15. Enter 50% of the amount on line 12
laborers. Services of such employees engaged in caring for the farmer's
own household are not deductible.
Farm recapture property includes:
16. Enter unused capital loss carryover from preceding taxable years see instruction (G)
(1) Depreciable personal property;
17. Combine the amounts shown on lines 13, 14, 15 and 16
Line Farm expenses — Include advertising, stationery, stamps,
account books, other office supplies, travel, etc. Losses of farm build-
(2) Cattle or horses held for two years or more and other livestock
18. If line 17 shows a gain, enter here and on page 2, Part II of Form 540 or 540NR
ings, machinery and other farm property not included in your inventory,
held for one year or more for draft, breeding, dairy or sporting purposes;
19. If line 17 shows a loss, enter here and on page 2, Part II of Form 540 or 540NR the smallest of:
(a) amount on lines 17;
resulting from fire, storm or other casualty and not compensated for by
(3) Land held for more than one year; and
insurance or otherwise are deductible on Schedule D-1 (Form 540). Losses
(4) Unharvested crops growing on land which has been held for more
(b) the taxable income for the taxable year (computed without regard to gains or losses from sale or exchange
of property included in your inventory are taken care of by the reduced
than one year.
of capital assets); or
(c) $1,000 ($500 in the case of a husband or wife filing a separate return)
(REV. 1975)
(INSTRUCTIONS FOR SCHEDULE c ON REVERSE)
34521-400 9-75 280M 1 OSP
INSTRUCTIONS FOR SCHEDULE D (FORM 540)
SCHEDULE
CALIFORNIA
TAXABLE
(References are to the California Personal Income Tax Law, Codified as
Part 10 of Division 2 of the Revenue and Taxation Code)
D
1975
A. Who May File. Use Schedule D (Form 540) to report the sale or
decedent's death, the property shall be treated as being held for more than
CAPITAL GAINS AND LOSSES
FORM 540
YEAR
exchange of a capital asset, as defined in Instruction B. Do not use Schedule
one year but not more than five years. In community property states, such
D (Form 540), but use Schedule D-1 (Form 540), Supplemental Schedule of
as California, the holding period of the surviving spouse's half of community
Attach to Form 540 or 540NR
Gains and Losses, to report (1) the sale, exchange, or involuntary conversion
property begins with the date the property was originally acquired, even
of trade or business property, and depreciable or amortizable property; or
though its basis is computed at the date of death.
Use this schedule to report gains and losses on stocks, bonds and similar investments,
(2) the involuntary conversion (i.e., a casualty or theft) of a capital asset;
If property is involuntarily converted into money or other property and you
and gains (but not losses) on personal assets such as a home or jewelry.
and (3) the disposition of other noncapital assets not mentioned in (1).
acquire replacement property, it is considered to have been acquired on the
B. What is a Capital Asset. In general, all property you own and use for
same date as the property which was involuntarily converted, if its basis is
Name as shown on Form 540 or 540NR
Social Security Number
personal purposes, pleasure or investment is a capital asset. Examples include
determined by reference to such property.
(a) stocks or bonds held in your personal account; (b) a dwelling owned and
A nonbusiness bad debt is usually treated as a loss from the sale or
occupied by an individual and his family; (c) household furnishings used by
exchange of a capital asset held for not more than one year. This does not
an individual and his family; and (d) an automobile used for pleasure.
apply to (1) a debt evidenced by a corporate security with interest coupons
PART I-Assets Held One Year or Less
D
A capital asset as defined by law is any piece of property held by the
or in registered form or (2) a debt acquired in your trade or business.
e. Cost or other basis as
G. Capital Loss Carryover. Computation of the capital loss carryover should
adjusted, cost of subse-
taxpayer, except:
a. Kind of property and description
b. Date acquired
c. Date sold
d. Gross sales
quent improvements (if
f. Gain loss
(1) stock in trade;
be attached to Schedule D. The computation should provide a summary of
(Example, 100 shares of "Z" Co.)
(mo., day, yr.)
(mo., day, yr.)
price
not purchased, attach
(d. less e.)
(2) real or personal property includible in inventory;
Schedule D for the previous years starting with the initial year of loss and
explanation) and ex-
the effect to each subsequent tax year.
pense of sale
(3) real or personal property held for sale to customers;
1.
(4) accounts or notes receivable acquired in the ordinary course of a trade
H. Capital Loss Limitation. If line 17 results in a capital loss, such loss
is limited to the smallest of the following amounts:
or business for services rendered, or from the sale of any of the prop-
erties described above, or for services rendered as an employee;
(1) The amount on line 17;
(5) depreciable property used in your trade or business (even though fully
(2) The taxable income for the taxable year (computed without regard to
depreciated);
gains or losses from the sale or exchange of capital assets-use a
side computation to determine this amount); or
(6) real property used in your trade or business;
(3) $1,000 ($500 in the case of a husband or wife filing a separate return).
(7) a copyright, a literary, musical or artistic composition, a letter or
Unused capital losses for the current year (if any) are carried forward to
memorandum, or similar property-(a) created by your personal efforts;
Schedule D(540) for the subsequent year.
(b) prepared or produced, in the case of a letter, memorandum, or
I. Installment Sales. If you sold personal property for more than $1,000
similar property, for you; or (c) acquired from a person described in
2. Enter gain (or loss), if applicable, from line 18 Schedule D-1 (540) (attach copy)
or real property for any amount, you may be eligible to report any gain
(a) or (b) under circumstances entitling you to his basis (for example,
realized under the installment plan if:
3. Enter your share of net gain or loss from partnerships and fiduciaries
by gift).
(1) there was no payment in the year of sale; or
4. Net gain or loss, combine lines 1, 2 and 3
C. Sale or Exchange of Certain Capital Assets at a Loss. Property held
(2) the payments in the year of sale did not exceed 30 percent of the
for personal use is a capital asset. Gain from the sale or exchange of such
selling price.
PART II-Assets Held More Than One Year But Not More Than Five Years
property is a capital gain and must be reported. However, losses from sales
and exchanges (but not necessarily involuntary conversions-i.e., casualty or
Such sales must provide for two or more payments in two or more taxable
years. The election must be made in the year of sale even though no payment
5.
theft) of personal assets are not deductible, and should not be reported on
this or any other schedule or form.
was received in that year. (See Sections 17577-80.5).
Payments received in 1975 on installment sales made in prior years are
D. Cost or Other Basis, as Adjusted. In general, this means cost (or other
reportable at the recognized percentages in effect at the time such payments
basis as explained in the next paragraph), less, if applicable, depreciation
are received.
(allowed or allowable), amortization, depletion, etc. (see Section 18041).
For treatment of a portion of payments as "unstated interest" on deferred
If property was acquired by bequest, gift, tax-free exchange, involuntary
payments sales, see Section 17617.
conversion, or wash sale of stock, a basis, other than cost, might be appli-
cable. Attach an explanation if the basis used is other than actual cash cost
J. Special Rules. The following items may require special treatment: (1)
of the property.
transactions by a securities dealer (Section 18196); (2) wash sales of stock
or securities (Sections 18141-42); (3) bonds and other evidence of indebted-
If a charitable contribution deduction is allowed by reason of a sale of
ness if original issue discount is a factor (Sections 18183-85); (4) certain
6. Enter gain (or loss), if applicable, from line 20 Schedule D-1 (540) (attach copy)
property to a charitable organization after December 31, 1970, the adjusted
real property subdivided for sale may be considered a capital asset (Sections
7. Enter your share of net gain or loss from partnerships and fiduciaries
basis for determining gain from the sale is an amount which is in the same
ratio to the adjusted basis as the amount realized is to the fair market value
18197-99); (5) distributions received attributable to an employee pension,
8. Net gain or loss, combine lines 5, 6 and 7
of the property.
profit-sharing, or bonus plan (Sections 17501-29); (6) gain on sale of depre-
ciable property between husband and wife or between shareholder and a
E. Recognized Gain or Loss. The following percentages of the gain or loss
"controlled corporation" treated as ordinary gain (Section 18201).
PART III-Assets Held More Than Five Years
realized upon the sale or exchange of a capital asset shall be taken into
K. Sale of Personal Residence. Tax on a portion or all of the gain from
9.
account in computing taxable income:
the sale of your principal residence may be deferred, to the extent that the
(1) One hundred percent if the capital asset was held for one year or less.
cost of the new residence exceeds the adjusted sales price of the old
(2) Sixty-five percent if the capital asset was held for more than one year
residence, if:
but not more than five years.
(1) within 18 months after (or before) the date of sale, you purchase another
(3) Fifty percent if the capital asset was held for more than five years.
residence and use it as your principal residence; or
F. Holding Period. The holding period generally begins on the day after
(2) within 18 months after (or before) the date of sale, you begin construc-
you acquired the property and ends on the day you disposed of the property.
tion of a new residence and use it as your principal residence not later
In the case of a sale of stock or bond on a stock exchange by a cash
than 2 years after the date of sale.
basis taxpayer, the date of disposition is: (a) the "trade date if sold at a
(3) Military personnel may have different time periods. For details contact
loss, or (b) the "settlement date" if sold at a gain. Other special rules follow:
the nearest office of the Franchise Tax Board.
10. Enter gain (or loss), if applicable, from line 22 Schedule D-1 (540) (attach copy)
Nontaxable Exchanges-I you acquire an asset in an exchange for another
The basis (cost) of the new residence must be reduced by the deferred
11. Enter your share of net gain or loss from partnerships and fiduciaries
asset and your basis for the new asset is determined, in whole or part, by
gain realized on the sale of the old residence. (See Sections 18091-100.)
reference to your basis in the old property, then the first day of the holding
If you sold property for $30,000 or less on or after your 65th birthday
12. Net gain or loss, combine lines 9, 10 and 11
period of the new property is the day following the date you acquired the
which was owned and used by you as your principal residence for at least
old property.
five of the last eight years, any gain on the sale need not be included in
PART IV-Summary of Capital Gains and Losses
If you receive a gift of property, and if your basis is determined by refer-
income. If the property was sold for more than $30,000, part of the gain
ence to the basis in the hands of the donor, the first day of your holding
may be taken into income. (See Section 17154.)
13. Enter amount from line 4
period is the same date the donor used in computing his holding period.
L. Losses in Transactions Between Certain Persons. No deduction is allow-
14. Enter 65% of the amount on line 8
Real Property Purchased-To determine how long real property that is
able for losses from sales or exchanges of property directly or indirectly
15. Enter 50% of the amount on line 12
under unconditional contract of sale has been held, begin counting on the
between (1) members of a family, (2) a corporation and an individual or a
day following that on which title passes, or on the day following that on
fiduciary owning more than 50 percent of the corporation's stock (liquidations
16. Enter unused capital loss carryover from preceding taxable years see instruction (G)
which delivery of possession is made and the burdens and privileges of
excepted), (3) a grantor and fiduciary of any trust, (4) a fiduciary and
a
17. Combine the amounts shown on lines 13, 14, 15 and 16
ownership are assumed by the purchaser, whichever occurs first.
beneficiary of the same trust, (5) a fiduciary and a fiduciary or beneficiary of
If you acquired property from a decedent by inheritance or through a
another trust created by the same grantor, or (6) an individual and a tax-
18. If line 17 shows a gain, enter here and on page 2, Part II of Form 540 or 540NR
bequest or devise and the decedent died before January 1, 1971, the holding
exempt organization controlled by the individual or his family. Partners and
period begins with the date of the decedent's death. If the decedent died
partnerships see Section 17865.
19. If line 17 shows a loss, enter here and on page 2, Part II of Form 540 or 540NR the smallest of:
after December 31, 1970 and such property is sold or disposed of (in a
(a) amount on lines 17;
M. Capital Gains from Regulated Investment Companies. Report total amount
taxable year beginning in 1972 or thereafter) within five years after the
received as ordinary dividend income on page 1 of Form 540 or 540NR.
(b) the taxable income for the taxable year (computed without regard to gains or losses from sale or exchange
of capital assets); or
34522-400 6-75 2,200M 1 OSP
(c) $1,000 ($500 in the case of a husband or wife filing a separate return)
SCHEDULE
CALIFORNIA
TAXABLE
INSTRUCTIONS FOR SCHEDULE D (FORM 540)
(References are to the California Personal Income Tax Law, Codified as
E
19
Part 10 of Division 2 of the Revenue and Taxation Code)
decedent's death, the property shall be treated as being held for more than
FORM 540
SUPPLEMENTAL INCOME
YEAR
A. Who May File. Use Schedule D (Form 540) to report the sale or
exchange of a capital asset, as defined in Instruction B. Do not use Schedule
one year but not more than five years. In community property states, such
Attach to Form 540 or 540NR
D (Form 540), but use Schedule D-1 (Form 540), Supplemental Schedule of
as California, the holding period of the surviving spouse's half of community
property begins with the date the property was originally acquired, even
Name as shown on Form 540 or 540NR
Social Security Number
Gains and Losses, to report (1) the sale, exchange, or involuntary conversion
of trade or business property, and depreciable or amortizable property; or
though its basis is computed at the date of death.
(2) the involuntary conversion (i.e., a casualty or theft) of a capital asset;
If property is involuntarily converted into money or other property and you
and (3) the disposition of other noncapital assets not mentioned in (1).
acquire replacement property, it is considered to have been acquired on the
Part I.-PENSION AND ANNUITY INCOME. If fully taxable, do not complete this part. Enter amount on page 2 of Form 540
same date as the property which was involuntarily converted, if its basis is
or 540NR, under Miscellaneous Income. For each pension or annuity not fully taxable, attach a separate Part I and enter
B. What is a Capital Asset. In general, all property you own and use for
determined by reference to such property.
combined total of taxable portions on line 4. If first payment was received PRIOR to 1968, see Schedule E Instructions for
personal purposes, pleasure or investment is a capital asset. Examples include
A nonbusiness bad debt is usually treated as a loss from the sale or
(a) stocks or bonds held in your personal account; (b) a dwelling owned and
amount of taxable income to be reported.
occupied by an individual and his family; (c) household furnishings used by
exchange of a capital asset held for not more than one year. This does not
apply to (1) a debt evidenced by a corporate security with interest coupons
Name of payer:
Date first payment received:
an individual and his family; and (d) an automobile used for pleasure.
or in registered form or (2) a debt acquired in your trade or business.
A capital asset as defined by law is any piece of property held by the
Did your employer contribute part of the cost?
YES
NO
G. Capital Loss Carryover. Computation of the capital loss carryover should
E
taxpayer, except:
be attached to Schedule D. The computation should provide a summary of
If "YES," is your contribution recoverable within 3 years of the annuity starting date?
YES
NO
(1) stock in trade;
Schedule D for the previous years starting with the initial year of loss and
If "YES," show: Your contribution $
Your contribution recovered in prior years
$
(2) real or personal property includible in inventory;
the effect to each subsequent tax year.
(3) real or personal property held for sale to customers;
H. Capital Loss Limitation. If line 17 results in a capital loss, such loss
Amount received this year
(4) accounts or notes receivable acquired in the ordinary course of a trade
is limited to the smallest of the following amounts:
Amount excludable this year
or business for services rendered, or from the sale of any of the prop-
(1) The amount on line 17;
Taxable portion (subtract line 3 from line 2). Enter on Form 540 or Form 540NR in space provided
erties described above, or for services rendered as an employee;
(2) The taxable income for the taxable year (computed without regard to
(5) depreciable property used in your trade or business (even though fully
gains or losses from the sale or exchange of capital assets-use a
depreciated);
side computation to determine this amount); or
art II.-RENT AND ROYALTY INCOME. If you need more space, you may use Federal Form 4831. Note: If you are reporting
(6) real property used in your trade or business;
(3) $1,000 ($500 in the case of a husband or wife filing a separate return).
farm rental income here that is based on crops or livestock produced by a tenant farmer but you did not materially participate
(7) a copyright, a literary, musical or artistic composition, a letter or
Unused capital losses for the current year (if any) are carried forward to
in the operation of the farm, see Schedule E Instructions, to determine if you should also file Federal Form 4835.
memorandum, or similar property-(a) created by your personal efforts;
Schedule D(540) for the subsequent year.
(d). Depreciation
(b). Total amount
(c). Total amount
(e). Other expenses
(b) prepared or produced, in the case of a letter, memorandum, or
I. Installment Sales. If you sold personal property for more than $1,000
(a). Kind and location of property
(explain in Part V)
or real property for any amount, you may be eligible to report any gain
of rents
of royalties
or depletion (attach
(explain in
similar property, for you; or (c) acquired from a person described in
computation)
Part IV)
(a) or (b) under circumstances entitling you to his basis (for example,
realized under the installment plan if:
by gift).
(1) there was no payment in the year of sale; or
C. Sale or Exchange of Certain Capital Assets at a Loss. Property held
(2) the payments in the year of sale did not exceed 30 percent of the
for personal use is a capital asset. Gain from the sale or exchange of such
selling price.
property is a capital gain and must be reported. However, losses from sales
Such sales must provide for two or more payments in two or more taxable
years. The election must be made in the year of sale even though no payment
Totals
and exchanges (but not necessarily involuntary conversions-i.e., casualty or
theft) of personal assets are not deductible, and should not be reported on
was received in that year. (See Sections 17577-80.5).
Net income (or loss) (col. (b) plus col. (c), less cols. (d) and (e)). Enter on Form 540 or 540NR in space provided
this or any other schedule or form.
Payments received in 1975 on installment sales made in prior years are
D. Cost or Other Basis, as Adjusted. In general, this means cost (or other
reportable at the recognized percentages in effect at the time such payments
are received.
art III.-INCOME OR LOSSES FROM PARTNERSHIPS AND ESTATES OR TRUSTS. If any of the partnership, estate or trust
basis as explained in the next paragraph), less, if applicable, depreciation
(allowed or allowable), amortization, depletion, etc. (see Section 18041).
For treatment of a portion of payments as "unstated interest" on deferred
income reported below is from farming, see Schedule E Instructions, to determine if you should also file Federal Form 4835.
If property was acquired by bequest, gift, tax-free exchange, involuntary
payments sales, see Section 17617.
(a). Name and address
(b). Federal employer
(c). Partnerships principal
(d). Partnerships
(e) Estates or trusts
conversion, or wash sale of stock, a basis, other than cost, might be appli-
J. Special Rules. The following items may require special treatment: (1)
number
business activity
income
cable. Attach an explanation if the basis used is other than actual cash cost
transactions by a securities dealer (Section 18196); (2) wash sales of stock
of the property.
or securities (Sections 18141-42); (3) bonds and other evidence of indebted-
If a charitable contribution deduction is allowed by reason of a sale of
ness if original issue discount is a factor (Sections 18183-85); (4) certain
property to a charitable organization after December 31, 1970, the adjusted
real property subdivided for sale may be considered a capital asset (Sections
basis for determining gain from the sale is an amount which is in the same
18197-99); (5) distributions received attributable to an employee pension,
ratio to the adjusted basis as the amount realized is to the fair market value
profit-sharing, or bonus plan (Sections 17501-29); (6) gain on sale of depre-
of the property.
ciable property between husband and wife or between shareholder and a
"controlled corporation" treated as ordinary gain (Section 18201).
E. Recognized Gain or Loss. The following percentages of the gain or loss
realized upon the sale or exchange of a capital asset shall be taken into
K. Sale of Personal Residence. Tax on a portion or all of the gain from
account in computing taxable income:
the sale of your principal residence may be deferred, to the extent that the
otals-(Enter total of each column on Form 540 or 540NR in spaces provided)
(1) One hundred percent if the capital asset was held for one year or less.
cost of the new residence exceeds the adjusted sales price of the old
residence, if:
art IV.-EXPLANATION OF COLUMN
Item
Amount
Item
Amount
(2) Sixty-five percent if the capital asset was held for more than one year
(1) within 18 months after (or before) the date of sale, you purchase another
(e), PART II
but not more than five years.
(3) Fifty percent if the capital asset was held for more than five years.
residence and use it as your principal residence; or
Item
Amount
(2) within 18 months after (or before) the date of sale, you begin construc-
F. Holding Period. The holding period generally begins on the day after
tion of a new residence and use it as your principal residence not later
you acquired the property and ends on the day you disposed of the property.
In the case of a sale of stock or bond on a stock exchange by a cash
than 2 years after the date of sale.
basis taxpayer, the date of disposition is: (a) the "trade date if sold at a
(3) Military personnel may have different time periods. For details contact
the nearest office of the Franchise Tax Board.
loss, or (b) the "settlement date" if sold at a gain. Other special rules follow:
art V.-SCHEDULE FOR DEPRECIATION CLAIMED IN PART II ABOVE. Note: Depreciation may be computed by using
The basis (cost) of the new residence must be reduced by the deferred
Nontaxable Exchanges-If you acquire an asset in an exchange for another
asset and your basis for the new asset is determined, in whole or part, by
gain realized on the sale of the old residence. (See Sections 18091-100.)
the Asset Guideline Classes specified in Federal Revenue Procedure 72-10, regardless of when the assets
reference to your basis in the old property, then the first day of the holding
If you sold property for $30,000 or less on or after your 65th birthday
were placed in service. If this method is used, do NOT use the Lower Limit or the Upper Limit (ADR) Ranges.
period of the new property is the day following the date you acquired the
which was owned and used by you as your principal residence for at least
Attach detailed statement of depreciation computation.
old property.
five of the last eight years, any gain on the sale need not be included in
(a). Group and guideline class
(b). Date
(c). Cost or
(d). Depreciation
(e). Method of
computing
(f). Life or
or description of property
allowed or allowable
(g). Depreciation
If you receive a gift of property, and if your basis is determined by refer-
income. If the property was sold for more than $30,000, part of the gain
acquired
other basis
may be taken into income. (See Section 17154.)
in prior years
depreciation
rate
for this year
ence to the basis in the hands of the donor, the first day of your holding
period is the same date the donor used in computing his holding period.
L. Losses in Transactions Between Certain Persons. No deduction is allow-
Total additional first-year depreciation (do not include in items below)
Real Property Purchased-To determine how long real property that is
able for losses from sales or exchanges of property directly or indirectly
under unconditional contract of sale has been held, begin counting on the
between (1) members of a family, (2) a corporation and an individual or a
Asset Guideline Class System (See note above)
day following that on which title passes, or on the day following that on
fiduciary owning more than 50 percent of the corporation's stock (liquidations
Other depreciation
which delivery of possession is made and the burdens and privileges of
excepted), (3) a grantor and fiduciary of any trust, (4) a fiduciary and a
ownership are assumed by the purchaser, whichever occurs first.
beneficiary of the same trust, (5) a fiduciary and a fiduciary or beneficiary of
another trust created by the same grantor, or (6) an individual and a tax-
If you acquired property from a decedent by inheritance or through a
exempt organization controlled by the individual or his family. Partners and
bequest or devise and the decedent died before January 1, 1971, the holding
partnerships see Section 17865.
period begins with the date of the decedent's death. If the decedent died
after December 31, 1970 and such property is sold or disposed of (in a
M. Capital Gains from Regulated Investment Companies. Report total amount
taxable year beginning in 1972 or thereafter) within five years after the
received as ordinary dividend income on page 1 of Form 540 or 540NR.
Totals
34522-400 6-75 2,200M 1 OSP
ev. 1974)
See instructions on reverse
schedule
CALIFORNIA
TAXABLE
SCHEDULE
R
CALIFORNIA
TAXABLE
E
19
19
FORM 540
SUPPLEMENTAL INCOME
YEAR
FORM 540
RETIREMENT INCOME CREDIT
YEAR
Attach to Form 540 or 540NR
Attach to Form 540
Name as shown on Form 540 or 540NR
Social Security Number
Name as shown on Form 540
Social Security Number
Part I.-PENSION AND ANNUITY INCOME. If fully taxable, do not complete this part. Enter amount on page 2 of Form 540
Allowable only if a California resident throughout the entire taxable year
R
or 540NR, under Miscellaneous Income. For each pension or annuity not fully taxable, attach a separate Part I and enter
If separate return, use column B only. If joint return, use column A for wife and
combined total of taxable portions on line 4. If first payment was received PRIOR to 1968, see Schedule E Instructions for
column B for husband.
A
B
c
amount of taxable income to be reported.
All community income must be divided equally between husband and wife (see
Name of payer:
Date first payment received:
instructions).
1. Did your employer contribute part of the cost?
YES
NO
E
Enter your age as of last day of taxable year
ALTERNATIVE
If "YES," is your contribution recoverable within 3 years of the annuity starting date?
YES
NO
Did you receive earned income in excess of $600 in each of any 10 previous
COMPUTATION
If "YES," show: Your contribution $
Your contribution recovered in prior years $
calendar years? (Widows or widowers see instructions)
Yes
No
Yes
No
(Combined informa-
2. Amount received this year
tion of husband and
If answer above is "Yes" in either column, furnish all information below in that
wife if joint return
3. Amount excludable this year
column. Also furnish the combined information called for in column C for both
and both 65 or over)
4. Taxable portion (subtract line 3 from line 2). Enter on Form 540 or Form 540NR in space provided
husband and wife if joint return, both 65 or over, even if only one answered
"Yes" in column A or B.
Part II.-RENT AND ROYALTY INCOME. If you need more space, you may use Federal Form 4831. Note: If you are reporting
farm rental income here that is based on crops or livestock produced by a tenant farmer but you did not materially participate
1. Maximum amount of retirement income for credit computation
1,524
00
1,524
00
2,286
00
in the operation of the farm, see Schedule E Instructions, to determine if you should also file Federal Form 4835.
(d). Depreciation
2. Deduct (Community income must be divided equally between spouses):
(a). Kind and location of property
(b). Total amount
(c). Total amount
(explain in Part V)
(e). Other expenses
of rents
of royalties
or depletion (attach
(explain in
(a) Amounts received as pensions or annuities under the Social Security
computation)
Part IV)
Act, the Railroad Retirement Act (including supplemental annuities), and
certain other exclusions from gross income
(b) Earned income received (does not apply to persons 72 years of age
or over):
1. Totals
(1) If you are under 62 years of age, enter amount in excess of $900
2. Net income (or loss) (col. (b) plus col. (c), less cols. (d) and (e)). Enter on Form 540 or 540NR in space provided
(2) If you are 62 or over but under 72, enter amount determined as
follows:
Part III.-INCOME OR LOSSES FROM PARTNERSHIPS AND ESTATES OR TRUSTS. If any of the partnership, estate or trust
If $1,200 or less, enter zero
income reported below is from farming, see Schedule E Instructions, to determine if you should also file Federal Form 4835.
If over $1,200 but not over $1,700, enter ½ of
amount over $1,200
}
(a). Name and address
(b). Federal employer
(c). Partnerships principal
(d). Partnerships
number
business activity
income
(e) Estates or trusts
If over $1,700, enter excess over $1,450
3. Total of lines 2(a) and 2(b)
4. Balance (subtract line 3 from line 1. If line 3 is greater than line 1, enter zero)
If line 4, column A, B or C, is more than zero, complete this schedule.
If all of these columns are zero, do not file this schedule-you are
not entitled to any retirement income credit.
5. Retirement income (Community income must be divided equally between
Totals—(Enter total of each column on Form 540 or 540NR in spaces provided)
spouses):
Part IV.-EXPLANATION OF COLUMN
Item
Amount
Item
Amount
(a) If you are under 65 years of age:
Enter only income received from pensions and annuities under public
(e), PART II
retirement systems (e.g., federal, state, county, city governments, etc.)
Item
Amount
included on Page 1, Form 540
(b) If you are 65 years of age or older:
Enter total of pensions, annuities, interest and dividends included on
page 1, Form 540; gross rents included in Part II, column (b) of Schedule
Part V.-SCHEDULE FOR DEPRECIATION CLAIMED IN PART II ABOVE. Note: Depreciation may be computed by using
E (Form 540); and your share of gross rents from partnerships and your
the Asset Guideline Classes specified in Federal Revenue Procedure 72-10, regardless of when the assets
proportionate share of taxable rents from estates and trusts
were placed in service. If this method is used, do NOT use the Lower Limit or the Upper Limit (ADR) Ranges.
Attach detailed statement of depreciation computation.
6. Line 4 or line 5, whichever is smaller
(a). Group and guideline class
(b). Date
(c). Cost or
(d). Depreciation
(e). Method of
or description of property
other basis
allowed or allowable
computing
(f). Life or
(g). Depreciation
7. (a) Total (add amounts on line 6, columns A and B)
acquired
in prior years
depreciation
rate
for this year
If line 7(a) is less than $2,286 and this is a joint return and both husband and wife are
1. Total additional first-year depreciation (do not include in items below)
age 65 or over, the Alternative Computation in column c may result in a larger credit.
2. Asset Guideline Class System (See note above)
(b) Amount from line 6, column C, if applicable
3. Other depreciation
8. Tentative credit. Enter 1% of line 7(a) or 1% of line 7(b), whichever is greater
9. Tax liability shown on page 1, Form 540 (Tax, less exemption credits)
10. Less: Credit for net income taxes paid to other states (Page 2, Form 540)
11. Subtract line 10 from line 9. (If line 10 is greater than line 9, enter zero)
12. Retirement income credit. Enter here and on page 2, Form 540, the amount on line 8 or the amount on line
4. Totals
11, whichever is smaller
(Rev. 1974)
See instructions on reverse
(Rev. 1974)
See instructions on reverse
INSTRUCTIONS FOR SCHEDULE E (FORM 540)
SCHEDULE
CALIFORNIA
TAXABLE
PART I-PENSIONS AND ANNUITIES
thirds of your gross income was from farming, complete and
R
19
attach Federal Form 4835, Farm Rental Income and Expenses,
General Rule for Annuities. The amount of an an-
and enter the totals of income and expenses in Part II,
FORM 540
RETIREMENT INCOME CREDIT
YEAR
nuity, pension, endowment or similar payment includible in
taxable income depends on whether you contributed to its
Schedule E. Report crop shares received only for the year in
Attach to Form 540
cost and the date you received your first payment. If you did
which they are reduced to money or its equivalent.
In the case of buildings you can deduct depreciation. You
Name as shown on Form 540
Social Security Number
not contribute to the cost and were not subject to tax on your
can also deduct all ordinary and necessary expenditures on
employer's contributions, or you have recovered your entire
cost before the beginning of the taxable year, report the
the property such as taxes, interest, repairs, insurance, agent's
R
amount received on Form 540 or 540NR, page 2, as a fully
commissions, maintenance and similar items. However, you
Allowable only if a California resident throughout the entire taxable year
cannot deduct capital investments or improvements but must
If separate return, use column B only. If joint return, use column A for wife and
taxable pension or annuity, rather than on Schedule E.
add them to the basis of the property for the purpose of
A
B
c
column B for husband.
If you paid part or all of the cost and your first payment
depreciation. For example, you can deduct the cost of minor
was received before 1968, you must report as income each
repairs but not the value of your own labor or the cost of
All community income must be divided equally between husband and wife (see
year 3 percent of the total amount you paid. (If you received
major improvements such as a new roof or remodeling.
instructions).
less than 3 percent of your cost, you report only the actual
Enter your age as of last day of taxable year
ALTERNATIVE
amount received.) The difference between the amount received
If You Rent Part of Your House. If you rent out only
COMPUTATION
and 3 percent of your cost is excluded from income until your
part of your property, you can deduct only that portion of
Did you receive earned income in excess of $600 in each of any 10 previous
Yes
No
Yes
No
(Combined informa
full cost has been recovered, after which the entire amount
your expenses which relates to the rented portion. If you
calendar years? (Widows or widowers see instructions)
tion of husband and
received must be included in income.
cannot determine these expenses exactly, you may figure
If answer above is "Yes" in either column, furnish all information below in that
wife if joint return
If your first annuity, pension, etc., payment was received
them on a proportionate basis. For example, if you rent out
column. Also furnish the combined information called for in column C for both
and both 65 or over)
after 1967, the federal rules for reporting such income are
half of your home, and live in the other half, you can deduct
husband and wife if joint return, both 65 or over, even if only one answered
to be followed. If both you and your employer contributed to
only half of the total depreciation and other expenses incurred.
"Yes" in column A or B.
the cost and your contributions will be recovered within 3
Room rent and other space rentals should be reported as
1. Maximum amount of retirement income for credit computation
1,524
00
1,524
00
2,286
00
years, then all payments received are to be excluded from in-
business income on separate Schedule C (Form 540) if services
come until your cost (the amount you contributed, plus the
are rendered to the occupant; otherwise, report such income
contributions made by your employer on which you were
in this part. If you are engaged in the business of selling real
2. Deduct (Community income must be divided equally between spouses):
previously taxed) is recovered. Thereafter, all amounts you
estate, you should report rentals received in separate Sched-
(a) Amounts received as pensions or annuities under the Social Security
receive are fully taxable. This method of computing taxable
ule C (Form 540).
Act, the Railroad Retirement Act (including supplemental annuities), and
income also applies to the employee's beneficiary if the em-
Royalties. Report royalties from oil, gas, mineral prop-
certain other exclusions from gross income
ployee died before receiving any annuity or pension payments.
erties, copyrights and patents. However, if you hold an op-
(b) Earned income received (does not apply to persons 72 years of age
If your cost will not be recovered within 3 years, the federal
erating oil, gas or mineral interest, report gross income and
or over):
life expectancy rule must be followed. The computation and
expenses in separate Schedule C (Form 540).
(1) If you are under 62 years of age, enter amount in excess of $900
life expectancy multiple can be found in the Income Tax
(2) If you are 62 or over but under 72, enter amount determined as
Regulations covering annuities and pensions. Once you deter-
PART III-PARTNERSHIPS, AND ESTATES OR TRUSTS
follows:
mine the yearly excludable amount, it remains the same for
each year thereafter. In making this computation, you can
Partnerships. A partnership does not pay income tax.
If $1,200 or less, enter zero
It does, however, file an information return on Form 565.
}
get help from the Franchise Tax Board as well as the payer
If over $1,200 but not over $1,700, enter ½ of
Only one Form 565 need be filed for each partnership. Each
of the annuity or pension.
amount over $1,200
Death Benefit Exclusion. If you receive pension or
partner must report his share of the partnership's income.
If over $1,700, enter excess over $1,450
Include in this part your share of the ordinary income (whether
annuity payments as a beneficiary of a deceased employee,
actually received by you or not) or the net loss (loss allowable
3. Total of lines 2(a) and 2(b)
and the employee had received no retirement pension or
only to the extent of the adjusted basis of partner's interest
4. Balance (subtract line 3 from line 1. If line 3 is greater than line 1, enter zero)
annuity payments, you may be entitled to a death benefit
in the partnership) for the taxable year which ends within or
exclusion of up to $5,000. Contact the Franchise Tax Board
with the year covered by your return. Other items of income,
If line 4, column A, B or C, is more than zero, complete this schedule.
for more information.
deductions, etc., to be carried to the appropriate schedule of
If all of these columns are zero, do not file this schedule-you are
not entitled to any retirement income credit.
Form W-2P. If you received a Form W-2P, report in
your individual return are shown in Schedule K of the partner-
Part I, Schedule E, the gross amount of pension or annuity
ship return. Report your share of dividends, interest income,
5. Retirement income (Community income must be divided equally between
payments you received. If you are retired on disability and
gains and losses from the sale or exchange of capital assets
spouses):
are under normal retirement age and your Form W-2P shows
and other property, and tax preference income items on the
(a) If you are under 65 years of age:
an amount as "Gross amount reportable as wages or salary,"
appropriate lines and schedules of your individual return.
Enter only income received from pensions and annuities under public
report that amount on Form 540 or 540NR, page 2, as a fully
In Part III, Column (c), enter the principal business activity
retirement systems (e.g., federal, state, county, city governments, etc.)
taxable pension or annuity. Also show on Form 540 or 540NR,
of the partnership (i.e. farming, real estate, retail, etc.).
included on Page 1, Form 540
page 2, Adjustments to Income, the "amount excludable as
Estates and Trusts. If you are a beneficiary of an
(b) If you are 65 years of age or older:
sick pay."
estate or trust, report your share of dividends, interest income,
Enter total of pensions, annuities, interest and dividends included on
If you received retirement plan or profit sharing distribu-
gains and losses from the sale or exchange of capital assets
page 1, Form 540; gross rents included in Part II, column (b) of Schedule
tions, report the taxable amount paid as: (1) capital gain
and other property, and tax preference income items on the
E (Form 540); and your share of gross rents from partnerships and your
(amount from column b of Form W-2P) on Schedule D (Form
appropriate lines and schedules of your individual return.
proportionate share of taxable rents from estates and trusts
540); and (2) ordinary income (amount from column C of
All other taxable income from estates and trusts should be
Form W-2P) on Form 540 or 540NR, page 2, as a fully taxable
included in Part III, Column (e). Any depreciation (on estate
6. Line 4 or line 5, whichever is smaller
pension or annuity.
or trust property) allocable to you may be subtracted from
7. (a) Total (add amounts on line 6, columns A and B)
estate or trust income so that only the net income received
If line 7(a) is less than $2,286 and this is a joint return and both husband and wife are
PART II-RENTS AND ROYALTIES
will be included in your return. Information regarding these
age 65 or over, the Alternative Computation in column C may result in a larger credit.
Rents. If you were not engaged in selling real estate
items may be obtained from the fiduciary.
(b) Amount from line 6, column C, if applicable
to customers, but received rent from property owned or con-
trolled by you, report the total amount received in this part.
Small Business Corporations. There are no provisions
8. Tentative credit. Enter 1% of line 7(a) or 1% of line 7(b), whichever is greater
If property other than money was received as rent, its fair
in the California law, similar to those enacted in the federal
9. Tax liability shown on page 1, Form 540 (Tax, less exemption credits)
law, whereby the shareholders of certain "small business
market value should be reported.
10. Less: Credit for net income taxes paid to other states (Page 2, Form 540)
corporations" may elect to report the current corporate in-
If you received rental income based upon farm production
come (or loss) as though they earned it individually. Report
11. Subtract line 10 from line 9. (If line 10 is greater than line 9, enter zero)
or if you received crop shares based on the renting of all or
as dividends on page 1 of Form 540 or 540NR any income
12. Retirement income credit. Enter here and on page 2, Form 540, the amount on line 8 or the amount on line
part of your crop land on a crop share basis, but you did not
distributed to you from this type of corporation.
11, whichever is smaller
materially participate in the operation of the farm, and two-
34525-400 6-75 1600M OA OSP
(Rev. 1974)
See instructions on reverse
INSTRUCTIONS FOR schedule R (FORM 540)
INSTRUCTIONS FOR CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE DISABILITY
INSURANCE OVERPAYMENT ON YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN
If you are retired or are 65 or older, you may be able to
of your retirement income.
take a credit against your income tax of up to 1 percent
Remember, all community income must be divided equally
between husband and wife in determining the amount of
CREDIT OR REFUND CAN BE CLAIMED IF:
retirement income to be used in the credit computation. All
a. You worked for two or more employers.
three tests. Both husband and wife can take the credit if
To qualify for the credit you must meet the following
separate income must be reported by the spouse to whom
b. Deductions for disability insurance were made from your wages, and
both meet these tests.
the separate income belongs.
c. Such deductions TOTALED more than $90 for the Calendar Year 1975.
In determining the amount of prior earned income (Test 2)
Figuring the Credit-A married couple filing jointly
CREDIT OR REFUND CANNOT BE CLAIMED IF:
and retirement income (Test 3), married taxpayers must di-
should use column A for wife and column B for husband. If
vide community income equally; that is, one-half to each
a. More than $90 was deducted from your pay by only ONE employer. You must claim your refund directly from that employer.
both you and your spouse are 65 or older and are filing
spouse. Separate income, however, is to be reported only by
jointly, add the line amounts for columns A and B and com-
b. You worked for a business which had a change of ownership during the year. The combined deductions made by both owners
the spouse who received it.
pare the combined totals with the total of column c to see
should not total more than $90. If more than $90 was deducted from your pay by the two employers, claim your refund directly
which method will give you the larger credit. All others
from the last employer.
Test 1. Residence-You must have been a California
should use column B.
WHERE TO FILE CLAIM:
resident throughout the entire taxable year.
The maximum amount of retirement income on which you
Claim must be attached to the face of your California Individual Income Tax Return, Form 540 or 540NR. CLAIM WILL BE DISALLOWED
Test 2. Prior Earned Income-You must have re-
can take the credit is $1,524 ($2,286 if you and your spouse
IF THIS FORM IS NOT ATTACHED TO THE FACE OF YOUR RETURN. The Department of Benefit Payments will accept original claims
ceived over $600 of earned income during each of
are both 65 or older and are filing jointly, or $3,048 if you
only if claimant certifies to exemption from California State Income Tax. (Check box below to complete such certification and attach
10 calendar years-not necessarily consecutive-before any the
are filing jointly and both husband and wife show $1,524
statement as to reason for exemption.)
beginning of your taxable year.
on line 6, columns A and B.) From this amount you may have
to subtract a part of your earned income received in the
WHEN TO FILE CLAIM:
Remember, if you were married and lived in a community
taxable year, and must subtract certain exempt pensions and
annuities (lines 2(a) and (b)).
Claims must be filed on a California Income Tax Return for the year in which the wages were received, but not later than three
property state, all community income earned by either you
years after the due date without regard to any extensions.
or your spouse must be divided equally to determine whether
The maximum amounts allowed as a credit are shown
If not required to file a California Income Tax Return, claim Form DE 1964 must be filed with the Department of Benefit Payments
you meet this test. All separate income must be reported
by the spouse to whom the separate income belongs.
below, but the credit cannot be more than the amount of
within three years after the end of the calendar year in which the wages were received.
the tax liability shown on your return reduced by the credit
The term "earned income" means wages, salaries, profes-
(if any) for income tax paid to another state.
APPEALS:
sional fees or other amounts you received as payments for
$30.48 (1% of $3,048) on a joint return where both
If the Franchise Tax Board disallows your claim for overpayment of disability insurance, you may file a protest in writing with the
income. your work or services. An annuity or pension is not earned
husband and wife show $1,524 on line 6, columns
Director of the Department of Benefit Payments, P.O. Box 1685, Sacramento, CA 95808. This protest must be filed within 30 days
A and B.
of the date of mailing of the disallowance notice.
If you were in a trade or business in which both personal
$22.86 (1% of $2,286) on a joint return where both
services and capital were major income-producing factors,
(INSTRUCTIONS CONTINUED ON PAGE 2)
husband and wife are over 65 (even if one had no
you can consider a reasonable amount (but not over 30 per-
cent of your net profits) as earned income.
prior earned income to meet test 2, above).
CUT HERE
$15.24 (1% of $1,524) for all others.
If you are a surviving widow or widower and have not
ATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA
remarried, you can use the earned income of your deceased
Figure your credit as follows:
INDIVIDUAL INCOME TAX RETURN
spouse in figuring whether you meet this test, even if
CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE
had no earned income. You can also add his (her) earned you
Line 2(a)-Show the following pensions and annuities
income to yours to figure whether you qualify.
DISABILITY INSURANCE OVERPAYMENT ON YOUR
received during the taxable year:
CALIFORNIA INDIVIDUAL INCOME TAX RETURN
Test 3. Retirement Income-You must have received
(a) Pensions and annuities received under the Social Secur-
retirement income during the taxable year.
ity Act or Railroad Retirement Acts. For social security
FIRST NAME AND INITIAL
LAST NAME
SOCIAL SECURITY NUMBER
pensions show the gross amount before deduction of
The term "retirement income" means:
any amount withheld to pay medicare insurance
PLEASE
premiums.
PRESENT HOME ADDRESS (NUMBER AND STREET, INCLUDING APARTMENT NUMBER, OR RURAL ROUTE)
TYPE
(a) If you were under 65 on the last day of the taxable
OR
year, retirement income includes only the amount re-
(b) Any other pensions and annuities that are not taxed.
PRINT
CITY, TOWN OR POST OFFICE, STATE AND ZIP CODE
ceived during the taxable year from a pension or
Do not include any amount treated as a return of your
annuity under a public retirement system, which you
cost, or amounts you received under accident or health
insurance plans or as compensation for injury or sick-
DOLLARS
CENTS
reported as income on your return. A public retirement
ness.
system is one established by the federal government,
1. Total wages of above claimant (from line 6, page 2)
1
or a state, county, city, etc.
Line 2(b)-Show earned income received during the tax-
2. Total of deductions for California State Disability Insurance for above claimant (from line 7, page 2)
2
If you are retired on disability and are under normal
retirement age, no part of your disability annuity is
able year on line (1) or (2), depending on your age. If you
3. Required contributions on $9,000 taxable wages
3
90
00
retirement income for this purpose. Once you reach
this line.
were 72 or older on the last day of the taxable year, skip
income. normal retirement age, your annuity is then retirement
4. Credit or refund claimed (subtract line 3 from line 2). Enter this amount on your California Individual
Line 5-If you are under 65, enter your retirement income
Income Tax Return, Form 540, page 1, or Form 540NR, page 1. If husband and wife both qualify and
(b) If you were 65 or older on the last day of the taxable
on line (a). See test 3, paragraph (a), above, for what income
are filing a joint return, complete a Form DE 1964 for each spouse and enter the total of both claims
on your income tax return
4
year, retirement income includes the amounts received
to enter.
during the taxable year from pensions, annuities,
interest, rents and dividends which you reported as
If you are 65 or older, enter your retirement income on
I Certify that / am exempt from California State Income Tax and therefore am filing this claim directly with the Department of
income on your return. It does not include royalties.
line (b). See test 3, paragraph (b), above, for what income
Benefit Payments. (See attached statement for basis of exemption.)
For this purpose, income from rents means the full
to enter.
amount paid you before subtracting depreciation or
any other expenses.
Lines 6 through 12-Complete these lines as instructed
I Certify under penalties of perjury that the statement of wages paid to me and contributions deducted, as shown hereon, are
on the schedule.
true and correct to the best of my knowledge and belief.
SIGNATURE
DATE
34532-400 7-75 BOOM OSP
DE 1964 (1975)
INSTRUCTIONS FOR CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE DISABILITY
Page 2
INSURANCE OVERPAYMENT ON YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN
(INSTRUCTIONS CONTINUED FROM PAGE 1)
CREDIT OR REFUND CAN BE CLAIMED IF:
a. You worked for two or more employers.
b. Deductions for disability insurance were made from your wages, and
INFORMATION FOR COMPLETING WAGE SUMMARY SCHEDULE:
C. Such deductions TOTALED more than $90 for the Calendar Year 1975.
a. Disability insurance deductions are shown on check stubs or deduction slips (not on your forms W-2).
CREDIT OR REFUND CANNOT BE CLAIMED IF:
b. Enter below only those wages from which California Disability Insurance deductions were actually made.
a. More than $90 was deducted from your pay by only ONE employer. You must claim your refund directly from that employer.
c. Most Federal, State and local government agencies and religious organizations are not required to deduct California Disability
b. You worked for a business which had a change of ownership during the year. The combined deductions made by both owners
Insurance. Do not include these wages in your claim unless disability insurance deductions were actually made.
should not total more than $90. If more than $90 was deducted from your pay by the two employers, claim your refund directly
from the last employer.
d. Do NOT include in your claim:
(1) Deductions made from wages paid to your spouse or dependents. A separate claim must be filed by each individual even though
WHERE TO FILE CLAIM:
you may be filing a joint income tax return with your spouse.
Claim must be attached to the face of your California Individual Income Tax Return, Form 540 or 540NR. CLAIM WILL BE DISALLOWED
IF THIS FORM IS NOT ATTACHED TO THE FACE OF YOUR RETURN. The Department of Benefit Payments will accept original claims
(2) Deductions made from your wages for Federal Old Age, Survivors and Disability Insurance (Social Security-Medicare Tax) or
only if claimant certifies to exemption from California State Income Tax. (Check box below to complete such certification and attach
Federal and State income tax withheld from your wages.
statement as to reason for exemption.)
(3) Deductions made from wages earned in states other than California unless such wages were reported to the State of California.
WHEN TO FILE CLAIM:
(4) Seamen's wages that come under the jurisdiction of states other than California.
Claims must be filed on a California Income Tax Return for the year in which the wages were received, but not later than three
e. Self-employed Persons-Enter in column (a) "Covered under California Insurance Code Sections 708 or 708.5," and complete column
years after the due date without regard to any extensions.
(b). Failure to enter this information will result in rejection of your claim on initial review.
If not required to file a California Income Tax Return, claim Form DE 1964 must be filed with the Department of Benefit Payments
within three years after the end of the calendar year in which the wages were received.
ASSISTANCE:
APPEALS:
If you need assistance in completing this claim, contact the nearest office of the Department of Benefit Payments.
If the Franchise Tax Board disallows your claim for overpayment of disability insurance, you may file a protest in writing with the
Director of the Department of Benefit Payments, P.O. Box 1685, Sacramento, CA 95808. This protest must be filed within 30 days
AMENDED CLAIMS:
of the date of mailing of the disallowance notice.
Amended claims must be so marked, (if not, they will be returned to claimant) and forwarded to the Department of Benefit Payments,
(INSTRUCTIONS CONTINUED ON PAGE 2)
P.O. Box 1685, Sacramento, CA 95808.
CUT HERE
CUT HERE
ATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA
ATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN
Page 2
INDIVIDUAL INCOME TAX RETURN
Wage Summary-Complete schedule below if over $90 was deducted for California State Disability Insurance during 1975 by two
CLAIM FOR CREDIT OR REFUND OF CALIFORNIA STATE
or more employers.
DISABILITY INSURANCE OVERPAYMENT ON YOUR
CALIFORNIA INDIVIDUAL INCOME TAX RETURN
L
Wages paid to you
Actual deduction for
EMPLOYER'S BUSINESS NAME AND CITY
during 1975
Disability Insurance.
LAST NAME
SOCIAL SECURITY NUMBER
I
Period
Do not show
Not to exceed 1%
FIRST NAME AND INITIAL
AS SHOWN ON W-2 FORM
employed
N
more than
of wages shown in
during 1975
List in Alphabetical Order
$9,000 for
column (c). Do not
PLEASE
E
PRESENT HOME ADDRESS (NUMBER AND STREET, INCLUDING APARTMENT NUMBER, OR RURAL ROUTE)
any one employer
list FICA deductions
TYPE
OR
Column (a)
Column (b)
Column (c)
Column (d)
PRINT
CITY, TOWN OR POST OFFICE, STATE AND ZIP CODE
NAME
LOCATION
FROM (MONTH)
TO (MONTH)
DOLLARS
CENTS
DOLLARS
CENTS
5.
DOLLARS
CENTS
1. Total wages of above claimant (from line 6, page 2)
1
2. Total of deductions for California State Disability Insurance for above claimant (from line 7, page 2)
2
90
00
3. Required contributions on $9,000 taxable wages
3
4. Credit or refund claimed (subtract line 3 from line 2). Enter this amount on your California Individual
Income Tax Return, Form 540, page 1, or Form 540NR, page 1. If husband and wife both qualify and
are filing a joint return, complete a Form DE 1964 for each spouse and enter the total of both claims
on your income tax return
4
I Certify that I am exempt from California State Income Tax and therefore am filing this claim directly with the Department of
Benefit Payments. (See attached statement for basis of exemption.)
I Certify under penalties of perjury that the statement of wages paid to me and contributions deducted, as shown hereon, are
6.
Total (also enter this amount on page 1, line 1)
true and correct to the best of my knowledge and belief.
(also enter this amount on
7.
Total of actual deductions for California State Disability Insurance page 1, line 2)
SIGNATURE
DATE
DE 1964 (1975)
34560-400 7-75 600M 5P
Page 9 540 INSTRUCTIONS
Page 2
(INSTRUCTIONS CONTINUED FROM PAGE 1)
TAX PREPARERS ACT
INFORMATION FOR COMPLETING WAGE SUMMARY SCHEDULE:
Under a 1974 California law (Business and Professions Code Section 9891.1, et seq) all tax preparers (except
a. Disability insurance deductions are shown on check stubs or deduction slips (not on your forms W-2).
California CPA's and PA's, members of the California Bar, bank and trust companies, or persons authorized
b. Enter below only those wages from which California Disability Insurance deductions were actually made.
to practice before the Internal Revenue Service) must be registered with the State Department of Consumer Af-
C. Most Federal, State and local government agencies and religious organizations are not required to deduct California Disability
fairs. This law requires all tax preparers, who prepare state or federal income tax returns or state bank and
Insurance. Do not include these wages in your claim unless disability insurance deductions were actually made.
corporation franchise tax returns for a fee, to file an application form, pay registration fees, and post a $1,000 bond.
d. Do NOT include in your claim:
For information, contact the California Department of Consumer Affairs, Tax Preparer Program, 1021 O Street,
(1) Deductions made from wages paid to your spouse or dependents. A separate claim must be filed by each individual even though
Sacramento, California 95814, telephone (916) 322-3590.
you may be filing a joint income tax return with your spouse.
(2) Deductions made from your wages for Federal Old Age, Survivors and Disability Insurance (Social Security-Medicare Tax) or
Federal and State income tax withheld from your wages.
(3) Deductions made from wages earned in states other than California unless such wages were reported to the State of California.
TAX FORMS DESCRIPTION
(4) Seamen's wages that come under the jurisdiction of states other than California.
e. Self-employed Persons-Enter in column (a) "Covered under California Insurance Code Sections 708 or 708.5," and complete column
Schedule A(540)-If you itemize deductions.
Schedule G(540)-If you claim the benefit of income aver-
(b). Failure to enter this information will result in rejection of your claim on initial review.
Schedule B(540)-If you had dividend income over $400, or
aging.
ASSISTANCE:
interest income over $400.
Schedule G-1(5-40)-If you claim the benefit of either the
If you need assistance in completing this claim, contact the nearest office of the Department of Benefit Payments.
Schedule CF(540)-If you had income or loss from a business
"5-year special averaging method" or the
or profession or income and expenses from
"7-year special averaging method."
AMENDED CLAIMS:
a farm.
Schedule P(540)-If you had items of tax preference in ex-
Amended claims must be so marked, (if not, they will be returned to claimant) and forwarded to the Department of Benefit Payments,
Schedule D(540)-If you had sales or exchanges of capital
cess of $8,000 ($4,000 if single or married
P.O. Box 1685, Sacramento, CA 95808.
assets.
filing separately).
CUT HERE
Schedule D-1(540)-If you had sales or exchanges of other
Schedule R(540)-If you claim the retirement income credit.
ATTACH TO THE LOWER PORTION OF YOUR CALIFORNIA INDIVIDUAL INCOME TAX RETURN
Page 2
property; or an involuntary conversion of
Schedule S(540)-If you claim credit for taxes paid to
property.
another state.
Wage Summary-Complete schedule below if over $90 was deducted for California State Disability Insurance during 1975 by two
or more employers.
Schedule E(540)-If you had income from pensions, annu-
Form DE 1964-If you worked for two or more employers
ities, rents, royalties, partnerships, estates,
and had more than $90 State Disability
L
Wages paid to you
Actual deduction for
EMPLOYER'S BUSINESS NAME AND CITY
during 1975
Disability Insurance.
or trusts.
Insurance deducted from your earnings.
I
Period
Do not show
Not to exceed 1%
AS SHOWN ON W-2 FORM
employed
N
more than
of wages shown in
List in Alphabetical Order
during 1975
$9,000 for
column (c). Do not
E
any one employer
list FICA deductions
Column (a)
Column (b)
Column (c)
Column (d)
NAME
LOCATION
FROM (MONTH)
TO (MONTH)
DOLLARS
CENTS
DOLLARS
CENTS
5.
ORDER BLANK FOR REQUESTING FORMS-Instructions will be included with each form listed below. Cut along
the dotted line and enclose this order blank with your name and address printed on the reverse side and mail
to: The Franchise Tax Board, Tax Forms Request Unit, Sacramento, California 95867.
CIRCLE DESIRED FORMS
Multiple Support
Annuity Data
Sick Pay Exclusion
540M
3805h
3805t
540
Schedule G
Amended Return
Residence Sale/Exchange
Moving Expenses Adjustment
with instructions
with instructions
540X
3805j
38050
Schedule A & B
Schedule G-1
540NR
Bad Debts Data
Care of Dependents
with instructions
with instructions
with instructions
3805k
3805x
Schedule C/F
Schedule P
Extension Request
Alimony Substantiation
Education Expenses
with instructions
with instructions
3501
3805m
3805y
Schedule D
Schedule R
Refund Due Dec'd Taxpayer
Employee Business Expen.
with instructions
with instructions
3545
3805n
6.
Total (also enter this amount on page 1, line 1)
Schedule D-1
(also enter this amount on
Schedule S
Property Sales
Rents & Royalties
with instructions
with instructions
3805f
3805Γ
7.
Total of actual deductions for California State Disability Insurance page 1, line
2)
Schedule E
Schedule DE1964
Subdivided Property
Depreciation Deduction
with instructions
with instructions
3805g
3805s
34560-400 7-75 600M osP
Page
10
540
INSTRUCTIONS
IMPORTANT REMINDERS
If you have a REFUND, mail your return to:
If you have a BALANCE DUE, mail your return
FRANCHISE TAX BOARD
and remittance to:
P.O. Box 13-540
FRANCHISE TAX BOARD
Sacramento, CA 95813
Sacramento, CA 95867
USE NAME AND ADDRESS LABEL. Peel off label from booklet and place it on your return (correct any errors). If you do not use the
label, clearly print your name, address and social security number(s) on your return.
Check proper Filing Status and correctly determine your exemption credits.
Type or clearly print all entries and be sure they are legible.
It is preferred that money amounts be shown in whole dollars.
Use the appropriate Tax Rate Schedule on page 8 to compute your tax.
Sign and date the return. If a joint return is filed, both spouses must sign the return.
Attach all required schedules and enter totals on appropriate lines of Form 540. Attach "Underpayment of Estimate Tax" (if appli-
cable) to the face of the return.
Attach 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.
Enter your social security number on the face of your payment. Do NOT mail cash.
Additional forms and schedules are obtainable from all Franchise Tax Board offices.
File your return as soon as you can after January 1, but not later than April 15, 1976.
FRANCHISE TAX BOARD OFFICES
Address
Zip Code
Telephone
Address
Zip Code
Telephone
Bakersfield
1031 Seventeenth Street
93301
(805) 322-0540
San Diego
1350 Front Street
92101
(714) 236-7540
Tax Forms Request
(805) 322-8655
Tax Forms Request
(714) 236-7678
El Monte
9660 Flair Drive
91731
(213) 575-6600
San Francisco
345 Larkin Street
94102
Tax Forms Request
(213) 575-6660
(415) 557-0540
Tax Forms Request
(415) 557-2357
Fresno.
2550 Mariposa Street
93721
(800) 852-7050
Tax Forms Request
(800) 852-7100
San Jose
555 N. First Street
95112
(800) 852-7050
Long Beach
3530 Atlantic Avenue
90807
(213)
595-5406
Tax Forms Request
(800) 852-7100
Tax Forms Request
(213) 424-1619
Santa Ana
28 Civic Center Plaza
92701
(714) 558-4540
Los Angeles
3200 Wilshire Boulevard
90010
(213)
620-5400
Tax Forms Request
(714) 835-8411
Tax Forms Request
(213) 620-5300
Oakland
1916 Broadway
94612
(415)
464-0540
Santa Barbara
41 Hitchcock Way
93105
(805) 682-2696
Tax Forms Request
(415) 464-1053
Tax Forms Request
(805) 687-1780
Sacramento
920 Twenty-Third Street
95816
(916) 445-9540
Santa Rosa
447 College Avenue
95403
(800)
852-7050
Tax Forms Request
(916) 441-5990
Tax Forms Request
(800) 852-7100
Outside Sacramento Metropolitan Area, see white
pages of your local telephone directory.
Stockton
31 E. Channel Street
95202
(800)
852-7050
San Bernardino
Tax Forms Request
(800) 852-7100
303 W. Third Street
92401
(714) 383-4201
Redlands-Riverside exchanges only
(714) 825-4050
Van Nuys
8155 Van Nuys Boulevard
91402
(213)
786-9540
Tax Forms Request
(714) 383-4781
Tax Forms Request
(213) 994-9431
NAME
Enter your name and
address on this label.
NUMBER AND STREET
It will be used to
speed your order for
forms to you.
CITY OR TOWN, STATE AND ZIP CODE
34517-400 10-75 6.500M
1
OSP
FORD
LIBRARY
&
GERALD
Ford-Reagan split threatens state candidates
By JAMES FLOYD
Danforth (Attorney General John C.
present leaders were winning?" Wolfsberger asked.
Globe-Democrat Staff Writer
Danforth, candidate for the GOP
"Instead of learning from their wins and his losses, he
Senate nomination) Tom Curtis is
has engaged in the most arrogant and harmful
trying to reverse progress and lead
campaign I have seen in years."
With Missouri Democrats already convinced they can
the Republican Party into darkness
Curtis lost Senate races to Thomas F. Eagleton in
hold the U.S. Senate seat being surrendered by Stuart
and defeat with the most divisive
1968 and 1974.
Symington and even retake the governor's mansion
campaign since the Bull Moose break
Wolfsberger called Bond, Phelps and Danforth
from Republican Christopher S.
more than half a century ago."
"dynamic new leaders of integrity and ability
who
Chairman
REAGAN
PAUL D. LAXALT,
United States Senator
Executive Vice Chairman
JOHN P. SEARS
Treasurer
HENRY M. BUCHANAN, C.P.A.
for President
Committee Members
GEORGE B. COOK
H.R. GROSS,
Former U.S. Congressman,
CITIZENS FOR REAGAN
State of lowa
LOUIE B. NUNN,
2021 L Street, N.W.
Suite 340
Former Governor,
Washington, D.C. 20036
State of Kentucky
GERALD FORD LIBRARY
Mrs. STANHOPE C. RING,
Former Republican National
Committeewoman,
State of California
Dear Fellow American,
The Reagan for President campaign is under way!
Millions of Americans have been anxiously waiting to hear this great
news. They know that Ronald Reagan is the one American statesman who can
set the nation on the path to peace, prosperity, and freedom.
He has firm and definite solutions to our welfare mess, to rising crime,
runaway taxes, crippling inflation, and our out-of-control federal bureaucracy.
Ronald Reagan believes in the wisdom of our founding fathers limited
constitutional government, maximum freedom for the individual, and a healthy,
growing, unfettered free enterprise system.
He wants to restore our weakened military posture, and he is determined
to stand up to the threat of Communist imperialism.
Ronald Reagan is proud to be an American. You will be proud to have
Ronald Reagan as your President.
Now is the time. Today. Join the march for America. Help put Ronald
Reagan in the White House!
Make no mistake about it liberal candidates have already amassed huge
war chests for their 1976 Presidential drive. They plan to spend whatever is
necessary to continue the policies of big spending, high taxes and increasing
government control. Of course, they are aided in their efforts by liberal
members of the news media.
This is our chance! Today send your absolute maximum contribution to
the Reagan campaign. Consider what your contribution will mean to the future
of our nation. $10, $100, or $1,000--we need your check immediately!
We urgently need hundreds of thousands of dollars to pay for printing,
postage, staff salaries, TV & radio, rent, etc.
The future of freedom in America rests in our hands. Don't lay this
letter aside! Send your generous contribution today.
Tane Sincerely, Leart
Paul Laxalt, U.S.S.
P.S. With your help, we are going to win!
Bulk Rate
REAGAN
U.S. Postage
PAID
Permit #36
Manassas, Va.
for President
CITIZENS FOR REAGAN
Suite 340
2021 L Street, N.W.
Washington, D.C. 20036
If you receive more than one copy of this appeal ...
Please understand that we are using many mailing lists in
this important project and that occasional duplications
will occur. Won't you share any extra copies you receive
with a friend? Thanks for your understanding and con-
tinued support.
Make necessary corrections in address shown below
MR R A MARMET
1820 JEFFERSON PL
R23
WASHINGTON DC 20036
FIRST CLASS
Permit No.
72124
Washington, D.C.
BUSINESS REPLY MAIL
No Postage Stamp Necessary if Mailed in the United States
POSTAGE WILL BE PAID BY:
CITIZENS FOR REAGAN
Suite 340
2021 L Street, N.W.
Washington, D.C. 20036
Please make necessary changes If label attached
to reverse side is incorrect.
"THE
SPIRIT
OF '76!"
SEND YOUR CHECK TODAY.
Are you interested in helping to form citizen committees in your community?
If so, please indicate and note your political position
Individual political contributions are tax-deductible up to a total of $25.00 per year.
I want to help the "Citizens for Reagan" committee put Ronald Reagan in the
White House.
My contribution is enclosed:
$1,000
$500
$100
$50
$25
$
Other
Make all checks payable to Citizens for Reagan and return in this pre-paid
envelope.
In accordance with federal legislation, we are not able to accept either (a) any corporate checks
whatever, or (b) any personal contributions over $1,000. A copy of our report will be filed with
the Federal Election Commission and will be available for purchase from that office in Wash-
ington, DC,
This federal statute requires us to request the following information from you:
OCCUPATION
BUSINESS ADDRESS
CITY.
STATE
ZIP
From the desk of
DEAN BURCH
Bo Callaway
FYI
DB
RONALD REAGAN
SUITE 812
10960 WILSHIRE BOULEVARD
LOS ANGELES, CALIFORNIA 90024
213/477-8231
July 14, 1975
The Honorable Paul Laxalt
Member, United States Senate
Senate Office Building
Washington, D. C. 20500
Dear Paul:
I am writing this letter in response to your decision to
chair the "Citizens for Reagan" committee. I deeply
appreciate your action, but I want to inform you that I
have not made up my mind whether to become an active
Presidential candidate. I expect to make this decision
before the end of the year.
Meanwhile, I recognize that due to the technical require-
ments of the law (including the requirement for the
designation of a principal campaign committee), the
committee must file with the Federal Elections Commission
as working on my behalf. I trust this letter will suffice
as my consent for purposes of allowing you to do so.
Sincerely,
Ran
RONALD REAGAN
FORD i GERALD LIBRARY
E-per
The President Ford Committee
1200 Eighteenth Street, N.W.
Suite 916
Washington, D. C. 20036
(202) 833-8920
July 21, 1975
MEMORANDUM TO: BOB VISSER
FROM: Bo CALLAWAY
Bob, I was talking to Dean Burch today and he suggested
that as soon as you come on board, you get a copy of all
of the campaign filings with the Federal Election Commission.
We are of course most interested right now, in the one filed
on behalf of Reagan by Laxalt and his group. We are
particularly interested in whether or not, Governor Reagan has
designated this committee as his principle committee.
bc/mdt
HHC
d beliefe John John Duffy
may this have for info
on
nya
LIBRARY GERALD R. FORD
For President
RNC an independent
Sen. Paul Laxalt
arganization
Chairman
John P. Sears
Exec. Vice Ch.
George Cook
October 14, 1975
H.R. Gross
Louie B. Nunn
Mrs. Stanhope C. Ring
Henry Buchanan
Treasurer
Federal Election Commission
Office of the General Counsel
Advisory Opinion Comment
1325 K Street, N.W.
FORD & GERALD LIBRARY
Washington, D.C. 20463
Dear Sirs:
We respectfully submit the following comments on AOR-1975-72.
We hope this will be helpful to the Commission.
AOR 1975-72 raises the question of whether the Republican
National Committee (RNC) can legitimately provide funds, in light of
the recent federal election law amendments, for political travel by
President Ford while he is a candidate for his party's presidential
nomination. And further, whether these expenditures count against
candidate Ford's campaign expenditure limitations under 18 U.S.C.
section 608(c). It appears to our committee that several facts must
be considered before a conclusion on the RNC's request can be reached.
First, President Ford is an announced and declared candidate
for his party's nomination. He has, as of this date, made campaign
trips and authorized a committee which has made campaign expenditures
on behalf of his campaign. He indicated on a nationally televised news
conference (October 9, 1975) that he hoped his political trips made on
behalf of the RNC would help his election. He has made the decision
to actively campaign at an earlier date than has been the customary
political practice of past incumbent Presidents.
2021 L St., N.W., Suite 340, Washington, D.C. 20036
Phone: 202/223-8560
Federal Election Commission
October 14, 1975
Page Two
Second, Gerald R. Ford was the first individual appointed to the
Vice Presidency under the provisions of the recently enacted 25th
Amendment. Following the resignation of Richard M. Nixon as President,
Gerald R. Ford succeeded to that office. His Vice President, Nelson A.
Rockefeller, also became such by the operation of the 25th Amendment,
after having been rejected for the Republican presidential nomination
by the Republican National Conventions of 1964 and 1968. These facts
are quite important in providing some political perspective to the
relationship of the Presidency, its current occupant, and the Republican
Party.
Third, there is an active political committee in existence,
authorized by Governor Reagan, and registered with the Federal
Election Commission, that has raised significant amounts of money
from many thousands of persons in every state. This committee is
actively promoting the candidacy of Governor Ronald Reagan for the
Republican Party's presidential nomination.
Fourth, one of the basic purposes of the 1974 amendments to the
body of federal election law is to insure that no candidate, regardless
of his position or financial means, could "buy" the Presidency by means
of excessive financial expenditures. To this end, the key provision of
the 1974 Act is 18 U.S.C. section 608. This section imposes strict
expenditure limitations on all candidates for federal office. The
purpose of these limitations is, in part, to provide every candidate
with an equal opportunity to present his campaign to the electorate.
Fifth, a key criticism of the new election law is that it favors
incumbents in that it protects them against challengers. This is so,
many feel, because a challenger can only overcome the multiple
advantages of incumbency by greater campaign spending than the
incumbent. It is certainly true that an incumbent President enjoys
great political advantages by virtue of his official position, advantages
such as government-paid travel around the country to "non-political
events" and the national forum of the televised Presidential press
conference (recently exempted from equal time by the Federal
Communications Commission). Does he also, in a primary campaign
situation, enjoy the official mantle of the party and use of its funds
merely by virtue of his title ?
Commission
October 14, 1975
Page Three
With these basic factual referents in mind we submit the following
analysis of the RNC's request:
Traditionally an incumbent President seeking reelection has been
considered unchallengable within his own political party for his party's
nomination. No incumbent President in this century has been denied
renomination by his party. In fact, so strong is the traditional role of
the incumbent President that only twice in this century has one been
defeated in a general election. In 1975 and 1976 the situation in this
country is and will be unique politically. The incumbent President and
Vice President of the Republican Party have never faced the national
electorate or, in the case of President Ford, the Republican Party
membership as expressed through its national party convention.
Thus, President Ford is clearly not in the same position as former
Republican Party presidents were. In fact, it is clear that one of the
important factors in the 1976 nomination contest is the current lack of
a nationally chosen or mandated Republican Party "leader" in the
traditional sense. The Republican Party's only elected national
spokesman is its chairman, Mrs. Mary Louise Smith.
Thus, while Gerald R. Ford is legally and constitutionally the Chie,
Executive, with all the President's powers and privileges, and entitled
to all the traditional support and respect due our Head of State, he does
not stand in the traditional role an incumbent President has had as the
titular leader of the Republican Party. Further, actions that tend not
only to place him in such a role but also to emphasize it directly
benefit his campaign for the party's nomination for President. In
fact, a key selling point of the President's campaign has been his
incumbency. To argue that his campaign for the nomination should not
be hindered because of his activities as "party leader, " is very
like the boy, who having killed his parents, says he should not be
punished because he is an orphan.
Only the 1976 nominee of the Republican National Convention will
be the party's chosen leader.
The 1974 amendments to federal election law mandate strict
expenditure limitations for all federal candidacies. They do this
separately with respect to candidates for the nomination of parties and
Federal Election
ommission
October 14, 1975
Page Four
for the candidates of parties in general elections. Further, the law
embodies a very expansive and comprehensive definition of contributions
and expenditures so as to close nearly every potential loophole left in
past legislative attempts at regulation. This legislative plan clearly
manifests the intent of Congress, as ratified by President Ford in
signing the law, to establish a system of electoral regulation that would
control, limit and disclose all expenditures that promote and influence a
federal campaign. It cannot be seriously argued that political trips made
by a declared candidate, as "leader" of a political party, directed at
those very individuals who will ultimately choose the party's nominee,
does not directly benefit and influence and promote such candidate's
campaign. If President Ford's campaign is not charged with the
cost of trips made as the "leader" of the Republican Party under these
circumstances then section 608 is not the comprehensive expenditure
limitation section it clearly was intended to be.
If the Commission's interpretation of this new law is not to favor
incumbents over other candidates and if the traditional relationship
of the Presidency to its own political party is not to become a vehicle
for allowing the new election law to be gravely distorted then the RNC's
planned actions must be modified. It would certainly be divisive within
the Republican Party if the RNC were to bestow a non-reportable and
uncontrolled election benefit on only one candidate for the party's
nomination. This would raise constitutional questions of whether 18
U.S.C. section 608's effect, if not its purpose, is to stifle legitimate
political challenges to incumbents from within their own parties.
If the party provided truly equal treatment to all candidates for
its nomination then few serious objections could be raised. Then, the
party would not be promoting a campaign but would be providing its
national membership with a better opportunity for seeing all its candidates.
It would be performing a legitimate informational function by helping
members to make more intelligent choices among the candidates.
While a TV appearance by one candidate benefits his campaign, a program
presenting all of the candidates equally benefits the electorate. Of
course, a fair and equitable mechanism would have to be worked out
to determine who the individuals are who are legitimately entitled to
such consideration. But this should not be difficult. A simple criterion,
like qualification for federal matching funds, would provide an adequate
method for discriminating between bona fide candidates and others.
October 14, 1975
Page Five
If the RNC chooses not to consider such an option it seems to our
committee that its current proposal raises serious questions under both
the contribution limitations and the expenditure limitations of section 608.
If party "leadership" is to confer substantial financial electoral benefits
it should be both formalized and brought within the guidelines of the
election law. Governor Reagan has over the past years raised millions
of dollars for the Republican Party at numerous party events across the
nation and by direct mail. He has done this as a member of the party
who deeply believes in its principles. Our committee feels that the party
treasury, built up in the interests of the whole party, should not become
a vehicle for any single candidate in contest for the party's nomination,
regardless of any office he may hold.
In 1975 and 1976 a new federal election law prevails. Examples
of past practice no longer suffice to justify present actions. We hope
our comments will aid the Federal Election Commission in deciding
this question.
Very truly yours,
Loren
Loren A. Smith
General Counsel
LAS:jf
cc: Hon. Thomas B. Curtis
Hon. Neil Staebler
Hon. Joan Aikens
Hon. Thomas E. Harris
Hon. Vernon W. Thomson
Hon. Robert O. Tiernan
Hon. Benton L. Becker
Hon. Mary Louise Smith
19 oct.
Bob - They and This
playing hard/bell
what options do is
has for contesting
the country, paid for
Reagans kips around
by bus Radio - Column
excluded from
Committee and this his Strith
limitation
Bo
For President
A0-1575-72
Sen. Paul Laxalt
Chairman
John P. Sears
Exec. Vice Ch.
George Cook
October 14, 1975
H. R. Gross
Louie B. Nunn
Mrs. Stanhope C. Ring
Henry Buchanan
Treasurer
Federal Election Commission
Office of the General Counsel
Advisory Opinion Comment
1325 K Street, N.W.
Washington, D.C. 20463
Dear Sirs:
We respectfully submit the following comments on AOR-1975-72.
We hope this will be helpful to the Commission.
AOR 1975-72 raises the question of whether the Republican
National Committee (RNC) can legitimately provide funds, in light of
the recent federal election law amendments, for political travel by
President Ford while he is a candidate for his party's presidential
nomination. And further, whether these expenditures count against
candidate Ford's campaign expenditure limitations under 18 U.S.C.
section 608(c). It appears to our committee that several facts must
be considered before a conclusion on the RNC's request can be reached.
First, President Ford is an announced and declared candidate
for his party's nomination. He has, as of this date, made campaign
trips and authorized a committee which has made campaign expenditures
on behalf of his campaign. He indicated on a nationally televised news
conference (October 9, 1975) that he hoped his political trips made on
behalf of the RNC would help his election. He has made the decision
to actively campaign at an earlier date than has been the customary
political practice of past incumbent Presidents.
FORD LIBRARY
2021 L St., N.W., Suite 340, Washington, D.C. 20036
Phone: 202/223-8560
Federal Election Commission
October 14, 1975
Page Two
Second, Gerald R. Ford was the first individual appointed to the
Vice Presidency under the provisions of the recently enacted 25th
Amendment. Following the resignation of Richard M. Nixon as President,
Gerald R. Ford succeeded to that office. His Vice President, Nelson A.
Rockefeller, also became such by the operation of the 25th Amendment,
after having been rejected for the Republican presidential nomination
by the Republican National Conventions of 1964 and 1968. These facts
are quite important in providing some political perspective to the
relationship of the Presidency, its current occupant, and the Republican
Party.
Third, there is an active political committee in existence,
authorized by Governor Reagan, and registered with the Federal
Election Commission, that has raised significant amounts of money
from many thousands of persons in every state. This committee is
actively promoting the candidacy of Governor Ronald Reagan for the
Republican Party's presidential nomination.
Fourth, one of the basic purposes of the 1974 amendments to the
body of federal election law is to insure that no candidate, regardless
of his position or financial means, could "buy" the Presidency by means
of excessive financial expenditures. To this end, the key provision of
the 1974 Act is 18 U.S.C. section 608. This section imposes strict
expenditure limitations on all candidates for federal office. The
purpose of these limitations is, in part, to provide every candidate
with an equal opportunity to present his campaign to the electorate.
Fifth, a key criticism of the new election law is that it favors
incumbents in that it protects them against challengers. This is so,
many feel, because a challenger can only overcome the multiple
advantages of incumbency by greater campaign spending than the
incumbent. It is certainly true that an incumbent President enjoys
great political advantages by virtue of his official position, advantages
such as government-paid travel around the country to "non-political
events" and the national forum of the televised Presidential press
conference (recently exempted from equal time by the Federal
Communications Commission). Does he also, in a primary campaign
situation, enjoy the official mantle of the party and use of its funds
merely by virtue of his title ?
Commission
October 14, 1975
Page Three
With these basic factual referents in mind we submit the following
analysis of the RNC's request:
Traditionally an incumbent President seeking reelection has been
considered unchallengable within his own political party for his party's
nomination. No incumbent President in this century has been denied
renomination by his party. In fact, so strong is the traditional role of
the incumbent President that only twice in this century has one been
defeated in a general election. In 1975 and 1976 the situation in this
country is and will be unique politically. The incumbent President and
Vice President of the Republican Party have never faced the national
electorate or, in the case of President Ford, the Republican Party
membership as expressed through its national party convention.
Thus, President Ford is clearly not in the same position as former
Republican Party presidents were. In fact, it is clear that one of the
important factors in the 1976 nomination contest is the current lack of
a nationally chosen or mandated Republican Party "leader" in the
traditional sense. The Republican Party's only elected national
spokesman is its chairman, Mrs. Mary Louise Smith.
Thus, while Gerald R. Ford is legally and constitutionally the Chie,
Executive, with all the President's powers and privileges, and entitled
to all the traditional support and respect due our Head of State, he does
not stand in the traditional role an incumbent President has had as the
titular leader of the Republican Party. Further, actions that tend not
only to place him in such a role but also to emphasize it directly
benefit his campaign for the party's nomination for President. In
fact, a key selling point of the President's campaign has been his
incumbency. To argue that his campaign for the nomination should not
be hindered because of his activities as "party leader, " is very
like the boy, who having killed his parents, says he should not be
punished because he is an orphan.
Only the 1976 nominee of the Republican National Convention will
be the party's chosen leader.
The 1974 amendments to federal election law mandate strict
expenditure limitations for all federal candidacies. They do this
separately with respect to candidates for the nomination of parties and
Federal Election ommission
October 14, 1975
Page Four
for the candidates of parties in general elections. Further, the law
embodies a very expansive and comprehensive definition of contributions
and expenditures so as to close nearly every potential loophole left in
past legislative attempts at regulation. This legislative plan clearly
manifests the intent of Congress, as ratified by President Ford in
signing the law, to establish a system of electoral regulation that would
control, limit and disclose all expenditures that promote and influence a
federal campaign. It cannot be seriously argued that political trips made
by a declared candidate, as "leader" of a political party, directed at
those very individuals who will ultimately choose the party's nominee,
does not directly benefit and influence and promote such candidate's
campaign. If President Ford's campaign is not charged with the
cost of trips made as the "leader" of the Republican Party under these
circumstances then section 608 is not the comprehensive expenditure
limitation section it clearly was intended to be.
If the Commission's interpretation of this new law is not to favor
incumbents over other candidates and if the traditional relationship
of the Presidency to its own political party is not to become a vehicle
for allowing the new election law to be gravely distorted then the RNC's
planned actions must be modified. It would certainly be divisive within
the Republican Party if the RNC were to bestow a non-reportable and
uncontrolled election benefit on only one candidate for the party's
nomination. This would raise constitutional questions of whether 18
U.S.C. section 608's effect, if not its purpose, is to stifle legitimate
political challenges to incumbents from within their own parties.
If the party provided truly equal treatment to all candidates for
its nomination then few serious objections could be raised. Then, the
party would not be promoting a campaign but would be providing its
national membership with a better opportunity for seeing all its candidates.
It would be performing a legitimate informational function by helping
members to make more intelligent choices among the candidates.
While a TV appearance by one candidate benefits his campaign, a program
presenting all of the candidates equally benefits the electorate. Of
course, a fair and equitable mechanism would have to be worked out
to determine who the individuals are who are legitimately entitled to
such consideration. But this should not be difficult. A simple criterion,
like qualification for federal matching funds, would provide an adequate
method for discriminating between bona fide candidates and others.
Federal Commission
October 14, 1975
Page Five
If the RNC chooses not to consider such an option it seems to our
committee that its current proposal raises serious questions under both
the contribution limitations and the expenditure limitations of section 608.
If party "leadership" is to confer substantial financial electoral benefits
it should be both formalized and brought within the guidelines of the
election law. Governor Reagan has over the past years raised millions
of dollars for the Republican Party at numerous party events across the
nation and by direct mail. He has done this as a member of the party
who deeply believes in its principles. Our committee feels that the party
treasury, built up in the interests of the whole party, should not become
a vehicle for any single candidate in contest for the party's nomination,
regardless of any office he may hold.
In 1975 and 1976 a new federal election law prevails. Examples
of past practice no longer suffice to justify present actions. We hope
our comments will aid the Federal Election Commission in deciding
this question.
Very truly yours,
Locan a Smith
Loren A. Smith
General Counsel
LAS:jf
cc: Hon. Thomas B. Curtis
Hon. Neil Staebler
Hon. Joan Aikens
Hon. Thomas E. Harris
Hon. Vernon W. Thomson
Hon. Robert O. Tiernan
Hon. Benton L. Becker
Hon. Mary Louise Smith
OCT.
FORCES WORK AT ZINCT LEVEL
Reagan in Race Would Turn the
By ANDREW GLASS
Journal-Constitution Washington Bureaus
WASHINGTON - On Nov.
it's every American's right to
20 or thereabouts, former
be stupid," he told the under-
California Gov. Ronald Rea-
graduates.
Heat on Ford
gan is expected to make it
Yet, in New Haven or else-
official that he'll run for the
where, Reagan rarely ducks a
Republican nomination for
It is precisely that kind of
welfare rolls when he left of-
question on the issues, al-
attack from conservatives on
president.
though he usually digs a
fice in January 1975 than
And when he does, he is
Congress and elsewhere that
channel in which he can re-
when he took over, "although
convinced the Ford adminis-
sure to turn up the heat on
treat if pressed too hard. The
grants to the truly needy were
tration the canal treaty is too
President Ford.
only question he avoids nowa-
up by 43 per cent."
to
Citizens for Reagan
For President
October 21, 1975
Sen. Paul Laxalt
Chairman
John P. Sears
Exec. Vice Ch.
George Cook
Summary of Testimony of Loren A. Smith
H. R. Gross
General Counsel, Citizens for Reagan.
Louie B. Nunn
(Before the Federal Election Commission
Mrs. Stanhope C. Ring
on Hearings into Proposed Disclosure
Henry Buchanan
Regulation Published September 29, 1975
Treasurer
in the Federal Register.)
General Comments:
Our committee believes that when deciding upon the proper
regulations for Title 2 of the United States Code sections of the act,
three points must be firmly kept in mind.
1. Political practices are far less institutionalized and far less
organized than business practices. The majority of individuals performing
election functions are volunteers. Therefore, regulations should not be
geared just to the on-going professional organization, but rather to
citizen participation. While the regulated corporation, engaged over years
in a business, can be expected to deal with and have the expertise to deal
with comprehensive and technical regulations it will only create a class of
campaign bureaucrats if the election law regulations become too technical.
It is fundamentally unfair to require a volunteer "industry" to respond to
complex regulatory practice. Further, while commercial business can
write-off the costs of complying with government regulation as both a tax
deduction and cost of doing business, the FEC recently (AO 27) ruled a
federal campaign cannot do likewise.
2. Regulations should be simple and as clear as possible.
Enforceability is not nearly as important a criteria as comprehensibility.
FORD & GERALD LIBRARY
2021 L St., N.W., Suite 340, Washington, D.C. 20036
Phone: 202/223-8560
Testimony of Loren A. Smith
Page 2
For a thousand years the basic presumption of the Anglo-Saxon common
law has been that people obey the law. Our tax codes, our criminal codes
and virtually all our law are based on this notion. Individuals should never
be required to do things simply because they might violate a law. It is
more important to let individuals know what the rule is than to create
an elaborate and ambiguous regulation merely to reduce the possibility
of successful violation. Laws and regulations should not be created with
the "master criminal, " in mind who might think up an ingenious evasion.
Rather, the focus should be on the average citizen who will obey the law,
if only it is understandable and not grossly burdensome.
3. The object of a free society is to encourage citizen volunteer
participation in politics and government. Anything that discourages open
participation in the political process must be looked at very closely,
and suspiciously.
Specific Comments: (Page cites to Federal Register)
Reg. 100.2 (p. 44698) - Candidate
This regulation overly broadens the statute by imposing a "reason
to know" requirement on the candidate. It also imposes an unreasonable
affirmative obligation on an individual requiring a brief time to repudiate
or affirm efforts on the individual's behalf. This is unfair. The language
after the first sentence of 100.2(b) should be stricken.
Reg. 100. 4 (P. 44698) - Contribution
There is no such office as a "vice-presidential elector" though
2 U.S.C. section 431(f) uses the term.
Cost, not fair market value, should be the only measure of an
object's value. Further, an individual or a corporation, is not required
to make a profit. As long as an object is furnished at above cost
Testimony of Loren A. Smith
Page 3
an individual should not be deemed by the regulations to have made a
contribution to a federal candidacy. Many campaign objects have no
clearly ascertainable fair market value. Under 100.4(a)(1)(ii) the language.
and test "absent evidence to the contrary" should not be used.
Only items that directly benefit a candidate should be treated as
contributions. The language in 100.4(a)(1)(ii) seems to confuse indirect
source which directly benefits a candidate with indirect benefits. Further,
the language "before the commencement of political activities" in this
section should be eliminated. Only a candidate can be benefited by a
campaign contribution. Any relation back theory is both unfair and
illogical.
Reg. 100.4(b)(2)(ii) (p. 44699) - Contribution
This section should be stricken. Its enforcement (even in theory)
invades privacy. Further, partial use of the vast majority of residential
premises for political purposes has no fair market rental value.
Reg. 100. 5 (p. 44699) - Earmark
This regulation casts verbiage rather than light upon the statute.
It explains a simple term with a complex one. It fails to address the real
issue: namely what indicia or actions constitute earmarking. Further,
all earmarking is direct in the sense that to be earmarking it needs a
certain degree of direction! Since political committee's have no expenditure
limitations "political committee" in the last line of this regulation is
meaningless.
Reg. 100.7 (p. 44699) - Expenditure
In 100. 7(a)(1)(i)(A)(1) it is unfair to treat a loan repayment as an
expenditure. If this is done then by borrowing a $1,000 and using it to
buy something and then repaying the loan a campaign has expended $2,000!
Testimony of Loren A. Smith
Page 4
This is double limitation. Further, a loan should only be a contribution
to the extent it is not paid back. When paid it is no longer a loan. This
is made explicit when a loan guarantee is discussed under the statute.
Certainly, refundable deposits should not be treated as expenditures
at all. Only when not refunded do they become such.
Reg. 100.7 (pp. 44699-700) - Expenditure
In-kind contributions should only be treated as expenditures to
the extent they are made under the candidate's control and direction.
The burden should not be placed on the candidate to prove control did
not exist. When an in-kind contribution is sold then only the difference
between the initial value (at the contributor's cost) and the sale price
obtained should be treated as an expenditure, if any part is to be so treated.
Reg. 100.7 (p. 44700) - Expenditure
Section 100. 7(a)(2) should be modified to prevent the double
reporting of expenditures, once when contracted and once when actually
paid. A campaign should have the option of being a cash or an accrual
accounting basis.
Reg. 100.7 (p. 44700) - Expenditure
Section 100. 7(a)(3), as presently written, would bar national
campaigns from giving funds to their local subdivisions. The funds should
be treated as expenditures only when ultimately spent or the expenditure
should be washed out from the amount toward state limits at some point.
Reg. 100.7 (p. 44700) - Expenditure
Does 100. 7(b)(1)(i) eliminate the cost of a candidate making
himself available for a bona fide news show ? Such costs would be flying
to an interview on "Meet the Press" in another city.
Testimony of Loren A. Smith
Page 5
Reg. 100.7 (p. 44700) - Expenditure
Section 100. 7(b) makes no sense.
Reg. 100.10 (p. 44700) - Identification
The requirement of NMI for an individual without a middle initial
would be very burdensome for a direct mail fundraising system via
computer. The law itself makes such a fundraising system almost
mandatory, however.
Reg. 100. 11 and 100.1 2 (p. 44700) - Occupation and Principal
Place of Business
These regulations should spell out the affirmative duty, if any, on
the part of a candidate or political committee to obtain missing data that
has been requested but not supplied.
Reg. 100.14 (pp. 44700-701) - Political Committee
Section 100.14(a)(3) is not a very useful definition since most
individuals (in the media) have used it synonymously with a committee
able to contribute $5,000. The committee described herein may or may
not be able to do this. Under section 100.14(b) a committee "constructively"
authorized by a candidate, but not in writing, would be both authorized
and unauthorized at the same time.
Section 100.14(c) is very confusing. The language "subordinate"
should be substituted for "affiliated. "
Section 100.14(d) should be defined in greater detail. It seems to
deal with the 434(e) and 608(e) areas, but its perameter is not clear.
Reg. 102.2 (p. 44702) Forms and Filing
Section 102. 2(a)(5) should be clarified. Who is a "principal
officer ?" Who is a member of a "finance committee ?" What constitutes
a "finance committee ?"
Testimony of Loren A. Smith
Page 6
Section 102. 2(a)(11) should specify "by regulation properly made. 11
Reg. 103.3 (pp. 44702-703) - Account of Contributions and Expenditures
The Commission should allow candidates to treat "sales" of
campaign material with no intrinsic value (buttons, bumper strips, car
tops, etc.) as a pure donation. This is a more realistic view of what
the real nature of the transaction is. The Commission intimated it might
allow this during its discussion of Governor Wallace's Advisory Opinion
request on the watches. As presently written 103. 3(d) would be very
burdensome to the sale of small low cost items.
Reg. 103. 4 (p. 44703) - Photocopies of Checks
This regulation is very burdensome and serves no real purpose.
The Commission is already requiring photocopying of all checks for
matching funds. These must be turned over to the Commission so that
this regulation would require another set of copies. When hundreds of
checks a week or even a day may be involved this requirement is an
unfair burden.
Reg. 105.2 (p. 44704) Form and Contents of Reports
Section 104. 2(b)(7) should make it clear that refunds either
deducted from expenditures or refundable deposits are not expenditures.
MEMORANDUM
November 3, 1975
TO:
Harry Bandouveris
Peter Raye
FROM:
Bob Visser
RE:
Ronald Reagan
Attached hereto is a news article regarding Mr.
Reagan which may be of some interest.
LIBRARY GERALD R. FORD
Reage
MEMORANDUM
November 3, 1975
TO:
Harry Bandouveris
Peter Maye
FROM: Bob Visser
RE:
Ronald Reagan
Attached hereto is a news article regarding Mr.
Reagan which may be of some interest.
FORD i GERALD LIBRARY
PRIONCT LEVEL
in Race Would Turn
By ANDREW GLASS
Journal-C onstitution Washington Bureaus
WASHINGTON - On Nov.
it's every American's right to
20 or thereabouts, former
be stupid," he told the under-
California Gov. Ronald Rea-
graduates.
Heat Ford F
gan is expected to make it
Yet, in New Haven or else-
official that he'll run for the
where, Reagan rarely ducks a
Republican nomination for
It is precisely that kind of
welfare rolls when he infl of
question on the issues, al-
attack from conservatives OR
president.
fice in January 1975 than
though he usually digs a
Congress and elsewhere that
And when he does, he is
when he took over, "although
channel in which he can re-
convinced the Ford adminis-
sure to turn up the heat on
grants to the truly needy were
treat if pressed too hard. The
tration the canal treaty is too
President Ford.
up by 43 per cent."
only question he avoids nowa-
volatile an issue to deal with
While Reagan still main-
days are those that deal with
Reagan also makes much of
in an election year. A high
tains that he hasn't decided
his plans to run against Ford
the fact that Ford had named
MEMORANDUM
TO:
FILE
RE:
IOWA REGAN ACTIVITY
On 11/10/75, I discussed with Tom Stoner, the
Republican Party Chairman for the State of Iowa, the
activity of local Conservative Coalition Activists and
the local YR'S.
Mr. Stoner indicated that certain individuals,
specifically, Wendall Harms, State Chairman of YR'S and
Leroy Corey, may be working for the Regan Campaign in
that State under the guise of the Conservative Coalition
and the YR'S. Mr. Stoner will contact me in the near
future regarding such activity.
FORD & GERALD LIBRARY
r
MEMORANDUM
TO:
FILE
N
RE:
IOWA REGAN ACTIVITY
On 11/10/75, I discussed with Tom Stoner, the
Republican Party Chairman for the State of Iowa, the
activity of local Conservative Coalition Activists and
the local YR'S.
Mr. Stoner indicated that certain individuals,
specifically, Wendall Harms, State Chairman of YR'S and
Leroy Corey, may be working for the Regan Campaign in
that State under the guise of the Conservative Coalition
and the YR'S. Mr. Stoner will contact me in the near
future regarding such activity.
FORD & LIBRARY GERALD
MEMORANDUM
November 16, 1975
TO: FROM: Bob Visser REV
Peter Kaye
RE:
Ronald Reagan Candidacy
Sections 431 (b), Title 2, United States Code and 591 (b),
Title 18, United States Code, both define "candidate" as
follows:
" (b) 'candidate' means an individual who seeks
nomination for election, or election, to Federal
office, whether or not such individual is elected,
and, for purposes of this paragraph, an individual
shall be deemed to seek nomination for election, or
election, if he has --
(1) taken the action necessary under
the law of a State to qualify himself for
nomination for election, or election, to
Federal office; or
(2) received contributions or made
expenditures, or has given his consent for
any other person to receive contributions
FORD i GERALD LIBRARY
or make expenditures, with a view to bringing
about his nomination for election, or
election, to such office;
In an Opinion of Counsel (OC 1975-28) which was noted
by the Federal Election Commission without objection on
Thursday, November 13, John G. Murphy, Jr., the FEC's General
Counsel, concluded:
"Under 2 U.S.C. §431 (b) and 18 U.S.C. $591(b),
a "candidate" is an individual who seeks nomina-
tion for election or election to Federal office,
whether or not a public declaration of candidacy
is made. One may become a candidate by (1) taking
- 2 -
the necessary action under State law to qualify
for nomination or election; or (2) by receiving
contributions or making expenditures or consenting
to others receiving contributions or making expendi-
tures with a view toward bringing about one's
nomination or election to Federal office. If
any of the activities outlined above give rise
to any expenditure for the purpose of influencing
your nomination or election, then you would be
regarded as a candidate and required to take
those steps prescribed by the Act, 2 U.S.C. §431
et seq. You would also at that point be subject
to the relevant provisions of Title 18, United
States Code, including 18 U.S.C. §608. (emphasis
added)
In a letter, dated July 14, 1975, Governor Reagan
authorized the "Citizens for Reagan" committee to work on
his behalf and consented to the filing of reports by that
committee with the Federal Election Commission (see attached).
Although, Governor Reagan attempted to distinguish between
his becoming an "active Presidential candidate" from being
a technical candidate under the Act, it is now apparent that
he has authorized a committee to collect and expend funds
on his behalf in connection with his seeking the nomination
for the Presidency and is a "candidate" for purposes of the
Act.
As a candidate, pursuant to Section 434, Title 2,
United States Code, he is required to file Reports of
Receipts and Expenditures with the Commission. This
provision sets out various reporting dates, including the
requirement of filing a quarterly report following the close
of any calendar quarter in which the candidate or political
committee concerned received contributions or made expendi-
tures in excess of $1,000. Any person who knowingly violates
any provision of this chapter shall be fined not more than
$1,000 or imprisoned not more than 1 year, or both. 2 U.S.C.
$431(a). It is also interesting to note that subparagraph
(b) of this section provides that in case of any conviction
under this chapter "where the punishment inflicted does not
include imprisonment" such conviction shall be deemed a
misdemeanor conviction only.
In view of the above, I believe it would be appro-
priate to raise the following questions with regard to
Mr. Reagan's "candidacy":
- 3 -
(1) Are you a "registered" candidate under the
new Federal Election Campaign Laws?
(2) Have you authorized a committee to expend
or collect funds on your behalf in connection with
your seeking the nomination for the Presidency of
the United States?
(3) Have you met all of the filing and disclo-
sure requirements of the Federal Election Campaign
Laws? In particular have you filed a candidate's
Report pursuant to Section 431(b)? If not, why not?
(4) Are you aware that the statute provides
criminal penalties for any knowing violation of its
provisions?
If the response indicates that a different construction
is placed upon the statutory language, the following questions
should be asked:
(a) How can you maintain that the statute
requires a "public announcement" of your candidacy
when the FEC has issued an Opinion of Counsel that
public announcements do not matter and that the
strict terms of the act define a "candidate".
(b) If you now intend to file a report on
your behalf, for what period will it relate back
in terms of your activities for seeking the nomin-
ation?
(c) Have you been advised by counsel with
regard to any of these matters?
(d) Would you care to discuss the alleged
complaint that has been filed against you with
regard to your radio and TV programs? As we
understand it, the complaint is that you are
actively collecting and expending monies without
reporting such activities to the FEC in violation
of the Federal Election Campaign Laws.
(e) Are you aware that a request for an
Advisory Opinion has been filed inquiring as to
your status as a candidate? As you know, corporate
contributions to Federal candidates are illegal
pursuant to Section 610, Title 18, United States
Code.
- 4 -
(f) Do your activities and your refusal to
file a candidate's Report of Contributions and
Expenditures place any corporately funded group
sponsoring you in jeopardy of being in violation
of the Federal Election Campaign Laws?
The above questions are merely illustrative of the
type of inquiry that may appropriately be raised in this
matter. Please let me know if you have any further questions
regarding this matter.
CC:
Bo Callaway
Bob Moot
Stu Spencer
RONALD REAGAN
SUITE 812
10960 WILSHIRE BOULEVARD
LOS ANGELES, CALIFORNIA 90024
213/477-8231
July 14, 1975
The Honorable Paul Laxalt
Member, United States Senate
Senate Office Building
Washington, D. C. 20500
Dear Paul:
I am writing this letter in response to your decision to
chair the "Citizens for Reagan" committee. I deeply
appreciate your action, but I want to inform you that I
have not made up my mind whether to become an active
Presidential candidate. I expect to make this decision
before the end of the year.
Meanwhile, I recognize that due to the technical require-
ments of the law (including the requirement for the
designation of a principal campaign committee), the
committee must file with the Federal Elections Commission
as working on my behalf. I trust this letter will suffice
as my consent for purposes of allowing you to do SO.
Sincerely,
Ran
RONALD REAGAN
MEMORANDUM
November 16, 1975
TO:
Peter Kaye
FROM: Bob Visser
RE:
Ronald Reggan Candidacy
Sections 431(b), Title 2, United States Code and 591 (b),
Title 18, United States Code, both define "candidate" as
follows:
"lb) 'candidate' means an individual who seeks
nomination for election, or election, to Federal
office, whether or not such individual is elected,
and, for purposes of this paragraph, an individual
whell be deemed to seek nomination for election, or
election, if he has --
(1) Taken the action necessary under
the law of a State to qualify himself for
nomination for election, or election, to
Federal office; or
(2) received contributions or made
e
appenditures, or has given his consent for
any other person to receive contributions
or make expenditures, with a view to bringing
FORD & 07V889 LIBRARY
about his nomination for election, or
election, to such office;
In an Opinion of Kounsel (OC 1975-28) which wastnoted
by the Federal Election Commission without objection on
Thursday, November 13, John G. Murphy, Jr., the FEC's General
Counsel, concluded:
"Under 2 U.S.C. $431 (b) and 18 U.S.C. $591(b),
a "candidate" is an individual who seeks nomina-
tion for election or election to Federal office,
whether or not a public declaration of candidacy
is made. One may become a candidate by (1) taking
- 2 -
the necessary action under State law to qualify
for nomination or election; or (2) by receiving
contributions or making expenditures or consenting
to others receiving contributions or making expendi-
tures with a view toward bringing about one's
nomination or election to Federal office. If
any of the activities outlined above give rise
to any expenditure for the purpose of influencing
your nomination or election, then you would be
regarded as a candidate and required to take
those steps prescribed by the Act, 2 U.S.C. $431
et seq. You would also at that point be subject
to the relevant provisions of Title 18, United
States Code, including 18 U.S.C. $608." (emphasis
added)
In a letter, dated July 14, 1975, Governor Reagan
authorized the "Citizens for Reagan" committee to work on
his behalf and consented to the filing of reports by that
committee with the Federal Election Commission (see attached).
Although, Governor Reggan attempted to distinguish between
his becoming an "active Presidential candidate" from being
a technical candidate under the Act, it is now apparent that
he has authorized a committee to collect and expend funds
on his behalf in connection with his seeking the nomination
fortthe Presidency and is a "candidate" for purposes of the
Act.
As a candidate, pursuant to Section 434, Title 2,
United States Code, he is required to file Reports of
Receipts and Expenditures with the Commission. This
provision sets out various reporting dates, including the
requirement of filing a quarterly report following the close
of any calendar quarter in which the candidate or political
committee concerned received contributions or made expendi-
tures in excess of $1,000. Any person who knowingly vioasees
anypprovision of this chapter shall be fined not more than
$1,000 or imprisoned not more than11 year, or both. 2 U.S.C.
$431(a). It is also interesting to note that subparagraph
(b) of this section provides that in case of any conviction
under this chapter "where the punishment inflicted does not
include imprisonment" such conviction shall be deemed a
misdemeanor conviction only.
In view of the above, I believe it would be appro-
priate to-raise the following questions with regard to
Mr. Reagan's "candidacy":
- 3 -
(1) Are you a "registered" candidate under the
new Federal Election Campaign Laws?
(2) Have you authorized a committee to expend
or collect funds on your behalf in connection with
your seeking the nomination for the Presidency of
the United States?
(3) Have you met all of the filing and disclo-
sure requirements of the Federal Election Campaign
Laws? In particular have you filed a candidate's
Report pfirsuant to Section 431 (b) If not, why not?
(5) Are you aware that the statute provides
criminal penalties for any knowing violation of its
provisions?
If the response indicates that a different construction
is placed upon the statutory language, the following questions
should be asked:
(a) How can you maintain that the statute
requires a "public announcement" of your candidacy
when the FEC has issued an Opinion of Counsel that
public announcmentss do not matter and that the
strict terms of the act define a "candidate".
(b) If you now intend to file a report on
your behalf, for what period will it emlatedback
in terms of your activities for seeking the nomin-
ation?
(6) Have you been advised by counsel with
regard to any of these matters?
(d) Would you care to discuss the alleged
complaint that has bean filed against you with
regard to your radio and TV programs? As we
understand it, the complaint is that you are
actively collecting and expending monies without
reporting such activities to the FEC in violation
of the Federal Election Campaign Laws.
(e) Are you aware that a request for an
Advisory Opinion has been filed inquiring as to
your status as a candidate? As you know, corporate
contributions to Federal candidates are illegal
pursuant to Section 610, Title 18, United States
Code.
- 4 -
(f) Do your activities and your refusal to
file a candidate's Report of Contributions and
Expenditures place any corporately funded group
sponsoring you in jeopardy of being in violation
of the Federal Election Campaign Laws?
The above questions are merely illustrative of the
type of inquiry that may appropriately be raised in this
matter. Please let me know if you have any further questions
regarding this matter.
CC:
Bo Callaway
Bob Moot
Stu Spencer
November 19, 1975
MEMORANDUM
TO:
ALL STAFF PK
FROM: PETER KAYE
To date, these are television appearances we have arranged in
connection with the Reagan announcement.
CBS MORNING NEWS
Friday, November 21, 7:40 a.m.
Mel Laird
NBC TODAY SHOW
Monday, November 24, 7:30 a.m.
Bo Callaway
PBS MARTIN AGRONSKY
Monday, November 24, 7:30 p.m.
Bo Callaway
PANORAMA
Tuesday, November 25, 12:30 p.m.
Bo Callaway
FORD & GERALD LIBRARY
THE PRESIDENT FOR COMMITTEE'S REACTION TO R REAGAN ANNOUNCEMENT
November 20, 1975 E-ple
Despite how well Ronald Reagan does or does not do in the
early primaries, the simple political fact is that he cannot
defeat any candidate the Democrats put up. Relagan's constituency
is much too narrow, even within the Republican Party.
Now that he has finally ended his indecision and declared
his candidacy, it does nothing to change our plans to run an
aggressive, grassroots campaign for President Ford.
Although former Governor Reagan's announcement was not
unexpected, it is disappointing to many Republicans. While not
unmindful of his ability, he does not have the critical
national and international experience that President Ford has
gained through 25 years of public service, first in the House
of Representatives, then as Vice-President and as President.
We have an incumbent president who is doing an effective
job in dealing with the tough problems confronting our nation.
I am confident that Republicans throughout the entire
nation recognize this fact and overwhelmingly support the
President.
The President Ford Committee is a broad-based group
working for President Ford's nomination. We want a united
party going into the General Election. Any motion against
unity is counter-productive and damaging to our prospects
next November.
FORD i GERALD LIBRARY
MEMORANDUM
November 24, 1975
TO:
Bo Callaway
Stu Spencer
FROM:
Bob Visser
RE:
Reagan Candidacy
Now that Ronald Reagan has formally announced his
candidacy for the Presidency, we will check with the FEC
and obtain a copy of any and all reports he files with
the Commission. I anticipate that he will not list any
expenditures prior to the date of his announcement and
would appreciate any information we may have collected
with regard to expenditures in connection with his radio-
TV program and newspaper column. As soon as the report
has been filed and this information is available, we will
prepare a memorandum outlining possible legal approaches
to this situation.
FORD & GERALD LIBRARY
MEMORANDUM
November 24, 1975
TO:
Bo Callaway
Stu Spencer
FROM:
Bob Visser
RE:
Reagan Candidacy
Now that Ronald Reagan has formally announced his
candidacy for the Presidency, we will check with the FEC
and obtain a copy of any and all reports he files with
the Commission. I anticipate that he will not list any
expenditures prior to the date of his announcement and
would appreciate any information we may have collected
with regard to expenditures in connection with his radio-
TV program and newspaper column. As soon as the report
has been filed and this information is available, we will
prepare a memorandum outlining possible legal approaches
to this situation.
FORD & GERALD LIBRARY
MEMORANDUM
November 24, 1975
TO:
Bo Callaway
Stu Spencer
FROM: Bob Visser
Rev
RE:
Reagan Candidacy
Now that Ronald Reagan has formally announced his
candidacy for the Presidency, we will check with the FEC
and obtain a copy of any and all reports he files with.
the Commission. I anticipate that he will not list any
expenditures prior to the date of his announcement and
would appreciate any information we may have collected
with regard to expenditures in connection with his radio-
TV program and newspaper column. As soon as the report
has been filed and this information is available, we will
prepare a memorandum outlining possible legal approaches
to this situation.
FORD & GERALD LIBRARY
Reagn
MEMORANDUM
December 16, 1975
TO:
Bo Callaway
Stu Spencer
Peter Kaye
FROM: Bob Visser
RE:
Reagan Candidacy
Attached hereto is a copy of the Wall Street Journal
editorial of this date which may be of interest to you.
FORD i LIBRARY GERALD
REVIEW & OUTLOOK
Mr. Reagan's Success
Despite Ronald Reagan's star- latest and largest of a series of ca-
tling success in the Gallup Poll, it
pricious decisions by a President
remains to be seen how he will ac-
unsure of his own directions and in-
quit himself in a full-fledged presi-
terests.
dential campaign. But we are to-
This damage to the President's
tally unimpressed by the arguments
cause can only be compounded by
being used against him by, among
the attitude his camp is taking to-
others, President Ford's campaign
ward Mr. Reagan. At the Southern
manager.
Republican Conference over the
Despite eight years as governor
weekend, both Ford campaign man-
of
the
Howard
U
Callex
and
Vice
The Harris Survey REAGAN'S BIG MISTAKE
FORD & LIBRARY CERALD
APR 30 1976
For Release: April 19, 1976
By Louis Harris
There is mounting evidence that former California Gov. Ronald Reagan made a wrong political move
when he drew the line between himself and President Ford over the issue of U.S. cooperation with the Soviet Union.
In the latest Harris Survey, conducted among a cross section of 1,512 adults nationwide, public
backing for detente continues to be high at a 59-23 per cent level only slichtly down from the 62-15% majority who
ve.
Copyright 1976 by the Chicago Tribune.
World Rights Reserved.
76: 33
DRAFT
TTR:jr
12/22/75
TO:
Bo Callaway
Stu Spencer
Skip Watts
Jack Stiles
FROM: Tim Ryan
RE:
Regan Activity - Delegate Selection
It has recently come to our attention that the Regan
lawyers continue to seek proportional delegate representation
in States where we have our greatest strength. It is our
opinion that all field coordinators and local political
chairmen should be notified of this attempt by the Regan
people. Moreover, any attempt to switch State delegate
selection procedures from "winner-take-all" to proportional
should be immediately reported to this office. In this manner,
we can best challenge any such attempt.
FORD & GERALD LIBRARY
wow
yourou ONE
200
OUX
goecial
we
Visa /
See :
#47 ship
& Oberapour
1001 9 page and
(C)
Eujoicemeur
the A
OHICE of
ent to
WEEKLY REPORT
Dave Liggett
December 15, 1975
California
1.
Ronald Reagan report.
We still have not picked up any overt movement to organize the
state. The phoning that has been done that we have heard about is on
a very limited basis. I have a report that they have tried to hire a
a Republican Central Committee staffer, Don Willett, for a position
in the campaign to organize I.D. and voter turn-out for the primary.
Don turned it down and is remaining with the State Committee. That is
the only intelligence I have as to how they are moving organizationally.
2. Regarding Bo Callaway's remarks in Houston over the weekend. Com-
ments have been generally negative from our people. I am forwarding
to you under separate cover some newspaper clippings conveying those
events.
3. Budget has been sent to you under separate cover to you today. The
budget was approved December 10th at the Steering Committee meeting.
You will see the figures representing essentially a voter I. D. and
turn-out program with additional emphasis on press and the use of the
telephone for volunteer recruiting and traditional conversion and re-
enforcement campaign approach.
4
Delegation
At the request of the Steering Coomittee, I am requesting that
they be dully authorized to begin a delegate selection program here in
California. It is my understanding that technically they need authori-
zation from the campaign or the President to begin such activities. The
Steering Committee would like to send a letter to Republican Legislators
and Republican Executive Committee and all Republican County Chairmen in-
forming them of the being of the program to elect a delegation and in-
quiring of their interest. If the Steering Committee needs an authori-
zation to begin such efforts please forward same or let me know.
5. In a separate communication, I am sending Peter Kaye a proposed
press release regarding the 11th commandant. Attached to that release
are some comments by Jim Halley he made when he was State Chairman. The
spokesman for the release has not been filled in, and I want to coordin-
ate with Peter Kaye and get his imput.
2.
6. No organizational report. I have little to add in addition to
report of last week. Certainly, I feel that our organization momentum
has been considerable slowed down due to recent events and to the off-
set of the Christmas seaseon. However, I am using this time to try
to get a few things going in some of our counties where we are essen-
tially weak. Mailings are presently being planned for Orange County,
Riverside, San Bernadino and San Diego County. I would anticipate
that those mailings would be going into the mail primarily in January
with the exception of San Diego, we may get into the mail prior to
Chrismas.
7
Regarding equal time provisions.
I have been contacted by KHJ TV here in California, who ran a
Ronald Reagan movie over the weekend providing the Ford Committee
with an appropriate amount of equal time. They have requested that
I send them a letter formalizing the request. I will certainly do so,
however, I wish to inquire to Bob Visser and the legal council there
as to whether in the future I should be initiating such letters
requests or they prefer to do it there in Washington.
8. I repeat my earlier request for information on any special Commit-
tee that you might be organizing at the national level. Such input
would be valuable since we are beginning organization of some special
committee here in California.
9. Fund Raising in California.
Nita attended the California Finance Committee's initial meeting
for the March Fund Raising luncheon for the President. Her comments
regarding that meeting were that she felt the finance people certainly
were naive to the political situation and were approaching it rather
calmly. Apparently, they decided on a $500 a plate luncheon in San
Francisco. My only comment is that that certainly will not be adequate
to get the job done here.
FORD & GERALD LIBRARY
nat 12/16/75
MEMORANDUM
December 22, 1975
TO:
Bo Callaway
Stu Spencer
Skip Watts
Jack Stiles
FROM: Tim Ryan
RE:
Reagan Activity - Delegate Selection
It has recently come to our attention that Reagan's
lawyer continues to seek proportional delegate representa-
tion in States where we have our greatest strength. It is
our opinion that all field coordinators and local Political
Chairmen should be notified of this attempt by the Reagan
people. Moreover, any attempt to switch State delegate
selection procedures from "winner-take-all" to proportional
should be immediately reported to this office. In this
manner, we can best challenge any such attempt by Reagan
to undermine our support.
FORD i LIBRARY GERALD
HHC
MEMORANDUM
December 22, 1975
TO:
Bo Callaway
Stu Spencer
Skip Watts
FROM: Jack Tim Ryan Stiles KR
RE:
Reagan Activity - Delegate Selection
It has recently come to our attention that Reagan's
lawyer continues to seek proportional delegate representa-
tion in States where we have our greatest strength. It is
our opinion that all field coordinators and local Political
Chairmen should be notified of this attempt by the Reagan
people. Moreover, any attempt to switch State delegate
selection procedures from "winner-take-all" to proportional
should be immediately reported to this office. In this
manner, we can best challenge any such attempt by Reagan
to undermine our support.
FORD & GERALD LIBRARY
MEMORANDUM
December 22, 1975
TO:
Bo Callaway
Stu Spencer
Skip Wattx
Jack Stiles
FROM: Tim Ryan
RE:
Reagan Activity - Delegate Selection
It has recently come to our attention that Reagan's
lawyer continues to seek proportional delegate representa-
tion in States where we have our greatest strength. It is
our opinion that all field coordinators and local Political
Chairmen should be notified of this attempt by the Reagan
people. Moreover, any attempt to switch State delegate
selection procedures from "winner-take-all" to proportional
should be immediately reported to this office. In this
manner, we can best challenge any such attempt by Reagan
to undermine our support.
FORD & GERALD LIBRARY
The President Ford Committee
December 23, 1975
Earl Adams
Clifford B. Anderson
Assemblyman
Dixon Arnett
Mrs. Nita Ashcraft
Charles Bakaly
Dr. William S. Banowsky
MEMORANDUM
Robert S. Barnes
Robert F. Beaver
Dr. Arnold Beckman
Mrs. Marsha Bents
TO:
Stu Spencer
Mrs. Margaret Brock
Mrs. Elsie Buchenau
Bob Visser
Asa Call
Skip Watts
Roy Crocker
Stuart Davis
John V. Diepenbrock
FROM: Dave Liggett
Kim Fletcher
John P. Guerin, Jr.
Paul Haerle
James Halley
Jim Horwitz, who you know Stu, contacted me regarding
Bruce Hazard
a complaint to the FEC. Attached is the correspondence
David B. Holland
John H. Holoman
regarding this complaint.
Norman Houston
David James
Without making any commitment to Jim I said I would
Louis Johnson
Robert C. Kirkwood
nose around. I will wait for your recommendation for
C. Douglas Kranwinkle
action.
Assemblyman
Jerry Lewis
Putnam Livermore
cp
Mrs. Katie Martinez
Robert Mayer
Enclosures
Peter McAndrews
Arch Monson. Jr.
Assemblyman
Frank Murphy
David Packard
Leon Parma
Charles Reed
Henry Salvatori
Taft Schreiber
Waller Taylor
Charles Thomas
Congressman
Bob Wilson
Attorney General
Evelle Younger
FORD i RALD LIBRARY
4201 Long Beach Boulevard, Suite 415, Long Beach, California 90807 213 - 595-1676
BETWEEN
Valley Publication, Inc.
THE
LINES
4616 W. MAGNOLIA BLVD.
BURBANK, CALIFORNIA, 91505
Dedicated to
"INDEPENDENT INQUIRY
AND
(213) 877-5643
INVESTIGATIVE REPORTING"
July 28, 1975
Commission Chairman Thomas B. Curtis
Federal Election Commission
1325 "K" Street, N.W.
Washington D.C., 20005
Dear Mr. Curtis:
As a Los Angeles County Election Commissioner and a private citizen, I have studied
the Federal Election Campaign Act in relation to Ronald Reagan, his radio commentary
on 320 stations, and the sponsors of his commentary. In that regard, I file the follow-
ing complaints:
He is in violation of not filing his "Off Year" contributions received and ex-
penditures, due April 10th and July 10, 1975. He has legally qualified July
24, 1975 by his committee registering with your commission; but according
to Title 2, Chapter 14, Section 431 (b) (2), "Candidate means an individual
who seeks nomination for election
if he has
made expenditures,
or has given his consent for any other person to
make expenditures,
with a view to bringing about his nomination for election, to such office."
His daily radio commentary has been used as such a tool since the first of
this year. (Chapter 14, Section 431 (f) (1) (A), regarding 'expenditure',
would also apply)
The banks, labor organizations or corporations that are sponsoring his pro-
gram, such as Joseph Coors, are in violation of Title 18, Chapter 29, Sec-
tion 610. "It is unlawful for any national bank, or any corporation
to make a contribution or expenditure in connection with any election
11
"Every Corporation
which makes any contribution or an expendi-
ture in violation of this section shall be fined not more than $25.000
"
If you rule that Reagan has been a candidate since Jan. 1, 1975, the cor-
porations and banks have been in violations since then. If you don't agree,
then they have been breaking the law since July 24th.
Any non-corporation business or individual that spends more than $1,000
this year as a sponsor of his program is in violation of Title 18, Chapter
29, Section 608 (b) (1).
Every sponsor of Reagan's Commentary and/or every radio station that car-
ries it, that hasn't filed reports is in violation, per Title 2, Chapter 14,
Section 437a, "Any person who expends any funds
for the purpose
of influencing the outcome of an election, or who publishes or broadcasts to
the public any material
setting forth the candidates position on
Commission Chairman Thomas B. Curtis
Federal Election Commission
July 28, 1975
Page 2
any public issue
shall file reports with . the Commission as if
such person were a political committee
If
Furthermore, I request that you rule that the total amount expended by. spon-
sors for his commentary be accumulated against his allowable $10 million,
nationwide, if he enters any primaries. (Title 18, Chapter 29, Section 608
(c) (1) (A)) Under the same section, the amount expended in each state for
his program should be accumulated against the amount allowed in each state.
In most political campaigns, candidates or their agents buy advertising time directly
from radio stations. In this case, the stations have been buying the commentary from
Connor Creative Services, Los Angeles; then the stations sell it to sponsors. It might
very well call for the FCC to examine this rather unusual action with each station in-
volved.
Mr. Curtis, in the first year of existance for most of these campaign reform laws, it
would be a travesty if you don't concur that Ronald Reagan is breaking part of the let-
ter of the law, and is totally breaking the spirit of the law. No one will ever adher to
campaign laws if your commission doesn't start right off with tough enforcement.
Yours truly,
James Wountz
James Horwitz
President
cc: FCC
KABC
L.A. Registrar-Recorder
Calif. Sec. of State
Ronald Reagan
Joseph Coors Co.
HJH/et
FEDERAL ELECTION COMMISSION
WASHINGTON, DC 20463
September 3, 1975
Certified Mail
Return Receipt Requested
Mr. James Horwitz, President
Valley Publication, Inc.
4616 West Magnolia Boulevard
Burbank, California 91505
Dear Mr. Horwitz:
This will acknowledge receipt of your complaint filed under
the Federal Election Campaign Act, as amended, alleging violations
of the Act by the Citizens for Reagan Committee, and Sections
608 (b) (1) and 610 of Title 18, United States Code by sponsors of
Mr. Reagan's radio commentaries.
A copy of your complaint has been forwarded to Mr. Reagan
and Mr. Henry Buchanan, Treasurer of the Citizens for Reagan
Committee. They have been requested to respond to the matters
raised in your complaint within ten days after the receipt of
their copy of your complaint. You will be supplied with copies
of any responses they may make, and invited to make further
comments if you desire.
In keeping with the provisions of Title 2, United States
Code, Section 437g(a) (3) of the Act and our interim complaint
procedure guideline, the complaint will not be made available for
public inspection and no announcements will be made by this
Office concerning the status of any inquiry or investigation which
might ensue without the written consent of the person with respect
to whom such inquiry or investigation is made.
Singerely,
GAM:vlf
CC: Ronald Reagan
Henry Buchanan
BETWEEN
Valley Publication, Inc.
THE
LINES
4616 W. MAGNOLIA BLVD.
BURBANK, CALIFORNIA, 91505
Dedicated to
"INDEPENDENT INQUIRY
AND
(213) 761-5440
INVESTIGATIVE REPORTING
October 10, 1975
::
Gordon Andrew McKay
Assistant Staff Director
For Disclosure and Compliance
Federal Election Commission
Washington, DC 20463
Dear Mr. McKay:
in regard to your response (copy enclosed) to my complaint. you
stated Mr. Reagan and Mr. Buchanan had ten days to answer. 000
they received their copy of the complaint. It is now over 40 car
Could you please respond.
Thanks,
jäme
James Horwitz. President
Valley Publications, inc.
HJH/ge