100S Schedule B: S Corporation Depreciation and Amortization (2024)
California · FTB · Used for tax years 2024
California Schedule B (100S) is used by S corporations to calculate depreciation and amortization for California tax purposes and is attached to Form 100S. It reports federal and California amounts, the resulting adjustments, and the IRC Section 179 expense deduction.
Who files this form
Schedule B (100S) is for S corporations only. Use it to calculate depreciation and amortization for California tax purposes, and attach it to Form 100S.
If the S corporation directly owns a passive activity, complete a separate Schedule B (100S) for that activity.
The S corporation does not need to complete Schedule B (100S) for pass-through entities except to include IRC Section 179 expense.
What you'll need
Have these forms and details available:
- Corporation information: Corporation name and California corporation number.
- Federal Form 4562: Depreciation from line 22 and amortization from line 44. The form also directs you to the federal Form 4562 instructions.
- Property information: Descriptions, acquisition dates, cost or other basis, and depreciation or amortization allowed or allowable in earlier years.
- Calculation details: Depreciation methods and lives or rates; amortization code sections and periods or percentages; and current-year amounts.
- Form 100S: To report the deductions and adjustments.
If claiming IRC Section 179 expense, complete the Tangible Property Expense Worksheet. It calls for qualifying property costs, elected costs, business income, and any disallowed deduction carried over from 2023.
For directly owned passive activities, the instructions also require entries on form FTB 3801, California Passive Activity Worksheet.
How to file
Attach Schedule B (100S) to Form 100S. Use additional sheets for depreciation or amortization if necessary.
- Part I: Enter federal depreciation and calculate California depreciation. Report the difference on the applicable line of Form 100S, Side 6, Schedule K. Enter the Section 179 deduction separately on Part I, line 5, and Form 100S, Side 2, line 12.
- Part II: Enter federal amortization and calculate California amortization. Report the adjustment on the applicable line of Form 100S, Side 6, Schedule K.
- Part III: Combine Part I, line 4, and Part II, line 4. Enter the result on Form 100S, Side 1, line 5, subject to the passive activity instructions.
For a directly owned passive activity, complete a separate schedule labeled “Passive Activity.” Enter the current-year depreciation adjustment in Part III and on FTB 3801, Side 2, California Passive Activity Worksheet, column (e). Label column (c) “Schedule B (100S).” Do not put that passive activity depreciation adjustment on Form 100S, Side 1, line 5.
Common mistakes
- Including Section 179 expense in Part I, line 1: The form says to exclude it from that line and enter it separately on line 5.
- Exceeding the Section 179 limits: Do not enter more than $25,000. The deduction is also limited by business income and is reduced when qualifying property costs exceed $200,000.
- Applying the Section 179 limit separately to each asset: Include all qualifying assets in the worksheet because the limit applies to them as a group.
- Forgetting the basis reduction: If electing Section 179 expense, reduce the California depreciable basis by that expense.
- Claiming Section 179 for listed property used 50% or less in business: That property does not qualify.
- Omitting brackets for negative adjustments: The form requires brackets for negative amounts in Part I, line 4; Part II, line 4; and Part III, line 1.
Questions people ask
Can an S corporation use the same depreciation method for California and federal purposes?
For assets placed in service in 1987 and after, it may use the same method used for federal purposes. California does not allow MACRS for assets placed in service while the S corporation was taxed as a C corporation.
What is California’s maximum Section 179 expense deduction?
The maximum is $25,000. It is reduced if the cost of all Section 179 property placed in service during the taxable year exceeds $200,000. The deduction also cannot exceed the S corporation’s business income.
How are Section 197 intangible assets amortized?
Generally, qualifying assets are amortized on a straight-line basis over 15 years. Federal and California amounts may differ for intangible assets acquired in taxable years beginning before January 1, 1994.
Do passive activities need a separate schedule?
Yes, if the S corporation directly owns the passive activity. Complete a separate Schedule B (100S) and write “Passive Activity” at the top.