3885: Corporation Depreciation and Amortization (2024)
California · FTB · Used for tax years 2024
California Form 3885 reports a corporation's depreciation and amortization and calculates adjustments between California and federal amounts. It also includes elections to expense certain property under IRC Section 179 or claim additional first-year depreciation. Attach it to For
Who files this form
Form 3885 is for corporations reporting California depreciation and amortization. It also includes elections to expense certain property under IRC Section 179 or claim additional first-year depreciation under R&TC Section 24356.
Attach it to Form 100 or Form 100W.
What you'll need
Have the following information available for the parts you complete:
- Corporation name and California corporation number.
- Property descriptions, acquisition dates, and costs or other basis amounts.
- Depreciation or amortization allowed or allowable in earlier years.
- Depreciation methods and useful lives or rates.
- For amortization, the applicable R&TC section and amortization period or percentage.
- For a Section 179 election, property costs, business-use costs, elected costs, business income, and any disallowed deduction carried over from prior years.
- Federal Form 4562, including total depreciation from line 22 and total amortization from line 44.
How to file
Attach Form 3885 to Form 100 or Form 100W. The supplied form does not provide a mailing address or e-filing directions.
Report any depreciation adjustment from line 18 and amortization adjustment from line 22 on the corporation's return:
- If the federal amount exceeds the California amount, enter the difference on Form 100 or Form 100W, Side 1, line 6.
- If the federal amount is less than the California amount, enter the difference on Form 100 or Form 100W, Side 2, line 12.
No depreciation adjustment is necessary if California depreciation amounts were used to determine net income before state adjustments on Form 100 or Form 100W.
Common mistakes
- Do not enter less than zero on lines 4 or 5. Each line directs you to enter 0 if the subtraction gives zero or less.
- Do not enter a Section 179 expense deduction on line 12 that exceeds the business income limitation on line 11.
- Do not let total additional first-year depreciation in line 15, column (h), exceed $2,000.
- Remember to attach Form 3885 to Form 100 or Form 100W.
Questions people ask
What is the California Section 179 maximum for 2024?
Line 1 lists a maximum deduction of $25,000. The form also applies a property-cost limitation and a business income limitation.
When does property cost reduce the Section 179 limit?
Line 3 lists a $200,000 threshold. The amount by which total Section 179 property cost exceeds that threshold reduces the $25,000 maximum, but the resulting dollar limit cannot be less than zero.
Where do I report a disallowed Section 179 deduction carried forward?
Line 13 reports the carryover to 2025. Add lines 9 and 10, then subtract line 12.
Where do I report amortization?
Use Part IV. List property details on line 19, total the current-year amortization on line 20, and enter federal amortization from federal Form 4562, line 44, on line 21.