3885: Corporation Depreciation and Amortization (2025)
California · FTB · Used for tax years 2025
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, and is attached
Who files this form
Form 3885 is for corporations reporting California depreciation and amortization, including elections to expense certain property under IRC Section 179 or claim additional first year depreciation under R&TC Section 24356. The form directs corporations to attach it to Form 100 or Form 100W.
What you'll need
Have the following information available to complete the form:
- Corporation name and California corporation number.
- Property descriptions, acquisition dates, and costs or other basis.
- Depreciation or amortization allowed or allowable in earlier years.
- Depreciation methods and useful lives or rates, plus amortization periods or percentages and applicable R&TC sections.
- For a Section 179 election: business-use costs, elected costs, business income, and disallowed deductions carried over from prior years.
- Federal Form 4562, including total depreciation from line 22 and total amortization from line 44.
- Form 100 or Form 100W, where the applicable adjustments are reported.
How to file
Attach the completed Form 3885 to Form 100 or Form 100W.
Report any depreciation adjustment from line 18 and amortization adjustment from line 22 on the applicable return:
- If the federal amount is greater than the California amount, report the difference on Side 1, line 6.
- If the federal amount is less than the California amount, report the difference on 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 a negative result on line 4 or line 5. Enter 0 if the subtraction gives zero or less.
- Do not claim 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 column (h) exceed $2,000.
- Do not make a depreciation adjustment if California depreciation amounts already determine net income before state adjustments on Form 100 or Form 100W.
Questions people ask
What is the California Section 179 maximum for 2025?
The form lists a maximum deduction of $25,000 and a property-cost threshold of $200,000 before the limitation is reduced. The deduction is also subject to the form's business income limitation.
Can a disallowed Section 179 deduction be carried forward?
The form provides for a carryover to 2026 on line 13. Add lines 9 and 10, then subtract line 12.
How much additional first year depreciation can be claimed?
The total in column (h) may not exceed $2,000.
Which federal amounts are used for comparison?
Enter total federal depreciation from federal Form 4562, line 22, on Form 3885, line 17. Enter total federal amortization from federal Form 4562, line 44, on Form 3885, line 21.