3885A: Depreciation and Amortization Adjustments (2024)
California · FTB · Used for tax years 2024
California Form 3885A reports depreciation and amortization adjustments for a business or activity by comparing California and federal amounts. It also identifies the activity as passive or nonpassive and includes an election to expense certain tangible property under IRC Section
Who files this form
Form FTB 3885A covers depreciation and amortization adjustments for a business or activity for tax year 2024. It asks you to identify the activity as passive or nonpassive.
The form specifically says not to complete it if your California depreciation amounts are the same as your federal amounts.
What you'll need
Have these forms and details available for the parts you complete:
- Federal Form 4562: Line 22 supplies total federal depreciation, and line 44 supplies total federal amortization.
- Tangible Property Expense Worksheet from the instructions: Part II asks for the amount from worksheet line 12.
- Property details: Description, date placed in service, California basis for depreciation, method, life or rate, and California depreciation deduction.
- Amortization details: Description of the cost, date amortization begins, California basis, code section, period or percentage, and California amortization deduction.
- Earlier-year amounts: California depreciation for assets placed in service before 2024 and California amortization of costs that began before 2024.
- Identification: Name(s) as shown on the tax return, SSN or ITIN, and the business or activity to which the form relates.
Common mistakes
- Completing the form when depreciation amounts match: The form says not to complete it if your California depreciation amounts are the same as your federal amounts.
Questions people ask
Do I need to identify whether the activity is passive?
Yes. Part I asks you to check whether the form is being completed for a passive or nonpassive activity.
Where do the federal depreciation and amortization totals come from?
Enter federal Form 4562, line 22, on this form’s line 7 for depreciation. Enter federal Form 4562, line 44, on this form’s line 13 for amortization.
Where do I enter California amounts from before 2024?
Enter California depreciation for assets placed in service before 2024 on line 5. Enter California amortization of costs that began before 2024 on line 11.
How does the form show a difference between California and federal amounts?
For depreciation, compare line 6 with line 7. If the California total is higher, enter the difference on line 8a; if lower, enter it on line 8b. For amortization, compare line 12 with line 13 and use line 14a if the California total is higher or line 14b if lower. The form directs you to see the instructions for these differences.