3885F: Depreciation and Amortization (2024)
California · FTB · Used for tax years 2024
California Form 3885F calculates depreciation and amortization deductions for Form 541, Form 109, or Form 199. It reports amounts for assets placed in service during 2024 and earlier years, taking into account California adjustments.
Who files this form
Use Form 3885F to calculate depreciation and amortization deductions for any of these California returns:
- Form 541, California Fiduciary Income Tax Return.
- Form 109, California Exempt Organization Business Income Tax Return.
- Form 199, California Exempt Organization Annual Information Return.
Attach Form 3885F to the applicable return.
What you'll need
Have the following information ready:
- The name shown on your tax return and your FEIN.
- For assets placed in service during 2024: property description, date placed in service, and cost or other basis.
- For depreciation: the calculation method, useful life or rate, and current-year depreciation.
- For amortization: the code section, period or percentage, and current-year amortization.
- California depreciation and amortization totals for assets placed in service before 2024, adjusted for differences in basis or tax law.
Attach an additional schedule if you need more space. If engaged in a trade or business, the instructions call for completing and attaching federal Schedule C, E, and/or F using California amounts.
How to file
Attach Form 3885F to Form 541, Form 109, or Form 199. The supplied text does not give a mailing address or e-file directions.
To complete the form:
- Enter assets placed in service during 2024 on line 1. Total depreciation in column (f) and amortization in column (i).
- Enter California depreciation for earlier assets on line 2. Add line 1(f) and line 2 to get line 3.
- Enter California amortization for earlier intangibles on line 4. Add line 1(i) and line 4 to get line 5.
- Add lines 3 and 5 to get the total on line 6.
Form 109 filers enter the total on Form 109, Part II, line 21a. Form 199 filers enter it on Form 199, Part II, line 16.
Common mistakes
- Using federal amounts without checking California differences. California basis, recovery periods, and depreciation rules may differ from federal rules.
- Missing basis adjustments for earlier assets. Lines 2 and 4 specifically remind you to adjust for basis differences.
- Depreciating land. Land is not depreciable.
- Using federal special or bonus depreciation. California does not conform to those deductions for qualified property acquired and placed in service.
- Claiming a Section 179 election for an estate or trust. The instructions state that this election does not apply to estates and trusts.
Questions people ask
What is depreciation?
Depreciation is an annual deduction that recovers the cost or other basis of business or income-producing property with a determinable useful life of more than one year. Land is not depreciable.
What is amortization?
Amortization is a deduction that recovers the cost of certain capital expenses over a fixed period.
Where do I report assets placed in service before 2024?
Enter California depreciation on line 2 and California amortization for intangibles on line 4. Account for differences in asset basis and California and federal tax law.
What if I need more room to list assets?
Attach a schedule if you need additional space for line 1.
Is a separate California election needed for Section 197 intangibles?
No separate California election is required or allowed. For Section 197 property acquired before January 1, 1994, amortize the California adjusted basis as of that date over the remaining federal amortization period.