3885P: Depreciation and Amortization (2024)
California · FTB · Used for tax years 2024
California Form 3885P calculates depreciation and amortization deductions for Form 565, Partnership Return of Income. It reports California depreciation and amortization amounts, the Section 179 expense deduction, and any disallowed deduction carried over to 2025.
Who files this form
Partnerships use Form FTB 3885P to calculate depreciation and amortization allowed as a deduction on Form 565, Partnership Return of Income. Attach Form FTB 3885P to Form 565.
What you'll need
Have the following information ready:
- The partnership’s name as shown on the return, FEIN, and California Secretary of State file number.
- For assets placed in service during 2024: property descriptions, dates placed in service, and cost or other basis.
- For depreciation: the calculation method, life or rate, and depreciation for the year.
- For amortization: the applicable code section, period or percentage, and amortization for the year.
- California depreciation and amortization amounts for assets placed in service before 2024, including any California and federal basis differences.
- If claiming a Section 179 deduction: property costs, elected costs, any disallowed deduction carried over from 2023, and income information needed for the worksheet.
For listed property, the worksheet directs you to the instructions for federal Form 4562.
How to file
Attach Form FTB 3885P to Form 565. The supplied text does not give a mailing address or e-file directions.
- Complete line 1 for assets or property placed in service during 2024.
- Enter California depreciation for earlier assets on line 2 and California amortization for earlier intangibles on line 4.
- Add the depreciation and amortization totals on line 6. Report trade or business amounts on Form 565, Side 2, line 17a. For rental real estate activities, use California amounts on federal Form 8825, line 14.
- Transfer the Section 179 worksheet’s line 12 deduction to line 7, and its line 13 carryover to line 8.
Common mistakes
- Ignoring basis differences. The form reminds you to adjust for any basis differences when calculating both depreciation and amortization.
- Using federal amounts without California adjustments. The instructions specifically require California amounts for depreciation reported on federal Form 8825, line 14.
- Combining separate activities. If depreciation or amortization comes from more than one trade or business activity, or more than one rental real estate activity, the instructions say to compute depreciation separately for each activity.
Questions people ask
What is depreciation?
Depreciation is an annual deduction to recover 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.
Can I use the same depreciation calculation as on my federal return?
Not always. California and federal rules can differ, including the basis and recovery periods used to calculate depreciation. California does not conform to the federal Section 168(k) depreciation deduction or the enhanced Section 179 expensing election.
Where do I report the Section 179 deduction and carryover?
Enter the deduction from worksheet line 12 on Schedule K (565), line 12, and Form FTB 3885P, line 7. Enter the disallowed deduction carried over to 2025 from worksheet line 13 on Form FTB 3885P, line 8.