Fillable California Form 3885p - Depreciation And Amortization

Additional differences may occur for the following:

Line 4 – California amortization for intangibles placed in service

beginning before the 2013 taxable year.

• Luxury Automobile Depreciation: California generally conforms to the

Enter total California amortization for intangibles placed in service beginning

federal 2003 increase (IRC Section 280F) for the limitation on luxury

before the 2013 taxable year, taking into account any differences in asset

automobile depreciation. In addition, SUVs and minivans built on a truck

basis or differences in California and federal tax law.

chassis are included in the definition of trucks and vans when applying

the 6,000 pound gross weight limit.

Assets with a Federal Basis Different from California Basis

•

Amortization of Certain Intangibles (IRC Section 197): Property classified

Some assets placed in service on or after January 1, 1987, will have a

as Section 197 property under federal law is also Section 197 property for

different adjusted basis for California purposes due to the credits claimed

California purposes. There is no separate California election required or

or accelerated write-offs of the assets. Review the list of depreciation and

allowed. However, for Section 197 property acquired before January 1, 1994,

amortization items in the instructions for Schedule CA (540), California

the California adjusted basis as of January 1, 1994, must be amortized over

Adjustments — Residents, and Schedule CA (540NR), California

the remaining federal amortization period.

Adjustments — Nonresidents or Part-Year Residents. If the partnership has

•

Qualified Indian reservation property: California has not conformed to the

any other adjustments to make, get FTB Pub. 1001, Supplemental Guidelines

accelerated recovery periods available under the Alternative Depreciation

to California Adjustments, for more information.

System (ADS) for such property.

•

Grapevines Subject to Phylloxera or Pierce’s Disease: For California

Line 6 – Total Depreciation and Amortization

purposes, replacement grapevines may be depreciated using a recovery

Add line 3 and line 5. Enter the total on line 6 and on Form 565, Side 1,

period of five years instead of ten years.

line 17a.

This list is not intended to be all-inclusive of the federal and state differences.

If depreciation or amortization is from more than one trade or business

For additional information, please refer to California’s R&TC.

activity, or from more than one rental real estate activity, the partnership

should separately compute depreciation for each activity. Use the

Specific Line Instructions

depreciation computed on this form to identify the net income for each

activity. Report the net income from each activity on an attachment to

Line 1 – California depreciation for assets and amortization for intangibles

Schedule K-1 (565), Partner’s Share of Income, Deductions, Credits, etc.,

placed in service during the 2013 taxable year.

for purposes of passive activity reporting requirements. Use California

Complete column (a) through column (i) for each asset or group of assets or

amounts to determine the depreciation amount to enter on line 14 of federal

property placed in service during the 2013 taxable year. Enter the column (f)

Form 8825, Rental Real Estate Income and Expenses of a Partnership or an

totals on line 1(f). Enter the column (i) totals on line 1(i).

S Corporation.

Line 2 – California depreciation for assets placed in service beginning

Line 7

before the 2013 taxable year.

Enter the IRC Section 179 expense election amount from line 12 of the

Enter total California depreciation for assets placed in service beginning

following worksheet.

before the 2013 taxable year, taking into account any differences in asset

These limitations apply to the partnership and each partner.

basis or differences in California and federal tax law.

Election to Expense Certain Tangible Property (IRC Section 179) Worksheet

Follow the instructions on federal Form 4562, Depreciation and Amortization, for listed property.

$ 25,000

1 Maximum dollar limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

2 Total cost of IRC Section 179 property placed in service during the taxable year. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 __________________

$200,000

3 Threshold cost of IRC Section 179 property placed in service during the taxable year . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

4 Reduction in limitation. Subtract line 3 from line 2. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 __________________

5 Dollar limitation for taxable year. Subtract line 4 from line 1. If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 __________________

25,000.00

(a)

(b)

(c)

Description of property

Cost

Elected cost

7 Listed property. Use federal Form 4562, Part V, line 29. Make any adjustments for California law and basis differences . . . . . . . . 7 __________________

8 Total elected cost of IRC Section 179 property. Add amounts in column (c), line 6 and line 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 __________________

9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 __________________

10 Carryover of disallowed deduction from 2012. See instructions for line 10 through line 13 on federal Form 4562 . . . . . . . . . . . . . 10 __________________

11 Income limitation. Enter the smaller of line 5 or the aggregate of the partnership’s items of income and expense

described in IRC Section 702(a) from any business actively conducted by the partnership, other than credits,

tax-exempt IRC Section 179 expense deduction, and guaranteed payments under IRC Section 707(c). . . . . . . . . . . . . . . . . . . . . . 11 __________________

12 IRC Section 179 expense deduction. Add line 9 and line 10, but do not enter more than line 11. Enter on

Schedule K (565), line 12 and on form FTB 3885P, line 7. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 __________________

13 Carryover of disallowed deduction to 2014. Add line 9 and line 10 and subtract line 12. Enter here and on line 8

of form FTB 3885P . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 __________________

Page 2 FTB 3885P Instructions 2013

California Form 3885p - Depreciation And Amortization - 2013 Page 2

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