Form Ftb 3885a - California Depreciation And Amortization Adjustments - 2015 Page 2
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1
2federal Job Creation and Worker Assistance Act of 2002 which allows
Tangible Property Expense Worksheet
taxpayers to take an additional first year depreciation deduction and
1 Maximum dollar limitation for California . . . . . . . . . . . . . . . .
1 $25,000
Alternative Minimum Tax depreciation adjustment for property placed
2 Total cost of Section 179 property placed in service . . . . . . .
2 ________
in service after September 10, 2001.
3 Threshold cost of Section 179 property before
Get FTB Pub. 1001 for more information on differences between
reduction in limitation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 $200,000
California and federal law for the following items:
4 Reduction in limitation. Subtract line 3 from line 2.
If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 ________
• Amortization of certain intangibles (IRC Section 197)
5 Dollar limitation for tax year. Subtract line 4 from line 1.
• Qualified Indian Reservation property
If zero or less, enter -0- . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 ________
• Grapevines subject to Phylloxera or Pierce’s disease
(a) Description of property
(b) Cost
(c) Elected cost
• Additional depreciation (IRC Section 168(k))
6
• Startup expenses (IRC Section 195)
• Asset expense election (IRC Section 179)
California generally conforms to the federal 2003 increase (IRC
7 Listed property (elected Section 179 cost) . . . .
7________
Section 280F) for the limitation on luxury automobile depreciation. In
8 Total elected cost of Section 179 property.
addition, SUVs and minivans built on a truck chassis are included in
Add line 6 column (c) and line 7 . . . . . . . . . . . . . . . . . . . . . . .
8 ________
9 Tentative deduction. Enter the smaller of line 5 or line 8 . . . . .
9 ________
the definition of trucks and vans when applying the 6,000 pound gross
10 Carryover of disallowed deduction from 2014 . . . . . . . . . . . . . 10 ________
weight limit. However, California does not conform to the federal increase
11 Enter the smaller of business income (not less than zero)
to first-year depreciation for qualified vehicles placed in service in 2010.
or line 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 ________
Differences may also occur for other less common reasons, and the
12 Section 179 expense deduction for California.
instructions for Schedule CA (540 or 540NR) list them on the line for
Add line 9 and line 10, but do not enter more than
the type of income likely to be affected. Get FTB Pub. 1001 for more
line 11. Also, enter the result on form FTB 3885A, line 2 . . . . . 12 ________
13 Carryover of disallowed deduction to 2016.
information about figuring and reporting these adjustments.
Add line 9 and line 10.
If reporting a difference for assets related to a passive activity, get form
Subtract line 12 from the result . . . . . . . . . . . . . . 13________
FTB 3801, Passive Activity Loss Limitations, for more information about
passive activities.
Part III Depreciation
Do not use form FTB 3885A to report depreciation expense from federal
Line 3 – Complete column (a) through column (f) for each tangible asset
Form 2106, Employee Business Expenses. Instead, see the instructions
or group of assets placed in service during the tax year. Use the California
for Schedule CA (540 or 540NR), line 41.
basis for assets on which you elected to take the Section 179 deduction.
It will be the difference between line 6, column (b) and line 6, column (c)
Specific Line Instructions
of the Tangible Property Expense Worksheet in Part II.
Line 8a and Line 8b – Are you using this form as a worksheet in
Prepare and file a separate form FTB 3885A for each business or activity
connection with form FTB 3801?
on your tax return that has a difference between California and federal
depreciation or amortization. Enter the name of the business or activity in
Yes
Enter the amount from line 8a or line 8b on form FTB 3801, Side 2,
the space provided at the top of the form. If you need more space, attach
California Passive Activity Worksheet, column (e).
additional sheets. However, complete Part II, Election to Expense Certain
No
Include the amount from line 8a on Schedule CA (540 or 540NR)
Tangible Property (IRC Section 179), only once.
in column B on line 12 for federal Schedule C (Form 1040),
Part I Identify the Activity as Passive or Nonpassive
Profit or Loss From Business, activities; on line 17 for federal
Schedule E (Form 1040), Supplemental Income and Loss,
Line 1 – Check the box to identify the activity as passive or nonpassive.
activities; and on line 18 for federal Schedule F (Form 1040), Profit
A passive activity is any activity involving the conduct of any trade or
or Loss From Farming, activities.
business in which you did not materially participate. Get form FTB 3801
for more information.
Include the amount from line 8b on Schedule CA (540 or 540NR)
in column C on line 12 for federal Schedule C activities; on
If the activity is passive, use this form as a worksheet to figure the
line 17 for federal Schedule E activities; and on line 18 for federal
depreciation adjustment to carry to form FTB 3801. Beginning in 1994,
Schedule F activities.
and for federal purposes only, rental real estate activities of persons in
real property business are not automatically treated as passive activities.
Part IV Amortization
California did not conform to this provision.
Line 9 – Complete column (a) through column (f) for intangible assets
Part II Election To Expense Certain Tangible Property
placed in service during the tax year. Use the California basis and the
California recovery period.
If you qualify, you may elect to expense part of the cost of depreciable
personal property used in your trade or business and certain other
Line 14a and Line 14b – Are you using this form as a worksheet in
property described in federal Publication 946, How to Depreciate
connection with form FTB 3801?
Property. To qualify, you must have purchased property, as defined in
Yes
Enter the amount from line 14a or line 14b on form FTB 3801,
the IRC Section 179(d)(2), and placed it in service during 2015, or have
Side 2, California Passive Activity Worksheet, column (e).
a carryover of unused cost from 2014. If you elect this deduction, you
No
Include the amount from line 14a on Schedule CA (540 or 540NR)
must reduce your California depreciable basis by the IRC Section 179
in column B on line 12 for federal Schedule C activities; on
expense.
line 17 for federal Schedule E activities; and on line 18 for federal
Federal limitation amounts may be different than California limitation
Schedule F activities.
amounts. For California purposes, the maximum IRC Section 179
Include the amount from line 14b on Schedule CA (540 or 540NR)
expense deduction allowed for 2015 is $25,000.
in column C on line 12 for federal Schedule C activities; on
Complete the worksheet in the next column to figure IRC Section 179
line 17 for federal Schedule E activities; and on line 18 for federal
expense for California. Include all assets qualifying for the deduction
Schedule F activities.
because the limit applies to all qualifying assets as a group rather than to
each asset individually. Refer to federal Form 4562, Depreciation and
Amortization, for more information.
Page 2 FTB 3885A Instructions 2015
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