Form FTB 3885A is used when your California depreciation or amortization deduction differs from the amount reported on your federal return. It helps calculate and report California-specific adjustments for business, rental, and farm assets.
When Do I Need Form 3885A?
You may need Form 3885A if California and federal tax laws calculate depreciation or amortization differently for your assets. Common differences include:
- Bonus depreciation
- Section 179 deductions
- Amortization of intangible assets
- Start-up expenses
- Different California recovery periods or asset basis
What Does Form 3885A Report?
Depreciation
Reports California depreciation adjustments for tangible business assets when California and federal calculations differ.
Amortization
Reports California amortization adjustments for intangible assets using California-specific basis and recovery periods.
Section 179 Election
If you elect to expense qualifying property under Section 179, Form 3885A is used to calculate the allowable California deduction. California's Section 179 limits may differ from federal limits. For tax year 2025, California allows a maximum Section 179 deduction of $25,000, with a phaseout threshold beginning at $200,000 of qualifying property placed in service.
Program Pathway
- Select State
- Edit California Return (Click 3 dots)
- Additions to Income or Subtractions From Income
- CA 3885A (Depreciation) Transaction adjustments
Additional Information
Complete a separate Form 3885A for each business or activity that has California depreciation or amortization differences. If the activity is passive, additional reporting may be required on Form FTB 3801.
For additional information please review the California Form 3885A instructions here.