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Special and Bonus Depreciation. California does not conform to the federal special or bonus depreciation for qualified property acquired and placed in service. Election to Expense Certain Tangible Property (IRC 179).
Every corporation that is incorporated, registered, or doing business in California must pay the $800 minimum franchise tax.
When assigning a useful life for California depreciation purposes, it is important to note that the state adheres to the federal Class Life Asset Depreciation Range (ADR) System provisions.
Purpose. Use form FTB 3885A, Depreciation and Amortization Adjustments, only if there is a difference between the amount of depreciation and amortization allowed as a deduction using California law and the amount allowed using federal law.
California does not conform to the federal special or bonus depreciation for qualified property acquired and placed in service.

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Use form FTB 3885F, Depreciation and Amortization, to compute depreciation and amortization allowed as a deduction on Form 541, California Fiduciary Income Tax Return, Form 109, California Exempt Organization Business Income Tax Return, or Form 199, California Exempt Organization Annual Information Return.

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