3885l 2025

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California law generally conforms to the federal rules for expensing IRC Section 179. However, federal limitation amounts may be different than California limitation amounts. For California purposes, the maximum IRC Section 179 expense deduction allowed for 2023 is $25,000.
The Section 179 tax deduction allows eligible businesses to deduct the cost of machinery and qualifying equipment when filing their taxes. This could be office furniture, technology, supplies, and other tangible items. YES this includes business vehicles!
Form 3885A is a worksheet used to calculate the depreciation and amortization deductions for business or income-producing property.
Whats New. Section 179 deduction dollar limits. For tax years beginning in 2024, the maximum section 179 expense deduction is $1,220,000. This limit is reduced by the amount by which the cost of section 179 property placed in service during the tax year exceeds $3,050,000.
Use form FTB 3885L, Depreciation and Amortization, to compute depreciation and amortization allowed as a deduction on Form 568, Limited Liability Company Return of Income.
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The aggregate cost of section 179 property that a taxpayer may elect to expense under section 179 for any taxable year beginning in 2003 and thereafter is $25,000 ($100,000 in the case of taxable years beginning after 2002 and before 2008 under section 179(b)(1), indexed annually for inflation under section 179(b)(5)
What tax deductions are available for landlords of rental properties in California? Landlords can deduct several expenses from their rental income. Common deductions include mortgage interest, property management fees, repair costs, and depreciation.

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