Question

Tariq owns a small car-detailing business and is completing his California tax return. There is a difference between depreciation amounts on his California and federal tax returns. What form will he need to file this year?

Answer 1

You’ll need to file California Form 3885, Depreciation and Amortization, to reconcile the difference between your federal and California depreciation. Prepare Form 3885, report the adjustment on Schedule CA (540), and attach these to your California individual return (Form 540).