2018 Schedule B (100S) - S Corporation Depreciation and ...

1 TAXABLE YEAR. S Corporation Depreciation CALIFORNIA Schedule . 2018 and Amortization B (100S). For use by S corporations only. Attach to Form 100S. Corporation name California Corporation number Part I Depreciation . Use additional sheets if necessary. 1 Enter federal Depreciation from federal Form 4562, line 22. IRC Section 179 expense deduction is not included on this line. Get federal Form 4562 instructions .. 1 00. California Depreciation : (a) (b) (c) (d) (e) (f) (g). Description of property Date acquired Cost or other basis Depreciation allowed or Depreciation Life or Depreciation (mm/dd/yyyy) allowable in earlier years method rate for this year 2.

2 3 Add the amounts on line 2, column (g) .. 3 00. 4 Subtract line 3 from line 1. If negative, use brackets. Enter here and on the applicable line of Form 100S, Side 6, Schedule K. 4 00. 5 Enter IRC Section 179 expense deduction here and on Form 100S, Side 2, line 12. Do not enter more than $25,000 .. 5 00. Part II Amortization. Use additional sheets if necessary. 1 Enter federal amortization from federal Form 4562, line 44 .. 1 00. California amortization: (a) (b) (c) (d) (e) (f) (g). Description of property Date acquired Cost or other basis Amortization allowed or Code Section Period or Amortization (mm/dd/yyyy) allowable in earlier years percentage for this year 2.

3 3 Add the amounts on line 2, column (g) .. 3 00. 4 California amortization adjustment. Subtract line 3 from line 1. If negative, use brackets. Enter here and on the applicable line of Form 100S, Side 6, Schedule K .. 4 00. Part III Depreciation and Amortization Adjustment 1 Combine the amounts on Part I, line 4, and Part II, line 4. Enter here (if negative, use brackets) and on Form 100S, Side 1, line 5. For passive activities, see instructions.. 1 00. General Information Important Information California law conforms to federal law for the following: In general, for taxable years beginning on or S corporations must continue calculating the The inclusion of sport utility vehicles (SUVs).

4 After January 1, 2015, California law conforms California Depreciation deduction for assets and minivans built on a truck chassis in the to the Internal Revenue Code (IRC) as of placed in service before January 1, 1987, in the definition of trucks and vans when applying January 1, 2015. However, there are continuing same manner as in prior years. The following the 6,000 pound gross weight limit. differences between California and federal were the most common methods used to The useful life of seven years of any Alaska law. When California conforms to federal tax calculate Depreciation for years prior to 1987: natural gas pipeline property.

5 Law changes, we do not always adopt all of Straight-line The income forecast method and the the changes made at the federal level. For Declining balance exemption of limits on Depreciation for more information, go to and search Sum-of-the-years digits incremental costs of clean fuel vehicles. for conformity. Additional information can For assets placed in service in 1987 and after, be found in FTB Pub. 1001, Supplemental California law does not conform to federal S corporations may use the same method for law for the following: Guidelines to California Adjustments, the California as was used for federal purposes.

6 Instructions for California Schedule CA (540 or The first-year Depreciation deduction 540NR), and the Business Entity tax booklets. Depreciation for S corporations follows the allowed for new luxury autos or certain Depreciation rules provided under California passenger automobiles acquired and placed The instructions provided with California tax Personal Income Tax Law. Unlike other in service in 2010 through 2018. forms are a summary of California tax law corporations, an S Corporation is allowed California does not conform to the federal and are only intended to aid taxpayers in to compute Depreciation using the Modified modifications to Depreciation limitations on preparing their state income tax returns.

7 We Accelerated Cost Recovery System (MACRS). luxury automobiles (IRC Section 280F). include information that is most useful to the greatest number of taxpayers in the limited Federal/State Differences Depreciation limitations for passenger auto . space available. It is not possible to include Differences between federal and California mobiles (that are not trucks or vans) placed all requirements of the California Revenue laws affect the calculation of Depreciation in service in the calendar year 2018: and Taxation Code (R&TC) in the instructions. and amortization.

8 The following lists are not Tax Year Amount Taxpayers should not consider the instructions intended to be all-inclusive of the federal and 1st Tax Year $ 3,160. as authoritative law. state conformities and differences. For more 2nd Tax Year $ 5,000. information, refer to the R&TC. 3rd Tax Year $ 2,950. Each Succeeding Year $ 1,775. 7711183 Schedule B (100S) 2018 Side 1. Depreciation limitations for trucks and vans California law does not conform to the Listed property used 50% or less in placed in service in the calendar year 2018: federal limitation amounts under IRC business activity does not qualify for the IRC.

9 Tax Year Amount Section 179(b)(1) and (2). For California Section 179 expense deduction. For more 1st Tax Year $ 3,560 purposes, the maximum IRC Section 179 information regarding listed property, get the 2nd Tax Year $ 5,700 expense deduction allowed is $25,000. This instructions for federal Form 4562. 3rd Tax Year $ 3,350 amount is reduced if the cost of all IRC Business Income The total cost the Each Succeeding Year $ 2,075 Section 179 property placed in service during S Corporation can deduct is limited to the the taxable year is more than $200,000.

10 S Corporation 's business income. For the For lease inclusion indexing amounts, go to and search for lease inclusion. Complete the Tangible Property Expense purpose of the IRC Section 179 election, IRC Section 168(k) relating to the Worksheet below to figure the IRC Section 179 business income is the net income derived Depreciation deduction for certain assets. expense for California purposes. Include all from the S Corporation 's active trade or The enhanced IRC Section 179 expensing assets qualifying for the deduction because business. Net income is from Form 100S, election.