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CA tax question

I am a California resident, but am a shareholder of a S Corp in another state.

The S Corp has Sec 179 deductions.

Is it true that California has a cap on Sec 179 deductions of $25,000? Does the excess amount over $25,000 get carried forward or do I lose it? Is there a way around this?

If it can be carried forward, then does one have to keep track and write off the $25,000 over many years in the CA FTB 540?

In contrast, for federal tax purposes (1040), the Sec 179 expense deduction, would be used up in just a few years, correct?

For the CA Sec 179 deduction is there a specific form to be filled with form 540?

Reply to
wish I knew taxes
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FTB 3885 where you can see the $25K limitation and the carryover of any unused amopunt. The form comes with instructions. CA does not conform to all federal depreciation rules. And yes you need to keep track using your 3885s.

Reply to
Alan

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