FTB Form 3885F

Introduction

FTB Form 3885F, Depreciation and Amortization, is a tax form used by corporations that are subject to California's corporate income tax. This form is specifically for reporting depreciation and amortization expenses related to property used in the taxpayer's trade or business.

In this resource article, we will help you understand FTB Form 3885F by clarifying who must file, the filing requirements, and addressing commonly asked questions.

What is FTB - Form 3885F?

Form 3885F is a supplementary form to the FTB 199, filed by tax-exempt organizations in California. This form is used to compute depreciation and amortization allowed as a deduction on Form 199, California Exempt Organization Annual Information Return.

It allows the filing organizations to claim deductions for the depreciation and amortization of tangible and intangible property, which includes physical assets like buildings and machinery as well as intangible assets such as patents and trademarks.

Who must file FTB 199 - Form 3885F?

Exempt organizations in California, including 501(c)(3) entities, religious organizations, and certain other nonprofits, must file Form 3885F if they are claiming deductions for depreciable or amortizable property on their FTB 199.

Typically, organizations that hold and use tangible or intangible property in their operations and are entitled to depreciation or amortization deductions should file this form to ensure compliance with California tax laws.

How to file Form 3885F with TaxZerone

This header section of Form 3885F is simply the identification part of the form.

Name as shown on tax return

Write the exact name of the taxpayer or organization as it appears on the main tax return.

FEIN

Enter the Federal Employer Identification Number, which is the organization’s tax ID number assigned by the Internal Revenue Service.

Line 1

Complete columns (a) through (i) for each asset, or group of similar assets, that was placed in service during the 2025 tax year. Then total the amounts in column (f) and enter it on line 1(f), and total column (i) and enter it on line 1(i). Attach a separate schedule if more space is needed.

Column (a)

This column is used to write a short description of the asset placed in service during the year, such as a computer, office furniture, machinery, or software.

Column (b)

Enter the date when the asset was first put to use in the business. This is the day the asset became ready and started being used for business activities.

Column (c)

Write the cost of the asset here. This generally includes the purchase price and any additional expenses needed to get the asset ready to use, such as installation or setup costs.

Column (d)

This column indicates the depreciation method used to calculate how the asset’s cost will be spread over its useful life.

Column (e)

This column shows the useful life of the asset or the depreciation rate used to determine how long the cost will be deducted.

Column (f)

This column reports the depreciation amount that can be claimed for the current tax year.

Column (g)

This column is used to mention the relevant tax code section if a specific rule applies to the asset.

Column (h)

This column shows the amortization period or percentage used for intangible assets.

Column (i)

This column records the amortization amount that can be deducted for the current year.

Line 2

• Enter the California depreciation for assets that were placed in service before the 2025 tax year.
• If there are any differences between federal and California basis amounts, make sure those adjustments are included when calculating this amount.

Line 3

Add the depreciation amount from line 1(f) and line 2. The total represents the overall California depreciation deduction for the year in Form 3885F.

Line 4

Enter the California amortization for intangible assets that were placed in service before the 2025 tax year. If there are any differences between the federal and California basis, adjust the amount accordingly.

Line 5

Add the amortization amount from line 1(i) and line 4. This gives the total California amortization for the year.

Line 6

Add line 3 and line 5. The results show the total depreciation and amortization deduction for the year reported on Form 3885F.