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February 17, 2025
Question

Depreciation on Rental property is not flowing from Federal to California tax in 2024. is this a bug

  • February 17, 2025
  • 1 reply
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For 2024 Federal is allocating $6000 in depreciation, but California is not allocating any depreciation. How to fix this?

1 reply

February 18, 2025

There may be a number of reasons the amounts aren't the same. Is this the first year of the rental, and the first year using TurboTax?

 

If you haven't already, review the questions and your answers for both the Federal and California state questionnaires for the rental property and any California differences. If you are using a Desktop product, check the depreciation forms for both Federal and California in Forms Mode. If you are using TurboTax Online, see here for details to preview your return.

 

California law has not always conformed to federal law with regard to depreciation methods, special credits, or accelerated write‑offs. Consequently, the recovery periods and the basis on which the depreciation is calculated may be different from the amounts used for federal purposes. 

 

California law does not conform to the federal law for: 

 

  • IRC Section 168(k) relating to the depreciation deduction for certain assets. 
  • The enhanced IRC Section 179 expensing election. 
  • The expanded definition of IRC Section 179 property for certain depreciable tangible personal property related to furnishing lodging and for qualified real property for improvements to nonresidential real property. 
  • Federal modifications to amortization of research and experimental expenditures (IRC Section 174).
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