Section 179 Adjustment - (Subtraction for california)

[Side_Gig]

On federal I am getting deduction calculation as $20200 for Tesla model Y I bought for business use only

But on California side its adding it back as adjustment

Can i remove it?  I thought upto 25K Federal and CA deduction is same - no adjustment needed on California side

[KrisD15]

Did you use the Section 179 for any other assets for tax year 2023? 

Any carryover form 2022?

[Side_Gig]

No - Only one car bought in 2023, no 2022 carryover as business start was 2023 - I am SMLLC

[Side_Gig]

@KrisD15 No - Only one car bought in 2023, no 2022 carryover as business start was 2023 - I am SMLLC

[KrisD15]

For California the deduction will be limited based on the business income.

Was the business income 20,200 after expenses and before the 179? 

[Side_Gig]

Yes it is 100k +

[KrisD15]

Is the assets placed into service for 2023 more than 200,000? 

[Side_Gig]

No - Asset placed in service is a vehicle less than 6000lbs costing 58000

[RobertB4444]

For California the maximum 179 deduction amount for 2023 is $25,000.  Any other amount you were allowed on your federal would be added back in.

Here are the California rules.

@Side_Gig