California does not conform to the federal modifications to depreciation limitations on luxury automobiles (IRC Section 280F).
The depreciation caps for a luxury SUV, truck or van placed in service in 2021 is $18,200 for the first year with bonus depreciation. The California limit is much lower- $3,304.
In some cases, it is beneficial to use the mileage deduction for both federal and California.
@gsdtax
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