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CA state return depreciation is incorrect. It is calculating the previous year depreciation amount incorrectly and there is no way to correct it.

 
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3 Replies
MelindaS1
Employee Tax Expert

CA state return depreciation is incorrect. It is calculating the previous year depreciation amount incorrectly and there is no way to correct it.

The first step in troubleshooting this will be verifying that the accumulated prior-year depreciation for CA-state purposes that you are seeing is, in fact, calculated incorrectly. You would rightly have differences in federal depreciation and state depreciation expense if you had ever used IRS-permitted accelerated depreciation provisions which are disallowed or modified by CA law, such as 168(k) "bonus" and/or Sec. 179 expense, for example. 

 

To download the prior-year CA tax return to verify the prior accumulated depreciation, follow these instructions:

TurboTax Online - If you've started your return already

Sign in to your TurboTax account. Make sure you're using the same TurboTax account (same user ID) as in previous years.

There are two ways to get your prior-year returns:

  1. Select Documents from the menu, use the dropdown menu to choose the tax year you want, and select Download tax PDF.
  2. On Tax home, scroll down and select Your tax returns & documents. Select the year you want and select Download/print return (PDF).

If the year you're looking for isn't there, it might be in a different account. Go here to find all of your accounts. One of them should have the return you're looking for.

What if I used TurboTax Online Business?

Follow these steps to download a prior year return:

  1. Sign in to your Intuit Account.
  2. Select Documents.
  3. At View documents from: 2025, select the dropdown and choose the applicable tax year.
  4. Locate the tax return pdf you want to download and select the three-dot menu icon.
  5. Select download.
  6. Your return will be saved to your device.

If your prior year return does not appear in your Documents, follow these steps to download a prior year return:

  1. Sign in to your Intuit Account.
  2. Select Data & Privacy.
  3. Select Download.
  4. Read through the screens and select Continue.
  5. On the Select the data you want to download screen, select the applicable business under TurboTax Business and select Continue.
  6. Review your request and select Continue.
  7. You’ll get an email once your data is ready. This usually takes up to 15 days.

More options: TurboTax FAQ - How do I view, download, or print a prior-year tax return?

 

From there, if the amount you're seeing for accumulated prior years' depreciation expense does, in fact, not match the prior years' CA tax return(s) filed with the FTB, then you'll want to update it in the menus for State Taxes > California > Income that California handles differently

 

What TurboTax product (online or desktop, or Business) are you using, and what business entity type are you preparing? If, for example, you're willing to share that you're preparing a California partnership in TurboTax Business Online; that will allow us to provide more precise and helpful guidance to update your forms.
 

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CA state return depreciation is incorrect. It is calculating the previous year depreciation amount incorrectly and there is no way to correct it.

Thank you for the response. I am using turbo tax online and I see different amount of prior year depreciation for my rental property on federal and CA return. I checked and confirmed that the amount shown on federal return is correct. How do I modify the prior year depreciation amount on CA state return?

RobertB4444
Employee Tax Expert

CA state return depreciation is incorrect. It is calculating the previous year depreciation amount incorrectly and there is no way to correct it.

California does not allow bonus depreciation.  If at any point in the life of the assets you are depreciating you took bonus depreciation then the California depreciation is different because you are required to depreciate your asset over a longer period and the TurboTax system has calculated that for you.

 

 

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