California Differences - Sec 179 Expense Deduction
The CA Section 179 expense limit is $25,000 with an investment limit of $200,000. Where there is a difference from the Federal, the Section 179 adjustment is made on the Schedule CA. In general, for taxable years starting on or after January 1, 2015, the state conforms – with many exceptions – to the Internal Revenue Code as of January 1, 2015. Exceptions and differences related to Sec 179 expensing, in addition to the dollar limits noted above, include the following:
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Computer software cannot be expensed but must be depreciated or amortized.
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The state does not permit revocation of Section 179 without permission.
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Sec 179 expensing of “qualified real property” is not allowed.
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The state has not adopted the post-2015 inclusion of portable heating and air conditioning units as qualified Sec 179 property.
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The state has not adopted as qualified Sec 179 property the post-2018 inclusion of beds and other furniture, refrigerators, ranges, and other equipment – used in the living quarters of a lodging facility such as an apartment house, dormitory, or any other facility (or part of a facility) used predominantly to furnish lodging or in connection with furnishing lodging.
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The state has not adopted as qualified Sec 179 property the post-2018 inclusion of improvements to non-residential real property placed in service after the date such property was first placed in service: roofs; heating, ventilation, and air-conditioning property; fire protection and alarm systems; and security systems.