Use of ADS for Electing Real Property Trade or Business

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Message Board Use of ADS for Electing Real Property Trade or Business

This topic contains 1 reply, has 2 voices, and was last updated by Sandy Weiner 1 week, 2 days ago.

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  • #133870
    Michaela Garcia
    Participant

    If a taxpayer (or partnership) elects out of the 163(j) interest limitation for federal tax purposes and is required to depreciate property using ADS under 168(g)(8), are they required to use ADS for CA?  I assume the answer is no because CA does not conform to 163(j) which means CA would also not conform to 168(g)(8).  I also assume that if a taxpayer wanted to use ADS for CA, the taxpayer would also need to elect to use ADS under 168(g)(7) but that can only be done on a go-forward basis?

  • #134045
    Sandy Weiner
    Participant

    I agree. But remember CA does not conform to federal depreciation for C corporations. That’s governed by R&TC Sec. 24349.