Depreciation adjustment amount for Georgia is required. Complete form 4562 to calculate GA depreciation difference.

[TreeFarmGuy]

I completed my taxes in TurboTax Home & Business, and when it got to the point of analyzing my return, I encountered this issue. 

Check this Entry

Schedule 1: Depreciation adjustment amount for Georgia is required. Please complete GA Form 4562 to calculate the GA depreciation difference from the federal return, and enter the adjusted GA amount. A PDF attachment of the completed GA Form 4562 is required.

Depreciation adjustment:_______________

I purchased a business vehicle, SUV over 6,000 lbs for approximately $50,000, with a business percentage of 60%. Then took the 179 deduction with the special depreciation allowance.

My question is that the instructions for GA form 4562 are not specific, which sections are required for me to complete, and where on the Federal return should I get the information from?

Thanks for the Help!

[PatriciaV]

The federal worksheet for your vehicle is titled "Car & Truck Wks (MakeModel)." You can print that worksheet and related forms using Forms Mode.

Georgia doesn't conform to the federal depreciation options, including Section 179 and bonus depreciation. You have the option to request an extension of time to file and wait until Georgia passes legislation to adopt the federal depreciation rules.

If you choose to file without waiting for any changes in GA laws, you will need to complete Georgia 2025 Form 4562 yourself. This form is not supported in TurboTax software. You will need to complete, print and attach Form 4562 when you mail your Georgia state return.

As you work through your business vehicle entries under Federal Taxes, TurboTax should alert you to deductions that are different for your state. For instance, on the page "Georgia Section 179 deduction," a popup for the entry box indicates that Georgia Section 179 is limited to the luxury auto limit of $7,320. This information may be helpful as you complete Form 4562.

This is a complex and tedious process, and you may consider upgrading to TurboTax Experts. This online service provides step-by-step guidance from a tax expert whenever you need assistance

[TreeFarmGuy]

Thank you, PatricaV for the information, it was very helpful!

You are correct, none of this was straightforward, and I am surprised and disappointed that TurboTax left this for me to figure out.

One last follow-up question: 

So after completing GA Form 4562, if I come up with any amount higher than $7,320.

Should I enter $7,320 into GA Form 4562, Line 42(f), and as the TurboTax offset for Georgia 170 depreciation?

Thanks again!

[PatriciaV]

Yes, enter the Georgia limit for Section 179 on GA Form 4562. But I believe this amount should go on Line 16 Column I under Elected Section 179 Cost.

Line 42 is for amortization of intangibles, not depreciation of vehicles.