Usually the Massachusetts adjustment is related to Bonus Depreciation. A Massachusetts taxpayer that claims bonus depreciation for federal purposes must calculate a separate depreciation schedule for purposes of claiming depreciation on the Massachusetts corporate excise return or the Massachusetts personal income tax return. For the year property is placed in service and subsequent years, a taxpayer must calculate Massachusetts depreciation as if the taxpayer elected not to utilize the bonus depreciation allowance.
There is also a state adjustment for some automobiles.
See TIR 03-25.
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