State tax filing

Maryland Form = On the State Adjustment to Federal Depreciation Amounts

Section = Sale of Assets with Section 179 Deduction Reported Separately on Federal 1120s/1065

Column = Federal Accumulated Depreciation

Line = (Right Click and Override Line zero next to each asset) Put the Federal Section 179  deprecation amounts that you took for each asset. 

 

This should make your 500DM come out correctly then.  Not sure why the Federal does not carry over correctly to the state return.