State tax filing

If she mistakenly claimed the 179 last year, an amended return is in order. With the expanded rules, she could qualify. 

If she does meet the rules, you need to make an adjustment in the NJ return to show the $138. Follow these steps:

1. Open to NJ return
2. continue through 
3. Look for Your Business Summary / Rental Real Estate
4. Edit
5. Make the necessary adjustments for NJ depreciation. My program shows the adjustment and yours might also.
6. You will claim $138 each year until the full amount is used.

Before you file, review your tax return and verify the Form GIT-DEP (depreciation adjustment worksheet) is part of your return. You will see GIT-DEP Pt 2 WK showing the NJ depreciation vs the federal in part II.

To print or view  your forms, including all worksheets:

• In desktop, switch to Forms Mode. 
• For online:
  1. On the left side, select  Tax Tools
  2. Select Print center
  3. Select Print, save or preview this year's return
  4. If you have not paid, select pay now

Reference:  IRS 4562 states: You can elect to expense part or all of the cost of section 179 property that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.