Investors & landlords

It depends. Because your property was placed in service in 2011 and is depreciated over 27.5 years using the straight-line method, it doesn’t fall under the Part 2, Line 6 Add-back. That line is meant to prevent taxpayers from claiming both the Oklahoma full-year expensing election and federal depreciation on the same asset. 

The preferred method is to go to your Federal Asset Worksheet and ensure no "Oklahoma-specific" boxes were accidentally checked during the transfer. If you can't find anything there, then:

• Locate the Oklahoma 512-S: In the list of forms on the left, open OK 512-S, page 2. 
• Find the Add-back: Go to Part 2, Line 6.
• Override the Amount: Right-click the field and select Override (or Ctrl+D). 
• Manually enter 0 or remove the amount if there is an amount listed.

If the errors persist, you will need to address this in the Oklahoma State Interview section of your return.

1. Go to the State Taxes tab. 
2. Continue through the Oklahoma interview until you reach a screen titled "Any Other Additions?" or "Additions to Income".
3. Look for a line item labeled "Depreciation Add-back" or "Duplicated Federal Depreciation." 
4. If the software has "auto-populated" this field based on your federal assets, you may see the amount there. If it is an editable field, you can delete it or change it to 0.

Because this specific add-back (Part 2, Line 6) is tied to the new 2023 Oklahoma law, there is often a specific "Election" screen:

In the Oklahoma interview, watch for a screen that asks: "Did you elect to immediately and fully expense any assets for Oklahoma?"

1. If this is checked Yes, TurboTax assumes every asset is being fully expensed for the state and automatically adds back the federal depreciation to prevent double-counting. 
2. Ensure this is set to NO. Since your asset is from 2011, it doesn't even qualify for this election.

If the state interview doesn't show it, the "mapping" might be coming from the federal side:

1. Go to the Federal Taxes tab -> Deductions -> Business Expenses -> Depreciation. 
2. Edit the specific 2011 asset.
3. Proceed through the interview until you see a screen like "State Prior Depreciation" or "Special Handling for States."
4. Verify that no "Oklahoma Special Depreciation" or "Full Expensing" options are selected.