Question
Georgia nonresident return – Why is depreciation from WA rental added to GA income?
Hello,
I am filing a Georgia nonresident return (Form 500-NR) because I have a rental property in Georgia. I do not live in Georgia.
TurboTax added a depreciation from my Washington (WA) rental property as an addition to Georgia income. This WA property uses standard residential depreciation (27.5-year MACRS, SL/MM) with no bonus depreciation and no Section 179.
Because of this addition, the Georgia adjusted income increases, which increases the denominator in the GA income ratio. As a result, the prorated standard deduction becomes smaller and the Georgia tax increases.
My questions are:
- Should depreciation from a non-Georgia rental property be added to Georgia income for a nonresident return?
- Since the WA property uses 27.5-year straight-line depreciation, I believe it should not trigger a Georgia depreciation adjustment.
- TurboTax automatically generated this adjustment and the field is locked, so I cannot edit or remove it.
Is TurboTax applying the Georgia rules correctly here, or is there a way to remove or correct this depreciation adjustment?
Thank you for your help.
