turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

Multi-State Bonus Depreciation

If any of you have read my previous questions, I have farm equipment located in Oklahoma that I receive rental income on.  It was put in service this year.  I am an Ohio resident.  The equipment is classified as a 5-year property for depreciation purposes and it is eligible for bonus depreciation.  The issue is that while Oklahoma fully conforms to IRS bonus depreciation rules, Ohio does not.  Ohio requires addback of the bonus depreciation amounts.  This seems to create a messy tax situation when doing my Ohio and Oklahoma tax returns.  I'm assuming that while I won't have Oklahoma taxable income this first year if I take bonus depreciation, I will then be fully taxed on the Oklahoma income in Ohio since Ohio doesn't conform to bonus depreciation.  Am I correct in assuming this?  If so, would I just be better off not taking bonus depreciation at all and just do straight-line depreciation over 5 years?  Is there anything else to consider with this situation that I might be missing?

x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions

Multi-State Bonus Depreciation

No ... you have the situation well in hand ... the option to take bonus depreciation or not is totally up to you.  Ohio is the crux  in this scenario  so complete the returns using all the options then choose the one that works best for you.  

View solution in original post

1 Reply

Multi-State Bonus Depreciation

No ... you have the situation well in hand ... the option to take bonus depreciation or not is totally up to you.  Ohio is the crux  in this scenario  so complete the returns using all the options then choose the one that works best for you.  

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies