Possibly so.
Maryland does not comply with certain Federal tax code provisions. The specific provisions are listed at the top of Form 500DM.
There are addition and subtraction modifications which eliminate the effect of the changes on Maryland state taxes. This form is used to determine the amount of the required modification.
You stated: "Net addition modification to Maryland taxable income when claiming the federal depreciation allowances from which the State of Maryland has decoupled".
As an example, in 2022, the rental activity may have purchased a home appliance for use in the rental property. If the appliance cost $2,000 and is depreciated over five years, the first year of depreciation may be $400 with the remaining $1,600 spread over the remaining years.
Federal tax code may allow the entire $2,000 to be claimed in 2022 as a special depreciation allowance or as a section 179 depreciation deduction.
Maryland would be denying the $2,000 deduction and imposing the $400 deduction, changing the taxable income on the Maryland tax return by $1,600 from the taxable income on the Federal tax return.
@Chaucertax
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