topic Massachusetts 2021 auto depreciation limit in State tax filing

Massachusetts 2021 auto depreciation limit

kevinmcn — Mon, 09 Mar 2026 08:52:17 GMT

TurboTax uses the correct $10,200 limit (multiplied by business percentage) for 5-year (MACRS) auto depreciation with no special allowance election for federal taxes, which is published in the IRS 2021 table for new trucks-vans-small SUVs. However, TurboTax uses a lower $3,560 limit (multiplied by business percentage) for Massachusetts in their worksheet. Can anyone find where this dollar amount is published (or if TurboTax is wrong)?

Re: Massachusetts 2021 auto depreciation limit

JohnB5677 — Tue, 08 Mar 2022 16:46:31 GMT

Yes, Massachusetts has "Decoupled" from the federal depreciation laws.

TIR 03-25: Depreciable Business Assets; Modifications For Decoupling From Federal Bonus Depreciation

Massachusetts generally follows the current Code for § 62(a)(1), trade or business expense deductions, but Massachusetts specifically disallows the bonus depreciation deduction at IRC § 168(k). G.L. c. 62, §§ 1(c); 2(d)(1)(N). See TIR 02-11.

As part of the amendments to IRC § 168(k), the 2003 Federal Act increased the limitations on first-year depreciation for certain business property that is listed property under § 280F, but due to decoupling from IRC § 168(k), Massachusetts law does not incorporate these increases for purposes of both the corporate excise and the personal income tax.

Re: Massachusetts 2021 auto depreciation limit

kevinmcn — Tue, 08 Mar 2022 19:12:42 GMT

Thanks JohnB5677. I had read TIR 03-25 (and Rev Proc 2003-75) from 2003, but I am asking where the 2021 dollar limit is published. TurboTax uses a $3,560 limit, but the worksheet gives no clues how to find or calculate it. Can anyone find or calculate this $3,560 limit?

Re: Massachusetts 2021 auto depreciation limit

JohnB5677 — Wed, 09 Mar 2022 14:46:53 GMT

Massachusetts adopts those inflation adjustments in Rev. Proc. 2003-75 that do not incorporate the increases found in IRC § 168(k).

Rev. Proc. 2003-75 See Section 4. Application, There are table attached.

Re: Massachusetts 2021 auto depreciation limit

kevinmcn — Thu, 10 Mar 2022 17:02:20 GMT

We are getting closer to the answer: Revenue Procedure 2003-75 Table 4 shows $3,360 in 2003, which was calculated using the October 2002 All Urban CPI index with the new truck (different than new vehicle) component equal to 147.5. Where can I find this 2021 dollar amount, or this October 2020 new truck index (different than new vehicle) to calculate the dollar amount if this procedure is still effective?

Re: Massachusetts 2021 auto depreciation limit

kevinmcn — Thu, 10 Mar 2022 21:49:45 GMT

The revision to non-section 168(k) depreciation by TCJA 2017, as explained by Rev Proc 2018-25, appears to be the reason we cannot find the inflation-adjusted limits from 2003. The 2021 depreciation limit for new autos (and trucks) with no section 168(k) depreciation, which is applicable to MA, is published as $10,200 in Rev Proc 2021-31 Table 2. Do you agree?