NJ 179 deduction

Forum|Forum|2 months ago
April 13, 2026
1 reply
16 views

Last year my daughter had a federal section 179 deduction of $690 for a dishwasher for her rental property. New Jersey adjusted this amount to 138 with a 5 year lifetime. How is the balance carried forward to this year's tax return? So far there is no amount on the New Jersey return for the $138 depreciation this year.

AmyC

Level 15

If she mistakenly claimed the 179 last year, an amended return is in order. With the expanded rules, she could qualify.

If she does meet the rules, you need to make an adjustment in the NJ return to show the $138. Follow these steps:

Open to NJ return
continue through
Look for Your Business Summary / Rental Real Estate
Edit
Make the necessary adjustments for NJ depreciation. My program shows the adjustment and yours might also.
You will claim $138 each year until the full amount is used.

Before you file, review your tax return and verify the Form GIT-DEP (depreciation adjustment worksheet) is part of your return. You will see GIT-DEP Pt 2 WK showing the NJ depreciation vs the federal in part II.

To print or view your forms, including all worksheets:

In desktop, switch to Forms Mode.
For online:
1. On the left side, select Tax Tools
2. Select Print center
3. Select Print, save or preview this year's return
4. If you have not paid, select pay now

Reference: IRS 4562 states: You can elect to expense part or all of the cost of section 179 property that you placed in service during the tax year and used predominantly (more than 50%) in your trade or business.

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samgott13Author

Level 2

Thanks for your reply. I don't see that option in TurboTax Premier. Instead I think I can do it by switching to Forms and adding a line to the 2025 NJ GIT-DEP worksheet. I assume I put "0" in Column C as it was a Section 179 deduction in 2024. Column D would have the original Federal basis of 690, as would Column F for the New Jersey basis. Column G would be the 2024 Column K value of 138 (in future the total of the previous years' Column Ks). Column H is Column D minus Column G. Columns I and J and K are the same as from 2024's worksheet. Unfortunately the worksheet instructions are rather rudimentary. I am also unsure as to why the item did not qualify as a NJ Section 179 expense according to TurboTax.