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Returning Member
posted Mar 1, 2020 6:11:58 AM

How to enter bonus depreciation in NC return?

In NC tax return, need help with Business / Adjustment for Bonus Depreciation.  What info from the federal return feeds this item?  Turbotax says that the answer is zero.  However, I need to enter a value, and Turbotax won't let me.

0 4 2247
4 Replies
Intuit Alumni
Mar 2, 2020 1:19:44 PM

North Carolina has actually not conformed to the federal law on Bonus Depreciation, and they have, in fact, required an "add-back" amount to income, for bonus depreciation taken.

 

Here are links to articles that summarizes the differences (the 2nd article is a link to the North Carolina Department of Revenue page that addresses this issue:  Summary of North Carolina View on Bonus Depreciation   North Carolina Dept of Revenue-Bonus Depreciation

 

 

Returning Member
Mar 3, 2020 11:30:37 PM

I have the same problem with Turbo Tax.  The software, using Step by Step, asks if I have a Bonus Depreciation adjustment entry, then when I click on the yes button, the software tells me my entry is zero and moves on without allowing the actual entry.  This seems to be a software problem, not a tax code issue

New Member
Sep 24, 2020 10:38:08 AM

I have used turbotax for many years now When entering bonus depreciation for an item in your federal return. Doesn't the NC return automatically do the add-back that is necessary (85%) for each item?

Returning Member
Feb 4, 2021 4:59:16 PM

Turbotax has still not resolved this issue.  Last year, I had to convert my online version to a desktop version in order to manually adjust the bonus depreciation on form D-403.  Looks like I'll have to do this again.