I am able to depreciate my car using schedule C form 4562. But my depreciation deduction transfers over to NY as an addition on form IT225 with code A209. Is this ok?

[MichaelMc · Accepted solution]

Yes. It is perfectly okay, and is to be expected.

The several States often have depreciation rules that do not fully conform to the federal regulations.

The instructions for NY State Form IT-225 include a number of modifications based on depreciation, including A209. Depending on what your assets are, what year they were placed in service, and the method used to depreciate them for federal tax purposes, you should expect to see a significant portion of your federal depreciation, including all bonus depreciation, to be added back to income for NY purposes.