I'm using Turbo Tax Premier for the first time and it has automatically included form Maryland 500DM. This form has never been included with my taxes when I used an accountant in previous years. Do I need to use this form? I have one rental house and the form looks like it should be used for a cooporation.
Maryland Form 500DM is to be filed with Maryland individual tax returns for either residents or nonresidents. Reviewing the reasons for filing I would assume that it relates to the depreciation on your rental.
Use Form 500DM only if the Maryland return is affected by the use (for any tax year) of any of the following federal provisions from which Maryland has decoupled (Decoupled Provisions)
• Special Depreciation Allowance under the federal Job Creation and Worker Assistance Act of 2002 (JCWAA) as increased and extended under the federal Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA); and subsequent federal legislation, including the American Recovery and Reinvestment Act of 2009 (ARRA).
• Carryover of a net operating loss (NOL) under IRC Section 172 without regard to an election under IRC Section 172(b)(1)(H) for a carryback period of up to 2 years (Farming loss only).
• Federal Section 179 depreciation deductions taken for a tax year beginning on or after January 1, 2003. For Maryland tax purposes, a taxpayer only is allowed to expense up to $25,000, reduced dollar-for-dollar by the amount over $200,000, of the cost of Section 179 property that is purchased and put in service for a trade or business for the tax year. For vehicles placed in service after May 31, 2004, Maryland also has decoupled from the higher depreciation deduction for certain heavy duty SUVs allowed under Internal Revenue Code Section 280F.
• Deferral of recognition of income from discharge of indebtedness under the ARRA.
• Deferral of deduction for original issue discount in debt for debt exchanges under the ARRA.
Hello, using TurboTax Premier how do you find the 500DM form in the software? What fields populate the form? Thanks
The Maryland 500DM will generate automatically when you have one of the decoupled items on your federal returns.
The decoupled items are listed in the previous post by Karenj2.
Hello,
I should clarify that I was using the online version for 2020, but had to revert to the desktop version to get the form. With that being said, I wonder if the 500DM form is in the online version for this year?
Thank you! I see it when I view the Forms. The decoupling modification is because I took the qualified improvement property (QlP) bonus depreciation (100% for the first year) on my Federal return. Will TurboTax Business keep track of the depreciation for Maryland for future years or will I need to do this myself?
Thanks,
Rich