Massachusetts 2021 auto depreciation limit

Forum|Forum|4 years ago
March 7, 2022
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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)?

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JohnB5677

Level 15

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.

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kevinmcnAuthor

Level 2

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?