Tax Year 2023. An entry appeared on Line 15 Miscellaneous: Other Subractions. The supporting Smart Worksheet indicates it is Bonus Depreciation deduction. The State of Oklahoma has requested a Detailed Description for the line and I can't trace this line to a supporting calculation anywhere. You can't overwrite this line and I can't figure out how to determine how it was calculated. It doesn't trace back to the Federal Return. Does anyone know how I trace this back to a calculation so I can provide documentation. I am a retired CPA - I should have questioned this when I filed - getting lax in my old age. Any help would be most appreciated.
Please clarify if the question on Line 15 calculations refers to the federal Schedule A or the Oklahoma Schedule A.
The federal allows you to take bonus deprecation when you place an asset in service. Oklahoma does not conform to the federal. A business will subtract the bonus depreciation from federal taxable income to reach the Oklahoma taxable income.
You can see what assets were placed in service and which ones were chosen for the bonus depreciation by looking at your federal depreciation worksheets. Then, you can answer the questions being asked.
To see your forms:
I have reviewed my Depreciation and Amortization Report - No Bonus Depreciation was claimed on the Federal Return. So is the appropriate conclusion that this is an erroneous entry on the State Return that Turbo Tax can't explain where it originated and I need to delete it from the State Return and pay the taxes, interest and penalties? I have been on the phone with Turbo Tax Support 3 times now and none of them seemed to have the intelligence to answer my questions, in fact one of them hung up on me.
I have sent my return - Token Number is: 130358252-83379779
Does this help someone answer my question? I have until 2/13/2025 to answer the letter from the Oklahoma Tax Commission and I don't have an answer for them?
Please clarify if the token you provided is for tax year 2023 or 2024. Also, which tax year is the letter from Oklahoma asking about?
We are unable to recreate the calculation that results in the amount shown for the OK Bonus Depreciation adjustment on OK Sch A1.
Your best option is to quote "OK Statute Title 68 Section 2358.6A" and state that you claimed no bonus depreciation on your federal return.
If you wish to calculate what the OK adjustment should have been, use the example presented here: Oklahoma Bonus Depreciation Adjustment generated OTC Notice.
I tried to follow the example and can't reproduce the number that appears on my Oklahoma Return ( posted this in a previous post on this thread). I have to respond to Oklahoma tomorrow and since none of the 3 people at Turbo Tax I spoke to could get anywhere near an answer as to where this number came from I believe my only option is to delete the entry and pay the tax, penalties and interest
Yes, the calculations outlined in that link do not result in the number shown in your TurboTax return. You should still respond to the state's letter, giving them the statute number. Explain that you are unable to explain how the bonus depreciation was calculated and let the state handle the adjustment.
Your other option is to remove the bonus depreciation from your OK return, print the revised pages and submit with your response.