Bonus depreciation from K-1 in non-conforming state (Calif)

[mna2004]

I have received a K-1 from a publicly traded partnership that has bonus depreciation. I live in California and my understanding is that my state does not allow bonus depreciation.

Questions:

1) Do I need to increase my income for this K-1 by the amount of the bonus depreciation on my state return?

2) Can I claim a section 179 deduction on my state return for the amount of the bonus depreciation instead?  If so, how do I do that?

[Anonymous]

yes you need to adjust Ca if it doesn't allow bonus and no you can't take 179  - you don't own the asset the partnership does.   It would have to be the ptsp that took the 179 and i've never seen a PTP take 179.   certain partners don't qualify for the 179 deduction but nevertheless must reduce the basis for it.   thus when sold they'll have income without ever being allowed the deduction.    they could also be to large to qualify 

[mna2004]

Thanks for answer, @Anonymous .  Is there any other deduction I can take as an individual to offset lost bonus depreciation?

[PSmith1260]

Hello....I saw this thread and have several additional questions regarding 'Federal Reg Bonus Depreciation Adjustment for Non-Conforming States' reported on PTP K-1's.  I live in Iowa which is a non-conformimg state.  I sold a number of PTP's in 2020.  I see where to make the income adjustment on my Iowa return for this item....specifically called out on Iowa return. 

My questions:  1) the amount of the adjustment for each K-1 is sometimes a negative amount and sometimes positive for the bonus depreciation adjustment. Do I add positive adjustments to Iowa income and reduce income by negative adjustments or vice versa?  2) do I adjust Iowa income for these K-1 amounts only in year when the PTP is sold or do I adjust Iowa income each year if reported on K-1 regardless of whether PTP sold or not?  

Any input would be greatly appreciated.  Thank you.

[onceayear]

I have the same questions.

[-tax-prep-2018on]

PSsmith1260, did you ever get this question answered? I have same situation as yours for CA state return... wondering how to handle a positive number in Gain Subject to Recapture under Adjusted for Bonus Depreciation column on the K-1. In other words, do I add to the Regular Gain Subject to Recapture number (which in my case is also positive) or report the number as it is ?

Thanks for any advice,