My VA K-1 issued as part of the Federal K-1 packet includes items on line 14 (2185) and line 15 (18,109). Line 15 is described as BONUS DEPR DISPOSITION ADJUST. Total Subtractions are 20,294. I'm under the impression that this figure is to be deducted from apportionable income, thereby reducing my tax liability, but I don't see how or where I can enter this information in either the Federal return or the VA return. It is not part of the questionnaire for either return. P.S. I did not receive Form 1120S Schedule K-1.
See, 2022 Form 502 Instructions, Virginia Pass-Through Entity Return Of Income And Return Of Nonresident ...:
Line 14. Fixed Date Conformity Subtraction – Depreciation.
Enter the amount that should be subtracted from federal taxable income based upon the recomputation of allowable depreciation. If depreciation was included in the computation of your federal taxable income and one or more of the depreciable assets received the special bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2022, then depreciation must be recomputed for Virginia purposes as if such assets did not receive the special bonus depreciation deduction for federal purposes
in any taxable year from 2001 through 2022. If the total 2022 Virginia depreciation is more than 2022 federal depreciation, then the difference must be recognized as a subtraction. For further instructions, see Virginia’s annual conformity Tax Bulletins, which are available on the Department’s website at www.tax.virginia.gov, or call [phone number removed].
Line 15. Fixed Date Conformity Subtraction – Other.
(1) Disposed Asset. If an asset was disposed of in 2022 and such asset received the special bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2022, and a gain or loss was recognized for federal purposes, then the gain or loss must be recomputed as if such asset did not receive the special bonus depreciation deduction for federal purposes in any taxable year from 2001 through 2022. The adjustment will be the difference in the federal and Virginia basis of the asset when sold. If the federal basis of the asset is lower than the Virginia basis (resulting in a greater gain for federal purposes), then the difference between the two bases is a subtraction on the Virginia return. For further instructions, see Virginia’s annual conformity Tax Bulletins, which are available on the Department’s website at www.tax.virginia.gov, or call [phone number removed].
