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PippinG
Returning Member

an asset tied to my rental property is showing depreciation for the state but not federal

Thanks to COVID and my previous tax preparer retiring, I'm doing the taxes this year. In reviewing previous filings, I see that one asset, other than the rental property, was flagged for 200DBHY for 7 years. I figured out how to get that entered into TurboTax (although I think it would have preferred a selection for 5 year depreciation, but since this was carried over, I assume I needed to have it align with previous filings). But what I can't understand or figure out is why was not depreciating on the federal return (in service in mid 2018 with $0 depreciation in 2018 or 2019), but is depreciating on the state filing (VA). Why would this be and where/how can I update TurboTax to align with the previous filing?

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1 Reply
HelenC12
Expert Alumni

an asset tied to my rental property is showing depreciation for the state but not federal

TurboTax is correct. The reason your federal depreciation is different than your state depreciation is because some US states don't conform to the IRS limits and regulations on Section 179 deductions and bonus depreciation. Some states conform with one or the other, while other states don't conform with either. 

 

 

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