Georgia nonresident return – Why is depreciation from WA rental added to GA income?

[LucyLiu5]

Hello,

I am filing a Georgia nonresident return (Form 500-NR) because I have a rental property in Georgia. I do not live in Georgia.

TurboTax added a depreciation from my Washington (WA) rental property as an addition to Georgia income. This WA property uses standard residential depreciation (27.5-year MACRS, SL/MM) with no bonus depreciation and no Section 179.

Because of this addition, the Georgia adjusted income increases, which increases the denominator in the GA income ratio. As a result, the prorated standard deduction becomes smaller and the Georgia tax increases.

My questions are:

1. Should depreciation from a non-Georgia rental property be added to Georgia income for a nonresident return?
2. Since the WA property uses 27.5-year straight-line depreciation, I believe it should not trigger a Georgia depreciation adjustment.
3. TurboTax automatically generated this adjustment and the field is locked, so I cannot edit or remove it.

Is TurboTax applying the Georgia rules correctly here, or is there a way to remove or correct this depreciation adjustment?

Thank you for your help.

[LucyLiu5]

 @CesarJ Hi Cesar, I appreciate your help to my questions. 

[LucyLiu5]

 @CesarJ  @AmyC Hi, I saw you replied to similar questions. I appreciate your help to my questions. I checked my depreciation of WA property. I states SL/MM, not bonus one. Thank you very much.