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sepia
Returning Member

Issue with rental property state depreciation

I have an issue with my rental property depreciation between my federal and state returns.

 

We sold an out-of-state property last year, for which we deprecated around 84k. The property is located in NY, and I’m located in NJ if that matters.

 

During the smart checks, TurboTax asked me to enter the prior state depreciation. After reading on TurboTax forum, I entered the federal depreciation amount from previous years.

 

 

Schedule E Worksheet -- Asset Entry Worksheet displayed during the federal review 

 

tt1.jpg

 

Since then, Turbotax gives me the following error during the NY review: it shows a depreciation of 105k. It says that NY depreciation can not be higher than the federal depreciation and does not provide an option to update it (greyed out field).

 

tt2.jpg

 

 

Per https://ttlc.intuit.com/community/taxes/discussion/it-398-part-ii-new-york-depreciation-should-not-b..., I may have to update the asset entry worksheet and select “no” to the question “include asset in state return” (q). How do I do that?

 

Do I need to update the state depreciation deduction (m)? If I do, where can I update it?

 

I see the numbers/forms in the federal review step but I can’t find a way to update the asset entry worksheet.

 

Thanks!

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1 Reply
KrisD15
Expert Alumni

Issue with rental property state depreciation

What was the amount you entered as the previous depreciation?

Are you entering only the building value for depreciation to be computed on? 

Did you take any Section 179 deduction or bonus depreciation?

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