SOS I need help

[DianneG]

I've used TurboTax for years, but I am stuck on a pop up screen that is asking me to fill in the state prior depreciation amount on the car and truck expense worksheet.  When I scroll down on the worksheet, I see the federal prior depreciation amount.  Is federal and state (Massachusetts) the same amount?  If not, where can I find the state's prior depreciation amount?  I have copies of prior year returns, can I find the amount there and if so where would I find it? I truly appreciate your help!!! 

[DMarkM1]

In your MA state forms/worksheets there should/may be MA depreciation schedule.  If you have trouble locating one there may be no difference so no schedule generated.  Two MA differences.  

1.  MA doesn't conform to the federal depreciation schedule with regards to bonus depreciation.  If you have not/did not take bonus depreciation on the vehicles (shown on the form 4562) then the MA depreciation would match.  

2. There are some specific automobile depreciation differences between MA and the IRS.  Generally, the difference in automobile depreciation would apply to vehicles placed in service in 2003.  If you did not have a vehicle place in service in that year then the MA depreciation would match the federal.    

[DianneG]

Hi,

The truck was placed in service in November 2017 and I'm trying to dispose of it this year.  I looked and can't find any MA depreciation schedules.  I did find all the prior years car and truck expense worksheets.  When I look at all the previous years the prior state depreciation line is blank on all of worksheets.  How would I know if I took bonus depreciation?  I have my 2021 form 4562 and it is filled in on lines 26-28 (property used more than 50% in a qualified business use).  Line 28 is the depreciation deduction amount which is then brought over to lines 21 and 22.  That same amount is on Schedule C line 13.  I noticed that this deduction amount is lower than the state deduction amount.  I still need help on what amount to enter.

@DMarkM1 

[RobertB4444]

If it is blank for all of those years then you should be able to use the federal depreciation amount as the state amount.  If you had taken bonus depreciation then the federal amount either would have cut the value of the truck in half at the very beginning or reduced the basis to zero.

@DianneG 

[DianneG]

@RobertB4444 

Where it was left blank on all previous year worksheets, do you think I can just put a zero?  I don't want to make a mistake.  How can I be sure that I enter the correct amount?

[RobertB4444]

You can enter a zero if it was blank in all the prior years.  But if the state was taking depreciation for all those years using the federal schedule then the state will want to recapture the same depreciation as the federal.  You should go back to the tax return where you entered the vehicle and double check that you didn't take any bonus depreciation.  I think that it was left blank because you did not and the state has been using the federal amount all the way through.  But you can double check by looking at the tax return where you entered the vehicle.

@DianneG