State depreciation differences from federal depreciation differences
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Level 1

State depreciation differences from federal depreciation differences

In trying to complete my state taxes, I am getting stopped on a page which is asking me for the the differences in the state depreciation from the federal depreciation for the rental apartment in the basement of my home.  It has a number of fields that I can't answer, including 

-- "Depreciation Method," in which the choices are: 200% declining balance, 150% declining balance, declining balance, straight line, various and MACRS.  (I believe the accountant I hired last year to do my taxes used the straight line method, since  one sheet reads method SL.)

-- "Useful Life (months)."   Would this be 27.5 years x 12?  No idea what it refers to

-- "State Prior Depreciation taken."   I have no idea what the prior depreciation taken was and I do not see any reference to it on my previous year tax form

-- "Depreciation for 2017."  Again, how do I know, other than the amount Turbotax already calculated for the federal depreciation?  

2 Replies
Level 1

State depreciation differences from federal depreciation differences

Hi there, here are some further clarifications that may help you:

Depreciation method - should be straightline because it's a residential rental

Useful life = 27.5 years x 12 months (residential property)

State Prior Depreciation taken - should be the same as the federal for most states because there is no accelerated rate for this type of asset

Depreciation for 2017 - should be the same as federal - also should be the same as last year if you also rented the unit out the whole year in 2016.

Level 1

State depreciation differences from federal depreciation differences

Thanks very much.  Since it was all a bit opaque, I ended up assuming that everything was the same as federal, and just submitted it.  My state's own on-line instructions on depreciation of real estate wasn't much help at all.   But I appreciate your response.
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