Depreciation for states - the forms show the total depreciation

[Strongsilence-CPA]

I have a CA-NY Part-Year resident with a rental.  Depreciation must be allocated to each state.  The state depreciation schedules show the total, annual depreciation. So, the Federal, CA and NY schedules are all the same.  I would like to know the exact depreciation for each state.  Is there a way?

[sjrcpa]

In what state is the rental?

[abctax55]

Assign every asset related to the non-resident state rental to THAT state.  I find using Ctrl W for batch entry is a great way to do that.

[Strongsilence-CPA]

SJR, the Rental is in NY

The new assets, purchased after TP arrived in NY, were coded to NY.  The building, purchased in 2019, is 50/50 to each state for 2020 because the TP moved July 1 to NY so I assigned 50% of the total cost to each state. However, NY and CA and Fed deprecation are all the same

The CTRL-W batch is interesting and useful but I don't see how that would make State depreciation schedules any different.  The state schedule still match the Fed schedule.

[sjrcpa]

All depreciation is NY because that's where the rental property is. The entire rental activity is taxable in NY. In addition, it is taxable in CA for the pro rated portion of the year they lived in CA.

There may not be any depreciation differences between federal, CA and NY. They mostly arise with bonus depreciation and Section 179, not real property..

[George4Tacks]

I enter the whole of a Schedule E that you describe to NY, including all depreciation items. Toward the bottom of Screen 18 is Other Information > Percentage of source income ... (PR/NR)[O]

 

Percent of Source Inc. (.xxxx or 1 If 100 Percent) (PY/NR)[O]

General Information

Screens 18; Codes 504,511

This input field applies to state part-year and nonresident returns only. Enter, in .xxxx format, the percentage of income that represents source income taxable to the nonresident/part-year state (e.g., enter 10% as .10). The program multiplies each item from this schedule by the percentage entered to determine the source income taxable to the state. If the entire amount of income is source income, leave this field blank.

Note: The 2020 program uses State Identifiers to source income. An entry in "Percent of Source Income" (Screen 18, code 504) overrides the allocation of income or loss. For more information about State Identifiers and source income, refer to "Multi-State Clients" in the 2020 Operator's Help System.

See Also: Multi-State Income Allocation Guidelines

[Strongsilence-CPA]

As a CA resident, the rental income sourced to CA (1/1 to 6/30) should be allowed a depreciation deduction. So I think I disagree with you.

[sjrcpa]

1/2 of the net rental income will include depreciation expense.