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How do I track K-1 additions to state income due to depreciation differences of Section 179 income? How much of last year's addition is deductible this year?

mmdevost
Level 2
 
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6 Comments 6
Accountant-Man
Level 13

Does the 1120S have a state K-1, because the income on it, to be reported to the state, should have taken the depreciation differences into account in the state income box.

** I'm still a champion... of the world! Even without The Lounge.
mmdevost
Level 2

I am preparing TR for a new client who had a state K-1 adj. of $4k last year.  The TR copy he gave me has the federal depreciation and the state K-1 but not the state depr schedule.  So I can't see exactly how the state depr differs from the federal.  Do I need to ask the prior accountant for the state depreciation schedule?  Accountant Man,Thank you for your past response!!

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Accountant-Man
Level 13

Is the state k1 income different from the federal k1 income? By how much?

The reason I ask is that in my most used states, NJ & PA, the depn adj is already reflected in the state k1 income, so no additional work is needed. 

What state are you asking about?

** I'm still a champion... of the world! Even without The Lounge.
mmdevost
Level 2

The state income is different from the federal by $7k.  Proconnect does not seem to automatically import the difference with the K-1.  Do I need to override this in the personal return?  Thank you for your help.

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Accountant-Man
Level 13

Pro Series Pro doesn't import state K-1s, only federal. State must be hand entered.

** I'm still a champion... of the world! Even without The Lounge.
mmdevost
Level 2

Thank you, this answers all my questions!  I greatly appreciate your help.

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