ISSUE FOR ENTITIES: NYS DOES NOT FOLLOW FEDERAL DEPRECIATION RULES. IT-399 NYS DEPRECIATION DOES NOT FLOW THRU. ON THE FEDERAL FORM 4562 THERE IS A STATE INPUT SECTION. IF YOU OVERRIDE THE YEARS FOR DEPRECIATION IN THE STATE INPUT IT DOES NOT POPULATE FORM IT-399 ON NYS CORPORATION RETURN. EXAMPLE FEDERAL ASSET FURNITURE DEPRECIATE YEARS IS 7 FOR NYS IT IS 10 YEARS. THE COMPUTER SHOULD BE ABLE TO CALCULATE AND COMPLETE FORM IT-399 TO SHOW THE DIFFERENT DEPRECIATION METHOD. WHEN YOU ENTER AN ASSET ON FEDERAL RETURN AND GO TO THE STATE DEPRECIATION SECTION UNDER ASSET STATUS IT STATES FEDERAL AMOUNTS USED. THIS OPTION CAN NOT BE CHANGED. THERE SHOULD BE A WAY TO TELL THE COMPUTER TO USE STATE RULES NOT FOLLOW FEDERAL SO THAT FORM IT-399 WILL POPULATE. MY PHONE IS [removed] SHOULD YOU NEED FURTHER EXPLANATION. THIS IS IMPORTANT. PLEASE UPDATE FOR 2022 BEFORE 9-15-23 DEADLINE!!!!
Go into the asset information worksheet on the federal return for any troublesome assets where fed and NY differ... Scroll down to State Depreciation and quickzoom to select/delete states as appropriate.
lisahcpa,
You are correct, NY does not conform to Federal depreciation rules and the CT-399 must be prepared to report the NY depreciation amounts for assets that would be impacted.
Information should be flowing through from the federal return if completed correctly.
Please navigate to the Asset Entry Wks on the Federal product and confirm the assets are correctly sourced to NY in the State Depreciation section of the Federal Asset Entry Worksheet. The program will determine the conformity of the asset to federal depreciation in this section and recalculate depreciation if necessary for the NY filing. I have attached an example of what the entry on the federal return should look like for a asset that qualifies for 100% bonus depreciation. See attachment.
Adding another post to show how data is flowing to CT-399 with a screenshot.
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