Massachusetts Form 3 - depreciation conformity

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Massachusetts does not conform it's depreciation rules with the Federal tax code.  This rule has not changed between 2022 and 2023.

For some reason there has been a change in calculating / reporting Federal / Massachusetts depreciation differences (related to rental income) on Form 3 from 2022 to 2023 (partnership tax return).  According to customer service in 2022 the amount was computed and flowed through to MA Form 3 line 22a.  In the 2023 version of the program the amount does not calculate - it is required to be manually input by the user as an override.

The user can indicate if the state conforms to federal depreciation (Ordinary Income / Depreciation / Misc/Short Year / State Conforms to Federal Depreciation).  However inputting "2" = no (Override) has no impact - state depreciation expense is not computed.

This is a major issue that will impact most MA partnerships for the 2023 tax year.  The system is capable of performing the computation / flowing it to the MA partnership return (the functionality worked fine for the 2022 tax year) for some unexplained reason this functionality was changed for the 2023 tax year.  

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One other note - in 2022 the program actually generated a report that computed 2023 MA depreciation expense - so the amount has already been computed in the system - it just is not flowing through to the 2023 program