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Generating New York Form IT-398

SOLVEDby Intuit2Updated April 06, 2023

How do I generate New York Form IT-398?

This form is generated when there is Special Depreciation Allowance for Federal but not for NY:

  1. Go into Screen 22, Depreciation.
  2. Scroll to the Federal Depreciation section.
  3. Be sure Form (Ctrl+T) is set to Sch C, E, F, etc.
  4. In the Regular Depreciation subsection, locate the fields Current special depreciation allowance (-1=none)[O] or Prior special depreciation allowance.
  5. Enter the federal amount in the column labeled Federal.
  6. In the St. if diff. (-1=none) column enter -1.

The IT-398 will populate and calculate the difference automatically. The IT-398 instructions say:

For tax years beginning after December 31, 2002, New York State (NYS) does not allow the federal 30%/50% special depreciation deduction for Internal Revenue Code (IRC) section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2)), placed in service inside or outside NYS after May 31, 2003. Instead, you are allowed a NYS depreciation deduction determined under IRC section 167, as that section would have applied to the property if it had been acquired on September 10, 2001. You may take the deduction for NYS depreciation until the property is disposed of or fully depreciated.

Input in the State if Different column is required for the form to generate.

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