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?

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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 am "Elevating with Intention!"

M

mmdevostAuthor

Level 3

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!!

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 am "Elevating with Intention!"

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