Depreciation - Non-Conforming States

Forum|Forum|2 years ago
December 13, 2023
1 reply
8 views

I've prepared a partnership return using Proseries, and one of the partners lives in a state that does not conform to Bonus Depreciation. I've seen footnotes on K-1s prepared by other CPAs (and not using Proseries) that says 'Non-Conforming State Adjustment - Federal Bonus Depreciation ... $XX,XXX'. How do I add Supplemental Information on a K-1 for the Bonus Depreciation adjustment for a Non-Conforming State? This particular partnership has 200+ partners who are spread over many states, so I'd prefer to not calculate this manually and add a manual Supplemental Information entry on each partners K-1. Thanks! Paul

ProSeries Professional

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IRonMaN

Level 15

The state in question doesn't have its own K-1 type form to reflect the add back?

Slava Ukraini!

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pconradcpaAuthor

Level 2

The partnership is in Tennessee, which doesn't have an income tax. So Proseries prepares a Federal return along with Federal K-1s. But no state return is required (not for Tennessee, or for any other state, because the apartment is located in Tennessee). However, some of the partners are not in Tennessee. So I'm looking to add a non-conforming state depreciation adjustment added as supplemental information to the Federal K-1s. This would accommodate the partners who are in other states for them to prepare their state returns. I've seen this on K-1s prepared by other CPAs, and am trying to figure out a way to add this using Proseries.

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strongsilence

Level 10

If you indicate the resident state for a partner, won't ProSeries give you a notification that you might need to prepare the K-1 for that resident state? Then you would add that state. I use Lacerte.

There must be a way to avoid manual calculations. If you are truly facing that, then perhaps a Fixed Asset software would be useful.

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