Question
Maryland tax on Non Resident Depreciation
Need help on a Maryland non resident return. I have a client that is a non resident in Maryland. We took 100% bonus depreciation on assets in NY. When I get to MD they want to add back the entire difference in depreciation allowed in MD to gross taxable income and the Maryland taxable income. These assets had nothing to do with Maryland. I can't see a way to have it add back to the total but not to the Maryland source.
Is it ok if I click the do not report asset in Maryland box on the asset entry worksheet in Maryland? His Maryland source income nets out to zero so there should be no tax due. It works if I do this but am I missing something?
