Question

Federal vs. State Home Office Depreciation

Forum|Forum|4 years ago
April 16, 2022
1 reply
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I have a home office that has a yearly depreciation amount calculated by TurboTax. In theory, TurboTax transfers the federal information to my State return, but on my State return, TurboTax calculates a negative amount of depreciation, and thus the State rejects the return. I can override that amount, but then I cannot file electronically. Any ideas what I may be doing incorrectly? Thanks.

PatriciaV

Employee

You should be able to adjust your home office deduction amount during your State return interview. This is typically a page that says "Income that [State] handles differently" or "Adjustments to Federal Income." To eliminate the negative depreciation, enter an adjustment to the correct amount or to zero.

This difference may be due to the depreciation rules for your State, some of which don't allow all Federal depreciation options.

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