Arizona NR Depreciation possible error in turbo tax.

Forum|Forum|3 years ago
March 15, 2023
1 reply
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Why in my Arizona State does Turbo Tax state "We don't see a deduction for depreciation on your federal return? Then ask me if I want to take it. Turbo Tax clearly reduced the Federal and State Income by removing the depreciation - based on the AZ Income section. If I now put the amount of depreciation in it looks like I am double dipping. If I leave it at zero, it seems as if I am accounting for the depreciation. In the past years the questions in this section were different. I had to add back in the Federal depreciation (Adjusted Gross Income) and AZ treated the depreciation on the Federal as Income to them and taxed me accordingly.

1. Why does TT not see that the depreciation was already subtracted out of my Federal Gross Income?

2. Something just seems wrong!

TurboTax Premier Online

maglib

Employee

@timtg Arizona depreciation must be recalculated if 50% special depreciation deduction was taken on any assets on your federal return. See the link below. I do not work for TT and do not normally answer AZ questions, I hope this was helpful.

https://azdor.gov/sites/default/files/PROCEDURES_INDIV_2016_itp16-2.pdf

**I don't work for TT. Just trying to help. All the best. ***Say "Thanks" by marking as BEST ANSWER and clicking the thumb icon in a post and that I solved your question**Mark the post that answers your question by clicking on "Mark as Best Answer" I am NOT an expert and you should confirm with a tax expert.