How do I interpret and enter my Georgia Form 700 Schedule K-1 (nonresident state tax return)

Forum|Forum|4 years ago
March 15, 2022
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Hello Turbotax Community,

I am a resident of NJ. I invested in a real estate syndication fund back in Dec 2021 which has apartments in GA. I did not receive any distributions/income during 2021. I got my 1065 K1 over the weekend with a GA 700 form attached to it. As expected, it was a net loss due to the depreciation (-$22,455). See the GA 700 screenshot below. I was able to properly file the Federal K1. But I don't know if I am doing it correctly for the GA nonresident state tax return.

Questions:

1. What does the $22,314 additions, $295 subtraction, and -$436 Total George Income mean? How do I enter these on the Georgia state tax return?

2. Where can I track the unallowed passive loss at the state level? I can only see it on the federal level through form 8582. Is there a similar form in Georgia?

Appreciate any insights you can share.

TurboTax Premier Online

Best answer by alta-tax1

Hello @alta-tax1,

I think your explanation on not using GA NOL carryover this year might make sense.

Where did you enter your loss from K1, and how did you remove the bonus depreciation and add back the state depreciation? Tried back the depreciation adjustments of $22,314 and subtracting $295 but it increased my amount due to GA.

Also, TT is telling me that I have $22,019 unallocated adjustments. It seems the state return is not pulling the info from my federal K1 loss of $22,455.

That is correct, my state return did not pull in the correct info from my K1 entered on my federal return. What I had to do was manually enter the loss myself as below circled in red:

On my form 700, the additions to GA income is bonus depreciation (i.e. $27364). It is not called bonus depreciation I just figured that is what it was. The Depreciation adjustment is what GA will allows you to take (i.e. $1051). I entered those amounts in the screen titled: "Here's the income that GA handles differently"

I after I did all of this everything matched my form 700.

Hope this helps!

DavidD66

The $22,314 addition is an adjustment for bonus depreciation taken at the federal level. Georgia does not recognize bonus depreciation, so it is added back to determine total income. The $295 subtraction is the state depreciation. The $436 loss is the amount of income/loss applicable to Georgia after the adjustments. You will have to track your passive losses at the state level independently.

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jkm88Author

Thanks, @DavidD66! I really appreciate your explanation. I do have follow-up questions.

1. Am I adjusting the depreciation from the GA-700 correctly on Turbotax? The way I am understanding it, I need to make depreciation adjustments on my GA state return so Turbotax won't use the entire federal loss (due to bonus depreciation $22,455).

I entered $22,314 under Depreciation Adjustment Subtractions (to deduct from the federal bonus depreciation of $22,455)
Then, I entered $295 under Depreciation Adjustment Additions (for the GA state depreciation).

2. Where do I enter the -$436 of Total Income/Loss for Georgia Purposes? I assume I need to enter it under the Rents, Royalties and K-1 Income. I just need to track this passive loss manually moving forward.