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March 12, 2024
Question

Decoupled Iowa Depreciation

  • March 12, 2024
  • 1 reply
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I replaced the roof of a rental property in 2019. I used the Federal bonus depreciation but Iowa depreciation rules are decoupled from Federal, so I used Iowa MACRS depreciation. Usually the 4562 form and the depreciation amount for my state taxes is generated by turbotax automatically, but this year it is absent. How do I add this form or account for the unrealized depreciation on my state taxes?

1 reply

March 19, 2024

It depends.  Have last year's return available so you can see what should be on the Iowa (IA) return, as well as the accumulated depreciation and the correct amount each year for IA.

 

Continue through your IA return until you reach the screen 'IA Depreciation ....... Adjustments' > Select Start for your property > Continue to answer the questions for the correct depreciation adjustments on your IA return.

                                      

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