Question

Georgia Depreciation Adjustment Fields

Forum|Forum|2 years ago
July 2, 2023
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I need to enter both additions and subtractions to Federal Income on my Georgia state return. The step-by-step page has two blank fields: Depreciation Adjustment and Depreciation Adjustment Additions. Should the first entry be labeled Depreciation Adjustment Subtractions? Or is this a net amount for both Subtractions and Additions? If this is a net amount should I leave Additions blank?

DoninGA

Employee

The field listed as Depreciation Adjustment is for subtractions (apparently not naming the field correctly was a software developer mistake)

From the TurboTax On Demand Tax Guidance link depreciation on the Depreciation Adjustment page -

Prior to 1981, Georgia had not adopted conformity to federal law regarding deductions for depreciation.

From 1981 to 1986, Georgia adopted federal law, as it existed on January 1, 1981, regarding depreciation deductions. Georgia conformed to federal law for depreciation of property placed in service in tax years ending on or after March 11, 1987.

A taxpayer was then required to make an election whether to continue the Georgia depreciation method for assets placed in service for tax years ending before March 11, 1987, or to depreciate the property according to the federal method in effect for the year the property was placed in service.

If a taxpayer made the election to continue the Georgia depreciation method for a particular asset and the Georgia depreciation is lower than the federal depreciation for the year, an "addition" to federal income is required for Georgia.

If a taxpayer made the election to continue the Georgia depreciation method for a particular asset and the federal depreciation is lower than the Georgia depreciation for the year, a "subtraction" from federal income is allowed for Georgia.

Additions

You may need to add to your Georgia income when your federal depreciation is more than the allowed Georgia depreciation. This is may happen during the first years of depreciation or when you take bonus depreciation. Add the difference when your federal depreciation expenses are larger than Georgia's.

Georgia has not adopted the following extenders:

Federal - Special allowance for second generation biofuel plant property (additional first-year 50% bonus depreciation for cellulosic biofuel facilities)

Subtraction

You may subtract from Georgia income when you have taken larger depreciation or bonus depreciation in earlier years. Subtract the difference when your Georgia expenses are larger than your federal's.