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Depreciation

The Indiana Department of Revenue states that taxpayers report adjustments for depreciation. Differences between federal claims and allowable Indiana amounts will need to be listed on Schedule 1 or B. Information from the asset module, federal Form 4562, the Indiana 4562 worksheet, and the federal
K1-St
 screen calculates the depreciation adjustments on the Indiana Depreciation Reconciliation worksheet and the Indiana Adjustment for Disposition of Assets worksheet. Amounts from these worksheets calculate Indiana Schedule 1 and B. Use the
INDepr
 screen to change the adjustments reported on the Indiana worksheets and schedules.
Previously, Indiana required taxpayers to report depreciation differences between the federal return and the Indiana return according to the type of property (Motorsports entertainment complex property, Qualified disaster assistance property, Qualified leasehold improvement property, Qualified refinery property, Qualified restaurant property, or Qualified retail improvement property). Indiana no longer has a requirement other than for the reporting of a “catch-up” adjustment in the final year of depreciation or year of disposal. You still have the option to assign an asset to a specific category of property by using the association
IN - Qualified Property
 in the
Depreciation
 tab or the
Other
 tab of the asset module. This association won’t have an effect on the calculation of the return.

Pass-through entities

To include Schedule IN-K1 (or equivalent) depreciation adjustments in the Indiana Depreciation Reconciliation Worksheet, enter the adjustments from pass-through entities in the Nonconforming State Depreciation Adjustment section of the federal K1-St screen. You can use the following fields on the federal K1-St screen only when
IN
is the state postal code:
  • Depreciation addition
  • Depreciation subtraction
  • Disposition addition
  • Disposition subtraction
  • Section 179 expense excess add-back

This article applies to:

  • Product: UltraTax CS
  • Return type: 1040 Individual
  • State: Indiana
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