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Screen MEDepr - Maine Depreciation Adjustments (1040)
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Overview
Use this screen to enter amounts required to calculate the Maine depreciation addback and recapture due to bonus or Section 179 depreciation required for Maine Schedule 1 and 2. No additional data entry is required for assets entered in the Asset tabs at the federal level unless income from a passive activity income has been limited and that activity claimed bonus depreciation for assets placed in service in the current year.
note
If a new user of UltraTax CS, enter the original addback and prior recapture amounts for bonus depreciation for assets placed in service after 1/1/2008. Use the associations ME-Original add and ME-Bonus reca in the Asset tab. For bonus recapture from 2002 - 2007 and 2002 - 2010 section 179 recapture, enter the data in the
2002 - 2007 Bonus and 2002 - 2010 Section 179 recapture
field. After the initial year using UltraTax CS, no additional data entry is required.Bonus Addback
Use this section to enter data required to calculate the bonus addback for assets placed in service during the current year. All detailed data entered here will proforma from this section to the Disallowed Depreciation Recapture section in the following year.
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Bonus addback amounts are calculated as the difference between the federal and Maine state column in the Asset tab which calculates depreciation using federal rules assuming no bonus depreciation. As of 2011, no Section 179 addback is required and the Maine elected Section 179 amount should be the same as the federal elected 179 amount. Entering a Maine Section 179 election amount different from the federal amount will cause the bonus addback to be incorrect.
Assets owned by the taxpayer placed in service in (Edit asset detail in the Asset module)
Bonus depreciation will display in the statement dialog and no additional data entry is required unless passive activity income was limited. When passive activity income is limited on the federal return, enter the percentage of passive income included in the federal adjusted gross income for the assets with bonus addback coming from the passive activity. Future recapture is limited to the same percentage.
Bonus addback from pass-through entities
Enter the amount of bonus addback reported from the Maine pass-through entity.
When this amount is entered on the federal K1-St Screen, it will be displayed in the field for reference. For S Corporation and partnership returns prepared in UltraTax CS, the information will be data shared.
Disallowed Depreciation Recapture
Use this section to enter data required to calculate recapture of amounts previously added back to Maine income due to prior year bonus or Section 179. If assets have been entered in prior years on the Asset tab at the federal level, then no additional data entry is required.
Assets owned by the taxpayer (Edit asset detail in the Asset module)
In 2008 Maine separated bonus and Section 179 recapture. Bonus recapture for assets placed in service after 1/1/2008 is the difference between the state depreciation calculated with no bonus and the federal depreciation. Recapture is accelerated in the year the asset is disposed or taken out of service. The statement dialog shows the amounts flowing from the Asset tabs where bonus deprecation was calculated. Adjustments for data displaying on this statement dialog should be entered on the federal Asset tab.
Recapture from pass-through entities (Entered on the federal K1-St Screen as Depreciation subtraction)
Enter the amount of bonus recaptured reported from the Maine pass-through entity.
note
When this amount is entered on the federal K1-St Screen, it will be displayed in the field for reference. For S Corporation and partnership returns prepared in UltraTax CS, the information will be data shared. Any Section 179 recaptured from pass-through entities is already handled and should not be entered.
2002 - 2007 Bonus and 2002 - 2010 Section 179 recapture
Enter the asset life, date of service original addback, and the total amount of prior recapture. UltraTax CS calculates the current-year recapture and will proforma data to calculate future recapture through the original life of the asset.
Capital Investment Credit Addback and Carryover
Use this section to calculate the current year Capital Investment Credit Addback, Capital Investment Credit including current-year credit and carryover from prior year, and carryover to next year credit.
note
Capital Investment Tax Credit Addback is not recaptured. The only recapture for this occurs when assets are removed from service within one year of claiming the credit. This recapture happens by amending the prior year return where the original addback was required and removing the addback and credit then recalculating the regular bonus addback. If you amended after proforma, use the
ME addback
field on the Asset tab to enter the original addback and adjust the Maine column of the asset to reflect the proper prior depreciation; then recalculate current-year depreciation to get the correct recapture of bonus information on the Maine return.Addback: Assets owned by the taxpayer / by pass-through entities
These fields are used to calculate the Capital Investment Credit addback of federal bonus depreciation. For assets owned by the taxpayer, the amounts will transfer from the asset module if placed in service in the current year and marked on the Other tab in the asset module as qualified for the Capital Investment Credit. For assets owned in a pass-through entity supply the entity's name, EIN, and the percentage of ownership in addition to the federal bonus depreciation taken by the entity for Capital Investment credit qualified assets.
Carryover from
Use these fields to indicate the carryover amounts from prior years. These amounts proforma if the prior year return was prepared in UltraTax CS.
note
If you have recapture of the tax credit, reduce the carryover amounts from prior years as necessary.
Carryover to
UltraTax CS does not calculate a carryover amount but proformas the amounts in these fields to .