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Screen MNDepr - Minnesota Depreciation (1040)

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Overview

Use this screen to enter the information needed to calculate adjustments to federal income for depreciation and section 179 differences on the Minnesota Depreciation Adjustment Worksheet. UltraTax /1040-MN calculates the bonus depreciation from data entered in the asset module, and data entry in the MNEFK1 and MNEFKF screens, and in the K1-St federal screen. When the asset module isn't used, all the data you'll need is entered in the force fields in this screen for non-pass-through activities.

Adjustments for State Differences in Depreciation

Bonus depreciation: Schedules KS and KPI line 5 - 100% of federal bonus addition
The amount transferred to this field is the sum of amounts entered in the
Depreciation Adjustment
 field in the K1-St federal screen for partnership and S corporation activities with postal code
MN
. On a per unit basis, when the K1-St screen field is blank, the amount transfers from the MNEFK1 screen. These amounts are included on the Minnesota Depreciation Adjustment Worksheet to calculate the 80 percent of bonus depreciation addition to federal taxable income in the current year and deduction from income over the next five years.
Bonus depreciation: Schedule KF directly allocated amounts from federal Screen K1-St
The amounts transferred to the
Schedule KF (Directly allocated)
 field is the sum of the amounts entered in the
Depreciation addition
 and
Depreciation subtraction
 fields in the K1-St federal screen for all fiduciary activities with ZIP Code
MN
. This amount hasn’t been reduced by 80 percent by the fiduciary return. It is included in the calculation of the current year addition and future year subtraction on the Minnesota Depreciation Adjustment Worksheet.
The amounts transferred to the
Schedule KF (Line 5)
 and
(Line 12)
 fields is the sum of the amounts entered in the
Bonus depreciation addition
 and
Subtraction for federal bonus depreciation
 fields in all units of the MNEFKF screen. The current year addition and the future year subtractions have already been calculated on the fiduciary return and are included in full on the Minnesota Depreciation Adjustment Worksheet.
Bonus depreciation
The addition to federal taxable income for bonus depreciation is included in Minnesota in the year that the expense is allowed on the federal return. This statement dialog displays the federal current year suspended losses, and current year and suspended bonus depreciation for each activity. When not proforma’d, enter any bonus suspended from prior years in this statement dialog for each activity. This is used to calculate the bonus depreciation adjustment in the current year and the amount to be suspended until future years on an activity by activity basis. Prior year suspended amounts are utilized first as the expenses are allowed on the federal return. A statement is printed with the worksheet when losses are suspended detailing the current year adjustment and suspended amounts for each activity.
Schedule KF line 4 - 80% of suspended loss bonus addition entered in Screen EFKF
The amount transferred to this field is the sum of amounts entered in the
Suspended loss prior years
 field in all units of the MNEFKF screen. The total suspended bonus to be included in the current year is calculated by the fiduciary entity and included in full on the Minnesota Depreciation Adjustment Worksheet.

Section 179 Adjustment

UltraTax/1040-MN automatically calculates the Section 179 section of federal Form 4562 using Minnesota limitations and the elected amounts entered in the K1-3 federal screen and the asset module.
Section 179 property placed in service
 and
Total elected cost of Section 179 property default to the federal Form 4562
 calculated amounts. Use the force fields in this section to change the amounts as needed for Minnesota calculations. Expenses adjustment from Schedules KS and KPI, enter the difference between Federal K1 and KS or KPI as a negative.

Adjustments for Prior Year Federal Depreciation

If not proforma’d, enter the total bonus depreciation and Section 179 expense included as an addition to federal taxable income in the year indicated. The amounts entered transfer to the Minnesota Depreciation Adjustment Worksheet to calculate the current year deduction allowed. Do not include amounts from Schedule KF in this section. The fiduciary entity calculates the subtraction in future years.

Adjustments for Prior Year Net Operating Loss

If not proforma’d, enter prior year net operating losses generated. These amounts are used on the Minnesota Depreciation Adjustment Worksheet to limit the subtraction from income for bonus depreciation differences.

This article applies to:

  • PRODUCT: UltraTax CS
  • Return type: 1040 Individual
  • State: Minnesota

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