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Screen MEDepr - Maine Depreciation Adjustments (1120)
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Overview
Use this screen to enter adjustments to federal income for depreciation differences on Form 1120ME, the Maine Schedule K Summary Worksheet, the Maine Shareholder’s Share of Income, Modifications & Credits Worksheet, the Maine Capital Investment Credit Worksheet and the Maine Depreciation Worksheet.
note
For a client new to this application with prior Maine addbacks for bonus depreciation on assets placed in service after January 1, 2008, use associations
ME - Original add
and ME - Bonus reca
in the asset module to track the original addback and prior recapture of bonus depreciation amounts on these assets, except for assets on which the Maine capital investment credit was taken. Assets on which the Maine capital investment credit was taken should leave these fields blank, and instead mark the Qualified for capital investment credit
checkbox in Credit Information
on the Other
tab. For bonus recapture from 2002-2007 and Section 179 recapture from 2002-2010, enter the data in the Bonus recapture for assets placed 2002-2007
and 179 recapture for assets placed 2002-2010
fields on this screen. After the initial year using this application, no additional data entry is required.Current Year Depreciation Add-Back
Use this section to override the calculated amount of current-year bonus depreciation add-back. The add-back amounts are automatically calculated based on data entered in the asset module. If the asset module isn't used, these fields may be used to enter the add-back amounts.
Current year bonus depreciation add-back (Force)
Use this field to enter the current year bonus add-back amount if not using the asset module, or to override the calculated amount if using the asset module. The current year bonus depreciation add-back is the difference between federal and Maine depreciation when bonus depreciation is taken in the current year. If a number is entered in this field, it will transfer to the Maine Depreciation Adjustment Worksheet, Part I, line 1. Otherwise, the amount calculated by the asset module will transfer to the Maine Depreciation Adjustment Worksheet, Part I, line 1.
Prior Year Depreciation Recapture
Use this section to modify the calculated amounts of recapture from assets placed in service in previous years, or if this is the 1st year using the application for this client’s return. These amounts proforma from year to year.
Bonus depreciation recapture for assets placed in or after 2008 not in Asset module (Force)
Use this field to enter the bonus depreciation recapture amount if not using the asset module, or to override the calculated amount if using the asset module. The bonus depreciation recapture is the difference between federal and Maine depreciation for assets placed in service in or after 2008 only if bonus depreciation was originally taken in the year the asset was placed in service. If a number is entered in this field, it will transfer to the Maine Depreciation Adjustment Worksheet, Part II, line 1. Otherwise, the amount calculated by the asset module will transfer to the Maine Depreciation Adjustment Worksheet, Part II, line 1.
Bonus depreciation recapture for assets placed 2002-2007 and 179 recapture for assets placed 2002-2010
These adjustment amounts proforma from the prior year’s return. You may manually enter the adjustment amounts per class life if you didn't use the asset module in prior years or to override the proforma’d amounts.
note
These amounts are equal to the portion of the depreciation add back from prior years that is deductible in the current year for assets placed in service in previous years, allocated to each class life based on asset basis. The amounts on these lines are transferred to the Maine Depreciation Worksheet, Part II, line 4.
Pass-through Depreciation Adjustments
Use this section to enter any depreciation adjustments from a pass-through entity of which the corporation is a member.
Current year pass-through bonus depreciation add-back
Use this field to enter the corporation’s share of bonus depreciation add-back from a pass-through entity. This amount transfers to the Maine Depreciation Worksheet, Part I, line 2.
Bonus depreciation recapture for assets placed in or after 2008 / Bonus recapture for assets placed 2002-2007 and 179 recapture for assets placed 2002-2010
Use these fields to enter the corporation’s share of bonus depreciation recapture or section 179 expense recapture from a pass-through entity. These amounts transfer to the Maine Depreciation Worksheet, Part II, lines 2 and 4 respectively.
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 isn't recaptured. The only recapture for this occurs when assets are removed from service within 1 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 marked qualified in Other tab credit information button in Asset module / 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
2023
Use these fields to indicate the carryover amounts from prior years. These amounts proforma if the prior year return was prepared using this application.
note
If you have recapture of the tax credit, reduce the carryover amounts from prior years as necessary.
Remaining Carryover to
2026
Carryover amounts don't calculate but the amounts in these fields proforma to
2026
.