Skip to main content

Solutions

Products

Recommended products

Questions? We are here to help.
Contact us

Purchase

Questions? We are here to help.

Resources

Screens

Screen NCDepr - North Carolina Adjustments for Depreciation Differences (1065)

Show all hidden content

Depreciation Adjustment for Current Year Assets

Adjustment for bonus depreciation - current year
UltraTax CS automatically calculates the amount based on data entered in the detailed asset data entry. Use the
Force
 box to enter the amount if you're not using the detailed asset data entry.
note
The adjustment amount reflects 85% of the amount of bonus depreciation shown on federal Form 4562 for the current tax year.
Total cost of section 179 property placed in service this year /… / NC section 179 expense
If desired, force UltraTax CS to use a specified section 179 expense amount. To do so, enter the desired amount, including
0
(zero), in
NC section 179 expense (Force)
. If
NC section 179 expense (Force)
 is blank, UltraTax CS uses the calculated section 179 expense amount. UltraTax CS calculates section 179 expense as described here.
Detailed asset data entry determines the qualified section 179 property placed in service in the current year. If the cost of qualified assets exceeds $200,000, UltraTax CS limits the total allowable expense for the year as required. Force the total cost of section 179 property placed in service this year by entering an amount in
Total cost of section 179 property placed in service this year (Force)
.
UltraTax CS then calculates the section 179 expense amount by first limiting the current-year amount to $25,000. It adds that amount to the amount in
Carryover from prior year
 in the federal SepK screen and applies the $25,000 and $200,000 limitations. Force the maximum dollar limitation by entering an amount in
Maximum dollar limitation (Force)
. Finally, UltraTax CS limits the result to business income.
UltraTax CS defines business income for purposes of limiting the section 179 expense deduction as the following: federal ordinary income (Page 1, Ordinary business income [loss]), plus federal net other rental income (Schedule K, Other net rental income [loss]), plus federal guaranteed payments (Schedule K, Guaranteed payments), plus federal net royalty income (Schedule K, Royalties), plus federal net 1231 gains (Schedule K, Net section 1231 gain [loss]), plus federal net rental real estate income (Schedule K, Net rental real estate income [loss]) if you mark
Include net income (loss) in calculation for section 179 business income
 in the federal 4835 and Rent screens, or
Include net income (loss) from rental real estate in section 179 business income
 in the federal K1 screen. Force the business income limitation by entering an amount in
Business income limitation (Force)
.

Depreciation Adjustment for Prior Year Assets

Tax Year End if different / Addback from Prior Year
UltraTax CS uses the amounts from these boxes to determine the current-year depreciation adjustment for assets placed in service in a prior year. The adjustment appears on the North Carolina Depreciation Adjustment Worksheet. These amounts proforma from one year to the next.
note
One-fifth of each amount entered here is taken as a deduction.

error-icon

Triva isn't available right now.

Check out the support page for our phone number and hours

error-close