CCH Axcess Tax

State Use Only

1065/1120/1120S Hawaii Capital Goods Excise Tax Credit and Recapture:

To create Form N-312 for the Capital Goods Excise Tax Credit using Depreciation and Amortization (Form 4562) worksheet:

In the Depreciation and Amortization (Form 4562) worksheet, enter the asset number, description, date in service, and cost or other basis.
In the Depreciation and Amortization (Form 4562) worksheet, enter "HI" in the state/book field. In the state use only field, enter a "1" for Hawaii purchases and a "2" for out-of-state purchases (for 1065, use a code "3" to indicate an out of state purchase where the sales/Use Tax was not paid).
For 1120/1120S: Use Hawaii Credits worksheet > Capital Goods Credit section to override entries made in the Depreciation and Amortization (Form 4562) worksheet or to enter assets not listed in the Depreciation and Amortization (Form 4562) worksheet. If an entry is made in the asset number, we will match the asset number used in Depreciation and Amortization (Form 4562) worksheet and use the information entered as an override. Also, use HI Credits worksheet > Capital Goods Credit section to answer the asset questions and enter an explanation if needed.
For 1065: Use Hawaii Credits worksheet > Capital Goods Excise Tax Credit section to override entries made in Depreciation and Amortization (Form 4562) worksheet or to enter assets not listed in Depreciation and Amortization (Form 4562) worksheet. If an entry is made in the asset number, we will match the asset number used in Depreciation and Amortization (4562) worksheet and use the information entered as an override. Also use HI Credits worksheet > Capital Goods Excise Tax Credit section to answer the asset questions and enter an explanation if needed.

For Current Year Assets for 1120/1120S Idaho Returns:

To qualify an asset for the Idaho Investment Tax Credit and include it with Idaho Form 49:

Enter a code of "1" to qualify the asset as a new investment placed into service in the current year.

Enter a code of "2" to qualify the asset as a used investment placed into service in the current year.

To qualify an asset for the Idaho Investment Tax Credit and include it with Idaho Form 49ABE:

Enter a code of "11" to qualify the asset as a new investment placed into service in the current year. (1120S only)

Enter a code of "12" to qualify the asset as a used investment placed into service in the current year. (1120S only)

1120/1120S New Jersey Gas and Electric Public Utilities Only:

Enter Schedule S, Part III line 4(a) total adjusted federal depreciable basis as of December 31, 1997.

1120 New York Banking Returns:

Enter a code of "5" to complete Form CT-32, Schedule E, Part I.

Enter a code of "6" to complete Form CT-32, Schedule E, Part II.

For Current Year Assets for Maine Returns:

The return wide default calculation for Maine can be chosen using Depreciation and Depletion Options and Overrides worksheet > Depreciation Options section > Maine capital investment credit treatment field. An entry of "1" or "2" here overrides the calculation for this asset only. The entry in the state field must be "ME."

Enter "1" if the Maine capital investment credit is being claimed for this asset. When this option is used, Maine depreciation is calculated without Sec. 168(k) bonus depreciation. This calculation is compared to the federal calculation and an adjustment is made for the difference.

Enter "2" if the Maine capital investment credit is not being claimed or the asset does not qualify for the credit. When the credit is not claimed, Maine depreciation is calculated without Sec. 168(k) bonus depreciation. This calculation is compared to the federal calculation and an adjustment is made for the difference.

For Current Year Assets for Kansas Returns:

Beginning with the 2012 tax year, taxpayers were able to elect to claim a deduction for property and equipment placed in service in Kansas. The deduction is based on the assets cost computed after reduction for basis adjustments except for Section 179 expense. Beginning with the 2021 tax year, the deduction is based on the assets cost, computed after reduction for basis adjustments including Section 179 expense.

To elect to claim the deduction on a per asset basis, use the "State use" field and enter "2." For qualified assets, the deduction will be calculated and included on the KS income tax return. To make the election on a return-wide basis, use Depreciation and Depletion Options and Overrides worksheet > Depreciation Options section > KS first year expense deduction option field. If the return wide field is used, the entry here can be used to override that entry on an asset by asset basis. Enter "1" to not claim the deduction.

Use the State Deduction field to override the calculated deduction. In years after 2012, the State Deduction field will be used to track the deduction claimed in prior years.

Enter the Date Ceased to Qualify for the State Deduction to compute recapture. There must be an amount in the State Deduction field. This is not a valid entry for current year assets. If an asset is not qualifying at the end of the year, no deduction should be requested.

For Current Year Assets for Indiana Returns:

Enter "1" if this asset is allowed Section 179 equal to the amount expensed for federal tax purposes or allowed Section 168(k) equal to the amount of bonus depreciation claimed for federal tax purposes up to the amount of gain that would have been deferred under the old IRC Section 1031. Enter the amount of allowed Section 179 in the Section 179/bonus field and the amount of allowed bonus depreciation in the bonus field.

For Current Year Assets for Oklahoma and Mississippi Returns:

The return wide default calculation for Oklahoma and Mississippi can be chosen using Depreciation and Depletion Options and Overrides worksheet > Depreciation Options section > State 100% bonus depreciation election. An entry of "1" or "2" here overrides the calculation for this asset only. The entry in the state field must be "OK" or "MS".

Enter '2' to elect to claim 100% bonus depreciation instead of the lower federal bonus depreciation percentage on qualified assets. The asset must be placed in service after 2022.

Enter '1' to not elect to claim 100% bonus depreciation. The Oklahoma/Mississippi depreciation on Section 168(k) assets will be the same as the federal depreciation amount.