State Use Only

For current year assets for Maine returns:

The return wide default calculation for Maine can be chosen using Depreciation and Depletion Options and Overrides > Depreciation Options > 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 Indiana Returns:

Enter "1" if this asset is 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 bonus depreciation in the bonus field.

For Current Year Assets for Kansas Returns:

For the 2012 tax year, taxpayers were be 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. This deduction was not available for the 2013 through 2020 tax years. Beginning with the 2021 tax year, this election is available again with the deduction 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 for current year assets. For prior year assets, 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 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.

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.