For tax years beginning after December 31, 2002, New York state does not allow the federal special depreciation deduction for IRC section 168(k) property (except for resurgence zone property and New York liberty zone property described in IRC section 1400L(b)(2)), placed in service inside or outside the state after May 31, 2003. Instead, the taxpayer is allowed a depreciation deduction determined under IRC section 167 as that section would have applied to the property if it had been acquired on September 10, 2001. The taxpayer may take the deduction for New York state depreciation until the property is disposed of or fully depreciated.
To access the New York Form IT-398 in the individual return, from the New York return menu select;
- New York Taxable Income
- New York Additions to Federal AGI
- Other New York Additions
To access the New York Form IT-398 in the Partnership return, from the New York return menu select;
- New York Modifications
- New York State Additions