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 NY Form IT-398 in an individual return in TaxSlayer ProWeb, from the New York tax return menu select;
- Additions to Income
- Other Additions
- Depreciation Additions (IT-398 or IT-399)
- +Add Entry - Click and enter information about the property. Repeat for as many items of property as are being depreciated.
Additional Information: