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New York Form CT-399, Depreciation Adjustment Schedule

In calculating its New York state taxable income, a corporation may need to modify depreciation for property in these circumstances:

  • Property placed in service on or after June 1, 2003 for tax years beginning in 2003 for which bonus depreciation was deducted in computing federal taxable income.
  • ACRS/MACRS property placed in service outside New York in tax years from 1985 through 1993 if the corporation made the election in 1999 to continue the modification.
  • ACRS/MACRS property placed in service anywhere in tax years between 1981 and 1984.

There are several exceptions where depreciation doesn't need to be modified:

  • Qualified gulf opportunity zone property (IRC section 1400N(d)(2)).
  • Qualified New York liberty zone property (IRC section 1400L(b)(2)).
  • Qualified resurgence zone property (NY Tax Law, Article 9-A, section 208.9(q)).
  • Listed property acquired after June 18, 1984 subject to the limitations in IRC section 280F.
  • Property placed in service by an aviation corporation prior to 1989.

These modifications are made on Form CT-399, Depreciation Adjustment Schedule. In TaxSlayer Pro, the form is available in the New York corporation and S corporation tax return programs.

Corporation

From the NY CT-3 Main Menu select:

  • Entire Net Income Base Tax
  • Total Additions or Total Subtractions
  • CT-399 Depreciation Adjustment

S corporation

From the NY Main Menu select:

  • Edit Individual K-1's
  • Modifications
  • NY State Additions or NY State Subtractions
  • CT-399 Depreciation Adjustment

Additional Information:

Instructions for Form CT-399

State of New York Resources for Corporate Tax Filers

New York State Tax Information