Since 2004, the Gross Income Tax Depreciation Adjustment Worksheet GIT-DEP is used to calculate the New Jersey depreciation adjustment required for assets for which any of the following criteria apply:
- Federal Section 179 expense was deducted;
- Federal Special Depreciation Allowance was deducted;
- Federal income includes Section 179 recapture income;
- Federal income includes a gain or loss from disposition of an asset for which a New Jersey depreciation adjustment was previously required.
Worksheet GIT-DEP is not included in TaxSlayer ProWeb. It can be downloaded from the New Jersey DOT website here, filled in, and printed for your files.
Reporting the adjustment in TaxSlayer ProWeb
To adjust the income from a business (reported on federal Schedule C) or a farm (reported on federal Schedule F) on Schedule NJ-BUS-1 in the New Jersey individual income tax return, from the New Jersey Return menu select:
- Income Subject to Tax
- Net Profits from Business
- Enter the Business Code for the Schedule C or F that you want to modify - Enter the 6-digit business code in the federal Schedule C or F for this business.
- Gross Receipts for the Schedule C, or Gross Income for Schedule F that you want to modify - Enter the gross receipts from the federal Schedule C or F for this business.
- Reportable Regular Business Income - Enter the adjusted net income or loss, taking into account the calculation result on Worksheet GIT-DEP line 7.
- Alternative Business Income (Loss) - Enter the same amount.
When finished, click Continue. If you have another business to enter, click the +Add Entry button.
TaxSlayer ProWeb does not provide a way to adjust Schedule NJ-BUS-1 Part I (business income reported on federal Schedule C or farm income reported on federal Schedule F) or Part IV (rental property reported on federal Schedule E) for the adjustments calculated on Worksheet GIT-DEP.
Additional Information: