CCH Axcess Tax

State if Different and/or Book Depreciation and Amortization

Use these fields to enter information for assets in situations where a state does not recognize the federal law depreciation computation. Refer to the appropriate state for specific instructions.

If entries are not made in the State fields for an asset, then the federal computation are used for state purposes.

Multistate and/or Book depreciation may be calculated. Enter a code in the "State/Book" field to indicate which state the difference is to apply. A code of "BK" is also available to indicate Book Depreciation. You may enter one asset number more than one time on this form only. If there are two or more non-conforming states in a return, the depreciation can be entered once for each state with the appropriate state code indicated in "State/Book." If any asset is indicated to flow to a particular state, ALL assets will flow to the state unless a record is entered for the asset and 0.00 (zero) is entered as the state cost and the state Section 179/Bonus.

Example: Assume that the Home State on the Basic Data worksheet is CA. There are two depletion properties enteredin the Depletion worksheet. One of the depletion properties has "KY" entered as the state code, and the other has "CA" entered as the state code. Each depletion property has one related asset entered in the Depreciation and Amortization (Form 4562) worksheet. Each asset also has a state-if-different depreciation entered .

In order for California to exclude the Kentucky asset from its depreciation calculation, you must make an additional entry on the California property with the following data:

Field	Entry
State/Book	CA
Asset Number	KY asset number
Cost/Basis	0.00
Section 179/Bonus	0.00

To exclude the California asset from the Kentucky depreciation calculation, you must make the same entries as above on the Kentucky property with "KY" in the State Code/Book field .

In the event that "State/Book" is not entered, but other information is present , the following hierarchy will be used to determine where the depreciation is to flow (a diagnostic will also print once per return):

A code of "BK" is assumed if the Depreciation Options and Depletion Overrides worksheet > Depreciation Options and Overrides section, Treat State-if-Different Assets as Book Assets field is entered.
The state is assumed to be the same as the State Code entered in the Rent and Royalty worksheet, Depletion worksheet, or Farm/4835 worksheet.
A code of "BK" is assumed when a "F" is entered for the FS Code, and a State Code is not present in the Rent and Royalty worksheet, Depletion worksheet, or Farm/4835 worksheet.
The state code is assumed to be the the Basic Data worksheet > General section, State Code field.
A code of "XX" is assumed when the Basic Data worksheet > General section > State Code field is blank.

Code "XX" indicates "various," which allows the "state if different" asset to apply to all states in the return for which State fields are used.

See the specific state instructions to tell if and how a particular state recognizes State field entries in respect to multistate depreciation.

Caution: The California AMT and ACE depreciation amounts will be computed based on the State fieldentries. The "State/Book" code must be "CA." Refer to the California state instruction guide for additional information. California is the ONLY state for which the unique AMT and ACE computation is made.

Mandatory Entries

Asset Number