Form It-398 - New York State Depreciation Schedule For Irc Section 168(K) Property - 2011 Page 2
Download a blank fillable Form It-398 - New York State Depreciation Schedule For Irc Section 168(K) Property - 2011 in PDF format just by clicking the "DOWNLOAD PDF" button.
Open the file in any PDF-viewing software. Adobe Reader or any alternative for Windows or MacOS are required to access and complete fillable content.
Complete Form It-398 - New York State Depreciation Schedule For Irc Section 168(K) Property - 2011 with your personal data - all interactive fields are highlighted in places where you should type, access drop-down lists or select multiple-choice options.
Some fillable PDF-files have the option of saving the completed form that contains your own data for later use or sending it out straight away.
ADVERTISEMENT
1
2IT-398 (2011) (back)
Instructions
General instructions
Specific instructions
For tax years beginning after December 31, 2002, New York State (NYS)
See the instructions for your tax return for the Privacy notification or if
does not allow the federal 30%/50% special depreciation deduction for
you need help contacting the Tax Department.
Internal Revenue Code (IRC) section 168(k) property (except for resurgence
Enter your name and identifying number (your social security number
zone property and New York liberty zone property described in IRC
or employer identification number) in the spaces provided on the front
section 1400L(b)(2)), placed in service inside or outside NYS after May 31,
of this form. Mark an X in the box that indicates which NYS income tax
2003. Instead, you are allowed a NYS depreciation deduction determined
return you are filing and attach this form to that return.
under IRC section 167, as that section would have applied to the property if
it had been acquired on September 10, 2001. You may take the deduction
Part 1 — Depreciation
for NYS depreciation until the property is disposed of or fully depreciated.
Depreciation is the annual deduction allowed to recover the cost or
If you claimed ACRS depreciation on your federal return for property
other basis of business or investment property having a useful life
placed in service beginning after May 31, 2003 (except for resurgence
substantially beyond the tax year. However, land is never depreciable.
zone property and New York liberty zone property described in IRC
Depreciation starts when you first use the property in your business or
section 1400L(b)(2)), complete Part 1.
for the production of income. It ends when you take the property out
of service, deduct all your depreciable cost or other basis, or no longer
Use this form to compute your NYS adjustments for NYS depreciation
use the property in your business or for the production of income. (See
and federal depreciation deductions.
Part 2 for the deduction to be taken in the year you dispose of the
As described in IRC section 168(k)(2), resurgence zone property is
property.)
defined as qualified property if all of the following apply:
Column C — Enter the depreciable basis of the assets you place in
• substantially all use of the property is in the resurgence zone; and
service in the same year. Depreciable basis is the cost or other basis
• the use is in the active conduct of a trade or business by the taxpayer
reduced by the part of the basis you elected to amortize or expense
in the resurgence zone; and
under IRC section 179, and any federal investment credit subtracted
when computing the federal unadjusted basis of the asset.
• the original use by the taxpayer commences after December 31, 2002.
Column D — The applicable convention determines the portion of the
The resurgence zone is defined as the area of New York County
tax year for which the depreciation is allowable during a year property
bounded on the south by a line running from the intersection of the
is either disposed of or placed in service. Enter in column D the
Hudson River with the Holland Tunnel, running east to Canal Street,
convention you used from federal Form 4562, column E.
then running along the centerline of Canal Street to the intersection
of Bowery and Canal Street. It then runs in a southeasterly direction
Column E — Indicate the depreciation method selected for the
diagonally across the Manhattan Bridge Plaza to the Manhattan Bridge,
computation of the NYS allowable depreciation deduction. Any
along the centerline of the Manhattan Bridge to the point where the
consistent depreciation method that would have been allowed under
centerline would intersect with the east bank of the East River. It is
IRC section 167, as that section would have applied to the property
bounded on the north by a line running from the intersection of the
if it had been acquired on September 10, 2001, without regard to
Hudson River with the Holland Tunnel, running north along West
section 168(k), is acceptable.
Avenue to the intersection of Clarkson Street. It then runs east along
Column F — Enter your NYS depreciation deduction in column F, based
the centerline of Clarkson Street to the intersection of Washington
on the method you elected in column E.
Avenue, then running south along the centerline of Washington Avenue
to the intersection of West Houston Street. It continues east along the
Column G — Enter the depreciation deduction you took on your federal
centerline of West Houston Street, then at the intersection of Avenue
return.
of the Americas, continues east along the centerline of East Houston
Part 2 — Year-of-disposition adjustment
Street to the east bank of the East River.
If you dispose of IRC section 168(k) property (except for resurgence
If you have an interest in a passive activity, the modifications required
zone property and New York liberty zone property described in IRC
under Tax Law sections 612(b)(8) and (c)(16) for federal depreciation
section 1400L(b)(2)) that you placed in service inside or outside NYS
and NYS depreciation must be made for the full amounts allowable as
after May 31, 2003, you must adjust your NYS income by the difference
a federal depreciation deduction (100%), even though the activity may
between the total NYS depreciation deduction and the total federal
be subject to federal loss deduction limitations. It is only under IRC
depreciation deduction claimed on that property.
section 469 (Passive Activity Losses and Credits Limited) that there is a
limitation on passive loss deductions.
Column C — Enter the method used to dispose of the property.
Disposition includes, but is not limited to, sale, exchange, transfer, and
In the case of a partnership using IRC section 168 to determine
obsolescence.
depreciation, the individual partners should make the adjustments
to income on their personal income tax returns. The adjustments for
Column D — Enter the total NYS depreciation deduction you claimed
partners are their distributive share of NYS depreciation and federal
on the property you disposed of.
depreciation, determined by the partnership as of the end of the
Column E — Enter the total federal depreciation deduction you claimed
partnership year ending within the partner’s tax year. Form IT-398
on your federal return for the disposition of your property.
should be completed only by the partnership, and not by each individual
partner. This treatment is the same for a beneficiary of an estate or trust
that is on a fiscal-year basis.
If you are a shareholder of an electing New York State S corporation,
the S corporation should provide your proportionate share of the
S corporation’s depreciation deduction.
If you are a nonresident or part-year resident, you must complete
Form IT-398 as if you were a NYS resident for the entire year. Transfer
the amounts from Part 1 and Part 2 to Form IT-203, Nonresident
and Part-Year Resident Income Tax Return. For more information
on the addition and subtraction modifications for federal and NYS
depreciation, see Form IT-203-I, Instructions for Form IT-203.
If you are married and file a joint federal return but are required to file
separate NYS returns, complete only one Form IT-398 showing the
amounts from your joint federal return. Attach a schedule to each return
showing each spouse’s separate amounts, as if separate federal returns
were filed, and explain any differences.
3982110094
Please file this original scannable attachment with the Tax Department.
ADVERTISEMENT
0 votes
Related Articles
Related forms
Related Categories
Parent category: Financial