Form It 511 - Individual Income Tax 500 And 500ez Forms And General Instructions - 2015 Page 10
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34FEDERAL TAX CHANGES (continued)
Depreciation Differences. Depreciation differences due to the
1. When property is sold for which the bonus depreciation was
Federal acts mentioned above should be treated as follows (If
claimed, there will be a difference in the gain or loss on the
the taxpayer has depreciation differences from more than one
sale of the property.
Federal act, it is not necessary to make a separate adjustment
2. The depreciation adjustment may be different if the taxpayer
for each act):
is subject to the passive loss rules and is not able to claim the
additional depreciation on the Federal return.
A. Depreciation must be computed one way for Federal pur-
3. Other Federal items that are computed based on Federal
poses and another way for Georgia purposes. To compute
Adjusted Gross Income or Federal Taxable Income will have to
depreciation for Federal purposes, taxpayers should use the
be recomputed if the provisions of the Federal Acts are claimed.
current year IRS Form 4562 and attach it to the Georgia return.
This should be entered on the other addition line of the return.
Furthermore, in 2003 the IRS started requiring separate report-
B. Depreciation must also be computed for Georgia purposes.
ing, to shareholders of S Corporations and partners of partner-
Taxpayers should use Georgia Form 4562 to compute depreci-
ships, for the gain from asset sales for which an I.R.C. Section
ation for Georgia purposes and attach it to the Georgia return.
179 deduction was claimed. Georgia follows the separate
This should be entered on the other subtraction line of the return.
reporting treatment of the gain and the Section 179 deduction.
Accordingly, the gain should not be reported directly on the
Federal deduction for income attributable to domestic
S Corporation or partnership return, but the gain, along with
production activities (IRC Section 199). This adjustment
any Georgia adjustment to the gain (due to the Federal acts),
should be entered on the addition line of the applicable return.
should be reported separately to the shareholders or partners.
An adjustment to the Georgia partnership or S Corporation
return is not required if the partnership or S Corporation is not
allowed the Section 199 deduction directly, but instead passes
through the information, needed to compute the deduction, to
the partners or shareholders.
Other Differences.
Other differences should be placed on
the other addition or subtraction line of the applicable return.
Attach a statement to the return explaining these differences.
Additionally, the provisions listed above may have an in-
direct effect on the calculation of Georgia taxable income.
Adjustments for the items listed below should be add-
ed or subtracted on your Georgia income tax form.
Page 8
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