Form It 511 - Individual Income Tax 500 And 500ez Forms And General Instructions - 2013 Page 10
ADVERTISEMENT
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32FEDERAL TAX CHANGES (continued)
Other Differences. Other differences should be placed on
Depreciation Differences. Depreciation differences due to
the other addition or subtraction line of the applicable return.
the Federal acts mentioned above should be treated as fol-
Attach a statement to the return explaining these differences.
lows (If the taxpayer has depreciation differences from more
Additionally, the provisions listed above may have an indirect
than one Federal act, it is not necessary to make a separate
effect on the calculation of Georgia taxable income.
adjustment for each act):
Adjustments for the items listed below should be added or
A. Depreciation must be computed one way for Federal pur-
subtracted on your Georgia income tax form.
poses and another way for Georgia purposes. To compute
depreciation for Federal purposes, taxpayers should use the
1. When property is sold for which the bonus depreciation
current year IRS Form 4562 and attach it to the Georgia re-
was claimed, there will be a difference in the gain or loss on
turn. This should be entered on the other addition line of the
the sale of the property.
return.
2. The depreciation adjustment may be different if the tax-
B. Depreciation must also be computed for Georgia purposes.
payer is subject to the passive loss rules and is not able to
Taxpayers should use Georgia Form 4562 to compute depre-
claim the additional depreciation on the Federal return.
ciation for Georgia purposes and attach it to the Georgia re-
3. Other Federal items that are computed based on Federal
turn. This should be entered on the other subtraction line of
Adjusted Gross Income or Federal Taxable Income will have
the return.
to be recomputed if the provisions of the Federal Acts are
claimed.
Federal deduction for income attributable to domestic
production activities (IRC Section 199). This adjustment
Furthermore, in 2003 the IRS started requiring separate re-
should be entered on the addition line of the applicable return.
porting, to shareholders of S Corporations and partners of
An adjustment to the Georgia partnership or S Corporation
partnerships, for the gain from asset sales for which an I.R.C.
return is not required if the partnership or S Corporation is not
Section 179 deduction was claimed. Georgia follows the sepa-
allowed the Section 199 deduction directly, but instead passes
rate reporting treatment of the gain and the Section 179 de-
through the information, needed to compute the deduction, to
duction. Accordingly, the gain should not be reported directly
the partners or shareholders.
on the S Corporation or partnership return, but the gain, along
with any Georgia adjustment to the gain (due to the Federal
acts), should be reported separately to the shareholders or
partners.
Page 8
ADVERTISEMENT
0 votes
Related Articles
Related forms
Form Hp 1040 X - Amended Individual Income Tax Return And Filing Instructions - City Of Highland Park
Financial
City Of Springdale Form Ir - Resident Income Tax Return And Declaration Instructions - 2013
Financial
Related Categories
Parent category: Financial