Get Form CT-399 Depreciation Adjustment Schedule ... - Tax.NY.gov

In 2023 (taxes filed in 2024), the maximum Section 179 deduction is $1,160,000. Office furniture, certain vehicles, computers and off-the-shelf software are typically considered deductible expenses.

For property (except for property classified as IRC section 280F property) placed in service outside New York State for tax years beginning after 1984, but before 1994, New York did not allow ACRS or MACRS depreciation under IRC section 168.

The Section 179 Deduction covers new and used equipment. The bonus depreciation covers only new equipment. The equipment must be for business purposes more than 50% of the time to qualify. You cannot claim this credit if you have claimed state tax credits for your equipment.

You can now elect to expense the cost of any section 179 property and deduct it in the year the property is placed in service. Improvements made to a business property now qualify as a deduction.

For California purposes, the maximum IRC Section 179 expense deduction allowed is $25,000. This amount is reduced if the cost of all IRC Section 179 property placed in service during the taxable year is more than $200,000. California does not allow IRC Section 179 expense election for off-the-shelf computer software.

New York Form CT-399, Depreciation Adjustment Schedule – Support.

Even though the federal income doesn't change by the increased bonus depreciation deduction, you are required to add it back for NY State purposes as if it had been deducted. This would increase NY State adjusted gross income and NY State income tax.

These changes continue to be in effect for 2023 and when used together may allow businesses to deduct up to 100% of capital purchases. However, it will only be 100% if the amount of the equipment is under the phase-out threshold and can be expensed solely under Section 179.