Per Pennsylvania Corporation Tax Bulletin 2018-30, an additional deduction for depreciation of qualified property placed in service after September 27, 2017, is permitted under Act 72-2018.
  • The additional deduction is limited to the depreciation amounts under the Modified Accelerated Cost Recovery System (MACRS).
  • The additional depreciation will show up as a subtraction to federal income on the PA return.
 

Solution:

These changes have been incorporated into the Intuit ProConnect Lacerte program with update Version 38.0912.

To Trigger the Change:

  1. Go to Screen 45.051, Pennsylvania Miscellaneous.
  2. In the field 1=apply conformity to original return, 2=amending for conformity (code 61) enter either a '1' or enter a '2'.
    • Enter 1 to apply the new calculation of MACRS depreciation and the section 965 impact for purposes of filing the original return. 
    • Enter 2 to apply the new calculation of MACRS depreciation and the section 965 impact for purposes of filing an amended return, when the original return was filed under the previous law.
Note(s):
  • An entry in this field is mandatory for purposes of calculating the MACRS depreciation subtraction of the PA return.
  • An entry here is also mandatory in order to apply the changes pertaining to IRC section 965 to generate the new form, REV-798A, Schedule RTT, Treatment of Repatriation Transition Tax, along with allowing entries to impact the newly added lines on Schedule C-2, PA Dividend Deduction Schedule.
  • The PA Department of Revenue issued a new form with instructions REV-1834 (Schedules C-8 and C-9) that should be used to report recovery of bonus depreciation for both property placed in service prior to September 28, 2017, as well as for property placed in service on or after September 28, 2017. For tax years 2018 and after Form REV-1834 will replace Form REV-799 and should be included with the annual Corporate Net Income Tax Return. (see resources below) Note: This form is available in the Corporate module - Version 38.0912.


To Identify Impacted Returns: 


Resources: