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UltraTax/1065-NJ automatically calculates depreciation based on information entered in the asset module. Use the fields on Screen NJDepr to force amounts other than what is calculated, or if the asset module is not being used. Depreciation adjustments are calculated on the New Jersey Gross Income Tax Depreciation Worksheet (GIT-DEP) in the GITDEP folder of Form view.

The NJ 30% column must be present and populated in the asset module in order for amounts to populate on Screen NJDepr and Form GIT-DEP. The NJ column must also be present in order for amounts to calculate correctly. The NJ and NJ 30% columns can be added in Setup > Treatments within the asset module.

Bonus depreciation

New Jersey does not conform to federal bonus depreciation. New Jersey does not allow any bonus depreciation if the 50% bonus option is selected. New Jersey does allow the 30% bonus if the 30% is elected at the federal in lieu of the 50% bonus depreciation. NJ also allows the 30% if elected but not taken at the federal due to taking section 179.

Section 179

New Jersey does not conform to federal Section 179. Adjustments will be made on Form GIT-DEP.

Corporate Partner Adjustments for Differences in Depreciation

UltraTax automatically calculates corporate partner depreciation adjustments for assets placed in service during the 2002 and 2003 tax years. The adjustments reported are total federal depreciation and New Jersey depreciation, which comes from the NJ column in the asset module. These numbers mimic the required adjustments on the corporate form.

These amounts are not reported on the NJ returns. They are passed through to the corporate partners in a supplemental statement attached to Schedule NJK-1.

To override the calculated amounts, use the force fields under the Corporate Partner Adjustments for Differences in Depreciation section in Screen NJDepr in the Adjustments folder.

If there are no corporate partners, corporate partner adjustment calculations appearing on Screen Depr can be ignored as these amounts will not flow to the return. If you do not want to report the information to the corporate partners, you can enter zeroes in the available force fields.

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