North Carolina Adjustment for Additional First Year Depreciation
North Carolina Adjustment for Additional First Year Depreciation
Bonus Depreciation.
North Carolina did not adopt the 100% bonus depreciation provisions in IRC sections 168(k) or 168(n) for property placed in service for tax year 2021. You must add 85% of the amount of bonus depreciation deducted on your federal return to your state return.
On Line 3, enter 85% of the amount of bonus depreciation deducted on your federal return. Note: If you are required to add back bonus depreciation in tax year 2021, you may deduct 20% of the amount added back in the first five taxable years beginning with tax year 2022. (For further guidance on bonus depreciation, visit the Department’s website.)
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