North Carolina bonus depreciation

  • The add back for bonus depreciation is 85% of the bonus depreciation. It displays on line 3 of Schedule A.
  • The 85% add back is then allowed as a deduction spread over the subsequent 5 years (20% per year).
  • The deduction for bonus depreciation previously added back displays on Form 407, Page 2, Schedule A, line 10.
  • Per the state, no adjustment is necessary for GO Zone depreciation on the NC 1041 return.
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