Near Richmond, IN | Figuring my taxes the last week or so and after the federal ones I started on the Indiana taxes. I now see that there is a limit of $25,000 on the deduction for the Section 179 expense deduction. So if I read it right, you are supposed to add back the extra over the $25K limit to your income. But if you had not taken all of the $25,000 on the federal taxes you would have had more depreciation to deduct from your taxable income---I know not enough to compensate for the Sec. 179 deduction, but your income wouldn't be as high as without the extra depreciation. Does anyone keep two sets of depreciation lists for their taxes, one for the federal return and one for the state return? If you did that then you'd also need a separate Schedule F, for the Indiana return. Then the federal return wouldn't match the state return if they compare the two. Just wondering if it's even allowed to keep two separate depreciation schedules, one for fed and one for state or is it not worth the headache? The state would have to be different every year until whatever put you over the limit was depreciated out. Hope I didn't write this so it's too confusing. TIA, Steve |