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Updated over 1 year ago, 04/26/2023
Bonus Depreciation in Non-Conforming State
I have a short term rental that I did a cost segregation on and am taking accelerated bonus depreciation. I live in OR but my rental is in AZ. My issue is AZ is a non-conforming (does not recognize the bonus). If I take the bonus depreciation AZ it basically saying the entire bonus depreciation is an income addback and then they calculate the AZ depreciation as a subtraction. Then i have to pay tax on the difference. Does this sound right? Is there an easy way to fix this?