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ProSeries Frequently Asked Questions

Depreciation Amounts for Maine Individual May Be Incorrect

Products Affected:

• ProSeries/1040
• ProSeries Express/1040
• ProSeries Basic/1040

Situation

Maine has passed legislation updating its IRC conformity to include conformity to the GO Zone. The Maine default depreciation is based on the rules prior to this legislation. Depreciation and section 179 deductions may not calculate correctly for Maine.

Solution

This situation will be corrected in a federal 1040 update that we anticipate will be available online on or about January 24, 2007. View anticipated release dates.

Download and install this update when it becomes available. (Go to the Update menu and choose Update Installed Products.)

Workaround (prior to update)

Until the update is available, follow these steps to manually correct this situation:

1. In the tax return with depreciation for Maine, open Form 4562 Depreciations Options.
2. Scroll down to the State Defaults for Special Depreciation Allowance (SDA), Luxury Autos, and Section 179 table and locate the line for ME. (You may need to click More to expand the table to view all states.)
3. On the line for ME, make the following changes:
   1. In the SDA % column, select 50% and 30% SDA from the picklist. (It will display as 50, 30 in the table.)
   2. In the 50% start column, enter 01/01/2006.
   3. In the 50% end column, enter 12/31/2006.
4. Save the return. The depreciation for Maine should now calculate correctly.

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