Issue/Symptom/Question

We have a Luxury Automobile asset that was acquired in May 2018 and shows $10,000 depreciation expense for Base 3 State (California) and Base 5 State AMT (California AMT) for 2018. According to California depreciation limit for the type of asset, the amount should be $3,160. The amount calculated in Penta is $10,000, which is the Federal amount when bonus depreciation is not chosen. Why is PENTA calculating the Federal depreciation expense instead of the California depreciation expense?

Applies To

PENTA for Window

Fixed Asset Depreciation

State Depreciation Limits

Resolution/Fix/Answer

 PENTA does not track state limits, only federal.  So PENTA correctly reported the Federal limit of $10,000 for this asset.  PENTA does not track the state limit so it does not limit that to $3160.