New York New York State Depreciation Schedule

New York State Depreciation Schedule
Form IT-399 New York Depreciation Schedule Tax Year 2023
IT-399

Department of Taxation and Finance

New York State Depreciation Schedule

Identifying number as shown on return

Name(s) as shown on return	

Mark an X in one box to show the income tax return you are filing and submit this form with that return.
IT-201, Resident	

IT-203, Nonresident and part-year resident	

IT-204, Partnership	

IT-205, Fiduciary

Part 1 –	 Depreciation information for property (except for Internal Revenue Code (IRC) section 280F property) placed in service inside
or outside New York State in tax years beginning after December 31, 1980, but before January 1, 1985, and if you elect to
continue using IRC section 167 depreciation for property placed in service outside New York State in tax years beginning after
December 31, 1984, but before January 1, 1994 (see instructions)
	

	
	

A	

Description of property	
(submit schedule if needed)	

B	

Date placed	
in service	

		 (mmddyyyy)

C	

D	E	

Depreciable	
basis	

	

F	

Depr.	
Life or	
method	rate	

.00	
.00	
.00	

	

	

G

New York	
depreciation	

Federal ACRS
deduction

.00	
.00	
.00	

.00
.00
.00

.00	

	1	 Enter column F and column G totals................................................................. 	 1 	

.00

Transfer the column F total to:

Transfer the column G total to:

Form IT-225, line 10, Total amount column and enter
subtraction modification S-210 in the Number column.

Form IT-225, line 1, Total amount column and enter
addition modification A-205 in the Number column.

Estates and trusts: If the amount computed is attributable to items reflected in the federal distributable net income, transfer the
amounts as stated above. If the amount is not reflected in federal distributable net income, see instructions.
Part 2 – Year-of-disposition adjustment for property (except for IRC section 280F property) placed in service inside or outside New York
State in tax years beginning after December 31, 1980, but before January 1, 1985, and for property placed in service outside
New York State in tax years beginning after December 31, 1984, but before January 1, 1994 (see instructions)
Mark an X in the box if you claimed an investment credit on Form IT-212, Investment Credit, for any property listed
below (see instructions). .........................................................................................................................................................................
	

	

	

A	

Description of property	
(submit schedule if needed)	

	

B	C	

Date of	
disposition	

Method of	
disposition	

D	

Amount of New	
York depreciation	

E

Amount of
ACRS deduction

.00	
.00	
.00	
.00	

	

	

	2	 Enter column D and column E totals................................................................. 	2	
	3	 Enter amount from line 2, column D or column E, whichever is larger....................................................	 3	
	4	 Enter amount from line 2, column D or column E, whichever is smaller..................................................	 4	
	5	 Subtract line 4 from line 3........................................................................................................................	 5	
If column D is larger than column E,
transfer line 5 amount to:

If column E is larger than column D,
transfer line 5 amount to:

Form IT-225, line 1, Total amount column and enter
addition modification A-206 in the Number column.

Form IT-225, line 10, Total amount column and enter
subtraction modification S-211 in the Number column.

Estates and trusts: If the amount computed is attributable to items reflected in the federal distributable net income, transfer the
amounts as stated above. If the amount is not reflected in federal distributable net income, see instructions.

399001230094

.00
.00
.00
.00
.00	
.00	
.00	

Page 2 of 3 IT-399 (2023)

Instructions

General instructions

Use this form to compute your New York adjustments for
New York depreciation and federal accelerated cost recovery
system (ACRS) depreciation for property placed in service
inside or outside New York State in tax years beginning after
December 31, 1980, but before January 1, 1985, and if you
elect to continue using Internal Revenue Code (IRC) section 167
depreciation for property placed in service outside New York
State in tax years beginning after December 31, 1984, but
before January 1, 1994.
New York State does not allow the federal ACRS depreciation
deduction for property (except for property classified as
IRC section 280F property) placed in service inside or outside
New York State during tax years 1981, 1982, 1983, 1984, and
fiscal years beginning in 1984. You must compute your New
York depreciation by using one of the methods provided for in
IRC section 167 as it was in effect on December 31, 1980 (for
example, straight line or declining balance). You may take the
deduction for New York depreciation until the property is fully
depreciated or disposed of.
For property (except for property classified as IRC section 280F
property) placed in service outside New York State for tax years
beginning after 1984, but before 1994, New York did not allow
ACRS or MACRS depreciation under IRC section 168. Instead,
New York allowed the depreciation deduction that would have
been allowed under IRC section 167 as it was in effect on
December 31, 1980.
However, as a result of a court decision (Reynolds), if you
claimed ACRS depreciation on your federal return for property
not classified as IRC section 280F property, and that property
was placed in service outside New York State in tax years
beginning after December 31, 1984, but before January 1, 1994
(including property on which ACRS depreciation was computed
in accordance with the Federal Tax Reform Act of 1986), you
may continue using the pre‑1981 IRC section 167 depreciation
on that property, making the applicable depreciation addition
and subtraction, or choose to switch to the IRC section 168
depreciation deduction.
A taxpayer choosing to switch to the IRC section 168
depreciation deduction is no longer required to make the New
York depreciation addition and subtraction adjustments. If you
switch to IRC section 168 depreciation, you must use IRC
section 168 depreciation from this tax year forward, and must
use it for all of your subject property. For more information
about this property, see TSB‑M-99(1)I, New York Depreciation
Deduction for Property Placed in Service Outside New York
State in Tax Years 1985 – 1993. This TSB-M is available on the
Tax Department Web site at www.tax.ny.gov
If you claimed ACRS depreciation on your federal return for
property placed in service during tax years 1981 through 1984
and fiscal tax years beginning in 1984 (for other than IRC
section 280F property), or on property placed in service outside
New York State during tax years 1985 through 1993 and fiscal
tax years beginning in 1993 (for other than IRC section 280F
property), and you elect to continue using IRC section 167
depreciation, complete Part 1.
If you have an interest in a passive activity, the modifications
required under Tax Law sections 612(b)(25) and (c)(26) for
ACRS depreciation and New York depreciation must be
made for the full amounts allowable as a federal depreciation
deduction (100%), even though the activity may be subject
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to federal loss deduction limitations. It is only under IRC
section 469 (Passive Activity Losses and Credits Limited) that
there is a limitation on passive loss deductions.
In the case of a partnership using ACRS to determine
depreciation, the individual partners should make the
adjustments to income on their personal income tax returns. The
adjustments for partners are their distributive share of New York
depreciation and federal ACRS depreciation, determined by the
partnership as of the end of the partnership year ending within
the partner’s tax year. Form IT-399 should be completed only
by the partnership, and not by each individual partner. This
treatment is the same for a beneficiary of an estate or trust that
is on a fiscal-year basis.
If you are a shareholder of an electing New York State
S corporation, the S corporation should provide your
proportionate share of the S corporation’s depreciation
deduction.
If you are a nonresident or part-year resident, you must
complete Form IT-399 as if you were a New York State resident
for the entire year. Transfer the amounts from Part 1 and
Part 2 to Form IT-225, New York State Modifications. For more
information on the addition and subtraction modifications for
ACRS and New York State depreciation, see Form IT-225-I,
Instructions for Form IT-225.
If you are married and file a joint federal return but are
required to file separate New York returns, complete only one
Form IT-399 showing the amounts from your joint federal return.
Submit a schedule with each return showing each spouse’s
separate amounts, as if separate federal returns were filed, and
explain any differences.
Do not use this form if you are depreciating IRC section 168(k)
property. For more information, see Form IT-398, New York
State Depreciation Schedule for IRC Section 168(k) Property.

Specific instructions

See the instructions for your tax return for the Privacy notification
or if you need help contacting the Tax Department.
Enter your name and identifying number (your Social Security
number or employer identification number) in the spaces
provided on the front of this form. Mark the box that indicates
which New York State income tax return you are filing and
submit this form with that return.
Estates and trusts: If an amount computed on this form is
attributable to items not reflected in the federal distributable
net income of the estate or trust and is reported on a fiduciary
return (Form IT-205 or, if allocation is required, Form IT-205-A),
enter the amount(s) on the fiduciary return as follows, noting
that some are addition modifications and some are subtraction
modifications:
–	 For Form IT-205, enter the amount on line 2.
–	 For Form IT-205-A, enter the amount on line 7.

Part 1 – Depreciation

Depreciation is the annual deduction allowed to recover the cost
or other basis of business or investment property having a useful
life substantially beyond the tax year. Land is never depreciable.
Depreciation starts when you first use the property in your
business or for the production of income. It ends when you take
the property out of service, deduct all of your depreciable cost
or other basis, or no longer use the property in your business or
for the production of income. (See Part 2 for the deduction to be
taken in the year you dispose of the property.)

IT-399 (2023)  Page 3 of 3
Column C – Enter the depreciable basis of the assets you
place in service in the same year. Depreciable basis is the cost
or other basis reduced by the part of the basis you elected to
amortize or expense under IRC section 179, and any federal
investment credit subtracted when computing the federal
unadjusted basis of the asset.
Column D – Enter the depreciation method you elect. You must
use a method that is allowed under IRC section 167, as it was in
effect on December 31, 1980.
Column E – Enter the useful life of the property. You cannot
use the ACRS recovery period when computing your New York
State depreciation. You must use the useful life or rate provided
for in IRC section 167. In some cases the useful life under IRC
section 167 may be the same as the recovery period.
Column F – Enter your New York depreciation deduction in
column F, based on the method you elected in column D.
Column G – Enter the ACRS deduction you took on your federal
return.

Part 2 – Year-of-disposition adjustment

If you dispose of property (except for IRC section 280F
property) that you placed in service inside or outside New York
State after December 31, 1980, but before January 1, 1985,
or property placed in service outside New York State after
December 31, 1984, but before January 1, 1994, you must
adjust your New York State income by the difference between
the total New York depreciation deduction and the total federal
ACRS deduction claimed on that property. If you elected to
switch to IRC section 168 depreciation for property placed in
service outside New York State in tax years beginning after
December 31, 1984, but before January 1, 1994, in the year of
disposition, the adjustment should take into account only those
years prior to switching to IRC section 168.
Note: If property on which the investment credit, retail enterprise
credit, or research and development credit was taken on
Form IT-212, Investment Credit, is disposed of or removed from
qualified use before its useful life or specified holding period
ends, the difference between the credit taken and the credit
allowed for actual use must be added to your income tax in the
year of disposition. See Form IT-212 and its instructions for more
information and to calculate the amount.
Column C – Enter the method used to dispose of the property.
Disposition includes, but is not limited to, sale, exchange,
transfer, and obsolescence.
Column D – Enter the total New York depreciation you claimed
on the disposition of your property. If the property was placed
in service during 1981, do not include the amount of ACRS
depreciation claimed for the property on your 1981 New York
State return.
Column E – Enter the total federal ACRS deduction you claimed
on your federal return for the disposition of your property. If the
property was placed in service during 1981, do not include the
amount of ACRS depreciation claimed for the property on your
1981 federal return.

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