GIT-DEP: Gross Income Tax Depreciation Adjustment Worksheet (2025)

Who files this form

Use Worksheet GIT-DEP to calculate New Jersey depreciation adjustments for tax years beginning on or after January 1, 2004, for assets placed in service on or after that date when:

• Federal Section 179 expense was deducted.
• The federal 50% Special Depreciation Allowance was deducted.
• Federal income includes Section 179 recapture income.
• Federal income includes a gain or loss from disposing of an asset for which a New Jersey depreciation adjustment was previously required.

Continue using the worksheet in later years until the asset is fully depreciated or disposed of. The worksheet also calculates adjustments to Section 179 recapture income and gains or losses on disposition.

Partnerships and S corporations with a New Jersey filing requirement calculate their entity-level adjustments. Individuals, estates, and trusts must prepare one worksheet for each applicable category of business or rental, royalty, patent, and copyright income, including all reportable activity in that category.

Part II(a) covers alternate depreciation for certain affordable housing developments for tax years beginning on or after January 1, 2025.

What you'll need

Have the information requested by the applicable worksheet parts ready:

• Your name and Social Security number or FEIN.
• Property descriptions and dates placed in service.
• Federal depreciation basis, current-year depreciation, Section 179 expense, and special depreciation allowance deducted.
• The federal depreciation method and life or rate used.
• Prior-year GIT-DEP worksheets for New Jersey depreciation amounts.
• For recapture: federal Section 179 recapture income and amounts allowable for New Jersey purposes.
• For disposed assets: disposition dates and total depreciation deducted for federal and New Jersey purposes.
• For affordable housing alternate depreciation: a calculation of eligible capital expenditures and the applicable federal and New Jersey depreciation information.

Partners and S corporation shareholders may also need their NJK-1 or NJ-K-1, or information supplied by the entity to calculate their New Jersey adjustments.

How to file

Complete the applicable calculation parts, then enter the results in Part I. The worksheet directs you to report the adjustments on the applicable return, schedule, or worksheet:

• S corporation income: CBT-100S, Schedule K or Schedule K Liquidated, Part II, line 7; or publication GIT-9S, Worksheet B or Worksheet B Liquidated, Part I, line 7.
• Partnership income: NJ-1065, line 13c for a net addition or line 15f for a net subtraction; or publication GIT-9P, Worksheet A, line 14b for a net addition or line 16e for a net subtraction.
• Net profits from business: Enter the adjustment on a schedule detailing the New Jersey net-profit calculation and attach it to Form NJ-1040, NJ-1040NR, or NJ-1041.
• Rents, royalties, patents, and copyrights: Report the total of Part I, lines 4 and 6 on NJ-BUS-1, Part IV for NJ-1040, or Part II for NJ-1040NR and NJ-1041. Report the disposition adjustment from line 7 on NJ-1040 Schedule NJ-DOP, NJ-1040NR Part I, or NJ-1041 Schedule A.

Retain all GIT-DEP worksheets for future reference. The supplied text does not provide a mailing address or e-file instructions.

Common mistakes

• Claiming the federal 50% Special Depreciation Allowance for New Jersey. The worksheet says it is not allowed.
• Exceeding the New Jersey Section 179 limit. The maximum is $25,000 unless Liberty Zone property is included. The federal reduced dollar limitation for asset cost applies using the New Jersey maximum.
• Carrying unused amounts into other years or income categories. Unused Section 179 deductions cannot be carried forward. Unused depreciation adjustments cannot be carried forward, carried back, or applied against another income category.
• Overlooking an unreported initial adjustment. If the initially required adjustment was not reported because of an uncorrected reporting error or because there was no New Jersey filing requirement, the asset's New Jersey basis and allowable depreciation are the same as for federal purposes. Later New Jersey depreciation adjustments are neither required nor allowed.
• Discarding prior worksheets. The instructions say to retain all GIT-DEP worksheets for future reference.

Questions people ask

Do I need a separate worksheet for each rental property?

No. Prepare one worksheet for the income category and include all reportable activity. The instructions give an example of three rental properties, including one that was disposed of, being included on one worksheet.

What if my partnership or S corporation does not file a New Jersey return?

Use information the entity must provide to enter your New Jersey depreciation adjustment on Worksheet A in publication GIT-9P, or Worksheet B or Worksheet B Liquidated in publication GIT-9S, following those publications' instructions.

What is the Section 179 limit for Liberty Zone property?

The maximum is $60,000: the New Jersey maximum of $25,000 plus the federally allowed increase of up to $35,000.

Which affordable housing developments qualify for alternate depreciation?

The general instructions cover developments placed in service during privilege periods beginning on or after January 1, 2025. Construction must begin on or after March 20, 2024; at least 20% of the units must qualify as affordable housing; property taxes must not be abated or exempted under the Long Term Tax Exemption Law; and the taxpayer must not receive an affordable housing construction subsidy. Eligible capital expenditures are for constructing a new development owned by the taxpayer. The deductible percentage is the affordable units divided by all housing units, multiplied by 2, and the depreciation period is 10 years.

Official sources

• https://www.nj.gov/treasury/taxation/pdf/current/gitdep.pdf