GIT-DEP: Gross Income Tax Depreciation Adjustment Worksheet (Revision 2019-08)
New Jersey · NJ Division of Taxation · Used for tax years 2024
Form GIT-DEP is New Jersey’s Gross Income Tax Depreciation Adjustment Worksheet. It calculates allowable New Jersey Section 179 deductions and depreciation, along with adjustments to federal depreciation, Section 179 recapture income, and gains or losses from asset dispositions.
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.
The worksheet applies to individuals, estates, trusts, and partnerships and S corporations with a New Jersey filing requirement. Continue using it in subsequent years to calculate adjustments until the asset is fully depreciated or disposed of.
Important exception: If the initially required New Jersey 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.
What you'll need
Have the information needed for the applicable parts of the worksheet:
- Your name and Social Security number or FEIN.
- Asset descriptions and dates placed in service.
- Current-year federal depreciation, special depreciation allowance, and Section 179 deductions.
- Federal basis before depreciation deductions, plus the federal depreciation method and life or rate.
- Prior years' GIT-DEP worksheets for New Jersey depreciation amounts.
- Federal Section 179 recapture income and amounts allowable for New Jersey, if applicable.
- Disposal dates and total depreciation deducted for federal and New Jersey purposes, if an asset was disposed of.
If a partnership or S corporation does not file a New Jersey return, it must provide the information its partners or shareholders need to calculate their New Jersey adjustments.
How to file
Complete Parts II, III, and IV as needed, then transfer the totals to Part I. Part I, line 7 is the New Jersey depreciation adjustment. Report adjustments as positive or negative amounts as directed.
- S corporation income: Use 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: On NJ-1065, include a net addition on line 13b or a net subtraction on line 15g. On publication GIT-9P, Worksheet A, use line 14b for a net addition or line 16e for a net subtraction.
- Net profits from business: Enter the adjustment on a schedule detailing New Jersey net profits and attach it to Form NJ-1040, NJ-1040NR, or NJ-1041.
- Rents, royalties, patents, and copyrights: Enter the total of lines 4 and 5 on NJ-BUS-1, Part IV for NJ-1040, or Part II for NJ-1040NR and NJ-1041. Enter the line 6 disposition adjustment 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 give a mailing address or e-file instructions.
Common mistakes
- Claiming the federal 50% Special Depreciation Allowance for New Jersey. The worksheet says this allowance is not permitted.
- Exceeding the New Jersey Section 179 limit. The total generally cannot exceed $25,000 unless Liberty Zone property is included.
- Carrying unused amounts forward. Unused Section 179 deductions cannot be carried forward. Unused depreciation adjustments cannot be carried forward, carried back, or applied against another income category.
- Splitting activity that belongs on one worksheet. Prepare one worksheet for each of the categories of net profits from business and income from rents, royalties, patents, and copyrights. Include all reportable activity in that category.
- Combining recapture calculations for different assets. Part III requires a separate adjustment for each asset with recapture income.
- Discarding completed worksheets. Retain all GIT-DEP worksheets for future reference.
Questions people ask
What is the New Jersey Section 179 deduction limit?
The maximum is $25,000. The federal reduced dollar limitation for asset cost applies, calculated using New Jersey's $25,000 maximum. There is no business income limitation, and unused deductions cannot be carried forward.
Is there a different limit for Liberty Zone property?
Yes. The maximum is $60,000: New Jersey's $25,000 maximum plus the federally allowed increased amount, up to $35,000.
Do I use the federal depreciation method and asset life?
Yes. Part II directs you to use the same depreciation method and life used for federal purposes.
Do I need a separate worksheet for each rental property?
No. The instructions give an example of an individual with three rental properties, including one that was disposed of. All three properties are included on one GIT-DEP worksheet for that income category.