IT-399: New York State Depreciation Schedule (2025)
New York · NY DTF · Used for tax years 2025
Form IT-399 computes New York income adjustments for differences between New York depreciation and federal accelerated cost recovery system (ACRS) depreciation. It reports depreciation for certain older property and adjustments for the year that property is disposed of.
Who files this form
Use Form IT-399 to calculate New York depreciation adjustments for covered property, other than IRC section 280F property:
- Property placed in service inside or outside New York in tax years beginning after December 31, 1980, but before January 1, 1985.
- Property placed in service outside New York in tax years beginning after December 31, 1984, but before January 1, 1994, if you elect to continue using IRC section 167 depreciation.
Complete Part 1 for applicable depreciation adjustments when you claimed federal ACRS depreciation. Complete Part 2 when you dispose of covered property. For outside-New York property switched to IRC section 168 depreciation, the disposition adjustment takes into account only the years before the switch.
For a partnership using ACRS, only the partnership completes IT-399. Individual partners report their distributive shares of the adjustments on their personal income tax returns.
Do not use IT-399 for IRC section 168(k) property. See Form IT-398 instead.
What you'll need
Have the following information available:
- Your name and Social Security number or employer identification number, as shown on your return.
- Property descriptions, dates placed in service, depreciable basis, depreciation methods, and useful lives or rates.
- Your New York depreciation deductions and federal ACRS deductions.
- For disposed property, the disposition date and method, plus total New York depreciation and federal ACRS deductions claimed.
- Whether you claimed an investment credit on Form IT-212 for property listed in Part 2.
Submit an additional property schedule if needed.
If you filed a joint federal return but must file separate New York returns, submit a schedule with each return showing each spouse’s separate amounts as if separate federal returns had been filed, and explain any differences.
How to file
Enter your name and identifying number. Mark the box for the return you are filing: IT-201, IT-203, IT-204, or IT-205. Submit IT-399 with that return. The supplied text does not give a mailing address or e-filing directions.
For Part 1:
- Transfer the column F total to Form IT-225, line 10, using subtraction modification S-210.
- Transfer the column G total to Form IT-225, line 1, using addition modification A-205.
For Part 2, subtract the smaller column total from the larger one and enter the difference on line 5:
- If column D is larger, transfer line 5 to IT-225, line 1, using addition modification A-206.
- If column E is larger, transfer line 5 to IT-225, line 10, using subtraction modification S-211.
Estates and trusts follow those transfer directions for amounts reflected in federal distributable net income. For amounts not reflected in that income, enter them on IT-205, line 2, or IT-205-A, line 7, if allocation is required, treating them as additions or subtractions as appropriate.
Common mistakes
- Depreciating land. Land is never depreciable.
- Using an ACRS recovery period for New York depreciation. Use the useful life or rate provided under IRC section 167. In some cases, it may match the recovery period.
- Reducing passive-activity adjustments because of federal loss limits. The required depreciation modifications use the full allowable federal depreciation amounts, even if federal loss deduction limits apply.
- Including certain 1981 deductions in Part 2. For property placed in service during 1981, exclude ACRS depreciation claimed on the 1981 New York return from column D and on the 1981 federal return from column E.
- Overlooking credit repayment on early disposition. If property for which an investment, retail enterprise, or research and development credit was taken on IT-212 is disposed of or removed from qualified use before its useful life or required holding period ends, add the difference between the credit taken and the credit allowed for actual use to income tax. See IT-212 and its instructions.
Questions people ask
How do nonresidents and part-year residents complete IT-399?
Complete it as if you were a New York resident for the entire year. Transfer the Part 1 and Part 2 amounts to Form IT-225.
Can I switch to IRC section 168 depreciation for covered outside-New York property?
Yes. For covered property placed in service outside New York in tax years beginning after December 31, 1984, but before January 1, 1994, you may choose IRC section 168 depreciation instead of continuing pre-1981 IRC section 167 depreciation. If you switch, you must use section 168 for all your subject property from that tax year forward. The ongoing New York depreciation addition and subtraction adjustments are no longer required.
What counts as a disposition?
Disposition includes sale, exchange, transfer, and obsolescence, but is not limited to those events.
Do spouses filing separate New York returns need separate IT-399 forms?
If you filed a joint federal return but are required to file separate New York returns, complete only one IT-399 using the joint federal amounts. Submit a schedule with each return showing each spouse’s separate amounts and explaining any differences.