Idaho State Tax Commission

Idaho State Tax Commission

Tax Commission News Release

Idaho conforms to part of federal tax code, but not to bonus depreciation

BOISE, IDAHO — Feb. 24, 2011 — The Idaho Legislature recently passed a law to conform to part of the Internal Revenue Code (IRC) as of Jan. 1, 2011. However, Idaho didn’t adopt the changes to IRC section 168(k), which extended and increased amounts allowed for bonus depreciation for property acquired and placed in service after 2009. Taxpayers who claim this bonus depreciation on their federal tax return must adjust it on their Idaho income tax return.

Idaho conforms to provisions in federal acts passed after Feb. 17, 2009, and in 2010. And it also conforms to the IRC section 179 expense provisions for depreciable assets. Taxpayers can claim the 179 expense on their Idaho return to the extent they claim this deduction on their federal income tax return.

For more information about the differences between Idaho and federal law and to get instructions on how to adjust bonus depreciation on the 2010 Idaho return, visit (click on “Tax Preparers” under the “Tax Professionals” drop-down box, then “IRC Conformity” under the Miscellaneous section).


Posted 02-24-2011

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