Any Maine tax experts out there?

Technical topics regarding tax preparation.
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Hi,

My client is a Calfornia resident. He exchanged real property outside Maine for property located in Maine. For federal tax purposes there is a carryover basis for depreciation. My question is does Maine require use of the federal carryover basis? Or can we create a separate Maine depreciation schedule based on the actual purchase price?

As a hypothetical example. Suppose California property with a FMV of $1M and an adjusted basis of $600K was exchanged for property in Maine with FMV of $1.5M by paying $500K boot in the transaction. For federal tax purposes the depreciable basis of the Maine replacement property is $1.1M ($600K adjusted basis+ $500K boot). Is the depreciable basis of the Maine property $1.1M or $1.5M? (I'm ignoring land values in my example, let's assume both properties are subject to a land lease.)

Thanks for your help!
 

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