If you bought the property in the year 2000, it is very likely that the AMT depreciation and regular depreciation are the same. However, if you are including appliances, they may be subject to an adjustment.
Step 1
Fill out the Form 1040 worksheet to see if it directs you to complete Form 6251 - Line 45 in the AMT section of the Form 1040 instructions. This will determine whether you are subject to AMT. The IRS also provides an AMT Assistant on their website to help identify the need for AMT.
Step 2
Identify the method of depreciation used. If you are using the straight-line method of depreciation, none of your depreciation is subject to the AMT.
Step 3
Recalculate depreciation for the tax year using the straight-line method. The straight-line method of depreciation spreads the cost of the asset, less the residual value of the asset, evenly across each period of the useful life of the asset.
Step 4
Subtract the depreciation calculated using the straight-line method from the depreciation calculated using any other method. This is the amount of depreciation subject to the AMT.
Appendix A contains the MACRS Percentage Table Guide, which is designed to help you locate the correct percentage table to use for depreciating your property. The percentage tables immediately follow the guide.
