I have one step left to file and it takes me to the AMT line on my 1031 exchange. I have a regular tax amount in that block but no AMT amount. I looked at the 8824 and it seems to list '0'? do I enter a '0' amount or how do I figure the AMT. I paid more for the new property than the old rental.
Your regular tax amount and AMT are probably the same. If the property is just the building, it was depreciated using straight-line so no adjustment is needed. If you included appliances, then you would need to make 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.
very helpful, maybe I am reading this wrong, but in reading the 6251 it is a bit confusing as to the AMT amount. One line seems to indicate '0', another '$2850'. The actual wording for the additional info in question is, "additional information regarding like-kind property given up." under 7 O, "adjusted basis of like-kind property given up". I have a regular tax figure but no AMT figure. Maybe this is clearer.
Thanks