House Depreciation vs. AMT Depreciation

[anewton_2]

I sold my rental house and have the depreciation that someone from the Live Turbo Tax team had me put in the depreciation section under where I listed my earnings for the house.  There is a section that says AMT depreciation.  The tax advisor told me to leave that blank and not enter a zero.  When I did my review the AMT depreciation came up.  I only rented the house for 6 years and the house was 11 years old.  From what I can read AMT is not subject on that, is that true and do I ignore that part on the review?

[AmeliesUncle]

Enter the same amount as regular depreciation.

[anewton_2]

From what I read the AMT is an additional tax on the depreciation, separate from the original depreciation and it is only for certain situations.  Am I incorrect and was I told wrong?  I was told to only put my depreciation in the depreciation box and leave the AMT blank from someone that was trying to help me over the phone yesterday.

Lived in the house from 2010-2015, Rented my house from 2015-2021

The section says:

Enter the total amount of depreciation you deducted (or were allowed) on this home after May 6, 1997.  If you claimed depreciation in 1997.  calculate the depreciation for the part of the year after May 6, 1997.

Note:  Only report here depreciation that was NOT reported as a separate business sale.

Depreciation After May 6, 1997 ___This is where I put the depreciation______________

AMT Depreciation After May 6, 1997 ____By leaving this part blank, prompted the review to have me check this section again.____________

[AmeliesUncle]

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@anewton_2 wrote:

From what I read the AMT is an additional tax on the depreciation, separate from the original depreciation and it is only for certain situations. 

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No, AMT (Alternative Minimum Tax) is an additional tax on regular tax (not depreciation).   Depreciation is one factor for AMT, so that is why you need to enter an AMT amount for depreciation (so the program can determine if you are subject to AMT or not).

However, in your case AMT depreciation is the same as regular depreciation, so enter the same amount.

The program automatically will determine if you are subject to AMT, but due to recent law changes, there aren't as many people subject to AMT anymore.   When you are finished with your tax return, you can look at line 1 of Schedule 1 or Form 6251 to see if AMT is being applies.  But again, the only reason why you need to enter AMT depreciation is so the program can determine if you are subject to AMT or not.

[Mike9241 · Accepted solution]

amt marches along with regular depreciation. in most cases, it's the same amount (since 1998?) .  so any regular tax gain should be the same as the amt tax gain resulting in no AMT additional gain.

you need to enter the amt depreciation otherwise Turbotax will assume you took none 

[anewton_2]

Thank you for the clarification.  I really appreciate it.