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eyeman1
Level 1

Like Kind Exchange AMT basis entry

My like kind exchange occurred with sale 12/30/2019 and traded property received (2 rental properties) in February 2020 and March 2020. I think I have all the data entered as needed (although I am never certain on this), but concerned regarding inputting the AMT depreciable basis.

 

Is there information on how to handle this?

I assume I need to do this within the Schedule E for the received property.

I can go to the Asset Life History form and correct all the 28 years of AMT Prior Depreciation and AMT Deduction for the year. I don't think though that this transfers to the 6251. 

 

I don't see anywhere on the Form 4562 to put any AMT info; and, there is no place on the Form 4562 AMT Depreciation Report to OVERRIDE. The Depreciation Report doesn't show the AMT info.

 

Am I each year to go to the Asset Wks form under the Sch E and OVERRIDE line 12 AMT prior depreciation and line 13 AMT depreciation deduction and ignore the other info I am speaking about above.

 

Any assistance would be appreciated.

 

(BTW in these discussion groups where is the info as to what a "Level 6" represents?)

 

 

1 Best answer

Accepted Solutions
martinmarks
Level 10

Like Kind Exchange AMT basis entry

Are you using 2 schedules or 1 each for the replacement properties? 

https://www.accruit.com/blog/what-are-1031-exchange-depreciation-options

There's an AMT report somewhere in the software and it should show AMT info....I think....might want to check with customer service on that because these deals are hard to input. 

The levels seem to be built on the number of posts and maybe a few other things.

View solution in original post

2 Replies
martinmarks
Level 10

Like Kind Exchange AMT basis entry

Are you using 2 schedules or 1 each for the replacement properties? 

https://www.accruit.com/blog/what-are-1031-exchange-depreciation-options

There's an AMT report somewhere in the software and it should show AMT info....I think....might want to check with customer service on that because these deals are hard to input. 

The levels seem to be built on the number of posts and maybe a few other things.

eyeman1
Level 1

Like Kind Exchange AMT basis entry

Thanks so much for your response, which I have totally missed until now, yet have been working to resolve my issue a few times with customer service.  The blog you attached was also quite enlightening and for me likely for another future transaction.

 

Regarding this transaction I am doing a different schedule E for each of the two new properties and there is some ease related to the purchase prices actually being within about $26.00 of each other.

 

On the Asset wks for the schedule E property I have learned that line 53 allows placing a new AMT basis (even thought there is a typo on the form referring to line 3 which is the date line rather than line 4 which is the total cost when acquired.)

 

I still have a question related to land not being depreciable.  I am using 20% of cost for the new property as a safe reduction to not be depreciated. That works for regular depreciation, BUT it would seem I wouldn't reduce the AMT basis by any additional land amount as that was already considered in the calculation of the AMT basis on the form 8824.. The program automatically reduces the AMT basis by the amount of  the land cost from line 8, and I dont think that is appropriate as the land cost was already factored out in calculating the AMT basis on the form 8824. Not sure what to do about that. Not certain whether to let that happen (reducing AMT cost basis to close to zero), add back all of the land cost to the AMT basis or reduce the AMT basis calculated from the form 8824 by another 20%.   Any thoughts would be greatly appreciated.

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