How do I determine AMT prior depreciation?

null319 — Thu, 06 Jun 2019 18:05:43 GMT

For what type of asset?

Coleen3 — Thu, 06 Jun 2019 18:05:45 GMT

For what type of asset?

car

sws8 — Thu, 06 Jun 2019 18:05:46 GMT

car

If this is a rental home, you don't have to. MACRS actual...

Coleen3 — Thu, 06 Jun 2019 18:05:48 GMT

If this is a rental home, you don't have to. MACRS actually uses a straight-line depreciation for it. If it is any other type of asset, see below. Straight-Line depreciates the asset over an equal amount each year while MACRS gives you a bigger deduction up front.

Step 1

Fill out the Form 1040 worksheet to see if you 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.

https://www.irs.gov/pub/irs-pdf/p946.pdf

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How do I determine AMT prior depreciation?

For what type of asset?

car

If this is a rental home, you don't have to. MACRS actual...