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.
https://www.irs.gov/pub/irs-prior/i1040gi--2017.pdf#page=46NO