Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
richards1melanie
New Member

How do I calculate the AMT allowable depreciation for my car?

 
1 Reply
Coleen3
Intuit Alumni

How do I calculate the AMT allowable depreciation for my car?

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


Dynamic AdsDynamic Ads
Privacy Settings
v