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shawndb
Returning Member

How do I enter "alternative minimum tax depreciation allowed or allowable on prior returns" on Adjusted Basis of Home Sold Worksheet

I followed every step instructed in Turbotax, but Smart Check is complaining "alternative minimum tax depreciation allowed or allowable on prior returns" A1 on  Adjusted Basis of Home Sold Worksheet is empty. 

 

I rented my home some time in the past few years on and off, and I didn't take depreciation some years (bad idea). So how should I fill this blank here? Any difference to "10 Depreciation allowed or allowable on prior returns"? 

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4 Replies
shawndb
Returning Member

How do I enter "alternative minimum tax depreciation allowed or allowable on prior returns" on Adjusted Basis of Home Sold Worksheet

Should I look back all the "Form 4562 Alternative Minimum Tax Report" and sum all the depreciations?

How do I enter "alternative minimum tax depreciation allowed or allowable on prior returns" on Adjusted Basis of Home Sold Worksheet

"I didn't take depreciation some years (bad idea)." see a tax pro. the tax laws require you to recapture the depreciation you should have taken while it was a rental even if you didn't actually take the deduction.

yo can not just ignore this nor take the deduction in the year of sale without filing form 3115.  and TT can be problemsome to work with when there is on again off again depreciation. it just was not designed for this.

    

shawndb
Returning Member

How do I enter "alternative minimum tax depreciation allowed or allowable on prior returns" on Adjusted Basis of Home Sold Worksheet

Thanks for your reply. Yes, I have calculated the recaptured depreciation in "10 Depreciation allowed or allowable on prior returns" What is the difference between "10 Depreciation allowed or allowable on prior returns" and "A1 alternative minimum tax depreciation allowed or allowable on prior returns"then?

KrisD15
Expert Alumni

How do I enter "alternative minimum tax depreciation allowed or allowable on prior returns" on Adjusted Basis of Home Sold Worksheet

Yes

If you were subject to Alternative Minimum Tax, the depreciation for that tax year may have been reduced. 

If this was the case for you, yes, you will need to add those amounts of depreciation in place of what would have been the amount if not for AMT. 

 

"For AMT purposes, you generally must depreciate (deduct) business assets over a longer period of time than you can for regular tax purposes. This creates a difference between regular tax depreciation and AMT depreciation."

 

AMT

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