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sidekickin
Level 3

Am I Subject To Alternative Minimum Tax?

I have a passive income investment with property I am leasing to a business.  It is 5-year property for depreciation purposes, eligible for bonus depreciation, but I will probably opt out of the bonus depreciation and use straight-line depreciation.  The depreciation deduction each year will completely offset the rental income for the 5-year depreciation period.  So, I will not be showing taxable income for the first 5 years on the investment.  Am I going to be subject to the alternative minimum tax for this?  It is only a passive income investment (not a business), and my primary source of income is W-2 income from my job.   So, I will be paying income taxes each year for my job, but the investment itself will not show taxable income for 5 years.   

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GeorgeDenseff
Level 8

Am I Subject To Alternative Minimum Tax?

Possibly.  There is no quick and easy formula to compute Alternate Minimum Taxes.  You can use tax planning software like Intuit Taxcaster.  

There is not a version for five years from now, but you can get an idea based on what your projections will be,  The threshold will probably be changed.  They are currently ridiculously low.

Alternative Minimum Tax: Common Questions - TurboTax Tax Tips & Videos (intuit.com)

 

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GeorgeDenseff
Level 8

Am I Subject To Alternative Minimum Tax?

Possibly.  There is no quick and easy formula to compute Alternate Minimum Taxes.  You can use tax planning software like Intuit Taxcaster.  

There is not a version for five years from now, but you can get an idea based on what your projections will be,  The threshold will probably be changed.  They are currently ridiculously low.

Alternative Minimum Tax: Common Questions - TurboTax Tax Tips & Videos (intuit.com)

 

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