AMT depreciation

[prbailie]

In my 2017 there is an entry on form 4562 (

Alternative Minimum Tax Depreciation Report) under the column Adjustments/Preferences in the amount of $399. Apparently this has been added to the depreciation amount in my Schedule E.  How is this calculated?  Thank you.

[GiseleD]

AMT Depreciation Adjustments

If an accelerated depreciation method is used, a taxpayer may be subject to an alternative minimum tax (AMT) depreciation adjustment.

AMT adjustment required

Depreciation must be recomputed for purposes of the AMT for the following property.

• Property placed in service after 1998 that is depreciated for regular tax purposes using the 200DB method, except for qualified property eligible for the special depreciation allowance.

• Section 1250 property placed in service after 1998 that is not depreciated for regular tax using the SL method.

• Tangible property placed in service after 1986 and before 1999.

Please click here for more information. Information about these calculations starts on page 5. 

[9month9wine]

Hi,

I have the same question about how the Adj/Pref value in Form 4562 was calculated.

In  my case, Line 1 in Schedule 2 is $0/empty. Line 11 in Form 6251 is $0. This means I do not own AMT, right?

Why depreciation amount was adjusted then? And when depreciation amount was increased, this will increase the expense and reduce the rental net income. Can not understand the purpose and logic of depreciation adjustment.

Can someone help me here?

By the way, TurboTax Form Mode is not good at tracing back values. And this is not convenient for users to check the result.

[sc98]

Hello,

TT is calculating an adjustment in the AMT depreciation, even though my properties do not hit any of the AMT requirement. In our prior year return (2023), we had no AMT depreciation either (not filed with TT). What can I do so that TT is not doing the AMT depreciation for my properties? These are foreign residential properties that we rent out to others that are in service in year 2021 and after. Last year all properties use straight line 30 years depreciation.

Thanks a lot in advance for any tips on this.