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ralstonm
New Member

How is Line 15 (AMT) code A on the K-1 form calculated and where can I find this calculation ?

 
1 Best answer

Accepted Solutions
Rick19744
Level 12

How is Line 15 (AMT) code A on the K-1 form calculated and where can I find this calculation ?

The 1986 tax act made sweeping changes to cost recovery (depreciation).  As a result, any taxpayer capitalizing an asset was required to maintain two sets of depreciation records; regular depreciation and alternative minimum tax depreciation.  In addition, many states have different cost recovery methods, so this could also require a third set of depreciation records.

As a result, when you capitalize a new asset, TT will ask a number of questions in determining the life and method of depreciation for each asset.  Once this is complete each asset will most likely have two different depreciation amounts; one for regular tax purposes and another for alternative minimum tax purposes.

The difference between these two figures is what is reflected on line 15 code A.  Following this further, when the asset is sold, there could be a different gain or loss on the sale due to the different depreciation figures.  This difference is then reflected on line 15 code B.

Both of these two amounts then flow to your 1040 form 6251 when determining if you are subject to the AMT.

You should be able to find these amounts in a depreciation report.

*A reminder that posts in a forum such as this do not constitute tax advice.*

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3 Replies
Rick19744
Level 12

How is Line 15 (AMT) code A on the K-1 form calculated and where can I find this calculation ?

The 1986 tax act made sweeping changes to cost recovery (depreciation).  As a result, any taxpayer capitalizing an asset was required to maintain two sets of depreciation records; regular depreciation and alternative minimum tax depreciation.  In addition, many states have different cost recovery methods, so this could also require a third set of depreciation records.

As a result, when you capitalize a new asset, TT will ask a number of questions in determining the life and method of depreciation for each asset.  Once this is complete each asset will most likely have two different depreciation amounts; one for regular tax purposes and another for alternative minimum tax purposes.

The difference between these two figures is what is reflected on line 15 code A.  Following this further, when the asset is sold, there could be a different gain or loss on the sale due to the different depreciation figures.  This difference is then reflected on line 15 code B.

Both of these two amounts then flow to your 1040 form 6251 when determining if you are subject to the AMT.

You should be able to find these amounts in a depreciation report.

*A reminder that posts in a forum such as this do not constitute tax advice.*
ralstonm
New Member

How is Line 15 (AMT) code A on the K-1 form calculated and where can I find this calculation ?

Thank you for this explanation.
Rick19744
Level 12

How is Line 15 (AMT) code A on the K-1 form calculated and where can I find this calculation ?

Welcome
*A reminder that posts in a forum such as this do not constitute tax advice.*
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