Hi Dear Community -
Please help me understand:
In my past return, I see two forms (one regular and one AMT) for Schedule D, Depreciation and Form 8582 (Passive Acitivity Loss Limitations). Why? A bit confused. NO actual Form 6251 (AMT) is there.
Thank you.
Alternative Minimum Tax (AMT) is a parallel tax system that is calculated in the background as you prepare your return. If it turns out that you owe AMT for a particular tax year, then Form 6251 will be included in your return.
The AMT version of Schedule D, Depreciation, and Form 8582 are in your return because there could be some differences in those forms between the 'regular' tax and AMT. All of these forms can carryover information from one year to the next and the AMT information is needed to be carried over in case you are subject to AMT in the future.
@AnnetteB6 - thank you. How do you carry AMT information from past years in TT Desktop? Could you please advise.
Will TT automatically produce separate AMT forms/schedules in addition to regular tax way? I have switched from CPA to TT this year so I found double forms (regular tax and AMT) in my past returns done by CPA.
As you are going through your return, pay close attention to questions related to loss carryovers from previous years. These are the areas that you will enter information about regular tax and AMT carryover amounts.
Yes, TurboTax will automatically create two versions of the applicable forms to keep track of regular tax and AMT.
@Anonymous
@AnnetteB6 - thank you. Is there any value in tracking AMT loss carryovers? I see that accumulated depreciation is also different for regular tax and for AMT depreciation for rental houses. I am a bit confused why I see differences in passive loss carryforwards - regular tax and AMT.