PatrickSanford
Level 2

From what I can tell, ProConnect is not doing a good job calculating AMT depreciation.

 

For AMT, you have to use ADS. If the life is 10 years or less, you can use 150% declining balance.

 

But I just had a furniture and fixture that I elected to depreciate under ADS SL 10-years for regular tax. AMT depreciation schedules. Here's my input below:


ProConnect Desk Chair.PNG

 

As you can see, the input for the method is 7-year SL, but with a life of 10 years. (The election for ADS is on the elections screen). AMT ignored the life completely and but did pick up the SL. So, it depreciated this asset for 7 years, SL.

 

If I remove the 10 year class life, and use the 7-year 200% Double Declining Balance, for AMT, the AMT depreciation schedule USES 7-YEAR 200% DOUBLE DECLINING BALANCE!!! It's wrong! It's not allowed!

I mean, there isn't a way to easily switch from GDS to ADS, or from 200% declining balance to 150% declining balance, at least not from the depreciation input screens. There's a whole lot of, "you better know what you are doing, cause the software only helps you if you do know what you are doing."

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