AMT depreciation for convenience store equipment

Forum|Forum|6 years ago
February 17, 2020
4 replies
47 views

The equipment falls under " 57.0 distributive trades and services" for determining a depreciable life of 5 years for regular tax and AMT purposes. For regular tax, 200DB is used. What depreciation method should be used for AMT- 150DB? The software is not showing any AMT adjustment.

ProSeries Professional

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Best answer by TaxGuyBill

Okay, my first response was mostly wrong.

If it QUALIFIES for Bonus Depreciation (even if you elect out), you use 200% and there is no adjustment.

If it does NOT qualify for Bonus Depreciation, you use 150% and there will be an adjustment.

From the 6251 Instructions:

Qualified property that is or was eligible for a special depreciation allowance if the depreciable basis of the property is the same for the AMT and the regular tax. ... If you elected not to have any special depreciation allowance apply, the property may be subject to an AMT adjustment for depreciation if it was placed in service before 2016. It isn’t subject to an AMT adjustment for depreciation if it was placed in service after 2015.

https://www.irs.gov/instructions/i6251#idm140490139709168

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TaxGuyBill

Yes, 150%.

Are you using Bonus Depreciation or §179? If so, then there won't be an AMT adjustment.

It is working for me. You can double check the AMT/150% if you scroll WAY down on the Asset Entry Sheet.

G

GP52_2Author

Level 2

Thank you for your reply. I am not taking Sec 179 deduction or bonus depreciation. I used a "Type" code of R on the asset entry worksheet, which I think is correct. The software is showing the same depreciation for regular tax and AMT purposes. If I override 200DB with 150DB at the bottom of the asset entry worksheet for AMT depreciation, the software still calculates the same depreciation for regular tax and AMT (using 200DB).

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TaxGuyBillAnswer