Need some help. I've always been under the impression that a piece of equipment depreciates under a parallel AMT method regardless of what is selected for other purposes.
A $70,000 over-the-road rig is selected at 5 yrs DD and half-year convention. Depreciation in year 1 is $14,000. But for AMT this is 5 yrs SL and year 1 we have only $7,000. The so-called "adjustment" for AMT is thus $7,000.
An earlier post said something about s.179 being exempt from AMT adjustment. In other words, if $70,000 is taken all-at-once under s.179, then there is no AMT adjustment on this item? I would have calculated a $63,000 difference.
Which is correct? Thanks in advance. Ron J.
A $70,000 over-the-road rig is selected at 5 yrs DD and half-year convention. Depreciation in year 1 is $14,000. But for AMT this is 5 yrs SL and year 1 we have only $7,000. The so-called "adjustment" for AMT is thus $7,000.
An earlier post said something about s.179 being exempt from AMT adjustment. In other words, if $70,000 is taken all-at-once under s.179, then there is no AMT adjustment on this item? I would have calculated a $63,000 difference.
Which is correct? Thanks in advance. Ron J.
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