Amt Q

[JG EA]

Here's a question that stumps me. Maybe someone knows?

Asset broken - took rest of depreciation this year.

Client has AMT.

Does the AMT depreciation match the extra taken? Or do I leave the AMT figured for the year as an adjustment on 6251? I can't tell from the instructions.

[JG EA]

I changed my question in the hopes it is more understandable.

[Maribeth]

Here's a question that stumps me. Maybe someone knows?

Asset broken - took rest of depreciation this year.

Client has AMT.

Does the AMT depreciation match the extra taken? Or do I leave the AMT figured for the year as an adjustment on 6251? I can't tell from the instructions.

I don't believe that you should of taken the rest of the depreciation this year. The asset was broken, no longer usable, it was disposed of, with a zero selling price. The remaining basis is then recovered on 4797 as a §1231 loss.

The amount that would then go on 6251 is the difference in the loss between regular tax and AMT tax. The depreciation for AMT would have been less than the regular depreciation so the adjusted gain/loss line on 6251 should have a loss number on it.

hth,

Maribeth

[JG EA]

Well I guess I was really out in left field, thanks for getting me back on base. I just wish now that I could go home.