Depreciation and AMT

[JG EA]

I am editing my post to get any ideas you may have. Hopefully this question is more understandable:

When do you depreciate using AMT instead of Regular Macrs?

[Roland Slugg]

When do you depreciate using AMT instead of Regular Macrs?

All the time. Then report the net difference for non-passive activities on F-6251. The adjustment can be either positive or negative. The adjustment for passive activities is part of the F-8582 calculations and needs to be tracked ... presumably by your tax prep software.

[OtisMozzetti]

Where business use might drop

Where there is a highly possibility that business use percentage may drop to 50% or less (typically it drops to 0% business use) before the asset is fully depreciated, I suggest use of ADSSL (alternative depreciation system straight line) to begin with. That avoids the possibility of eventual recapture.

Even though I understand about the time value of deduction money, slower depreciation is not all that much less desirable. With many businesses, a deduction later when profit has become established is an even better way to hold down self-employment tax and/or other tax.

[JG EA]

Thank you for your replies. I should have posted for Sch. C.

We have finally rounded the bend and AMT is now less for some assets. Client always wants as low as tax as possible and even with AMT we again this year (with the new assets) get a much better result with regular MACRS. I 'm trying to have a fuller picture of the overall effect on client's situation.

In one year of NOL I did do the 150DB. But the rest of the time even with the AMT on the excess depreciation we did better without it. We are always already taking the maximum 179 so I'm talking about the other new assets each year.