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1065 AMT Deprecation Report: Don't Want Asset Depreciation Refigured for the AMT

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February 2, 2023
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Where can I denote that my asset depreciation is not refigured for the AMT minimum? I have 5 and 7yr assets where the standard AMT is depreciation is 150DDB/HY, but I need the schedule to say 200DDB/HY because the depreciation is not refigured for my LLC. I am getting an error message when I manually change the AMT depreciation method to 200DDB. Is there a place where you can tell Turbo Tax Business not to refigure these amounts?

TurboTax Business Windows

Best answer by AliciaP1

The only way your assets would not be refigured and could use 200DDB/HY for the AMT calculation is if they are not section 1250 property AND were placed in service before 1999. Any non-section 1250 property placed in service after 12/31/1998 is required to use the 150DDB/HY and then switch to the straight-line method in the first year that calculation would provide a larger deduction for the partner. This rule is slightly different if the partner of the LLC is an estate or trust, but only for assets placed in service before 1999.

Per the IRS Instructions for Form 1065:

Alternative Minimum Tax (AMT) Items

Lines 17a through 17f must be completed for all partners.

Enter items of income and deductions that are adjustments or tax preference items for the AMT. See Form 6251, Alternative Minimum Tax—Individuals; or Schedule I (Form 1041), Alternative Minimum Tax—Estates and Trusts, to determine the amounts to enter and for other information.

Per the IRS Instructions for Form 6251:

How Is Depreciation Refigured for the AMT?

AliciaP1Answer

The only way your assets would not be refigured and could use 200DDB/HY for the AMT calculation is if they are not section 1250 property AND were placed in service before 1999. Any non-section 1250 property placed in service after 12/31/1998 is required to use the 150DDB/HY and then switch to the straight-line method in the first year that calculation would provide a larger deduction for the partner. This rule is slightly different if the partner of the LLC is an estate or trust, but only for assets placed in service before 1999.

Per the IRS Instructions for Form 1065:

Alternative Minimum Tax (AMT) Items

Lines 17a through 17f must be completed for all partners.

Enter items of income and deductions that are adjustments or tax preference items for the AMT. See Form 6251, Alternative Minimum Tax—Individuals; or Schedule I (Form 1041), Alternative Minimum Tax—Estates and Trusts, to determine the amounts to enter and for other information.

Per the IRS Instructions for Form 6251:

How Is Depreciation Refigured for the AMT?

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ihave1taxquestionAuthor

Thank you for this answer. It was very helpful. I don't know why/how all my AMT schedule has 200DB as an AMT Method. It looks like that is not an option under any circumstance.