arandersen
Level 3

I get the "review the amt nol entry for depreciation" diagnostic every year on an S corp return that has a negative number for the Post '86 AMT Depreciation Adjustment. A negative number will appear when AMT depreciation is higher, rather than lower, that regular depreciation. I believe this happens in the later years of an asset when regular depreciation has been all used up but there is still AMT depreciation. If you have enough of those assets, it can result in a net negative Post '86 AMT Depreciation Adjustment. 

Anyway, having a negative Post '86 AMT Depreciation Adjustment is a good thing. It has eliminated a client's AMT. But back to the diagnostic. I believe it is caused by having zero for your "amt nol entry for depreciation" while also have a negative Post '86 Depreciation Adjustment. Because zero is greater than a negative number.

And it's just a diagnostic, not an error. Which means it might be a problem or it might not. When it happens, I carefully review the AMT schedule and worksheets. They always check out so I ignore this diagnostic as it has never popped up except on the one return that has a negative Post '86 AMT Depreciation Adjustment. And so far, no problems.

Maybe I am way off base, but these are my thoughts. 

PS: I you want to calculate NOL and NOL carryover, you need to put the return in Pro, not Basic. Pro is available on a pay per return basis, so you can use Pro for the difficult returns.

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