TaxGuyBill
Level 15

@hananb21 wrote:

This is the 4th year of a 5 year life. previous 3 years went perfectly  with proper accumulated depreciation. Proseries adjusted current year Depreciation $459 for AMT in 2018. This year it made a reduction of $1,767 for AMT. Doesn't make sense. Since nothing changed from last 2018.


That sounds right.  🙂

AMT depreciation uses 150%DB.  Your regular depreciation uses 200%DB.  Those adjusted amounts are the difference for each year.  Because of the different schedule of depreciation, the adjustment will be different each year.

So let's say you have a Dump Truck with a Basis of $34,000.  These are the depreciation amounts for each year:

 200%DB (Regular Depreciation)150%DB (AMT Depreciation)Difference (AMT Adjustment)
Year 1$6800$5100-$1700
Year 2$10,880$8670-$2210
Year 3$6528$6069+$459
Year 4$3917$5664+$1757
Year 5$3917$5664+$1757
Year 6$1958$2832+$874
    
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