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TaxACT and Yellow Alert on Form 6251 AMT-Individuals, Line 17 CT 03-20-2008
Posted by CT on March 20, 2008, 3:06 pm
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 Good Afternoon,

(I posted this to biz.comp.accounting and realized immediately
afterwards that it may not be the proper forum for my question, so I'm
posting it here also)

I have completed our tax return for 2007 using TaxACT (importing 2006
return to aid in this), except for one entry that has me puzzled.

In previous year's returns, the K-1 Box 15a entry was always a
negative amount. This year it's a positive amount: $1,754. And is
flagged by TaxACT as a yellow alert. TaxAct states:


----------------
"A calculation has been made with TaxACT of the difference between
depreciation allowed for the regular tax and depreciation allowed for
the AMT for assets in the system acquired after 1986 of $0 for Form
6251. The amount shown below includes any entries from Partnership
K-1s, S-corporation K-1s, and trust or estate K-1s. Make any
adjustments that may be needed.

Post-1986 depreciation difference between regular tax and AMT:
$1,754
Check here if no additional adjustments are
needed: ______

Difference between regular and AMT depreciation are also be sorted
(sic) according to passive activities which appear on line 18."
----------------


The K1 is for my husband's S-corporation (50% ownership) and line 18
on form 6251 is blank (as it should be according to the K-1). I don't
understand what adjustment may need to be made. Or if an adjustment is
even necessary (check box or not check box? and then...?).

The forms being filed this year are: 1040, Sch C (my biz), Sch E
(husband's biz), Sch SE (my biz), and 4562 Depreciation and
Amortization (husband's biz).

It's quite likely I haven't supplied enough information for you to
help me. If this is the case please tell me what further information
you need.

Would appreciate some positive feedback if you are able to help.

Thank You.
Cheryl

--
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Posted by removeps-groups@yahoo.com on March 25, 2008, 3:48 pm
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> In previous year's returns, the K-1 Box 15a entry was always a
> negative amount. This year it's a positive amount: $1,754. And is
> flagged by TaxACT as ayellowalert. TaxAct states:
>
> ----------------
> "A calculation has been made with TaxACT of the difference between
> depreciation allowed for the regular tax and depreciation allowed for
> the AMT for assets in the system acquired after 1986 of $0 for Form
> 6251. The amount shown below includes any entries from Partnership
> K-1s, S-corporation K-1s, and trust or estate K-1s. Make any
> adjustments that may be needed.

See the post "landlord question - how to refigure schedule E for AMT?"
where it states that depreciation allowed under the AMT may be less.

Is line 15a the credit for low income housing?

If you remove the word "TaxAct" or other program from your subject,
you'll likely get more responses, as people will assume this is a
TaxAct issue, whereas it is more generally about depreciation under
AMT.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>

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