Why are some assets not included on the Alternative Minimum Tax (AMT) Worksheet?

The AMT Worksheet is designed to report depreciation preferences and adjustments for ACRS and MACRS assets.

  • Only assets with an ACRS or MACRS method in the Tax and AMT treatments print on the worksheet. For example, because the method 200% DB is not a MACRS method, assets that depreciate using this method do not appear on the worksheet.
  • If the AMT column is blank, the ACRS and/or MACRS asset will not print the AMT Worksheet.
  • AMT preference for ACRS is calculated differently than the AMT adjustment for MACRS assets.
    • MACRS assets with a zero adjustment do not print on the worksheet. For MACRS assets, the AMT depreciation add back is calculated in the following manner.

      Tax Depreciation - AMT Depreciation = the adjustment (for MACRS assets)

      The MACRS adjustment is calculated on all assets - personal property and real property. The adjustment can be negative or positive. MACRS assets will print on the worksheet if Tax - AMT = a positive or a negative number.

    • ACRS assets with a negative or zero preference do not print on the worksheet. For ACRS assets, the preference is calculated only for real property or for leased personal property for a personal holding company.

      Note: This is why the AMT column for ACRS personal property assets is not automatically entered during data entry. If you force the calculation of the AMT column, you are indicating that the property is leased personal property for a personal holding company.

      The AMT preference is only a positive adjustment; if the preference is a negative amount, it is not used. The calculation is performed on an asset-by-asset basis. ACRS assets will print on the AMT worksheet if the following is true

      Tax current depreciation - AMT current depreciation = positive number

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