What Depreciation Must Be Refigured for the AMT?
Generally, you must refigure depreciation for the AMT, including depreciation allocable to inventory costs, for: • Property placed in service after 1998 that is depreciated for the regular tax using the 200% declining balance method (generally 3-, 5-, 7-, and 10-year property under the modified accelerated cost recovery system (MACRS), except for qualified property eligible for the special depreciation allowance (discussed later on this page)); • Section 1250 property placed in service after 1998 that is not depreciated for the regular tax using the straight line method; and • Tangible property placed in service after 1986 and before 1999. (If the transitional election was made under section 203(a)(1)(B) of the Tax Reform Act of 1986, this rule applies to property placed in service after July 31, 1986.) What Depreciation Is Not Refigured for the AMT? Do not refigure depreciation for the AMT for the following. • Residential rental property placed in service after 1998. • Nonresidential
