Related topics

AMT Book Overview

AMT Book Defaults

AMT Exemption for Small Business Corporations

AMT Depreciation Adjustment After 1998

Note: AMT is repealed for corporations for tax years beginning January 1, 2018 and later by the Tax Cuts and Jobs Act of 2017. If you are no longer using the AMT book, you can rename your AMT book and use the book for a different purpose.

Besides exempting qualifying small corporations from the Alternative Minimum Tax, the Taxpayer Relief Act of 1997 made two significant changes to the AMT Depreciation Adjustment, effective for property placed in service after December 31, 1998:

  • The AMT Depreciation Adjustment is eliminated for property that is depreciated for regular tax purposes under the straight-line method.
  • The recovery periods for calculating AMT depreciation on all other property will be the same as for regular tax purposes, which will decrease the amount of the AMT Depreciation Adjustment.

There is no AMT adjustment for property taking the 168 Allowance. If a +168 depreciation method is selected for the Tax book, the same method and life defaults for the AMT book.

For assets placed in service in 2016 and later, there is no AMT adjustment for property that qualifies for the168 Allowance. If either a +168 depreciation method or a non -168 Method (such as MACRS) is selected for the tax book, the same method and life defaults for the AMT book.