Alternative Minimum Tax Report
The Alternative Minimum Tax Report is not currently required and may have not been required in previous years due to other changes in the tax law.
AMT is repealed for corporations under the Tax Cuts and Jobs Act of 2017 for tax years beginning January 1, 2018 and later. AMT depreciation calculations and related ACE adjustment for assets put into service from 1990 through 1993 are no longer required.
Purpose
For each asset selected, the Alternative Minimum Tax report shows the difference between Tax and AMT book depreciation due to Alternative Minimum Tax requirements. It also shows Tax Preferences and Adjustments that arise from that difference.
If a corporation is exempt from AMT (under the rules prescribed by the Taxpayer Relief Act of 1997), it would close the AMT book, as well as the ACE book, for the first year beginning after December 31, 1997. After you close the AMT book, the AMT report is unavailable.
To run this report, the AMT book must be open.
Before you run the Alternative Minimum Tax report, be sure you have calculated depreciation for the Tax and AMT books on the assets for which you want to run this report. The assets' current through date in both of these books must be the same as the run date for the report.
The amount of Tax Preferences and Adjustments provides one piece of information needed to determine if your company is subject to the AMT. If it is, you may want to reduce the depreciation method percentage (for example, from 200% to 150%) for applicable assets.