[jcw1503]

The Ninja Notes state to know the “Difference between 200% MACRS and 150% MACRS on personal property”, however I scanned my CPAExcel and the internet and I cannot find a clear explanation as to the differece. Please someone help?

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[Anonymous]

It comes into play when computing AMTI:

[Regular Taxable Income +/- AMT Adjustments + AMT Tax Preferences] = Alternative Minimum Taxable Income

The difference in MACRS %'s acts as a positive/negative AMT adjustment.

[MICPA87]

To add onto what Casey said: this is a moot point when you elect section 179 or bonus depreciation for an asset as there is no AMT adjustment required. However, if you do elect regular MACRS, you are only allowed to depreciate it 150% for AMT purposes. I also recall that 150% MACRS is used to depreciate certain farm equipment.

FAR(11/14/11)- 92
AUD(01/04/12)- 91
REG(05/30/12)- 93
BEC(07/21/12)- 88

CPA - Michigan

[Author]

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